In a year marked by geopolitical upheaval and economic uncertainty, one chief executive has navigated the turbulence to deliver exceptional results. For the third time, The Economist has undertaken its rigorous analysis to identify the world's best-performing CEO in 2025. The prestigious title has been awarded to Armin Papperger of German defence giant Rheinmetall, who led his company to generate a staggering 158% return for shareholders, including dividends.
The Methodology: Separating Skill from Luck
The Economist's selection process is designed to identify genuine leadership excellence. The analysis began with the S&P 1200 index, which covers major economies excluding mainland China and India. Companies were ranked by the excess shareholder returns they generated relative to their sector. From this list, bosses with less than three years in the role were set aside. The top ten formed the initial shortlist, which was then subjected to intense scrutiny to filter out those who benefited from luck or were marred by governance issues.
The initial list of contenders, in ascending order of shareholder returns, included a diverse group of global leaders: Armin Papperger (Rheinmetall), Tom Palmer (Newmont), Okada Naoki (Fujikura), David Zaslav (Warner Bros Discovery), Son Jae-il (Hanwha Aerospace), Sanjay Mehrotra (Micron), J. Paul Rollinson (Kinross Gold), Vladimir Tenev (Robinhood), Kwak Noh-Jung (SK Hynix), and Dave Mosley (Seagate Technology).
Why Other Contenders Were Ruled Out
Several high-profile names were eliminated from contention for specific reasons. Dave Mosley of Seagate and David Zaslav of Warner Bros Discovery were excluded due to poor long-term performance prior to 2024's AI boom and ongoing shaky financial foundations, respectively.
Governance concerns disqualified two more leaders. Okada Naoki of Japan's Fujikura saw his American business head jailed for embezzlement, hinting at oversight failures. Son Jae-il of South Korea's Hanwha Aerospace was embroiled in controversy over a suspected share issuance plan aimed at lowering inheritance taxes for the conglomerate's controlling family, an accusation the group denied.
In other cases, external factors played too large a role. The bosses of gold miners Newmont and Kinross benefited from a 65% surge in gold prices driven by safe-haven demand, rather than pure managerial skill. Similarly, the CEOs of memory-chip makers Micron and SK Hynix rode the wave of demand for high-bandwidth memory (HBM) essential for AI data centres. While Kwak Noh-Jung of SK Hynix was commended for consistent R&D investment, the sector's cyclical upswing was a significant tailwind.
Vladimir Tenev of Robinhood was noted for democratising trading and expanding into new areas like tokenisation and betting, but his company's frequent regulatory run-ins, including a $75 million settlement with American watchdogs in 2025, counted against him.
The Winner: Armin Papperger's Stellar Leadership
This rigorous elimination process left Armin Papperger as the clear and deserving winner. His leadership of Rheinmetall has been both courageous and prescient. Even among European defence contractors booming from increased military spending, Rheinmetall stands out. In 2025, the company secured a slew of major contracts, outbidding competitors, and is expanding into naval shipbuilding via an acquisition agreed in September.
Papperger's conviction is notable. He championed Europe's defence industry long before Russia's 2022 invasion of Ukraine, when the sector was viewed with wariness. His commitment was tested personally in 2024 when American and German intelligence foiled a Russian plot to assassinate him. Despite beefing up his security, he remains undeterred in his mission to help Europe rearm. Now in his role since the start of 2013, Papperger is reaping the just rewards of his foresight and steadfast leadership in a world where strong defence has become paramount.
