Jamaica’s Top C.E.O for 2009 issue
Editorial Anyone who needs a quick but comprehensive education on Jamaica should begin by reading The List of Top 10 CEOs of 2009. Examining the Top CEOs, from Chris Williams to Brian George, it is clear that this isn’t merely about business. It is also about Jamaican history, politics, immigration, economics, international finance and sociology. The story of companies such as Seprod and GraceKennedy, two businesses that stock local pantries with consumer products, tell about the evolution of a manufacturing sector geared to boost domestic production and rely less on the importation of goods especially from North America. The performance of these executives and the companies they lead reflect the health or lack thereof, strengths and vulnerabilities of the Jamaican economy and its place in the global economy. Setbacks and failures usually suggest the need for regulatory reform or a need to curb government intervention in the free market place. The List is also a reminder of the sociology of corporate life in Jamaica. The linen ceiling has been breached but still hangs largely in place. Anya Schnoor is the only female CEO to have broken through, but others, such as Theresa Chin of Montego Bay Ice Company and Fayval Williams of Kingston Properties Ltd., aren’t far off and must be reckoned with in due course. There are many women who sit on the board of directors of Jamaica’s top companies; it is only a matter of time before they progress from director to managing director in much more impressive numbers. The wealth of talent can only be denied for so long. What are the lessons that can be drawn from looking at the personal journeys of the successful CEOs? Most have spent time studying abroad in either the United States or Canada. Some found their calling after early career missteps. All are highly competitive and driven to excellence. Some clearly benefited from important family connections. Many of the CEOs emerged from entrepreneurial backgrounds. Their parents were either business or professional people. The next generation of indigenous CEOs should see the stories of The List as a blueprint for their own future success. As The List continues to evolve, we expect the continued dominance of financial institutions and manufacturers. How long will it take for an indigenous high tech company to break through? Let’s hope we don’t have to wait too long. The challenge is to harvest this nation’s immense intellectual capital, at home and abroad, to make that giant step forward. Other countries have done it; so can Jamaica.
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Andrew J. Skerritt is an assistant professor of journalism at Florida A&M University in Tallahassee, Fla. He grew up on the island of Montserrat and was among the first group of students to take the Consultant Editor: Andrew J. Skerritt CXC exams more than 30 years ago. He studied journalism at Howard University in Washington, D.C. and obtained his master’s in liberal arts from Winthrop University in Rock Hill, S.C. He has worked in daily newspapers for two decades as a reporter, editor and columnist. Most recently, his essays and articles have appeared in Flavour magazine, The Root.com, Rochester Democrat & Chronicles, and the St. Petersburg Times. His first book “Like Kudzu Along a Country Road: The Silent Epidemic of AIDS in America’s South” is scheduled to be published by Lawrence Hill Books in fall 2011.
Credits: Executive Editor: Aldo Consultant Editor: Andrew J. Skerritt Graphic Designer: Miguel Rowe
Find out what’s the latest SME business news and features from Jamaica, the Caribbean and around the world go to our online magazine at www.businessuitemagazine.wordpress.com For all information call 876-631-5418 (o) or 876-280-9192 (m) OR email businessuitemagazine@gmail.com
Publishers: Businessuite News Centre A division of the Blackslate Media Group For all information call 876-631-5418 (o) or 876-280-9192 (m) OR email blackslateholdings@gmail.com --------------------------------------------------------------------Corporate Information: Blackslate Media Group Limited, Kingston 19, Jamaica To learn more about Blackslate go to www.blackslateholdings.blogspot.com
December 2010 Special Edition
International Trends and Developments
Pay for Performance
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CEO Pay for Performance, No Luck
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Survey: CEOs Getting Younger
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AUTO SPECIAL
2010 car of the year
- Jaguar XJ
Cover Story
2010 SUV OF THE YEAR
– HONDA CRV
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P30
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Jamaica’s Top C.E.O
P11 2010 Sport Car of the year
INVESTOR CONFIDENCE NEVER MADE THE LIST. Jamaica’s Top 10 C.E.O for 2009 # 10 ...Brian George
#9.......Patrick Hylton #8.......Stepen Facey #7.......Bruce Bowen #6.......John Gourzong #5.......Alan Barnes & Mark McKenzie #4.......Douglas Orane #3.......Byron Thompson #2.......Anya Schnoor #1.......Christopher Williams
The Mazda RX-8
P14 P14 P17 P18 P19 P20 P21 P22 P23 P24 P25 P26
P35
2010 CROSS OVER of the year BMW X6 M
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“
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A New Business Has Been Setup In Jamaica
STRONGHOLD DATA SOLUTIONS
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The Snow White Effect: CEO’s and their Many Dwarves
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Businessuite Magazine December 2010
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International Trends and Developments
Pay for Performance According to Business Week, the average CEO of a major corporation made 42 times the average hourly worker’s pay in 1980. By 1990 that had almost doubled to 85 times. In 2000, the average CEO salary reached an unbelievable 531 times that of the average hourly worker. “Pay for performance”, tying executive compensation to the financial success of their company, has become very popular in the past decade. In the face of the largest bull market ever, that isn’t surprising. It also isn’t realistic. What CEO honestly believes that all or most of the appreciation in value of their company is due to their own talent? ZD Net’s Total Compensation Vs. Total Return To Shareholders chart (no longer online), shows that total return to shareholders was higher for many companies whose CEO compensation was under $500,000 than for companies who paid their CEOs multi-million dollar compensation.
Workers Unite
The AFL-CIO Executive Paywatch site gives people a lot of information about what they consider “the excessive salaries, bonuses and perks of the CEOs of major corporations”. The site features a calculator that shows how your salary increase over the past five years compares to that of a CEO. They also give you tools to “take action to stop runaway CEO pay.”
Is It Justified?
John Mariotti, president and founder of The Enterprise Group, asks “CEO Pay: How Much is Too Much?” and answers the question himself. Citing Derek Bok, he points out that as business becomes more complex, the demand for top executives increases and thus they command greater and greater pay. He also noted that such huge awards do little to motivate these outstanding performers, who are generally more motivated by challenge. Mike Hughlett, Staff Writer for PioneerPlanet, thinks the reason why CEO pay soars so high is that CEO’s pay generally is set by the compensation committee, usually comprised of other chief executives.
Graef Crystal, writing for the San Francisco Business Times, Uses Steven Jobs, co-founder of Apple Computer to prove his point on CEO compensation: the composition of a CEO’s pay package has nothing to do with his future performance and the CEO may not make all that much of a difference in whether the company is a success or a failure. In her article “Lowering the Bar”, WSJ writer Joann S. Lublin notes “Pay for performance? Forget it. These days, CEOs are assured of getting rich -- however the company does.”
So Why Bother?
CEOs are paid too much. It has minimal effect on their performance. It has no quantifiable effect on the performance of their companies. The only measurable effect is to drive an ever widening gap between the CEOs and the people they depend on to produce results. It is up to us as Management Professionals to return some equity to compensation of upper management and the individual contributors while trust and respect between the two parties still can be salvaged. If we don’t, worker motivation, and resultant innovation, will plummet.
CEO Pay for Performance, No Luck An important part of a CEO’s job is to forecast market movement and optimize its firm’s exposure to such movement. Fenghua Song and his coauthors argue that an increase in sector performance should be reflected in the CEO’s pay, indicating the increase was due to the CEO’s strategy, skill, and vision, not sheer luck of the market. Standard compensation theory says that a firm’s sector performance is outside its manager’s control and should be removed from the ultimate measure of the CEO’s performance. That is, the CEO’s compensation contract should be based on the firm’s performance relative to its sector performance. The lack of such relative performance evaluation observed in the CEO compensation data has been spun under the auspice that CEOs receive compensation contracts that exhibit “pay for luck,” rather than “pay for performance.” However, Fenghua Song, assistant professor of finance at Penn State’s Smeal College of Business, and coauthors Radhakrishnan Gopalan and Todd Milbourn of Washington University in St. Louis, disagree. They say that an important part of a CEO’s job is to forecast the movement of Continued on page 7
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International Trends and Developments
CEO Pay for Performance, No Luck Continued from page 7
the firm’s operating sector and choose the firm’s optimal exposure to such movement. Therefore, an increase in sector performance should be reflected in the CEO’s pay because the observed link between CEO pay and sector performance may not be all about pay for luck. Receiving the Citigroup Award for best paper in 2009, their study, “Strategic Flexibility and the Optimality for Pay for Sector Performance,” published in Review of Financial Studies, develops a model that defines a CEO’s job as one that provides a vision for the firm and guides its strategic direction. “When things go wrong, people always point to the CEO first,” says Song. “Our study looks at a CEO’s job function and because of their strategic involvement within a firm, a CEO cannot be treated as a regular worker.” In addition, the researchers stress the importance of providing incentives for the CEO through optimal contracts, which “rewards the CEO for firm performance caused by sector movements by providing her incentives to exert effort to forecast the sector movements and choose the firms’ optimal exposure to them,” they say. Song adds that greater incentives for CEOs are more costly for shareholders because CEOs have to be compensated with a greater portion of the firm’s wealth. “What incentive does a CEO have for predicting the market if they are not being compensated for it? Not much,” he says. The researchers find that the sensitivity of pay-to-sector performance is greater for CEOs of multi-segment firms than those of single-segment firms. “The idea is that multi-segment
firms provide greater opportunity for the CEO to actively shift resources toward sectors that are likely to outperform,” says Song. Similarly, industries with higher research and development expenditures offer more flexibility and a greater potential for CEOs to vary a firm’s risk exposure. Industries with higher market-to-book ratios also offer more strategic flexibility for the CEO, in addition to greater investment and growth opportunities. They also test their model to see if there is greater pay for sector performance for more talented CEOs. The researchers used three substitutes to measure CEO talent: a firm’s stock return under the CEO’s watch, the classification of CEOs as internal or external to the firm (the researchers identified external CEOs as more talented than those promoted from within), and the evaluation of the stock performance of the CEO’s previous employer. In each case, they find that there is greater pay for sector performance for more talented CEOs. Song mentions that compensation committees and consulting companies should pay attention to this information when designing compensation contracts for their CEOs. “If John Browne’s (past CEO of British Petroleum) incentive pay were insulated from oil shocks, it would affect the way he thinks about exploration and how he reacts to price shocks once they occur,” he says, quoting Bengt Holmstrom, a world renowned economist from MIT. He goes on to say that corporate governance regulators may present problems in terms of regulating CEO compensation, but argues that corporate governance failure is not always a clear scapegoat. “While I admit there are some badly governed firms, it is not always about corporate governance failure,” he says. “There may be some deeper economic issues within the firm.”
the boss’s job is no cake walk either. In fact, according to a new survey by Chief Executive Magazine and executive-search firm Spencer Stuart, CEOs today have a tougher job than ever. Several factors are making the chief executive’s job tougher, including an increased workload. But the survey also cited the relative youth of chief executives today, compared with 10 or 15 years ago. “The trigger is pulled earlier on CEOs who are not performing, which has increased turnover at the top and opened opportunities for younger executives to take command,” notes Spencer Stuart U.S. chairman Tom Neff. Mark Zuckerburg is 24, and he’s managed to stay CEO since he started the organization.
Survey: CEOs Getting Younger Majority are in their fifties -- rather than sixties -- study finds; stamina deemed crucial for the job.(Lisa Yoon - CFO.com | US / March 6, 2003)
CFOs have a demanding job, no question. But for what it’s worth,
It seems companies are also attracted to younger CEOs in part “because they have the physical and mental stamina for the job,” says Chief Executive editor-in-chief William J. Holstein. But despite the growing preference for the younger CEO, companies still want the experience of a seasoned leader. “That’s the key tradeoff everybody is having to make -- youth vs. experience.” The study found that about one out of every five CEOs in the Fortune 700 have been in their current positions for one year or Continued on page 12
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Jamaica’s Top C.E.O for 2009 issue
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he makeup of Businessuite magazines list of top 10 CEOs is essentially a yearbook, a who’s who, of the business and industry elite in Jamaica. The names on The List represent half of the top 20 companies in Jamaica as judged by increases in after tax profits. To compile the list, the Businessuite News Centre (BNC) publishers of the Businessuite magazine poured over the 2009 annual reports of Jamaica’s publicly listed companies to find the CEO’s who are generating the most after tax profits for their shareholders and building shareholder values year over year. As previously done for 05, 06, 07 and 08, CEOs companies much accrue at least JA$300 million in after tax profits to qualify for The List. While such giants as Sagicor Life Jamaica, Carreras Ltd, Lascelles deMercado Limited, Jamaica Money Market Brokers dominated the top of the corporate ranks in terms of overall profits, their CEOs failed to make the 2010 list. The List is also noteworthy for the impressive executives whose names have never graced it. Warren McDonald of Berger Paints, Geoff Houston of Cable & Wireless(JA)Ltd, Ryland T. Campbell of Capital and Credit Financial Group, Errol Campbell of Ciboney Group Limited, and Clovis Metcalfe of First Caribbean International Bank (FCIB) have all been on the outside looking in for the past five years. As The List demonstrates, CEOs are ranked not by size of the profits but by the size of the year to year increases, which, given the current economic climate, demonstrates their ability to get results under fiscally adverse circumstances. That is what boards of directors and shareholders demand from CEOs. That is the one thing all these CEOs have in common.
Top of the heap is Christopher Williams, now former managing director of NCB Capital Markets. In what may be a one-off or a solitary appearance for a while, Williams is ranked No. 1 on the strength of a $1.7 billion increase in net profits, a staggering 121
percent jump over the previous year. Those results were released shortly before Williams announced his plans to leave NCB Capital Markets for a startup venture, Proven Management Limited, for which he is president and CEO.
Jamaica’s Top C.E.O for 2009 continued on page 15....
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or one reason or another some CEO’s make single and periodic appearances on The List. We have always maintained that a consistent presence on The List is the true hallmark of excellence. Up to 2008 two CEOs exhibited this unique trait. Patrick Hylton at NCB Jamaica and Richard Byles at Sagicor Life Jamaica are the two in question. However one of these CEO who has been on the list since the inception in 2005 did not make it for 2009. Richard Byles President and CEO of Sagicor Life Jamaica Limited (SLJ) made the number 6 spot for 2008 however his results for 2009 could only get him the number 14 position. 2009 was a successful year for Richard Byles and Sagicor Life Jamaica Limited (SLJ), posting improved financial results for the ninth consecutive year.
Richard Byles
President and CEO of Sagicor Life Jamaica Limited (SLJ)
• Net Profits of $4,390 million, attributable to Stockholders, up 12% over 2008; • Basic earnings per share of $1.17, up 11% over 2008; • Dividends per share of $0.57 ($2,141 million), compared to $0.44 in 2008 ($1,650 million); • Return on opening Shareholders’ Equity of 28%, compared to 25% for 2008; • Growth in Shareholders Equity of 28% from $15,544 million to $19,863 million.
The primary drivers of this performance include: • The successful integration of the former Blue Cross health insurance portfolio; • Cost efficiencies and synergies arising from a management restructuring exercise; • Success of the sales teams in employee benefits and individual life in writing new business. Total assets of the Group were $135,466 million compared to $117,791 million last year, representing a 15% growth. Total assets under management, including pension fund assets managed on behalf of clients and unit trusts, amounted to $210.4 billion (2008: $183.9 billion). Stockholders’ Equity as at December 31, 2009 was $19,863 million, compared to $15,544 million as at December 31, 2008. This substantial growth was in part due to the growth in retained earnings and the improved value of available-for-sale securities held. During the year, the company paid $2,141 million in dividends to shareholders, or a dividend per share of 57 cents (2008: 44 cents). This represents a dividend payout ratio of 49% as against 42% in 2008. We now take a brief look at some of the others who did not make the 2009 list and some of the pass list makers.
Francis L.A. “Tony” Haynes at #20 for 2008 did not make the list in 2005 and 2006, but entered the 2007 ranking at number one. For 2009 however he was not even among the top 20. William McConnell at #15 for 2008 was ranked number one for 2006; however he did not make the list for 2007 and 2005. For 2009 he was ranked at number 19. Milton Brady formerly at First Caribbean Bank Jamaica retained his #6 ranking in 2007, having also ranked #6 in 2006; He was not ranked in 2005. Milton is no longer the CEO. First Caribbean was ranked at #17 in 2008 and #16 for 2009. Moving from being a non-qualifier in 2005 to #2 in 2006, Grantley Stephenson did not make the 2007 and 2008 list despite having led Kingston Wharves into a new era of modernization and expansion. His performance for 2005 was an admirable feat, with the company at the time undergoing a major expansion of its storage capacity and extending its ability to handle larger vessels. Grantley Stephenson did not make the top 20 list for 2009. Donavan Perkins at Pan Caribbean Financial Group made The List at #8 for 2006 having not ranked in 2005. He missed the list for 2007 and 2008 where he was ranked #14. Despite being through many continued on page 12
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mergers and acquisitions, Pan Caribbean is viewed as being relatively conservative. However, Donovan would probably tell the critics not to confuse conservatism with prudence. Currently, Pan Caribbean is one of the few investment houses to exhibit stable earnings growth in recent times and boasts a healthy investment revaluation reserve. Donavan was ranked at number 15 for 2009. Curtis Martin at Capital and Credit Merchant Bank having ranked at #9 in 2005, the first year of reporting has not been seen on the list since. He was ranked at #16 for 2008 and #20 for 2009. This will be the last year of account for Capital and Credit Merchant Bank on The List. For 2010 Capital and Credit Financial Group, the ultimate parent company headed by Ryland T. Campbell Chairman/ Group President and CEO will be tracked. The 2005 joint #1 on the list Jacqueline Holding and Rodney Davis, due to overlapping tenures finished outside of the time frame and did not make The 2006, 07, 08 and 2009 List. Many might argue that their selection in 2005 was due to a number of one-off financials transactions, and this may very well be true. Both CEO are no longer with the company. Ranked #2 in 2008 Kingsley Cooper Executive Chairman – Pulse Investments Limited was not ranked in the top 20 for 2009. He did not make the 2007 List, neither did he make the 2006 and 2005 listings, but we predicted that if he continued along his current financial path, chances are he may just make his entry onto the 2008 List
which he did. Ranked #4 in 2008, Michael Bernard Managing Director Carreras Group leaves the company in 2010 having ranked #18 for 2009. As General Manager for the Cigarette Company of Jamaica; he was responsible for the Group’s “cash cow”. He has led this entity through a number of restructuring exercises over the years. Robert Levy Chairman Jamaica Broilers Group of Companies was ranked #5 for 2008, the last period he served as Group CEO, having passed on the reins to his Son, Christopher Levy. Christopher Levy has been learning the business literally from the ground up since he was a teenager, and now it is his turn to run the five-decade-old Jamaica Broilers Group, over which his father Robert Levy has majority control and has imprinted his personality as a strong and steady operation. Ranked at #9 for 2008 Gary Peart – Chief Executive Officer (CEO) Mayberry Investments Limited (MIL) was not able to make the list for 2009. Gary Peart joined Mayberry Investments Limited in May 2005 as Chief Executive Officer after building his resume and developing his management techniques throughout the financial industry over the course of 15 years. BM
International Trends and Developments
Survey: CEOs Getting Younger cont’d continued from page 7
less. Nineteen percent of the Fortune 700 CEOs are under age 50, up from 17 percent in 2001 and 2000.
everybody ... is looking to see if he or she is ready to be No. 1 somewhere else,” said Dayton Ogden, co-chairman of Spencer Stuart.
On the other hand, 54 percent of CEOs are in their 50s, down slightly last year. In 1980, the base year for comparison in the study, more than half the CEOs of Fortune 100 companies where in their 60s. Today barely a quarter of the same group are over 60.
While CFOs and CEOs may be quick to jump ship, they tend to put in long hours on their watch. According to a poll of 730 executives by Management Recruiters International (MRI), fully 47 percent said they would not be using all their vacation time this year; of these, 58 percent cited job demands as the top reason.
For CFOs who have designs on some day assuming the top job, these findings should be a signal to get ready -- opportunities abound. But for CFOs who stay put, the news could signal a need to prepare for extra work that comes with any personnel change. That’s particularly true when the company CEO departs. As the study warns, higher CEO turnover means succession planning is more important than ever. It also means CFOs may jump ship more quickly. “It’s harder and harder to hold onto your No. 2 because
MRI chief executive Allen Salikof attributes the survey results to the weak economy. Many executives, he says, feel this is no time to take a break. “There’s a sense in corporate America that this is the year to knuckle down and stay at your desk,” he told the Associated Press. “With the economy continuing to limp along, executives are hoping that a little extra elbow grease will help revitalize corporate health more quickly.”’ BM Fenghua Song, assistant professor of finance at Penn State’s Smeal College of Business.
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INVESTOR CONFIDENCE Another important tracker of CEO performance is the ability to retain and increase the value of their company stock price. Although in Jamaica and even around the Caribbean, stock price movements have been known to act independent of company performance the results are none the less indicative of confidence in the companies and the ceos leading them. Of the top 20 CEO’s only nine (9) reported positive stock movements for 2009.
1. 2. 3. 4. 5. 6. 7. 8. 9.
President and CEO Bruce Bowen Richard Byles Anya Schnoor Stephen Facey Stephen Facey Byron Thompson Donovan Perkins Christopher Levy John Gourzong
Company Scotia Group Jamaica Ltd. Sagicor Life Jamaica Scotia DBG Investments Ltd. First Jamaica Investments Pan-Jamaican Investment Trust Seprod Limited Pan Caribbean Financial Services Jamaica Broilers Group Montego Bay Freeport
Opening 16.50 05.70 15.00 22.07 35.00 16.20 15.00 03.62 01.65
Closing 19.57 07.02 16.62 27.97 36.00 18.00 18.10 04.96 01.90
Ceos reporting negative stock price movements include the following. Included among them is our number one for 2009. BM
1. 2. 3. 4. 5. 6. 7. 8. 9.
President and CEO Patrick Hylton Michael Bernard Douglas Orane William McConnell Chris Williams Mark McKenzie Keith Duncan Clovis Metcalf Brian George
Company National Commercial Bank Jamaica Ltd. Carreras Limited GraceKennedy Limited Lascelles deMercado & Co. Limited NCB Capital Markets Ltd. Desnoes & Geddes Limited Jamaica Money Market Brokers FirstCaribbean International Bank (Ja.) Supreme Ventures Ltd.
Opening 17.00 52.00 44.00 449.99 2.99 4.15 05.00 21.00 02.90
Closing 16.00 35.02 40.50 250.00 2.70 3.42 04.00 12.70 02.01
NEVER MADE THE LIST.
They may have achieved the qualifying mark or yardstick of JA$300M or more in after tax profits but they have never appeared in the top 10 since inception in 2005. These 16 CEO’s include the following.
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15.
President and CEO Warren McDonald Geoff Houston Ryland T. Campbell Errol Campbell Clovis Metcalfe Oliver F. Clarke Simon Roberts Henry J. Rainford Keith P. Duncan Jeffrey Hall Fayval Williams Theresa Chin Douglas Graham John Issa Gary Allen
16. John Rosen
Company Berger Paints JA. Limited Cable & Wireless (JA) Ltd. Capital and Credit Financial Group. Ciboney Group Limited First Caribbean International Bank (FCIB) Ja. Gleaner Company Limited Hardware & Lumber Ltd. Jamaica Livestock Association Jamaica Money Market Brokers Limited Jamaica Producers Group Ltd. Kingston Properties Ltd. Montego Bay Ice Co. Ltd. Palace Amusement Co. Ltd. Pegasus Hotel of Jamaica Radio Jamaica Limited
Salada Foods Limited
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Jamaica’s Top C.E.O for 2009 continued from page 9....
Bryon Thompson, CEO and managMeanwhile, Anya Schnoor, CEO ing director of the Seprod Group of of Scotia DBG Investments Ltd companies, makes an audacious return kept her impressive performance to The List at No. 3, two years since but was nudged to No. 2 even his most recent appearance. He was though her company saw its 2009 similarly ranked No. 3 in 2007 and was profits increased by 72 percent ranked two year earlier. Thompson, over 2008. It would be surprising whose company manufactures conif Schnoor didn’t make a serious sumer products, has not made The List in consecutive years since its claim for top dog in Jamaica’s corporate boardroom. Again, she inception. is the only female CEO on the list. Douglas Orane, CEO of GraceKennedy Ltd., the Jamaica trading company, also returns to the list at No. 4 after a two-year absence, when he was also ranked in 2007. GraceKennedy saw a 52 percent jump in profits in 2009 over the prior year.
Mark McKenzie
No. 6 on The List John Gourzong is best known to Jamaicans as the founding director of Summerfest, the annual Montego Bay music spectacle. However, Gourzong debuts on The List as No. 6 largely on the strength of Montego Bay Freeport’s $361,798 million jump in profits, which presents a 27.25 percent increase in profits over the previous year. The profits stem from selling property but given the uncertainty of the entity, of which the Jamaican government controls a majority stake, the future is uncertain. Stephen B. Facey, chief executive officer, president and director of Pan Jamaican Investment Trust Ltd, saw profits climb by $1.93 billion in 2009, a 19.7 percent jump over 2008. That performance was good enough to land Facey at No. 8 on The List. The company better known as Pan Jam derives most of its revenue from property management in Kingston and minority investment stakes in other companies. Facey, who has been in the business for more than quarter century, just failed to make the top ten list a year earlier but has rebounded along with the company’s fortunes. His father, Maurice, is chairman of the board.
Desnoes & Geddes Ltd.’s (RED STRIPE) former managing director Mark McKenzie and his successor Alan Barnes enter The List at No. 5 in a year when the beverage company sold less beer domestically but cashed 49 percent higher profits thanks largely to favorable exchange rates and healthy exports.
Alan Barnes
Canadian-born banker Bruce F. Bowen, president and CEO of The Bank of Nova Scotia Jamaica Ltd., sits on the list ranked at No. 7 thanks largely to his company’s 21 percent increase in profits over the previous year. A year earlier, Bowen shared similar honors with William “Bill” Clarke, the man whom he replaced. Patrick Hylton maintains his streak as the only CEO to make The List every year since its introduction in 2005. That streak coincided with five straight years of increasing profits at National Commercial Bank Jamaica. However, Hylton slid to No. 9 on The List despite an unprecedented $10.2 billion in profits for 2009. Those numbers represent an 18 percent jump in profits over 2008.
Brian George, the Trinidadian born president and CEO of Supreme Ventures Ltd., rounds out The List at No. 10. It is his third consecutive year ranked among the best performing CEOs. He entered The List at No. 2 in 2007, dropped one place to No. 3 in 2008 before sliding seven places this year in part due to Supreme Ventures’ $751,202 million in profits, which represents a 16.2 percent increase over 2008. In 2009, profits rose as the lottery and gaming company introduced new offerings such as the multi-jurisdictional Super Lotto, which is the first game of its kind in the Caribbean and Latin America. So the results are in. Ten CEOs have proved their worth to shareholders once again. But if it’s one thing The List has proven is that past performance is no guarantee of future results. The corporate landscape is littered with fired CEOs, who were unable to maintain higher profit margins. Given the sluggish global economy and the unenthusiastic consumer demand, that challenge is harder to meet. On the other hand, it makes an appearance on The List even more special. BM
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rian George, CEO and president of Supreme Ventures Ltd., rounds out The List at No. 10 on the heels of another strong showing. Supreme Ventures Ltd. registered $751,202 million in after tax profits, which represent a 16.3 percent increase over 2008. George, a native of Trinidad and self-confessed Embassy brat who attended Tulane University, is becoming a main stay on The List, debuting at No. 2 in 2007 and sliding to No. 3 in 2008 before dropping seven places in 2009. George stirred the mix in August 2009 with his company’s introduction of multi-jurisdictional Super Lotto game, which is the first game of its kind in the Caribbean and Latin America. Similar to the U.S. Powerball and Euromillion, Super Lotto is sold simultaneously in Jamaica, Dominican Republic, Barbados, St. Kitts & Nevis, Anguilla, Antigua and St. Maarten. Minimum jackpot: J$180 million. Prior to joining Supreme Ventures Ltd in 2003, George was senior director of GTECH Latin America and general manager of GTECH Jamaica and Barbados. His career with GTECH Corporation began in 1994, when he was appointed deputy general manager for Trinidad. He was then promoted to general manager - Trinidad, and soon afterward to vice president of GTECH’s subsidiary in Florida - Dreamport, a company that specialized in the provision of technical services to state sponsored video lottery operations in the USA, Canada, Europe and South Africa. After Dreamport folded, George was assigned to set up operations in Jamaica in 2001.
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Brian George #10 Two years later, SVL Chairman Paul Hoo lured George away to serve as president and CEO is the gaming company. “Paul Hoo did an excellent job of stepping back and giving me the latitude. It happened in little and significant ways. I had an individual relationship with all three major shareholders operating at personal and group levels,” George told a Gleaner reporter in January 2006. According to the company’s website, SVL began operations in 2001 with Cash Pot and Lucky5, two of the three lottery games it was licensed to offer. The company launched the third game, Dollaz!, two years later. The company’s impressive growth has been helped by key acquisitions, including 100 percent of the Jamaica Lottery Company (JLC) stakeholding in December 2003. Over the last seven years, George has led SVL as the company has widen its betting and lottery offerings and increased revenue. SVL had lottery sales of more than $16.9 billion in fiscal year 2007. Cash Pot represents “over 75 percent” of SVL’s business, George told the Business Observer in November 2010. Compared to 2008, Cash Pot revenues jumped 27 percent to $19.35 billion during the 2009 fiscal year. The game has a relative low margin and the company has sought to increase the frequency of the game to improve its bottom line. “It will always be our flagship game,” George told the Observer. “It’s a game that all Jamaicans have embraced—there’s a lot of player satisfaction – whilst Lotto and all the other games have niches.” BM
Jamaica’s Top C.E.O for 2009 issue
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ew Jamaican bankers have earned the stature of Patrick Hylton, CEO of National Commercial Bank. Hylton, is the corporate titan to make the list every year since its inception. He ranks No. 9 on The List based on the strength of his company’s total operating income of $27.1 billion in 2009, up 10 percent over the 2008. That financial performance represents the group’s highest level ever. The group’s net interest income of $18.9 billion for the 2009 financial year grew by $3.1 billion or 19 percent, which resulted from growth in its total interest earning assets, NCB’s loan portfolio increased by $6 billion or 7 percent to $88.2 billion when compared to the prior year. However, during the same period, the group experienced a decline in interest rate income yields. This was caused mostly by a change in the portfolio’s currency mix of US dollars increasing to 57 percent (43 percent - Jamaican dollars) when compared to the prior year’s mix of 52 percent. The group’s investment securities portfolio grew by $13.1 billion or 9 percent to $167.7 billion over the prior year, and increases in the open market interest rates on government instruments resulted in a higher income yield on this portfolio when compared to the prior year. The group’s funding portfolio also increased over the prior year, increasing by $14.5 billion or 6 percent, and the average interest paid to customers also increased over the prior year, in line with the increases in open market interest rates. “Our business model proved effective as greater flexibility was required based on proactive environmental assessment during this challenging period,” said Hylton in an interview with the Gleaner after NCB was named Bank of the Year in December 2009. “Mindful of these difficulties, our focus has been on strongly serving our customers and supporting them during the time when it matters most.” Hylton credits the NCB Group’s continued strong performance during this period on skillfully managing liabilities, compressing costs and holding on to cash rather than expanding. More cost cutting mandates may be in the pipeline. “Given the limited external opportunities, we were obliged to take an introspective approach to our business during the year, focusing on internal controls, efficiencies and synergies,” Hylton said in the company’s year end financial statement. “The
Patrick Hylton #9 centralization of key support functions such as human resources, marketing and operations led to more effective execution of activities across the Bank and subsidiaries, as fewer resources were expended, while employee expertise in these areas were leveraged. No doubt, this contributed to the improvement in our cost to income ratio to 47.7 percent.” Hylton speaks from a wealth of experience. He worked at both Scotiabank and Citizens Bank. He was briefly general manager of the ill-fated Blaise Trust and Merchant Bank before it became insolvent. Later he joined Financial Institutions Services Limited, the forerunner to FINSAC, shortly after the agency was created to address the country’s financial sector woes. Hylton then shunned job offers at home and abroad to join the NCB Group. After a brief stint as deputy managing director, he was put in charge of the bank in December 2004. His vision calls for the 172-year-old institution to continuing establishing its brand both domestically and regionally. “I want NCB to be recognised in this society as the preeminent financial institution and then we also have visions and ambitions for NCB to take on a larger regional presence and, within that context, to perform at a very high level within the Caribbean region,” Hylton said. BM
Businessuite Magazine December 2010
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Jamaica’s Top C.E.O for 2009 issue
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iven Pan-Jamaica Investment Trust Limited’s variety of assets, running the company is a financial juggling that president and chief operating officer Stephen Facey seemed to have mastered. Facey is ranked at No. 8 on the 2009 List by virtue of his company’s $1.93 billion profits for the fiscal year, which represent a $317,862 million or 19.65 percent growth over the previous year.
Based in Kingston, Pan-Jamaican Investment Trust Limited, through its subsidiaries, provides property management services in Jamaica. The company’s property management services include development, rental, and management of commercial real estate properties. It also offers investment management and securities trading services. In addition, the company provides financial services and captive insurance, as well as horticulture activities. Facey, whose family owns more than 40 percent of the stock, has been in charge since 2004. His father, Maurice Facey, serves as chairman of the board. As an example of the kind of investment Pan-Jam undertakes under Facey’s leadership, the company announced in late 2009 that it would pay the Jamaican government $454.5 million to acquire 161,610 square feet of prime real estate in New Kingston to develop a mixed used site, including hotel, retail, recreational, office and residential facilities. “A city hotel and residential apartments will be the bulk of the development with some small commercial space,” Facey told the Gleaner Wednesday Business. Facey has been credited with “capturing the spirit of enlightened capitalism” that has driven the family for generations. His directorships include Hardware & Lumber Limited, Pan Jamaican Investment Trust, Kingston Restoration Company and Kingston City Centre Improvement Company (KCCIC). A graduate of Rice University, Facey also holds a master’s in architecture from the University of Pennsylvania. He has served as CEO of Jamaica Property Company since 1990. In terms of civic involvement, he was president of the New Kingston Civic Association, where he has spearheaded initiatives that have enhanced the business environment in New Kingston including the creation of an area police post.
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Businessuite Magazine December 2010
Stephen Facey #8 Pan-Jam owns and manages 700,000 square feet of highpriced office space in landmark buildings located primarily in the heart of Kingston’s main business district. “There has always been a passion in the family for real estate development,” Facey told the Jamaica Observer in April 2009. “Our level of attention to detail sets us apart from others within the industry.” According to the published reports, Pan-Jam has reaped profits through smart financial investments. But one of those, Hardware and Lumber Limited, of which Pan-Jam owns a 20.8 percent stake, has racked up significant losses and continues to be a drag on Pan-Jam profits. BM
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Jamaica’s Top C.E.O for 2009 issue
s president and CEO of the Scotia Group Jamaica Limited, Bruce Bowen stands at the helm of Jamaica’s largest and most successful financial institution. And despite navigating the treacherous waters of an anemic global economy, weak consumer and corporate loan demand and volatile financial markets, Bowen can point to a double-digit increase in profits for 2009 that was good enough to earn the No. 7 rank on The List. In 2008, Bowen shared the No. 8 ranking with his predecessor William “Bill” Clarke.
Scotia Group Jamaica Limited employs about 2,000 people and serves about 900,000 customers in Jamaica. In 2009, Scotia Group Jamaica Limited leveraged its financial strength, business line diversity and market position to post net income available to common shareholders of $11.2 billion, an 18.8 percent increase over 2008. The Group’s total assets improved by 12.6 percent to $315.6 billion as the company continued to pursue investment and lending opportunities presented in the market, according to financial statements. During the year, Scotia Group paid dividends of $1.39 per share, reflecting an increase of 6.9 percent over what was paid in 2008. Total Shareholder’s Equity grew to $45.7 billion as at October 31, 2009, up from $37.9 billion in 2008, making Scotiabank one of the most well-capitalized financial services providers in Jamaica. In order to “cushion the effects of the ongoing global and local economic crises” and in recognition of the company’s major role in the Jamaican economy, under Bowen Scotiabank took the lead by reducing interest rates in August 2009. At the time, Scotiabank boasted the lowest prime lending rate among major commercial banks.
Bruce Bowen #7
Group, according to the company’s financial statements.
Bowen took over as president and CEO in 2008 after stops in the Cayman Islands and Trinidad and Tobago and Puerto Rico. The native of Canada worked in Jamaica six years earlier under William Bill Clarke. During the year, Bowen had to position Scotiabank in view of the government’s plan for a debt swap scheme that would involve the exchange of almost $700 billion in domestic securities for longer term instruments at reduced interest rates.
“We will continue to look for ways we can play a leadership role in stimulating the productive sector and reducing interest rates in the market,” Scotiabank announced in a prepared statement accompanying third quarter 2009 results.
Since Scotiabank and other financial institutions earn a sizable portion their revenues from interest payments they receive from government securities and since those payments would be reduced under the government’s debt swap scheme, the change would force financial institutions to look outside the public sector for business.
A highlight of the fiscal year was the launching of a Customer Assistance Programme and proactively restructured loans for customers, whose financial situation had been adversely affected by economic recession, according to the financial statements.
Bowen said Scotiabank began to aggressively look beyond Government for business from as early as October 2009 after “seeing what was happening,” The Jamaica Observer reported in early 2010.
Building on Scotiabank’s standing as one of the 10 Best Banks in the World based on its performance during the global financial crisis, coupled with our own reputation in Jamaica for safety and security, “our Wealth Management and Insurance businesses grew significantly during 2009, and provided strong contribution to the Group’s profitability,” the company said.
“The commercial banking sector needs to be managing the margins and looking at overall liability and asset rates,” said Bowen. “We need to focus on business lines that generate non-interest revenue. That doesn’t just mean an increase in fees but it means those business lines -- foreign exchange, investment management, investment sales, cash management etc... you’ll see a big push into those areas to generate revenues that’s not dependent on interest.”
Scotia Insurance and Scotia DBG also introduced protection and wealth-building products for their customers. In addition, the private banking service and product offering were enhanced and re-branded under the international standard, Scotia Private Client
If Bowen pull that off, he would have no trouble keeping and improving his ranking on next year’s list. BM
Businessuite Magazine December 2010
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Jamaica’s Top C.E.O for 2009 issue
John #6 Gourzong 6 John Gourzong, chairman of Montego Bay Freeport Limited, enters The List for the very first time at No. 6 on the strength of a 27.25 percent increase in profits between 2008 and 2009. Proits grew $361,798 million in 2009 compared to $284,327 million. The company boasted net assets of $531,495 million.Most of the company’s revenues are derived from the sale of properties and profits in addition to revaluation on property. Along with its subsidiaries, the company is engaged in property ownership and rental. The Government of Jamaica, through the Urban Development Corporation, owns approximately 82 percent of the issued share capital of the company. Talks of possible liquidation or outright sale of its equity interest to private sector interest continue to swirl around the company. Should that sale materialize it will no doubt affect Gourzong’s ability to remain on The List in the years to come.
A veteran of the tourism and entertainment industries, Gourzong was appointed a director and chairman of Montego Freeport Limited, effective April 28, 2008. Gourzong started his first job after high school at the airport with AJAS Jamaica Limited. While still a young man, he migrated to Canada to study business administration but returned home soon afterward and got married. During his long and varied career in Jamaica, he has sold insurance and worked at the Workers Bank. Gourzong is managing director of River Raft Limited tourism attraction company that operates rafts on the Martha Brae River. . He serves as a president of the Association of Jamaica Attractions Limited. He is also founding executive director of Summerfest Productions Limited, an entity that hosts music festivals in Montego Bay. BM
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Alan Barnes #5 Mark McKenzie
Jamaica’s Top C.E.O for 2009 issue
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Alan Barnes
Managing Director, Desnoes & Geddes Ltd.(RED STRIPE)
ark McKenzie and Alan Barnes share the #5 ranking on “The List” because they shared ceo duties at Desnoes & Geddes Ltd for 2009. It was a year in which the company, best known as Red Stripe, sold less beer and reaped higher profits thanks largely to a strong export market and a weaker Jamaican dollar. McKenzie was ousted as managing director in July after five years as the region’s top brew master. McKenzie might have fallen victim to his early success. He generated record annual profits, which peaked at $2.3 billion in 2005, but since then net earnings declined annually until they bottomed out at $1 billion - an eight-year low in 2008, the Gleaner reported at the time of his firing. Despite the decline in earnings, McKenzie, a veteran of such corporate giants as Coca Cola and Proctor & Gamble, managed to grow Red Stripe revenues annually. Revenues for Red Stripe reached $12.5 billion in 2008, while the company’s net worth grew each year – except in 2008 when stockholders equity declined from $6.5 billion to $6.3 billion. A year later, he was pushed out as the company tried to freshen up its leadership ranks. “After five challenging years with much that we can be proud of, the board has decided that it is again time to refresh the leadership of this iconic Jamaican business,” said Chairman of the Board Richard Byles in a company-issued statement. By year end, five board members, including McKenzie, had been replaced.
Mark McKenzie
Former Managing Director, Desnoes & Geddes Ltd.(RED STRIPE)
On July 1, 2009 Barnes took control of Diageo’s interests in the Northern Latin America and Caribbean zone. Coincidentally, in a major restructuring months before the leadership shakeup, Jamaica had
added to the NorthLAC Zone. Before assuming the leadership post in Jamaica, Barnes was based in Seychelles, where as general manager of Diageo’s Indian Ocean operation, he also oversaw the business in Reunion, Mauritius and Madagascar. After Barnes was on the job in Jamaica for less than six months, the company reported $1.5 billion in after tax profits, up about 49 percent from the previous year. How did Barnes engineer the turn around? “We committed to pursuing strategies that would beat the competition, grow the beer and spirits markets, and increase our exports profitably,” Barnes said in the company’s 2009 year end financial report. “Despite the global downturn that has impacted heavily on Jamaica, and increased competition from both within the alcohol Continued on page 29.......
Businessuite Magazine December 2010
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Jamaica’s Top C.E.O for 2009 issue
ouglas Orane, chairman & chief executive officer of GraceKennedy Limited, returns to “The List” ranked #4, a repeat of his performance from two years earlier, when in 2007 he was ranked #4.
His return to prominence came as GraceKennedy saw $57.4 billion in revenues, a 7.38 percent increase over revenues from 2008. More impressively, the company registered $2.7 billion in after tax profits, a dramatic 52.89 percent over the 2008 profits. The net profit attributable to owners of the company was $2.57 billion, up 59 percent over the prior year $1.67 billion. “The Group has pursued investments in a wide range of industries in which we have core competences and, more recently, expanded internationally to increase geographic diversity,” Orane said in the company’s 2009 financial statement. “This has served to cushion the effects of the volatility, which businesses worldwide have experienced in the last year.” But for Orane and GraceKennedy this was not just about the destination; it was about his company’s journey to a very profitable year given the drastic downturn in the global economy, lower consumer demand and financial misbehavior in one of the group’s subsidiaries. “The year 2009 was one of the most turbulent in decades as the world grappled with the severe global recession. Despite these uncertainties, the GraceKennedy Group was able to weather the storm and all our major business segments showed improvements in their performance over the prior year,” the company said in its nine-month financial statements in September 2009. “We had engaged in scenario planning in order to ensure that we were prepared for any eventuality and in response to the disruptions in world markets in late 2008 we undertook a series of actions to prepare our businesses for the resulting turbulence.” That is a gross understatement in terms of turbulence. In 2009, GraceKennedy reported a $1.76 billion loss as a result of unauthorized trading in U.S Government Treasury Bonds by a senior employee at the First Global Bank Limited, a subsidiary of GraceKennedy Limited. Of those losses, $842 million was charged to 2009 and $926 million to 2008. In September 2009, the parent company injected $900 million to prop up the bank. A trained engineer, Orane holds a degree in mechanical engineering from Glasgow University and a Harvard University MBA. He began his career at GraceKennedy in 1981 as corporate planner. Since then he has held several leadership positions in almost all areas of the highly diversified Group. He was appointed ceo in 1995 and three years later assumed chairmanship of the consumer products and services company. In 2002, the Jamaican Government named him a Commander of the Order of Distinction (C.D.) in recognition of his contribution to commerce and the private sector. In 2009, he was appointed to Jamaica’s Privy Council by Governor General, Sir Patrick Allen and is one of the leading philanthropists in the country. Despite the turbulence internally and internationally, Orane, one of the region’s most respected executives, remained bullish about his company’s prospects. In a May 2009 speech in Trinidad, reported by the Trinidad Guardian, Orane said he saw an advantage in the global financial crisis. 23
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Douglas Orane #4
According to a report of the speech, Orane said GraceKennedy had “identified new financial options, like using private issue of commercial paper,” which was oversubscribed and “re-deploying surplus cash across the group to keep the company’s cash flow healthy, while looking at new opportunities to grow the group, thereby avoiding the credit crunch that has affected companies globally.” “The GKL and GK Group are positively hedged against foreign exchange depreciation,” he said according to the Trinidad Guardian. “And GK remains a consistent supplier of hard currency to the FX market. We continue to re-deploy surplus cash across the group to optimise liquidity,” Orane said. Quoting then-White House Chief of Staff Rahm Emmanuel, Orane said: “Rule one: Never allow a crisis to go to waste. They are opportunities to do big things.” Based on GraceKennedy’s 2009 results, Orane has not wasted his opportunity to do big things.BM
Jamaica’s Top C.E.O for 2009 issue
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yron Thompson, chief executive officer and managing director of the Seprod Group of Companies, returns to “The List” at No.3 thanks to a significant increase in operating profits during fiscal year 2009. Thompson, who has been a director at the food and household products manufacturer for 15 years, said his company performed well despite economic uncertainty and declining consumer spending due to the downturn in the global economy. Seprod, which manufactures and distributes edible oils and fats, corn products and other household consumer products, boasted a revenue of $9.49 billion in 2009 a modest 2.56 percent gain over 2008, when the group saw $9.25 billion in revenue. The company’s after tax profits jumped 58.38 percent from $938,203 million to $.48 billion in 2009. The group ended the year with before tax profits of $2.185 billion and a net profit attributable to shareholders of $1.478 billion, according to its 2009 financial statements. Thompson said the profits were achieved through cost reductions, increased internal efficiencies and the increased revenue from investments, which helped the company’s stock earn $2.86 per share compared to $1.82 the year before The 70-year-old company invested $10.6 million in the Maximo software package to manage its inventory of machine spare parts across its seven subsidiaries. “It tracks and tells us when to purchase machine parts, spare parts and when repairs are needed as well as allows for better inventory management of spare parts,” Thompson told the Jamaica Gleaner in August 2009. In another major move, in July 2009 Seprod acquired a majority 55 percent stake in the St. Thomas Sugar Company from the Government of Jamaica. The new acquisition is expected to produce value foreign exchange dollars from exports. The Jamaica Gleaner reported that Seprod Limited and partner Fred M. Jones Estate expect to spend $445 million initially on the property and pay another US$82,200 per year to lease cane lands in St Thomas. “The idea now is to get the sugar mill running efficiently, as well as the cane cultivation practices, so that the cane have good yield,” said Thompson of the acquisition. Thompson is hoping that those moves would bolster Seprod’s revenues and profits going forward. In recent years, Seprod’s performance has seesawed. As a result, Thompson has failed to make the list two consecutive years. In 2005 he was
Byron #3 Thompson ranked No. 8 on “The List” but failed to repeat in 2006, before rebounding with a No. 3 rank in 2007, before dropping out again in 2008. His success and subsequent No. 3 ranking in 2009 came in a year when the company had to deal with the loss of longtime chairman of the board Desmond Blades. During Blades’ tenure, the value of the Seprod’s market capitalization grew 1,800 percent, a rate of 22.4 percent per year. During that time, by comparison, the Jamaica economy grew at a rate of less than 1 percent and the Jamaica Stock Market rose by an average of 10.5 percent annually. Thompson, who holds a bachelor’s degree in Chemistry and geology from the University of the West Indies and an MBA from Barry University, Florida, is a director of Facey Commodity Company Limited, the Customs Brokers Licensing Authority and Jamaica Manufacturers’ Association. BM
Businessuite Magazine December 2010
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Anya #2 Schnoor
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n her 2009 statement to shareholders in the Scotia Bank Group annual financial report, Anya Schnoor, CEO of Scotia DBG Investments Limited, was in an ebullient mood.
“The year ended October 31, 2009 was an exceptional year,” she wrote. The company ended the year with net profits of $2.129 billion. That outstripped the $1.239 billion earned 12 months before. Earnings per share jumped 72 percent, from $2.93 in 2008 to $5.03 a year later. And the good news didn’t stop there. Schnoor announced that the company’s funds under management increased by 12 percent, from $65.9 billion to $74 billion. “With these financial results your company firmly established its No.1 position in the local securities dealer market,” Schnoor told shareholders. Those results were good enough to land Schnoor, as the No. 2 on “The List” of Top 10 CEOs, a drop from her top ranking a year before. However, the company’s success didn’t come easy given the stiff local competition and an uncertain business climate. “The turmoil which started in the global markets last year continued into this financial year and created an environment of increased foreign exchange instability as well as heightened interest rates,” she warned shareholders. Amidst the turmoil, however, Schnoor found reasons to be optimistic. During the second half of the year, the local market stabilized and interest rates fell as the Jamaica Central Bank moved to stimulate the economy. “This period of relative stability allowed your company to take advantage of wider interest margin spreads and improved efficiencies as we laid the foundation for future operating growth,” wrote Schnoor. Among the key developments of the fiscal year, the company launched its Caribbean Income Fund, which was part of the strategy to become the largest mutual fund and unit trust manager in the country. Her unit also nabbed the coveted spot as lead broker and advisor to the Jamaican 25
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Jamaica’s Top C.E.O for 2009 issue government for the divestment of the Jamaica Pegasus Hotel. In the wake of her unit’s impressive performance for 2009, Schnoor has since been promoted to executive vice president for Wealth Management and Insurance at Scotia Bank Group. Schnoor’s career path has taken upward trend since she earned a bachelor’s of arts degree from Florida International University and a master’s from Barry University. In 1992, she began working with The Eagle Group as a management trainee with Eagle Unit Trust. Two years later she was named general manager, a position she held until the profitable unit was sold to DB&G in 1998. Her unit was one of the few entities in the troubled Eagle Group that emerged untainted by the collapse. In 1998, Schnoor jumped ship to the Pan Caribbean Financial Group, where she stayed until Scotiabank recruited her in 2006 to run its wealth management business. Whether by coincidence or not, soon after she arrived at Scotiabank, the financial giant acquired DB&G, the same company that had earlier acquired Schnoor’s former employer, Eagle. Naturally, the bank placed her in charge. It was a natural fit. While other investment bankers boast their returns and portfolio size, Schnoor’s brand is more personal, more intangible. “Your integrity is critical in the banking finance sector,” she told the Gleaner in 2009. “When someone works hard and gives their money to an institution to manage, it’s based on trust that you will make the best decision on their behalf. My career to date has been built on the fact that I am trusted and that I will make the best decision on behalf of clients.” Given the hurdles ahead, Schnoor is banking on turning that trust into profits. Going forward, she said she is looking for ways to expand her company’s insurance and private client services operations. To pull that off, it will require Schnoor to take to heart a key piece of advice she once received: “Hire people who are smarter than yourself,” she told the Jamaica Observer in March 2010. Given her abilities that may be her toughest job. BM
Jamaica’s Top C.E.O for 2009 issue
Christopher Williams #1
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ith the meltdown of the United States financial system in 2008 and the global markets in free fall, NCB Capital Markets was looking precarious. The company’s fortunes were too closely linked with ill-fated Lehman Brothers, the collapsed Wall Street titan. At the time It would have been inconceivable that Christopher Williams, then managing director of the wealth management arm of the National Commercial Bank Group, would have rebounded to claim the coveted spot of No. 1 ceo for 2009 on The List. Such was his standing that when in November 2009 Williams announced plans to leave NCB Capital Markets after six years as managing director, the company’s statement sounded as if it was losing a treasured talent: “Chris has spent the last six years ably leading his team. We wish to acknowledge the sustained growth of the wealth management subsidiary to date and the contribution it has made under his stewardship, to the strong performance of our Group,” said NCB Group Managing Director Patrick Hylton. “As he leaves to continue his professional development, we wish him the very best and thank him for the time spent with us.” Hylton was not just being sentimental. Williams was leaving NCBCM in great shape. In October 2009, NCB announced profits of $10.2 billion for the year ended September 2009. That amount represented an 18 percent increase over the prior year. Of the bank’s revenues, NCB Capital Markets contributed about 10 percent or $1.7 billion in net profits, an increase of 121 percent over the previous year and contributed $2.5 billion to the Group’s operating profit. Those gaudy numbers helped give their parent company an unprecedented $10.2 billion net profit in September 2009 and earned Williams the No. 1 spot on the 2009 roster of Top 10 ceos. “NCB has been the greatest experience of my life, absolutely fantastic,” he told Wednesday Business in an interview shortly after he announced his departure. “We had a lot of fun; made a hell of a lot of money together.”
continued on page 27....
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Jamaica’s Top C.E.O for 2009 issue continued from page 26....
“We are in the business of taking risk, that is what the financial institution does. We can’t stop taking risks but we have to be responsible; we can’t ignore the lessons of 07/08,” he said. “The fact that we got caught - as one of the few local institutions to have custodial relationships with Lehman Brothers is something we have to learn from and respond to.” The 2009 numbers were even more impressive given the uncertainty of the worldwide economy the previous year. The 2009 returns were a marked contrast to the previous year, when NCB took a major hit because of its close ties with Lehman Brothers. The failure of that Wall Street giant cost NCB Capital Markets $1.22 billion near the end of the 2008 fiscal year. Then Williams blamed the problem on NCBCM’s debt exposure to Lehman and his outfit’s failure to spread its risks and assets sufficiently. NCB Capital Markets backed the “borrowings solely with GOJ global bonds.” The company lost money when the price of those bonds dropped precipitously as the American financial system headed toward a meltdown unseen since the 1929 crash. When asked by the Financial Gleaner to evaluate the problems of 2008, Williams was cautious but unbowed. “We are in the business of taking risk, that is what the financial institution does. We can’t stop taking risks but we have to be responsible; we can’t ignore the lessons of 07/08,” he said. “The fact that we got caught - as one of the few local institutions to have custodial relationships with Lehman Brothers is something we have to learn from and respond to.” So what was Williams’ response to adversity? He launched a targeted and aggressive sales blitz, which helped NCBCM rebuild funds under management to $55 billion, up from $45 billion. The unit lost $5 billion in funds under management during the previous year. The wealth arm’s group contribution during the comeback was 19 percent of operating profit, while the insurance division, which Williams also headed, added another 13.7 percent, financial reports showed. Meeting and overcoming challenges have been a hallmark of Williams’ tenure at NCBCM. He joined NCB Capital Markets in 2004 after stops at Manufacturers Merchant Bank and Dehring, Bunting & Golding. He came in as deputy managing director of the wealth management arm, which until 2002 was known as Edward Gayle and Company. What was a traditional and conservative brokerage house was renamed and rebranded NCB Capital Markets, a securities firm that would aggressively go after new customers. Eight months after Williams walked in, he was promoted to managing director. That was his reward for growing market share by 33 percent. 27
Businessuite Magazine December 2010
In 2004, Williams told the Financial Gleaner that the evolution from Edward Gayle to NCB Capital Markets was “worked out very carefully.” “The one thing we needed to bring to the company was energy. The brand was weak and in coming in, we felt that we could resurrect it. The board decided to change the name of the company to breathe new life,” Williams told the Financial Gleaner. He saw the opportunity to build on the powerful NCB name. “You can’t beat that. It is a huge push for us to be associated with that. Next, we used focus groups and interviews with staff to define exactly who we are,” he explained. “We decided we were an entrepreneurial company,” that channeled the spirit of NCBG Executive Chairman Michael Lee Chin. During his tenure at Jamaica’s major indigenous financial institution, William was considered “one of the bright young stars in the banking sector. He was a banker “with marketing prowess” who helped turn his employer into one of the top securities firms in the country. Because of the Lehman experience, going forward, the focus had to be on the fundamentals – solid foundation and continued growth. “Having a sound reading on the environment proved extremely vital, as the company was able to proactively adjust its business models to afford our clients the most practical investment options” framework, Williams said. “Additionally, having gone through the Lehman Brothers write-off, we refocused internally, enhancing our risk management framework to improve our ability to anticipate, assess, monitor and respond to changes in the global, regional and local environment. “We continued to prudently manage our assets which allowed us to remain the best capitalized primary dealer in Jamaica today. This position has undoubtedly allowed us to provide stability and security to all our clients.” Williams’ rapid rise up the corporate ladder no doubt included many long days and nights. But he somehow found time for civic involvement. The University of the West Indies graduate and York Univer“We continued to sity (Toronto) MBA has served as chairman of prudently manage our the Jamaica Association assets which allowed for the Deaf, director of the Jamaica College us to remain the best Old Boys Association, of the Jamaica capitalized primary director College Foundation, dealer in Jamaica director of the Jamaica Stock Exchange and today. This position vice President of the has undoubtedly Jamaica Securities Dealers Association. Since allowed us to provide leaving NCBCM, Wiltook up the post stability and security liams as president and CEO of Proven Wealth Limto all our clients.” ited. BM
Jamaica’s Top C.E.O for 2009 issue continued from page 22....
Alan Barnes #5 Mark McKenzie
beverage segment and externally, I am proud of what we delivered. This success was not achieved without significant and work in reviewing and transforming all areas of our business.” The increased revenue can be credited to strong export volume growth and price increases, which helped to make up for a decline in local sales. The company saw double-digit increases in exports to such key overseas markets as the USA, Canada and Europe. The devaluation of the Jamaican Dollar in respect to the United States Dollar (USD) also worked in the company’s favour, since exports are invoiced in green backs, the financial report stated. Trading profit was $2billion, which represented a 30 per cent year-on-year increase that was primarily driven by the growth in gross profit and the reduction in marketing costs. The company paid
dividends of $983 million during the year, which translated to 35 cents per stock unit. The strong export sales helped make up for the 10 percent decline in sales from a year before. That decline, especially in the domestic market, was blamed on the lackluster economy, increased competition and a Special Consumption Tax hike, which dampened local demand for the company’s brewed products, according to the company’s financial report. Despite the challenges, under Barnes’ leadership, Red Stripe promises a combativeness that is likely to see him make an encore appearance on “The List” for the coming year. “We will win everywhere that we choose to compete and fight, ensuring our brands have maximum distribution, our activities are brilliantly executed and our relationships with our customers are world class,” he vowed. BM
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A New Business Has Been Setup In Jamaica
STRONGHOLD DATA SOLUTIONS
Stronghold (www.strongholdsolutions.com) is a subsidiary of the well-known regional outsourcing powerhouse Prism Services (www. prismco.com). Prism has offices in Jamaica, Trinidad and Barbados. Stronghold’s core business is records management for companies in the Caribbean. They operate a commercial record centre that provides storage and retrieval of business records for clients. Essentially, clients outsource the custodianship of their business records to Stronghold’s safe and secure climate-controlled environment. Stronghold has a commercial records centre in Kingston, a stateof-the-art facility which is designed and equipped with specialized racking and equipment that meet strict measures of security, fire prevention, and surveillance and other natural hazards. Stronghold can store physical records such as files and documents, and their rapid retrieval service allows the client prompt access to all of their information 24/7. Their systems utilize Web-based software accessible by encrypted passwords to review and track your inventory. The company’s tracking technology ensures that each file, document and box can be located in a moment’s notice. In order to serve their clients promptly, they can provide either an image of the document or the actual document based on the clients’ preference. Stronghold will also offer to convert documents to digital images and can provide secure destruction of documents. Typical records management problems clients face are, growing volumes of records in limited space, lost or misplaced documents, damaged records and unauthorized access of records by individuals. In today’s world timely access to accurate information presents a competitive advantage. Inability to find a document can result in high costs or liability. Spending large amounts of time to locate information represents a large portion of human resource costs. Stronghold Data Solutions partners with clients to solve all of
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these business problems. They provide a highly secure, low-cost solution for all types of business records. Outsourcing your records management assists with freeing up scarce and valuable storage space, which can be reallocated to your core business. Additionally, it allows your company to redirect precious employee time spent on maintaining and managing files. Stronghold provides services to the business, legal, banking, health, government and retail sectors. Each industry has unique requirements. Stronghold is a solutions company therefore they strive to understand their client’s requirements and then build a response based on the needs rather than pushing inflexible products and services. Outsourcing is about trust – companies must trust their outsourcing partner whether it’s being the custodian of their records, printing sensitive data or authorizing financial transactions. This is Prism’s core business and Stronghold Data Solutions upholds this same level of trust. Stronghold is a member of Prism International, the governing body for Records and as such, is also a member of the Jamaica Chamber of Commerce.
AUTO SPECIAL
2010 car of the year
- Jaguar XJ
- Sporting Perfection Has Arrived
Celebrating 75 years of sporting perfection, technical innovation and design originality in the automotive world; Jaguar can be described simply as the ultimate luxury car. Displaying characteristics tantamount to its elegant and agile feline counterpart, Jaguar has found a new home at ATL Britannia Motors, here in Jamaica. The Oxford Road, Kingston and Bogue City Centre, Montego Bay situated dealerships are breathing new life into the brand locally. An undisputable leader in its class, Jaguar represents a signature line of cars with a rare blend of art and performance, science and beauty. Some cars are built, some engineered but a Jaguar is created and several of these outstanding creations are currently available to the local market through ATL Britannia. Founded by Sir William Lyons in 1922, the development of the company tells a spectacular tale of a British car brand built on excellent manufacturing principles. The latest chapter in Jaguar’s story is being penned by the multinational corporation Tata Motors. Since acquiring Jaguar Cars in 2008, Tata Motors has set a course for domination in the luxury car market. A course which ATL Britannia Motors has all intentions of charting itself in Jamaica. David Hastings, the man who puts his knowledge and expertise behind the Jaguar brand at ATL Britannia Motors notes “It is timely that ATL Britannia Motors, a division of ATL Automotive has started official representation of Jaguar this year during the brand’s worldwide 75th anniversary celebrations. We have been able to give the brand the exposure it deserves, which is an
excellent start not only for our dealership, but also for the symbolical re-birth of Jaguar here in Jamaica.” Hastings continued by saying “We have immediate availability of the petrol Jaguar XF models. The XJ and XK models are also available now through custom ordering at both our locations.” Hastings went on to declare that “Driving a Jaguar car sets you apart with its distinctive style, from a sea of sameness on our Jamaican roads”.
has a fully-adaptive shift system which delivers extremely smooth gear changes and optimizes performance and economy at all times. The Jaguar Sequential Shift™ suffers no torque interrupt resulting in a smoother more powerful shift feel and an almost instantaneous shift from the time the driver touches the shift paddle to the completion of the shift action. It also continually adapts to suit driving style, which can vary from sporting to more economical.
The agility of a Jaguar XF is difficult to imitate and it has a bevy of premium standard features that come as options in many other luxury saloons. Some of these features include the Jaguar Smart Key System ™ with Passive Entry, Six Speed Automatic Transmission with Jaguar Sequential Shift ™ and JaguarDrive™ Selector, 8 Way Power Adjustable Front Seats with Bond Grain leather facings and Phosphor Blue Halo Illumination and Interior Mood Lighting. One of many technological highlights is the HD display which not only has a touch screen feature but viewing can be split to allow the passenger to watch television while the driver may utilize it otherwise.
The Jaguar XF fuses sports car styling and performance with the refinement, features and space of a luxury saloon. Known for exemplary build standards, quality and engineering, this model comes with several remarkable upgrades including an advanced aerodynamic
Across the board the XF’s 3.0 V6 petrol engine offers power gains of up to 33 percent and torque gains of up to 38 percent. Simplicity and clever use of space are key to the XF’s interior design. Sound quality is a key characteristic of all Jaguars and is a particular aspect that customers relish. With that in mind, Jaguar engineers have deliberately accentuated the acoustic feedback into the cabin in order to further increase driving pleasure. The transmission
efficiency, improved fuel economy and reduced CO2 emissions. As well as being the authorized dealer for Jaguar, ATL Britannia Motors also houses the Land Rover and Range Rover specialized luxury 4x4 vehicles. The extent of the dealership’s product offering includes sales, service and genuine parts available at both their Kingston and Montego Bay branches. Experience the rebirth of Jaguar with ATL Britannia Motors as a new wave of luxury and excitement is offered up. A new Jaguar is an exquisitely crafted driving machine and is one of the most luxurious cars ever made. Now you have the opportunity to travel in exceptional style and experience the journey of a lifetime with Jaguar.
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Trust
is Everything.
Board of Directors, Presidents & CEO’s and senior management teams of governments, public bodies, blue chip corporations and SMEs, from the Caribbean to Africa, have entrusted this man with: • Developing their strategic plans and facilitating corporate retreats. • Improving their organisations and governments corporate governance, board effectiveness, accountability and corporate & employee performance. • Designing and delivering their Leadership Development Programmes. • Corporate workout and business restructuring. Vindel L. Kerr, DBA (Manchester), MBA (Rutgers), BSc (UWI); ASc (CASE) President & Managing Consultant; 2010 Scholar, International Corporate Governance Network (ICGN)
1 876 960 5356 www.vindelkerr.com
govstrat@cwjamaica.com www.caribbean-governance.com
AUTO SPECIAL
2010 SUV OF THE YEAR
– HONDA CRV
When the original Honda CR-V debuted in the late 1990s, its mission was simple: to offer a distinct alternative to more mainstream mid- and full-size large SUVs. With its car-based design, four-cylinder engine and sedan like ride and handling, the CR-V was an instant hit. Priced competitively and offering plenty of passenger room and cargo capacity for most people’s needs, the Honda CR-V has long enjoyed strong sales numbers and much loyalty from consumers.
satellite radio, a USB audio jack and a subwoofer. The sole item on the SUV’s options list is a touch screen navigation system that includes a rearview camera and Bluetooth.
Today, the compact- or small-SUV segment has grown to include more than a dozen different models, with varying philosophies of what constitutes the perfect blend of size, power and capability. While some models offer V6 engines and others can deliver true off-road capability, the Honda CR-V remains focused on its carlike aspirations. True to form, it is one of the best choices available in the all-important areas of on-road drivability and practicality.
The Honda CR-V’s list of merits is a long one. Its interior is intelligently thought out and boasts high-quality materials. Its ride is comfortable and quiet, its handling is nimble and its crash test scores are superlative. Its sole shortcoming concerns passing power in certain circumstances. Our editors found the CR-V’s acceleration adequate and pleasant around town, but merging and passing maneuvers on gradients can strain its torque reserves -- especially when compared to its V6-equipped competition. However, as long as your beaten path doesn’t include many steep roads or overly heavy loads, we think the Honda CR-V may possess all the room, refinement and performance you will ever need.
Buyers can choose from three trim levels – the LX, EX and EX-L. The LX gets you the basics like powered accessories, airconditioning and a CD player. The high-volume EX model adds niceties like keyless entry, alloy wheels, an upgraded stereo, moon roof and privacy glass. For those who want it all, the up level EX-L’s additions include leather upholstery, a power driver seat,
Powering the Honda CR-V is a 2.4-liter inline four-cylinder engine good for 180 horsepower and 161 pound-feet of torque, mated to a five-speed transmission. On all models, front-wheel drive is standard and all-wheel drive is optional.
Source EDMONDS.COM
Businessuite Magazine
December 2010
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AUTO SPECIAL
2010 CROSS OVER of the year .. 2010 BMW X6 M
The new 2010 BMW X6 M performance crossover is the sort of vehicle that’s hard to figure on paper. A 555-horsepower twin-turbo V8, hatchback body style, SUV ride height, four seats, limited hauling capability -- it all sounds like a recipe for irrelevance. Yet the X6 M wears the distinctive “M” badge of BMW’s Motorsport division, and that’s something BMW doesn’t take lightly. Purists may scoff at the presence of not one but two SUVs in this exclusive ultra-performance club (the mechanically identical X5 M is also new this year), but one drive in the X6 M should be enough to convince you that it’s a worthy member. Why? Two simple reasons. First, it’s really fast. Along with the 555 hp, there’s 501 pound-feet of torque from the V8 to motivate this 2.5-ton vehicle. In fact, those 555 horses are 5 more than the gonzo Porsche Cayenne Turbo S can manage, and the Porsche’s no lightweight either. A sprint between the two is likely to be a wash -- no small accomplishment for the X6 M given that it costs about $35,000 less. Second, its handling capabilities are like those of a sport sedan. Standard 20-inch performance tires and a special sport-tuned adaptive suspension certainly help, but a lot of crossovers have such features these days. The X6 M’s trump card here is what BMW calls “Dynamic Performance Control,” a sophisticated torque distribution system that works in conjunction with all-wheel drive to apportion power to aid traction as well as overall handling balance. On the downside, the X6 M is one of the least versatile crossover SUVs we’ve tested. Maximum cargo capacity is only marginally more than you’ll find in some economy
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hatchbacks. There’s room for just four occupants, so you can forget about carrying a fifth person in a pinch. At least the V8’s 501 lb-ft of torque yields a healthy maximum tow rating of 6,600 pounds. Still, that’s about the only practical feature that gives the X6 M an edge over, say, the five-passenger M5 sedan. More to the point, its X5 M sibling offers the same performance along with superior practicality. But let’s be honest -- a vehicle like this isn’t about practicality at all. It’s about passion, performance and individual expression. In this sense, the 2010 BMW X6 M actually isn’t a bad fit with the BMW M tradition. Its rivals certainly deserve close looks, including the various V8-powered Porsche Cayenne models, the Mercedes-Benz ML63 AMG, BMW’s own X5 M and the much cheaper Infiniti FX50. But the X6 M is one of the most capable and unconventional crossovers ever produced, and for some well-heeled buyers, that’s likely to be enough. Source EDMONDS.COM
AUTO SPECIAL
2010 Sport Car of the year The Mazda RX-8 Most people know that Mazda builds sporty cars. But for driving enthusiasts, it’s the company’s history of building sport coupes with lightweight rotary engines that sets it apart from the competition. The Mazda RX-8 is the latest of these coupes, and it’s the only one with a four-door configuration. The heart of the Mazda RX-8 is its high-revving, 1.3-liter rotary engine called the Renesis. It’s a made-up word: The “R” and the “e” stand for “Rotary engine,” while “nesis” comes from the word “genesis.” Odd name aside, the Renesis engine is an impressive bit of engineering: Unlike its forebears, it locates the exhaust ports on the side of each of the combustion chambers, rather than on the outer edge of the rotary housing. Sounds simple, but this one change allows for more power, higher fuel economy and lower emissions. Because of the engine’s compact size, engineers were able to mount it farther back in the RX-8’s chassis, giving the car a coveted 50/50 front/rear weight distribution. This, along with balanced suspension tuning, sharp steering and a svelte 3,000-pound curb weight, makes the rear-wheel-drive RX-8 one of the best-handling cars on the market. However, the car’s power is a bit lacking; newer competitors provide considerably 35
more oomph. The Mazda RX-8 is a four-seat coupe with a pair of rear-hinged “suicide” doors that ease access to the rear seats. Every RX-8 is powered by a 1.3-liter twin rotary engine, with an output that depends on the transmission. The six-speed manual version produces 232 horsepower at a stratospheric 9,000 rpm, and is capable of a 0-60 run in about 6 seconds. The six-speed automatic gets 212 hp and a redline of 7,500 rpm. All RX-8s have a rather paltry 152 pound-feet of torque, which means you have to hold the rotary engine on the boil to keep the car lively. Therefore, we’d suggest only buying an RX-8 with the manual. There are three trim levels available: Sport, Grand Touring and R3. Even the base car comes well equipped with 18-inch wheels, performance tires, cruise control, a leatherwrapped steering wheel and a six-speaker CD stereo with an auxiliary audio jack. The Grand Touring gets a limited-slip rear differential, automatic xenon headlights, a power driver seat, memory functions, heated seats, leather upholstery, automatic climate control, keyless ignition/entry, a Bose stereo, Bluetooth and a navigation system. The R3 is a high-performance variant packing 19-inch wheels, an aggressively tuned suspension,
Businessuite Magazine December 2010
Recaro sport seats, exterior body modifications and some of the other trims’ high-tech convenience features. Although the Mazda RX-8 has the look of a race-tuned sports car, its demeanor on the road is considerably more docile. Its ample grip through corners and solid feedback through the steering wheel make it an absolute riot on a serpentine road, yet a compliant ride means that it won’t beat you up on the daily commute. The rotary engine requires high engine speeds to make serious power, but the delivery is virtually vibration-free and noise levels are subdued. If you like a smooth engine (in feel, sound and delivery), the RX-8’s is second to none. Inside, the RX-8’s innovative two-person backseat and suicide half-doors provide the sort of practicality no other sport coupe can match. Provided they’re shorter than 6 feet tall, those seated in the back will find supportive seating and ample room. Overall, the RX-8 is one of the best examples of a car that’s both fun to drive and very livable on a day-to-day basis. Just be prepared to pay at the pump, as the high-revving rotary swills fuel like an SUV. Source EDMONDS.COM
Presents the official 2010 presentation of
May 2011.
7:00pm – 11:00pm New Kingston Jamaica www.peerawards.com.jm
amkcommunications@gmail.com
Businessuite Magazine December 2010
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AUTO SPECIAL
The Snow White Effect: CEO’s and their Many Dwarves Many Jamaican companies are trapped in the Snow White Effect: a strong, charismatic CEO (Snow White) who towers above other employees with a monumental energy and creativity. While his gifts are to be admired, they often are developed at the expense of his weak subordinates -- the Many Dwarves.
lead the way, thereby keeping themselves out of the public eye. They shrink, while Snow White becomes more beautiful with each passing day.
Companies that are stuck in this mode are often unaware of it, and it only takes the sudden departure of the CEO to illuminate the problem.
1: Hire Brighter People
Other indicators might be: 1. High turnover of executives drafted in from other companies. 3. Second-tier executives who show remarkable loyalty, but few other leadership skills. Many top employees are quite satisfied to step back and allow their top executives to
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What can Jamaican companies do about the Snow White Effect? Our research has uncovered two strategies.
Many CEO’s hire executives who are neither as smart or as well-qualified as they are. Reversing this practice takes some courage. 2: Push the Envelope Many managers in our region’s companies quietly shelve their ambitions over the years and come to believe that the greatest contribution they can make is “company loyalty.” Top CEO’s don’t accept this kind of performance as given, and push their executives to
Businessuite Magazine December 2010
be company leaders at all times. Truly strong CEO’s are willing to do whatever it takes to replace themselves and are willing to put the company’s welfare above their self-interests. This is a disruptive stance to take in the short term, but everyone benefits when they unceasingly challenge complacency, even when it’s their own. This article is an excerpt from the latest issue of FirstCuts by Francis Wade. Subscriptions are free at http://blog.fwconsulting.com/firstcuts Francis Wade Framework Consulting Inc. Solving companies’ toughest people problems. http://2time-sys.com Tweets - @fwade 954.323.2552 / 876.880.8653 francis@fwconsulting.com