Gold Magazine Issue 57 by INBusiness

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Gold ISSUE 57 december 20, 2015 PRICE €3.00

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Gold ISSUE 57 | DECEMBER 20,

LYSANDROS IOANNOU PHIDIAS PILIDES PRESIDENT CCCI (Organiser)

CHAIRMAN & CEO PHC FRANCHISED RESTAURANTS PUBLIC LTD

EXCLUSIVE Wilbur L. Ross Jr. on Leadership 

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pages kebe business leader awards

the recipients the event

CHRYSOSTOMOS PAPAVASSILIOU

ARTEMIS ANTONIADOU

MANAGING DIRECTOR ISLAND OIL (HOLDINGS) LIMITED

MANAGING DIRECTOR VOICI LA MODE GROUP ΟF COMPANIES

STAVROS PANTZARIS

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BOOKSHELF Ten of the best books of 2015

MANAGING DIRECTOR EY CYPRUS (Main Sponsor)

2015 |the leadership issue

MICHALIS LOUIS CEO EUROBANK CYPRUS

COSTAS ZORBAS EXECUTIVE CHAIRMAN AND CEO A. ZORBAS & SONS LTD

We support you to create the value you are looking for by providing specialised solutions based on quality. Together we build relationships based on trust and we say things as they are, to assist you to deal with issues that tomorrow will prove important. We adapt our expertise and the power of our global network to your specific needs helping you make the difference.

VARNAVAS IRINARCHOS

THE LEADERSHIP CONSTANTINOS SHIACOLAS BOARD MEMBER J&P OVERSEAS

ISSUE +

MANAGING DIRECTOR LOGICOM PUBLIC LIMITED

OPINION Kyriakos Iordanou

Olga Kandinskaia Kyriakos Parpounas Savvas Savouri

Joseph F. X. Zahra

The 2nd KEBE Business Leader Awards

• The Top 10 Global Leadership Gurus • 20 Essential Books on Leadership

✪

Time to Step on the Gas Lenas Mylonas

✪

Financial Crime Fighters Angela Salter

✪

Working for the Greater Good George Ioulianos

EXCLUSIVE Wilbur L. Ross Jr. on Leadership Í

PAGES KEBE BUSINESS LEADER AWARDS

THE RECIPIENTS THE EVENT

CHRYSOSTOMOS PAPAVASSILIOU

ARTEMIS ANTONIADOU

MANAGING DIRECTOR ISLAND OIL (HOLDINGS) LIMITED

MANAGING DIRECTOR VOICI LA MODE GROUP ʨ- *647(50,:

BOOKSHELF Ten of the best books of 2015

MICHALIS LOUIS CEO EUROBANK CYPRUS

VARNAVAS IRINARCHOS MANAGING DIRECTOR LOGICOM PUBLIC LIMITED

OPINION Kyriakos Iordanou

Olga Kandinskaia Kyriakos Parpounas Savvas Savouri

1VZLWO - ? Zahra

TIME TO STEP ON THE GAS Lenas Mylonas

FINANCIAL CRIME FIGHTERS Angela Salter

WORKING FOR THE GREATER GOOD George Ioulianos

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ISSUE 57 DECEMBER 20, 2015

T H E

B U S I N E S S

M A G A Z I N E

THE LEADERSHIP ISSUE

SUHVHQWV

2nd KEBE

BUSINESS LEADER AWARDS

hat makes a great leader? This is a question that has been a subject of debate and analysis throughout history, and certainly from as early as the 6th century BC (“A leader is best when people barely know he exists. ;LIR LMW [SVO MW HSRI LMW EMQ JYPÁPPIH XLI] [MPP say: we did it ourselves.” – Lao Tzu) to modern times (µ+VIEX PIEHIVW EVI EPQSWX EP[E]W KVIEX WMQTPMÁIVW who can cut through argument, debate, and doubt to offer a solution everybody can understand.” – Colin Powell). As in politics, war and religion, it may appear that the business world, too, is unequally divided into PIEHIVW ERH JSPPS[IVW ,S[IZIV WYGL E WMQTPMWXMG HIÁnition is likely to be challenged today and it can be convincingly argued that to be a great leader you must also be a great follower. What is certain is that there are plenty of good – and bad – leaders around and there also exists a comparatively small number of people who are recognised for their greatness. Last year, the Cyprus Chamber of Commerce & Industry inaugurated its annual Business Leader Awards, in recognition of leadership excellence in various sectors of the economy and as an acknowledgement of the fact that talented individuals have the ability to inspire and, thus, to make their companies and organisations successful. Last month, the CCCI’s 2nd Business Leader Awards were presented at a glittering ceremony in Limassol and on the following pages you can see photos from the event and read brief interviews with the seven winners. It is interesting that every one of them, though singled out for their individual and personal achieve-

ISSUE THE LEADERSHIP By John Vickers

Business Leader portraits by Jo Michaelides

“The greatest leader is not necessarily the one who does the greatest things. He is the one that gets the people to do the greatest things.” Ronald Reagan

GOLD

COVER

STORY

C Y P R U S

CONTENTS

ments, makes the point that success is actually a matter of teamwork. This would suggest that one of the key aspects of great leadership is, in fact, the ability to create a team and inspire its members to do what one person cannot possible manage alone. This is the essence of the selected quotation (left) by the late US President Ronald Reagan. Having team-building skills and encouraging teamwork are, not surprisingly, also part of the business philosophy of US billionaire Wilbur L. Ross, whose €400 million injection of new capital into Bank of Cyprus last year provided a boost not only to the bank but to the island’s broader banking sector and the economy. His ideas on leadership are provided in the exclusive Gold interview that follows, together with concise insights into his own achievements. Success stories can undoubtedly inspire and encourage the rest of us to work hard for great achievements and to persevere until we attain them. They are powerful motivators. So for those who believe that one way of learning how to become a good and even a great leader is to discover the secrets of people who are broadly recognised to have proved their worth in XLIMV GLSWIR ÁIPH [I LEZI GSQTMPIH E PMWX SJ IWWIRXMEP reading spanning more than 2,500 years and topics as diverse as 5th century BC military strategy and Premier League football management. This alone indicates the breadth of the leadership question and each of the 20 books has a great deal to teach about XLI WYFNIGX =SY [MPP EPWS ÁRH ER MRXVSHYGXMSR XS SJ the best-known and widely acclaimed gurus teaching the art of leadership. Most people believe that great leaders are not born but made. Indeed, as US General Douglas MacArthur memorably said, µ% XVYI PIEHIV LEW XLI GSRÁHIRGI to stand alone, the courage to make tough decisions, and the compassion to listen to the needs of others. He does not set out to be a leader, but becomes one by the equality of his actions and the integrity of his intent.” ;MXL NYWX EVSYRH XLI GSVRIV ERH EW [I are frequently being told, the stars aligning for a settlement of the longstanding Cyprus Problem, the leadership qualities of many people on the island will undoubtedly be brought into focus. Will they prove to LEZI KVIEXRIWW# ;I WLEPP WSSR ÁRH SYX

O F

8| BUSINESS BRIEFING

Economic & Business Highlights of the past month.

16 | MY WAY

Marios Kilitou’s management style.

18 | FIVE MINUTES WITH… Asma Al Rahma.

20 | THEY SAID WHAT?

| GOLD `

A selection of memorable recent quotes from Cyprus.

32 | The Leadership Issue

What makes a great leader? We talk to the seven winners of the CCCI’s 2nd Business Leader Awards and to US billionaire investor Wilbur L. Ross, while proposing our choice of the 20 best books on leadership, introducing the Top 10 Leadership gurus.

OPINION 54 | IS HISTORY REPEATING ITSELF? By Joseph F. X. Zahra

62 | MUCH MORE THAN CHARITY By Kyriakos Parpounas

72 | STAYING FOCUSED By Kyriakos Iordanou

76 | TOY STORY

By Dr. Olga Kandinskaia

78 | MIND THE GAP, GEORGE By Dr. Savvas Savouri

FEATURES 22 | WORKING FOR THE

GREATER GOOD CFA General Manager George Ioulianos Z[YLZZLZ [OL ULLK [V \UPÄ` [OL PU[LYUH[PVUHS business sector.

26 | TIME TO STEP ON THE GAS

3LUHZ 4`SVUHZ VU [OL L]LU[\HS ILULÄ[Z [V Cyprus from current and future natural gas discoveries.

56 | FXTM: A

TRUE INNOVATOR Interview with Olga Rybalkina, CEO of ForexTime.

60 | FINANCIAL CRIME

FIGHTERS Angela Salter, ACAMS Head of Europe, on anti-money laundering education.

64 | WORKING THE CROWD

Crowdfunding needs regulating, says Amalia Hadjipapa.

66 | THE 2ND CYPRUS

FIDUCIARY ASSOCIATION FORUM Photos from last month’s conference.

68 | ORACLE DIGITAL

TRANSFORMATION FORUM Pictures from the event.

70 | RIGHTS ISSUE

Cyprus can become a regional hub for Intellectual Property ÄYTZ

74 | TAXATION OF OFFSHORE ACTIVITIES UNDER CYPRUS DTAS By Olga Chervinskaya.

80 | BOOKSHELF

Ten of the best books of 2015.

6 | GOLD | The Business Magazine of Cyprus

82 | IN GOOD COMPANY

88 | WHAT’S ON

84 | LUNCH WITH GOLD

90 | A DAY IN THE LIFE

Exploring cdbbank’s core asset: its personnel. Andreas Hadjikyriacos, Managing Director of Gnora Communication Consultants.

87 | BUSINESS CLASS

Philippos Mannaris, CEO, Aon Hewitt Cyprus.

Gold’s guide to the best cultural events of the coming month.

Christiana Diola.

Can greater insights be found by understanding the complexity behind the obvious? Using market-leading analytics tools, EY auditors look beyond the obvious, delving deeper into underlying patterns and trends to deliver powerful business insights and a high quality, risk-focused audit. ey.com/theartofaudit #BetterQuestions

In Primavera, Botticelli used the Fibonacci sequence to unite each mythological element in a perfect composition of line and form.

| EDITORIAL |

What’s Another Year?

GOLD ISSUE 57 DECEMBER 20, 2015 PRICE €3.00

T H E

B U S I N E S S

M A G A Z I N E

O F

C Y P R U S

LYSANDROS IOANNOU

PHIDIAS PILIDES

PRESIDENT CCCI (Organiser)

CHAIRMAN & CEO 7/* -9(5*/0:,+ RESTAURANTS PUBLIC LTD

STAVROS PANTZARIS

MANAGING DIRECTOR EY CYPRUS (Main Sponsor)

COSTAS ZORBAS EXECUTIVE CHAIRMAN AND CEO A. ZORBAS & SONS LTD

THE LEADERSHIP CONSTANTINOS SHIACOLAS BOARD MEMBER J&P OVERSEAS

ISSUE +

THE 2nd KEBE BUSINESS LEADER AWARDS The Top 10 Global Leadership Gurus 20 Essential Books on Leadership

PUBLISHED BY IMH ISSN 1986 - 3543

MANAGING DIRECTOR

George Michail

GENERAL MANAGER

Daphne Roditou Tang MEDIA MANAGER

welve months ago, I noted in my final editorial of the year that “while 2014 is unlikely to be remembered as anyone’s favourite year, things have developed better than even the most optimistic forecasters expected.” Today I would be happy and, I believe, perfectly justified to repeat those words and simply change the date. 2015 has undoubtedly been a year of economic progress, once again surpassing expectations and defying the Government’s critics. As we saw in 2014, the island’s politicians again did their reputations few favours, particularly those in opposition who, for months on end, pointlessly delayed approving key legislation that would enable the banks to take action on the major problem of non-performing loans. In the end, the Troika of international lenders got what they wanted, Cyprus received another tranche of bailout cash and almost half of the country’s MPs were able to feel that they had shown heroic, patriotic defiance towards the nasty foreigners. That said, the developments that may give 2015 a special place in the history books did not concern the economy but the island’s longstanding division. The victory of Mustafa Akinci in the Turkish Cypriot community’s elections in April was arguably the most significant event in Cyprus for decades and it was one that President Nicos Anastasiades seized upon with uncharacteristic boldness. Since then, considerable progress has been made in talks between the two leaders and people are talking seriously about a settlement in 2016. For the first time, the optimistic voices are coming from inside Cyprus as well as from the international community. The recent visits to the island by the Philip Hammond, Sergey Lavrov and John Kerry, as well as an earlier one by Jean-Claude Juncker, are not chance events. We will have to wait and see whether a final agreement is reached, and there are plenty of loud voices – particularly Greek-Cypriot ones – calling for a ‘no’ to reunification under any circumstances but we may be about to witness and, indeed, be part of a truly historic moment. As far as Gold is concerned, 2015 was the year in which we reached our landmark 50th issue and marked the anniversary by bringing in a few modifications to the content and design of the magazine, all of them received positively by you, our readers. The most recent change took place last month when we dropped the cover price and introduced a new publishing arrangement with Reporter, the new weekly newspaper published by our owners IMH, by which Gold comes out as part of a special package and then as a standalone title. For the fifth time, I want to end my December editorial by thanking you for your consistent support and wishing you a great ChristJohn Vickers, mas and a Happy New Year. In the words of John Lennon, Let’s Chief Editor hope it’s a good one without any fear. john@imhbusiness.com

8 | GOLD | The Business Magazine of Cyprus

Elena Leontiou

EDITOR-IN-CHIEF

John Vickers

JOURNALISTS

Effy Pafitis, Artemis Constantinidou CONTRIBUTORS TO THIS ISSUE

Mariana Antonescu, Olga Chervinskaya, Amalia Hadjipapa, Kyriakos Iordanou, Olga Kandinskaia, Chloe Panayides, Kyriakos Parpounas, Savvas Savouri, Joseph F. X. Zahra PHOTOGRAPHY

Jo Michaelides, Andreas Loucaides ART DIRECTION

Anna Theodosiou

SENIOR DESIGNER

Alexia Petrou

PHOTOGRAPHY

Jo Michaelides, Harris Kyprianou MARKETING EXECUTIVE

Kevi Chishios

SALES MANAGER

Irene Georgiou

SALES EXECUTIVE

Stavros Epifaniou

OPERATIONS MANAGER

Voulla Nicolaou

SUBSCRIPTIONS

Myria Neophytou PRINTERS

Cassoulides Masterprinters CONTACT 5 Aigaleo St., Strovolos 2057, Nicosia, Cyprus Mailing address: P.O.Box 21185, 1503, Nicosia, Cyprus Tel: +357 22505555, Fax: +357 22679820 e-mail: gold@imhbusiness.com subscriptions: goldsubscriptions@imhbusiness.com www.imhbusiness.com

BUSINESS BRIEFING

TOURISM IN THE NEWS

VIP VISITORS The British Foreign Secretary,

Philip Hammond, the US ate for Foreign Secretary of State LYY` 9\ZZPHU (ɈHPYZ 1VOU 2LYY` 9\ZZPHU Foreign Ministerr Sergey nch President Lavrov and French de were all in François Hollande [OL ÄYZ[ [OYLL *`WY\Z YLJLU[S` [OL ÄYZ[ [OYLL e leaders to encourage the munities in of the two communities ks to resolve the ongoing talks g Cyprus the longstanding Problem. President Hollande made a brief stopover in Larnaca where he thanked Cyprus for its assistance to French military action against IS in Syria.

John Kerry

Philip Hammond

Sergey Lavrov

GOLF COURSES ATTRACT THOUSANDS

Cyprus’ professional grade golf courses attracted 25,000 visitors to the island last year, representing 1% of tourist arrivals in 2014, in what was one of the best years for the island’s golf tourism sector. The Cyprus Tourism Organisation expressed its satisfaction, noting that there is room for a further increase, particularly during the winter months.

François Hollande

ING SHIPP

AMATHUS BEACH HOTEL WINS GREEN HOTEL OF THE YEAR AWARD

The 5-star Amathus Beach Hotel in Limassol was named “Green Hotel of the Year 2015” at last month’s European Hospitality Awards in London. Reference was made during the ceremony to the hotel’s numerous green initiatives, launched to make it an environmentally aware resort and a leader in sustainability projects.

Chrysostomou Award

ndreas Chrysostomou, Director of the Department of Merchant Shipping, was named ‘International Personality of the Year’ at the 2015 Lloyd΄s List Greek Shipping Awards in Athens. The award recognizes his contribution to the Cyprus and international shipping industries.

Ship Management Revenues Rise

hip management revenues in Cyprus increased during the first half of 2015, to €464 million, the highest recorded since 2010. Ship management revenues now correspond to 5.4% of Cyprus’s GDP, according to the Central Bank. 10 | GOLD | The Business Magazine of Cyprus

42 GREEK SHIPPING COMPANIES REGISTER IN CYPRUS

Due to the crisis in Greece, 42 Greek shipping companies have registered PU *`WY\Z [OPZ `LHY ;OL ÄN\YL ^HZ revealed by the President of the Limassol Chamber of Commerce & Industry (LCCI), Costas Galatariotis.

THOMSON GOLD AWARD FOR KING JASON HOTEL

The King Jason Hotel in Paphos has won the Thomson 4T Overall Gold Award for 2015. This recognition, which The King Jason has now received for several consecutive years, YLÅLJ[Z [OL OV[LS»Z JVTTP[TLU[ [V L_cellent customer service. Visitors gave the hotel a satisfaction rating of 97.5% for 2015 – the highest to date.

ENERGY

BG GROUP ACQUIRES STAKE IN CYPRUS GAS FIELD

TOTAL’S EXPLORATION LICENCE EXTENDED

EAC PRIVATISATION NO LONGER ON THE TABLE

ritish multinational oil & gas company BG Group has agreed to acquire a 35% stake in the consortium with rights over Block 12 of Cyprus’ Exclusive Economic Zone from Noble Energy, for a cash consideration of some $165 million. Energy Minister Yiorgos Lakkotrypis described the move as “a very important development, which highlights the confidence and prospects in Cyprus’ exclusive economic zone, coming from a company with such a large international presence.” Block 12, the ‘Aphrodite’ gas field, was discovered in 2011 and is estimated to have gross mean natural gas resources of approximately four trillion cubic feet.

arlier this month the Council of Ministers approved the extension of energy giant Total’s exploration licence in Cyprus’ offshore Block 11 for two years. They also approved the size and shape of the new exploration area in Block 11. The company’s original licence was due to expire in February 2016 and it was ready to pull out of Cyprus, having failed to identify any likely targets in Block 10 but it was persuaded by the Government to keep its operations going. The discovery in September of the huge Zohr gas field just 6 km from Block 11 in Egypt’s Exclusive Economic Zone has made Total think again.

n an unexpected turn of events on December 7, Energy Minister Yiorgos Lakkotrypis announced that the Electricity Authority of Cyprus (EAC) would remain under state control but the planned disaggregation of the organisation into separate entities will go ahead. According to the original plan, the EAC will be split into two entities: the network on one hand and generation/supply on the other, with the state maintaining a majority stake and allowing private investors to acquire the rest. Such a move is also supported by international lenders, which has spoken in favour of a better business model for the EAC.

B IA MED

GREEK TV STATIONS COMING TO CYPRUS

he Chairman of the Cyprus Radio & Television Authority, Andreas Petrides, announced last month [OH[ Ä]L .YLLR ;= JOHUULSZ OH]L expressed their interest in setting \W PU *`WY\Z ;OL ÄYZ[ VM [OLT (SWOH *`WY\Z has already obtained its licence to operate. Following recent changes to the regulations governing the media in Greece, the TV stations are viewing Cyprus’ licence fee of €51,400 as a much better deal than the €300,000 fee that they will allegedly have to pay in order to operate at home. Mega and ANT-1 already have successful Cyprus operations.

BANKIN G

CIBA AWARD FOR RCB BANK 9*) )HUR OHZ ILLU H^HYKLK [OL *`WY\Z 0U[LYUH[PVUHS )\ZPULZZLZ (ZZVJPH[PVU»Z WYLZ[PNPV\Z )\ZPULZZ (^HYK MVY ,_JLSSLUJL 7YLZLU[PUN [OL H^HYK VU ILOHSM VM 7YLZPKLU[ (UHZ[HZPHKLZ K\YPUN the Association’s Annual General Meeting in Limassol, Transport Minister Marios Demetriades praised RCB Bank’s contribution to the Cyprus economy and the continuous development of its operations over the past 20 years. Receiving [OL H^HYK 9*) )HUR *,6 2PYPSS APTHYPU [OHURLK *0)( MVY [OL KPZ[PUJ[PVU ^OPJO OL ZHPK YLÅLJ[Z [OL )HUR»Z JVTTP[TLU[ [V L_cellence. RCB Bank operates 6 branches in *`WY\Z HUK VUL PU 3\_LTIV\YN

ā,Ćāā

THE NUMBER OF TAXPAYERS WHO SETTLED THEIR IMMOVABLE PROPERTY TAX (IPT) BILL BEFORE THE DEADLINE IN ORDER TO BENEFIT FROM A 20% DISCOUNT. BY THE END OF NOVEMBER, MORE THAN €55.5 MILLION HAD BEEN PAID. www.goldnews.com.cy | GOLD | 11

BUSINESS BRIEFING

PEOPLE

Hourican to Stay at BoC

Bank of Cyprus CEO John Hourican is to retain his position at the helm of the Group and will sign a new two-year contract, LɈLJ[P]L MYVT -LIY\HY` Hourican had announced his resignation in April this year “for personal reasons”, saying that he had his family intended to relocate to his home country, Ireland.

Angastiniotis Reappointed

Christodoulos Angastiniotis has been reappointed as Chairman of the Cyprus Investment Promotion Agency (CIPA) for a second fouryear term by President Nicos Anastasiades, who also renewed the tenure of the rest of the CIPA Board last month. The Agency is tasked with coordinating the LɈLJ[P]L WYVTV[PVU VM [OL PZSHUK»Z investment prospects abroad and attracting foreign investment.

N AVIATIO

Josephides Named IMO Maritime Ambassador

Alexandros Josephides, Deputy Director General of the Cyprus Shipping Chamber (CSC), has been appointed as IMO Maritime Ambassador for Cyprus. An International Maritime Organisation (IMO) Maritime Ambassador is a spokesperson or advocate for the maritime and seafaring professions, task s, whose w is to raise awareness, ss, particularly particu in young people starting out on further education n and a career.

Xenia Georgiou has been appointed as a member of the )VHYK VM [OL HJJV\U[PUN ÄYT Horwath DSP Ltd. She joined the company in October 2009 and has been responsible for [OL ÄYT»Z H\KP[ HUK HZZ\YHUJL assignments. Managing Director Ioannis Demetriades praised Georgiou’s excellent leadership skills, partner-level judgment and vvalued service to clients.

EASYJET FLIGHT TRACKING APP FEATURE

EasyJet has enhanced its award-winning mobile app with live aircraft tracking functionality. The airline is the first to collaborate with Flightradar24, enabling passengers to see the whereabouts of the aircraft they are due to fly on up to three hours before their flight. TUS RECEIVES Family and friends can also AIR TRANSPORT track any flight ahead LICENCE of its arrival. A new local carrier is set to launch after receiving a commercial air transport licence from the government. Larnaca-based MORE TUS Airways is backed by investors from ACCOLADES Europe and the United States. FOR EMIRATES The airline will begin scheduled November was a month of accolades for flights in January 2016 to regional Emirates, aas it clinched ‘Airline rline of the destinations including Beirut, Year’ at the Arabian Business ess AchieveTel Aviv, Haifa, Rhodes, ment Awards rline Premier Awards, ‘Favourite Airline Kos, Eilat and Samos. Cabin Midd Middle East’ at the Conde Nast Traveller Mi Middle East Readers’ ders’ Choice Awards, and ‘Best Business Class’ and ‘Best Airline Lounge’ - at the he inaugural Middle E East Ultimate Luxury Travel Related Awards Trave ards (ULTRAs).

12 | GOLD | The Business Magazine of Cyprus

/VY^H[O +:7 (WWVPU[Z 5L^ )VHYK 4LTILY

ETIHAD AIRWAYS NAMED AIRLINE OF THE YEAR 2016

Etihad Airways, the national airline of the United Arab Emirates, has been named Airline of the Year 2016 by the US US-based based aviation industry publication Air Transport World (ATW). It was chosen for the top honour in a highly contested competition, with entries from more than 100 airlines around the world.

LEGENDS LIVE FOREVER EL PRIMERO

I Chronomaster 1969

www.zenith-watches.com

Tour Auto Edition

20 | GOLD | The Business Magazine of Cyprus

Polydorou Design is a visual branding and communication company, and this year we are celebrating 25 years of creativity, serving clients across various industries, both here in Cyprus and internationally. We have the know-how and experience to deliver clearly and intelligently. Whether you are communicating online or oﬄine, we present bespoke solutions – from handcrafted logos and brand identities, to company proﬁles and digital marketing. E: info@polydoroudesign.com

NEW - In 2015 we gathered 2 Inernational Awards for Packaging Design for Cretelean

Organic Olive Oil

The only local design company that has been published 5 times in the annual LogoLounge Publication, which accepts entries submitted by major studios from around the world.

Winner of ‘Best of Nation Award’ for Cyprus, for three consecutive years

MY WAY

Marios Klitou

Chief Executive 2IĂ&#x20AC;FHU %DNHU Tilly Klitou

THOUGH LEADERSHIP EXCELLENCE IS DEFINED IN MANY WAYS â&#x20AC;&#x201C; DEPENDING ON WHOM YOU ASK â&#x20AC;&#x201C; MARIOS KLITOU REMAINS ADAMANT: IT IS THE ABILITY TO CULTIVATE A STRONG, EFFECTIVE TEAM AND ALLOW THEM TO GUIDE THE COURSE OF MANAGERSâ&#x20AC;&#x2122; OWN EFFORTS. HERE, HE TELLS US WHY.

â&#x20AC;&#x153;I

would describe my management style as demanding; I am, first and foremost, a difficult and demanding person, and so I expect the best from myself as well as the people surrounding me. I always seek to achieve the best possible results and deliver to the highest obtainable standards.â&#x20AC;?

â&#x20AC;&#x153;T

he biggest mistake that managers make is to inadequately evaluate the consequences and implications of their actions. Unfortunately we have seen this mistake made time and again in Cyprus in recent years, and the country is suffering because of it. Managers must take into consideration the risks associated with their decisions.â&#x20AC;?

â&#x20AC;&#x153;I

f I had the time, my favourite pastime would be to travel. This might seem strange as I travel every week for work but there is an abundance of locations I would love to visit if I got the chance to do so. In fact, I wouldnâ&#x20AC;&#x2122;t mind spending a year just travelling. I think it is exceedingly interesting meeting new people and visiting different places. I would like to try and understand different peoplesâ&#x20AC;&#x2122; way of thinking, their traditions, behaviour and cuisine. Additionally, if I could manage to squeeze some football in there I would be very happy!â&#x20AC;?

â&#x20AC;&#x153;W

hat has helped me most throughout the course of my career? I managed to become CEO of the firm because, over the years, I was fortunate enough to have good partners and a strong team. Excellent achievements are not personal; they belong to the entire team. You can have great ideas and try to put them in place and make them work, but unless you have people working with you who share your vision, passion and dedication â&#x20AC;&#x201C; and work in a coherent, structured way â&#x20AC;&#x201C; you wonâ&#x20AC;&#x2122;t get very far.â&#x20AC;?

â&#x20AC;&#x153;H

ow do I achieve a healthy balance between life at work and at home? It is very difficultâ&#x20AC;Ś in fact, perhaps I donâ&#x20AC;&#x2122;t! I work very long hours and am a hardworking guy, and I donâ&#x20AC;&#x2122;t mind because I enjoy my work. However due to this I am left with little free time to strike a balance.â&#x20AC;?

â&#x20AC;&#x153;M

y greatest professional achievement has been the ability to run a firm in five countries with seven offices and some 300 members of staff.â&#x20AC;?

16 | GOLD | The Business Magazine of Cyprus

â&#x20AC;&#x153;T

â&#x20AC;&#x153;M

y leadership style was undoubtedly influenced most by my time in London, where I trained as a Chartered Accountant for some six years in the â&#x20AC;&#x2DC;80s. It most definitely impacted my career and behaviour; things were very professional, proper and correct there. Indeed, many things which may seem irrelevant to us were ere very important to my employers there and nd my professional style, tyle, as a result, emanates tes from this experience.â&#x20AC;?

he object of my professional admiration is one of my late uncles. He left for the UK in the late â&#x20AC;&#x2122;60s to become a Chartered Accountant and, due to his encouragement, I followed his example years later. Without him and that decision,, I certainly wouldnâ&#x20AC;&#x2122;t be where I am today.â&#x20AC;?

Marios Klitou joined Baker Tilly in 1996 and now serves as CEO of the Ă VQÂ¸W STIVEXMSRW MR ']TVYW 6SQERME &YPKEVME ERH 1SPHSZE With over 30 years of experience MR XLI EGGSYRXMRK MRHYWXV] LI is Fellow of both the Institute of Chartered Accountants in England and Wales and the Association of 'LEVXIVIH 'IVXMĂ IH %GGSYRXERXW SJ 9/ 0SGEPP] LI MW E QIQFIV SJ XLI -RWXMXYXI SJ 'IVXMĂ IH Public Accountants SJ ']TVYW -'4%'

FIVE

MINUTES WITH ASMA AL RAHMA

mirates is one of the world’s leading airlines. What is the key to its success? There is no one key factor in our success story, although we do have a very clear strategy of organic growth and an unwavering commitment to quality. We have maintained a consistent approach to growth by way of new aircraft orders and deliveries, and with the addition of new destinations. For us, it has always been important to stay ahead of the curve when it comes to the introduction of new technologies. Our investment in new products, services and technologies has undoubtedly played a key role in our strong business performance over the last 30 years. How is the Cyprus route performing? Emirates is firmly established as one of the main players in Cyprus. Besides carrying thousands of passengers, we also provide valuable air freight space to import and export supplies that are vital to the manufacturing and services industries. Which are the most popular outbound destinations with travellers from Cyprus? From our hub in Dubai, Emirates serves 149 destinations in 80 countries and territories (including 16 cargo-only services), operating the world’s largest fleets of Boeing 777 and Airbus A380 aircraft. Emirates 18 | GOLD | The Business Magazine of Cyprus

has facilitated the experiences of travellers from Cyprus by assisting them to travel to the destinations of their dreams with just one convenient stop in Dubai.

Country Manager, Cyprus Emirates Destinations such as Dubai, Singapore, Hong Kong, Bangkok and China are high on customers’ preference lists all year round. Also, Melbourne, Sydney and Johannesburg remain popular due to family ties. Dubai’s ambition is to become the world’s most visited city by 2020. What is it so special about it? Dubai will be hosting the World Expo

in 2020. A city of contrasts, Dubai is a place where tradition meets diversity, and where history blends with modernity, creating a fascinating destination. Apart from many attractions, festivals and activities, this city is home to some of the world’s fi finest hotels and restaurants. We o often hear Dubai described as a ““must” stopover destination on lo long-haul journeys… Stopping-over in Dubai could not be easier. Upon arrival, one is assisted by our staff. A four-hour City of Merchants tour encompasses major Dubai sights such as the gold and spice souks and the world’s tallest building, Burj Khalifa, leaving one with plenty of time to enjoy the favourite pastime of many – shopping! An p ev evening desert safari and, the next day, a trip to the Mall of the Emirates, with its stylish stores and indoor ski slope, are also recommended. Dubai offers a wide range of tours, attractions and excursions to enhance the visitor’s experience, even if it’s just for 48 or 96 hours. Are there any plans for growth in Cyprus? Emirates aircraft already land twice daily here: in the morning from Dubai and in the afternoon from Malta. Each flight has a 237-seat capacity and is capable of carrying up to 15 tons of cargo with a full passenger load. Also, I believe that Emirates has the best in-flight product in the world. The future can only get better.

The Bank you can trust

Merry Christmas and Happy New Year

2016!

RCB Bank Ltd. Private Company. Registration number: 72376. Registered office: 2, Amathountos street, 3105 Limassol, Cyprus.

Our branches are open Monday to Friday 9am to 5pm www.rcbcy.com

800 00 722

QUOTES OF THE MONTH

They Said What? Our selection of some of the more interesting statements heard in Cyprus during the past month.

ELENI THEOCHAROUS

“AS YOU KNOW, AN ENORMOUS CHASM DIVIDES US ON THE NATIONAL ISSUE AND I AM CONVINCED THAT WE ARE FAST HEADING TOWARDS IRREVERSIBLE SITUATIONS.” Eleni Theocharous, MEP, who has decided to leave the Democratic Rally (DISY), tells Chairman Averof Neophytou why. In her resignation letter, she forgot to explain why she has no intention of giving up her €100,000 a year job at the European Parliament, to which she was elected to represent DISY.

“THE MAJORITY OF THESE INVESTMENTS HAVE ALREADY BEEN PAID IN FULL AND SEVERAL OF THEM ARE STILL EMPTY FIELDS.” Deputy Chairman of the House Finance Committee, Angelos Votsis, on the unfolding scandal of what happened WR WKH &\WD HPSOR\HHV· Pension Fund. ANGELOS VOTSIS

PHILIP HAMMOND

“THE STARS ARE BEGINNING TO ALIGN... EXPERIENCED CYPRUS WATCHERS WILL COUNSEL THAT WE SHOULDN’T RAISE OUR HOPES TOO HIGH BUT REAL PROGRESS HAS BEEN – AND IS BEING – MADE.” A cautiously optimistic British Foreign Secretary, Philip Hammond, after his visit to Cyprus last month.

“CORRUPTION IS EVERYWHERE. PATIENTS ARE STILL PAYING UNDER THE COUNTER TO BE TREATED. DID YOU KNOW THERE ARE STATE DOCTORS WHO WORK IN PRIVATE HOSPITALS WITHOUT OUR PERMISSION? OR DOCTORS WITH A SURGERY AT HOME?”

“OUR OBJECTIVE IS NOT TO CREATE WINNERS AND Health Minister George PamLOSERS. “THE HONOURABLE MRS boridis states what every one EUROPARLIAMENTARIAN, WHOEVER THINKS of his predecessors knew but THAT HE IS A DESPITE HER EXPERIENCE GEORGE were afraid to admit. PAMBORIDES WINNER OR THAT IN MANY AREAS OF THE HE HAS ACHIEVED CYPRIOT POLITICAL “I WANT TO REASSURE THOSE WHO SOMETHING AT SYSTEM, DOES NOT SEEM WOULD BE VERY ANXIOUS ABOUT THE EXPENSE TO REALISE WHERE HER THE PROSPECT OF ME BECOMING OF THE OTHER MORAL GROUND FOR PRESIDENT THAT THERE IS NO NEEDS TO REALISE RETAINING THE SEAT SUCH PROSPECT.” THAT HE IS COMES FROM.” BUILDING ON Finance Minister Harris Georgiades shows that Stavros Zenios, who would become the QUICKSAND.” he is even more sensible than we thought. honourable Mr Europarliamentarian if President Nicos Anastasiades Eleni Theocharous were to give up her on his vision of an seat after quitting her party. agreement on Cyprus. STAVROS ZENIOS

PRESIDENT NICOS ANASTASIADES

HARRIS GEORGIADES

20 | GOLD | The Business Magazine of Cyprus

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106 | GOLD | The Business Magazine of Cyprus

| INTERVIEW |

WORKING FOR THE GREATER GOOD

old: The recent between these three in terms of the THE 2nd CYPRUS CFA Forum ofregulation they impose on their memFIDUCIARY ASSOCIATION fered an insight bers and demonstrated the need for a FORUM IN LIMASSOL into the changes level playing field. the industry has LAST MONTH In view of the many requirements experienced in CONCLUDED THAT, GIVEN imposed at an international level, the the last 12 months. Have the obregulators have come to acknowledge THE SIGNIFICANCE OF jectives of the Association altered the need to enhance their regulatory THE INTERNATIONAL in the view of these developments? framework and intensify their moniBUSINESS SECTOR TO George Ioulianos: The Cyprus Fitoring activities. This has also revealed THE ISLAND’S ONGOING duciary Association aims to facilitate the need for more homogeneous RECOVERY, UNIFICATION the development of the sector by regulation among the supervisory auOF THE SECTOR’S acting as a representative body of thorities and the necessity for further STAKEHOLDERS IS OF Administrative Services Providers cooperation. The CFA is trying to fa(ASPs) operating in Cyprus and PARAMOUNT cilitate the coordination and developby promoting professionalism and IMPORTANCE TO ITS ment of the sector by promoting the high standards through networking, FUTURE SUCCESS. importance of unification and a level support, and training. We seek to GEORGE IOULIANOS, playing field. We want to secure the coordinate the common interests adoption of common AML directives GENERAL MANAGER OF of our members in relation to other and a common code of conduct for all THE CYPRUS FIDUCIARY ancillary providers, and strengthen relevant firms. I must stress that this is ASSOCIATION (CFA) Cyprus’ reputation as an internationnot only about raising the standards of TELLS GOLD WHY THIS al business centre for the provision of fiduciary firms; it is also about elevatIS IMPERATIVE FOR BOTH corporate and fiduciary services.This, ing the reputation and attractiveness THE GREATER GOOD OF our core objective, hasn’t changed in of Cyprus as a jurisdiction and repairTHE SECTOR AND, BY the least and won’t do so any time ing its global credibility. EXTENSION, CYPRUS’ soon. It’s well-known that we currently ECONOMY AS A WHOLE. Gold: It’s encouraging that the variBy Effy Pafitis have three regulators presiding over ous bodies are willing to coordinate the island’s administrative services sectheir regulatory frameworks but entor: the Cyprus Securities and Exchange suring the uniform implementation Commission (CySEC), the Institute of Certified Public Account- of common practices may prove to be another matter entirely. ants of Cyprus (ICPAC) and the Cyprus Bar Association (CBA). G.I.: Precisely. It will not be easy! Even when we reach the point In 2013 we had compiled a report, which showed the differences where all three regulatory bodies have the exact same requirements

22 | GOLD | The Business Magazine of Cyprus

IT’S IMPERATIVE FOR EVERYONE TO REALISE THAT WHAT IS AT STAKE IS THE REPUTATION OF CYPRUS AS AN INTERNATIONAL BUSINESS CENTRE www.goldnews.com.cy | GOLD | 23

| INTERVIEW |

of their regulated entities, the way each one applies them, performs monitoring visits, collects information, imposes fines etc., may remain different. I think it’s imperative for everyone to realise that what is at stake is the reputation of Cyprus as an international business centre and thus everyone should cooperate to advance the sector and the regulated entities. I think we have now reached this point where everyone agrees that there is much work to be done. However, while regulators may want to work on these issues, they are also very busy and might not have enough time to dedicate and devote to this objective. Thus, it is our job to actively advocate these alterations, for the enhancement of the fiduciary services and the international business sector in Cyprus. However, for the necessary improvements to compliance, products and services, regulation, promotional activities and the public sector to be fulfilled, we require the close cooperation and pragmatic assistance of the Government.

WE HAVE NOW REACHED THIS POINT WHERE EVERYONE AGREES THAT THERE IS MUCH WORK TO BE DONE

Gold: How do you evaluate the Government’s efforts in assisting the CFA plan for the international business sector thus far? G.I.: We realise that the State is rather busy – and has been so since the ratification of the international bailout package two years ago – but the development of the international business sector is something it must make time to have an active role in, as this benefits the country as a whole. That said, there has been some progress with the Government announcing developments such as tax reforms, the unification of the tax and VAT services and the agreement to sign further Double Tax Treaties in the past year. The efforts for the reform of the public sector are also of significance, though we have yet to see progress in this regard. We feel that there should be a more efficient cooperation with the private sector and definitely more follow-up on significant issues of mutual interest, as well the adoption of a strong business approach from the Government so that Cyprus’ development renders the country competitive against the increasingly high standards of other jurisdictions. Gold: How, in your estimation, might this be achieved? G.I.: Last March we had a meeting with Constantinos Petrides, Under-Secretary to the President, to discuss the strategic plan for the international business sector that was drafted during the first CFA Forum in November 2014. Having discussed and analysed the plan, Mr Petrides agreed that the government’s contribution is essential in this effort and to this end he would appoint a direct governmental contact so as to facilitate coordination with the CFA. If we do manage to secure this, and build some sort of team in a timely manner, we can proceed with the development

24 | GOLD | The Business Magazine of Cyprus

and implementation of our detailed strategic plan. I realise that there are other pressing issues unfolding which may not allow for this rapid development but, considering that this sector is a major contributor to the island’s GDP and has been identified as one which may support the revival of our economy, I think we should see more involvement from the Government. Gold: Despite the international business sector’s diversity and consequent inefficiencies, which the CFA aims to ad-

dress, how is it performing? G.I.: It has been impacted by local developments which have seen Cyprus struggle with economic turbulence throughout the course of the past two years. It has also been affected by international developments which continue to influence jurisdictions throughout the region and beyond. Taking all this into consideration, the sector’s performance is steady but there is a lot more that should be done to ensure a brighter future. Should the sector stakeholders work together to further develop our services, promote the country more effectively, secure further Double Tax Treaties and break into new markets, our jurisdiction could become very modern and take off in a way we haven’t seen before. Much work must be done, however, in order to secure this outcome. Gold: Cyprus is very frequently referred to as an international business centre. Do you believe that the island does, indeed, have the potential to become a regional hub for both business and services? G.I.: Cyprus was and remains an international business centre! We just need to continue to act as such and enable ourselves to modernize and develop. Cyprus is capable of attracting an enormous volume of business, even more than we witnessed several years ago. This potential, however, won’t amount to much without the targeted cooperation and dedicated efforts of the relevant parties for the strengthening of products and services and the adaptation to the new international realities. Gold: So, what does the future hold for the CFA? G.I.: The road ahead will – if all goes well – see us play an even more significant role in the development of the fiduciary sector by representing the majority of the Administrative Services Providers, no matter which regulatory authority they come under. We are getting closer to fulfilling our objectives, but, in keeping with our message of unity, we want to accomplish this through cooperation with all stakeholders rather than alone. We want to unite the industry and ultimately establish an exemplary reputation for the island as an international business centre for the provision of corporate and fiduciary services.

| OIL & GAS |

Time to Step

ON THE GAS Lenas Mylonas is an independent consultant and leading professional in the oil and gas industry with over 15 years experience. Since 2006 he has been Installation Lead & Client Representative for BP and he is also a nonexecutive director of the Cyprus Hydrocarbons Company (CHC), providing specialist input on commercial in and construction issues an with respect to onshore w and offshore oil and an gas activities, field ga development, subsea de infrastructure and LNG in facilities. On a recent fa visit to Cyprus, he spoke vi to Gold about his career and his optimism about an the eventual benefits to th the island from current th and future natural gas an discoveries. di By John Vickers B Photo: Andreas Loucaides Ph

26 | GOLD | The Business Magazine Magaz azzine of Cy Cypru Cyprus p s pru

hen experts in any field pepper their conversation with jargon and acronyms, it’s easy to lose track of what they are talking about. And although Lenas Mylonas talks easily about pipelay barges, front end engineering design and a project called PSVM, he will patiently explain what they mean to anyone interested in what has been a quite remarkable career, especially when one considers that his university studies had nothing to do with the sector in which he now considered a leading – and very well paid – expert. Mylonas, 38, was born in Cyprus but spent the first six years of his life in Qatar and later Sharjah, UAR, where his father worked as an electrical and electronics engineer. When he was seven, the family returned to Cyprus where he completed his schooling and army service before following in his father’s footsteps and studying electrical and electronics engineering at the University of Salford. So how did the oil & gas connection come about? “After graduating, I got a job with AGS which was involved in a project with J. Ray McDermott,” he recalled, “for whom we commissioned a programmable logic controller for a pipeline tensioner.” (Don’t ask!) “While I was there, the superintendent asked me if I’d like to join the company and I was really surprised because, obviously, it was a completely new area to me but he said that it didn’t matter – ‘It’s all in the brain. You’ve got the foundations so you’ll be trained and you’ll see. We’re not going to throw you in at the deep end.’” He accepted the offer and was sent straight to Azerbaijan, which probably sounds a lot like the deep end to most people but Mylonas was not fazed by the new environment. Indeed, he thrived on it so much that he went offshore for 115 consecutive days:

“Normally you might do one month, maybe five to six weeks maximum on the barge,” he explained, “but I wanted to see and learn everything. It was such a big challenge to cross over from being an electrical and electronics engineer to a job requiring mechanical, civil and even marine engineering as a background. I was taking a big risk and it paid off in the end but I had to work very hard to learn the business and to gain recognition. I stayed there for four and a half years.” Lenas Mylonas recognises that, in all walks of life, there is often going to be a stroke of luck that leads us down a particular career path. In his case, a friend working with him in Azerbaijan left for Aberdeen, from where he worked on an Egypt-based project. When a problem arose in the fabrication yard, the friend told his employers that he knew the right person to fix it. “When he called and asked if I would like to take the job as a contractor, I had only those four and a half years’ experience in Azerbaijan,” he told Gold. “But when I suggested that the company would want someone more experienced, I again heard that familiar phrase ‘It doesn’t matter’! So I accepted the job.” Determined to prove himself – and to show that his friend’s recommendation had been warranted – he went to Aberdeen, from where he would regularly fly to Egypt for almost a year and, when that job finished, he was moved to the company’s UK operations in the North Sea. Fortune was to smile on Mylonas once more when he met another former colleague

sremembering how he asked the ex-colleague to let him know should a vacancy arise. Sure enough, an e-mail eventually arrived and, in an act of solidarity, he proposed that the company also take the friend who had fixed him the Aberdeen job. “They took us both, without even bothering to interview us,” he said, noting how, “In this business, once you have gained enough experience and you are recommended by someone, interviews are not considered necessary unless it’s for a really high profile job like General Manager.” So he found himself living in glamorous Monaco but there was a downside: the places where he had to work included Nigeria, Congo and Ghana: “It really was a case of going from one extreme to another,” he said, with Nigeria topping the list as the most dangerous place in which he has ever worked. “In Azerbaijan, things couldn’t have been nicer,” he recalled. “They love Greeks and Cypriots there, and in Egypt I was in Alexandria, where it’s the same. I felt at home there. But Nigeria? That was scary!” While he was based in Monaco, BP came calling with another major project in Angola, the PVSM (fascinatingly named after Pluto, Venus, Saturn and Mars). For Lenas Mylonas, it represented yet another big challenge in that, for the first time in his career, he would be working on a project from the very start, rather than being brought in after the so-called front end engineering design (FEED) stage. Never one to shy away from being tested, he went for it. “It was amazing because I not only had to use all my experience but I found myself learning so much too,” he remembered. As a Cypriot deeply involved in the oil & gas industry, what did he think when he heard about Noble Energy’s finds a few years ago? “To be honest, my first reaction was to wonder who was on the team supporting the Government,” he told Gold. “At first it wasn’t a strong and viable core team because there were not enough people with industry experience to support the concept. It’s in such circumstances that lots of mistakes can happen but, fortunately, the new minister, Mr Lakkotrypis, brought in consultants and other people to help him. My main concern had been whether the right people were available to help but when I finally saw the CHC Board

I am confident that things will be done for the benefit of Cyprus and its people. who was working for a contractor based in Monaco. “I really liked the sound of that!” he said,

www.goldnews.com.cy | GOLD | 27

| OIL & GAS |

s u r Cypto ma

from ked money LNG o

will be able

of Directors – and I was also made a non-executive director – I saw that the Government had found some fantastic people (ex-operators, ex-contractors, etc) with very impressive experience in their field.” Noble Energy’s first discovery came almost five years ago and although Cypriots have been impatient to see results, it is invariably a long process from exploration to exploitation. Mylonas gave the example of the PSVM project, for which the Final Investment Decision (FID) came in 2005. “We had the first barrel of oil in November 2012,” he noted, pointing out that PSVM was and still is a massive project. “In our case it’s not so big,” he said, adding that from the time of the FID, Cyprus will still be looking at 4-5 years before it sees the gas and the benefits. The recent dramatic fall in oil and gas prices is making the industry unsustainable for some players and, Mylonas said, if Cyprus had oil, it would be very difficult to land a good price for it. But, he went on to say, gas is a different concept altogether. “We appear to be going for Liquefied Natural Gas (LNG) to sell and natural gas for our own domestic use in the power stations. Natural gas prices are affected by oil prices but LNG is a different process and a different product and Cyprus will be able to make good money from it.” He added that people need to understand that “the really good revenues may come in 14 years’ time, which is our estimate of the production life of Block 12. It also has to be remembered that, once we have a viable field that produces, that will attract more operators.” After some disappointment at the size of the original quantities of gas found in Block 12, there is a lot of positive feeling again following the discovery of huge quantities of gas in the Egyptian Zohr field, which is adjacent to Cyprus’ Exclusive Economic Zone. Is it likely that Cyprus has a lot more gas to discover? Unhesitatingly, Mylonas answered “Yes” before explaining that

people here had the wrong idea from the beginning. “When seismic surveys are carried out and there are various indications that there is gas in a particular area, there is a 20-38% probability of success,” he pointed out. “You never find out what’s down there until you drill. People’s

phase here and I might be asked by the Government or CHC to play a role. On the other hand, I know from now which fields are going to be developed in Angola after mid-2017 and there are other projects in Egypt and Azerbaijan that are coming up. When you have experience, you also have a reputation and so I already have people telling me about what they’re going to be doing and asking me if I’m interested or available. I know that I can keep working if I want to.” When one looks at some of the places where Mylonas has worked, one characteristic that most of them share is that, for all their oil wealth, they are still poor and underdeveloped countries. Is he confident that Cyprus is going to follow the Norwegian example and use its gas revenues wisely? “The CHC will be selling the gas and, of course, the revenues will be put where the Government decides,” he replied, “but I am confident that things will be done for the benefit of Cyprus and its people. We are following British standards in everything we do, so there is strict monitoring of all the processes, which are in the hands of people that have no reason to serve their own interests.” So, is gas going to make Cyprus prosperous? “Block 12 is the trigger to greater things,” Lenas Mylonas stated confidently. “It will create the ‘proven success’ factor, which will lead to more revenues for the operators, more wells being drilled and, once production kicks off, more operators will be interested in the Cyprus EEZ. If we find gas in one more field, this thing is really going to take off.” This domino effect is indeed going to transform Cyprus into an energy hub for the region, which is the President’s stated vision, Mylonas believes. “Blocks 9 and 11 may well bring us new discoveries,” he said. “I have a good feeling about it and I’m optimistic that better days are on the way.”

The domino effect is going to transform Cyprus into an energy hub for the region

28 | GOLD | The Business Magazine of Cyprus

hopes were wrongly raised too early. I must say that, to my mind, even finding the certified 4.5tcf was a massive success. Eni didn’t find anything in Block 9 but that doesn’t mean it’s not there. I can give you an example from Angola’s block 31. Twelve years ago, Chevron drilled eight wells there and found nothing. Then BP came along and found enormous quantities of oil. Each company uses its own model and approach and so some find and others don’t in the same field. I am sure that Total will be back next year.” The Angola project will not be finished for Lenas Mylonas until sometime in 2017 but he already knows his options for later. “We could be in a well-developed

THE LEADERSHIP ISSUE SUHVHQWV

2nd KEBE

BUSINESS LEADER AWARDS

ISSUE THE LEADERSHIP By John Vickers

Business Leader portraits by Jo Michaelides

“The greatest leader is not necessarily the one who does the greatest things. He is the one that gets the people to do the greatest things.” Ronald Reagan

30 | GOLD | The Business Magazine of Cyprus

www.goldnews.com.cy | GOLD `

THE LEADERSHIP ISSUE

KEBE BUSINESS LEADER AWARDS

IN PICTURES BE 2nd KE ER S LEAD S E N I S BU S AWARD

LEADERSHIP EXCELLENCE The winners SJ XLI KEBE Business Leader Awards

President Nicos Anastasiades

he 2nd annual KEBE Business Leader Awards ceremony took place at the Evagoras Lanitis Centre in Limassol last month, presented by EY and organised by the Cyprus Chamber of Commerce & Industry and IMH. The Business Leader Awards honour leadership excellence in Cyprus and those individuals who have contributed to the NYV^[O UV[ VUS` VM [OLPY V^U ÄYTZ I\[ VM LU[YLWYLUL\YZOPW PU general, through the implementation of best practices and innovative strategies. A total of 7 Awards were presented in the following categories: Business Leader for the Tourism, Hospitality and Leisure Sector Business Leader for the Manufacturing Sector Business Leader for the Commercial Sector Business Leader for the Financial and Professional Services Sector Business Leader for the Shipping Sector Business Leader for the Services Sector EY Honorary Award for Overall Contribution to Entrepreneurship ;OL 4HPU :WVUZVY VM [OL H^HYKZ ^HZ ʞʭ [OL .VSK :WVUZVYZ were Carrefour Cyprus and European University Cyprus, and [OL :PS]LY :WVUZVY ^HZ AP]HUH 3VLS .VSK

Organiser ΚΥΠΡΙΑΚΟ ΕΜΠΟΡΙΚΟ ΚΑΙ ΒΙΟΜΗΧΑΝΙΚΟ ΕΠΙΜΕΛΗΤΗΡΙΟ

Silver Sponsor

Gold Sponsors

Main Sponsor

THE TS IEN RECIP

The Business Leader Award for the Tourism, Hospitality and Leisure Sector went to Lysandros Ioannou, Chairman & CEO, PHC Franchised Restaurants Public Ltd.

Michalis Louis, CEO, Eurobank Cyprus, who was named Business Leader for the Financial and Professional Services Sector, receives the award from Christoforos Hadjikyprianou, European University Cyprus.

Costas Zorbas, Executive Chairman and CEO, A. Zorbas & Sons Ltd, received the Business Leader Award for the Manufacturing Sector.

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The Business Leader Award for the Services Sector was presented to Varnavas Irinarchos, Managing Director, Logicom Public Limited by -PUHUJL 4PUPZ[LY /HYYPZ .LVYNPHKLZ

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The EY Honorary Award for Overall Contribution to Entrepreneurship was presented to Constantinos Shiacolas, Board Member, J&P Overseas by the President of the | GOLD | 33 Republic, Nicoswww.goldnews.com.cy Anastasiades.

THE LEADERSHIP ISSUE Evagoras Lanitis Centre, Limassol

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Yiannis Misirlis, 0TWLYPV .YV\W

Mrs Eleni Antoniou & Mrs Theresa Janet Cissell from Qatar Airways

Nicolas Shiacolas, Cablenet Communication Systems Ltd & Evgenia Christodoulou, Ancoria Bank

Stavros Pantzaris, EY

Andreas Michaelides, Athina Kyriakidou & Nicos Nouris

Frixos Savvides, Trust International Insurance *VTWHU` *`WY\Z 3[K .LVYNL 7HTIVYPKPZ Minister of Health

.LVYNL 4PJOHLS 04/ :[H]YVZ Pantzaris, EY, Averof Neophytou MP & Thierry Noyer, Carrefour Cyprus Evi Fragaki, presenter of the award ceremony

Manthos Mavrommatis, CCCI

34 | GOLD | The Business Magazine of Cyprus

www.goldnews.com.cy | GOLD | 34

President Nicos Anastasiades, with .LVYNL 4PJOHLS 04/ Phidias Pilides, CCCI, & Stavros Pantzaris, EY

Vassilis Petrides, Laiko Cosmos Trading

Cocktail made with LOEL Zivana .VSK :PS]LY :WVUZVY VM [OL L]LU[

,]P 7HWHKVWV\SV\ ʣʞʛʦ :VM[ +YPURZ Ltd & Kikoula Kotsapa, CCCI

European University Cyprus, one of the gold sponsors of the event

Marina Alexandrou, Costas Papaconstantinou, Christoforos Hadjikyprianou & Michalis Petrides, European University Cyprus

Kyproula Papachristodoulou, EY

5PJVZ *V[ZVUVWV\SVZ (5; *`WY\Z .LVYNL 4PJOHLS IMH, Thierry Noyer & Michalis Panayides, Carrefour Cyprus

The singer of Mood Indigo Vintage Jazz & Classic Swing Music www.goldnews.com.cy | GOLD | 35

| COVER STORY |

THE LEADERSHIP ISSUE

2nd KE

ER S LEAD S E N I S BU S AWARD

COSTAS ZORBAS EXECUTIVE CHAIRMAN AND CEO

A. ZORBAS & SONS LTD

hat business achievement do you feel most proud of? I wouldn’t call them achieveTLU[Z I\[ YH[OLY [OL LɈVY[Z we have been making over a number of years and I am particularly proud of three things: that we employ 1,600 people, that we are a purely Cypriot company and that we now have a presence abroad and we export to numerous other countries. Do you have regrets about any of your business decisions? It’s not a matter of regrets but, with hindsight, certain decisions are always going to be viewed as mistakes. No-one is perfect but the issue to try and learn from any mistakes and to correct them.

BUSINESS

LEADER

FOR THE MANUFACTURING SECTOR

36 | GOLD | The Business Magazine of Cyprus

Based on your own experience, what advice would you give to young entrepreneurs? To really love what they are doing, to be passionate about it and live it. If they feel like this, they will succeed. What is your personal vision for A. Zorbas & Sons Ltd? My vision is for the company to grow and to expand into other countries, and for us to become better every day at what we do. What does it mean to you to have been to have been chosen to receive a ʣʞʜʞ Business Leader Award? I view it not so much as a personal honour but as recognition for our company. No-one is ever alone when it comes to achieving success. It is always a matter of teamwork by people who work hard to obtain the best results. In our case it’s a very large team and every member has contributed to the situation that has led to this award.

| COVER STORY |

THE LEADERSHIP ISSUE

BE 2nd KE DER SS LEA E N I S U B S AWARD

LYSANDROS IOANNOU CHAIRMAN & CEO

PHC FRANCHISED RESTAURANTS PUBLIC LTD

hat business achievement do you feel most proud of? The fact that our organisation has reached a mature stage in terms of both years of operation and size but that this has not prevented us from maintaining our enthusiasm, pace and passion in a way that is perhaps more typical of start-ups. This is the basis on which we have worked to achieve our recent successes, the main one being the achievement of unprecedented NYV^[O K\YPUN [OL ÄUHUJPHS JYPZPZ! ^L OH]L VWLULK new restaurants in the space of just two years and PU[YVK\JLK IYHUKZ Z\JO HZ *HɈu 5LYV ^OPJO OHZ brought a completely new café concept to Cyprus, and Burger King which has similarly transformed the local burger scene. Do you have regrets about any of your business decisions? I believe that, as an organisation, we should have in]LZ[LK TVYL [PTL LɈVY[ HUK JHWP[HS PU IPNNLY MVYLPNU markets, by which I mean the Middle East, the UK and possibly the United States. Unfortunately, the decision [V PU]LZ[ PU .YLLJL ^HZ H TPZ[HRL! [OL JV\U[Y`»Z YLJLU[ developments, political choices and economic strategy have shown this to be the case.

BUSINESS

LEADER FOR THE TOURISM HOSPITALITY AND

LEISURE SECTOR

38 | GOLD | The Business Magazine of Cyprus

Based on your own experience, what advice would you give to young entrepreneurs? I would advise them to focus more on gaining experiences and developing the character required to enable them to become successful entrepreneurs, managers and leaders, rather than concentrating on the search for an idea or an opportunity. What is your personal vision for PHC Franchised Restaurants Public Ltd? 0 KVU»[ Q\Z[ ^HU[ [V YLHK V\[ [OL JVTWHU`»Z ]PZPVU statement to you. I would say that both my team and I personally want to continue seeing things in an optimistic light, to recognise our successes but to be aware of the fact that ahead of us lie much greater opportunities and bigger challenges, and to continue to work in such a way as to be able to invite young people to start their career with us. What does it mean to you to have been to have been chosen to receive a ʣʞʜʞ Business Leader Award? I congratulate the Cyprus Chamber of Commerce & Industry on its decision to establish the Business Leader Awards, which support two very important concepts – entrepreneurship and leadership – which, unfortunately, are both underestimated in our culture and our educational system.

| COVER STORY |

THE LEADERSHIP ISSUE

BE 2nd KE LEADER S S E N I BUS S AWARD

MICHALIS LOUIS CEO

EUROBANK CYPRUS

hat business achievement do you feel most proud of? I’m very proud that, through our hard work as a team, we have succeeded in building a new bank in Cyprus – Eurobank – which stands out for its professionalism, the quality of the ZLY]PJLZ P[ WYV]PKLZ P[Z ÄUHUJPHS YVI\Z[ULZZ HUK its sensitivity to social issues. Do you have regrets about any of your business decisions? In life there are always actions or omissions that we later come to regret. I personally regret any decision of mine that may have upset or been unfair to someone inside or outside the workplace. Based on your own experience, what advice would you give to young entrepreneurs? Bankers are not the most popular people in Cypriot society these days, so maybe I am UV[ [OL YPNO[ WLYZVU [V VɈLY HK]PJL /V^L]LY I would tell them this: Always aim high, be ambitious (in the good sense of the word), work hard and, perhaps most importantly of all, be fair and honest with your customers/clients.

BUSINESS

LEADER FOR THE FINANCIAL AND PROFESSIONAL

SERVICES SECTOR 40 | GOLD | The Business Magazine of Cyprus

What is your personal vision for Eurobank Cyprus? In its eight years of operation – which I would KLZJYPIL HZ LPNO[ KPɉJ\S[ `LHYZ ¶ ,\YVIHUR Cyprus has established itself as one of the leading banks in its areas of activity. Our vision is to continue to build the bank so that it becomes a benchmark for the quality of its ZLY]PJLZ HZ ^LSS HZ MVY P[Z ÄUHUJPHS HJOPL]LTLU[Z and its contribution to society. What does it mean to you to have been to have been chosen to receive a ʣʞʜʞ Business Leader Award? ;OPZ H^HYK ÄYZ[ HUK MVYLTVZ[ YLÅLJ[Z [OL OHYK work, dedication and honesty of my colleagues at Eurobank who have made it possibly the best bank in the country. It is a very important award MVY \Z ZPUJL P[ YLJVNUPZLZ HSS [OLPY LɈVY[Z HUK ZHJYPÄJLZ ([ [OL ZHTL [PTL P[ YHPZLZ [OL IHY even higher and encourages us to aim at even greater achievements in the future. I would like to thank the Cyprus Chamber of Commerce HUK 04/ MVY OVUV\YPUN \Z ^P[O [OPZ H^HYK

www.goldnews.com.cy | GOLD | 75

THE LEADERSHIP ISSUE

BE 2nd KE DER SS LEA E N I S U B S AWARD

CHRYSOSTOMOS PAPAVASSILIOU MANAGING DIRECTOR

ISLAND OIL (HOLDINGS) LIMITED

hat business achievement do you feel most proud of? There are several: the fact that we have a presence in eight countries in the competitive environment of international shipping and shipping-related services. Also, the way that we have created a workplace in which competitiveness, creativity, team spirit and long-term relationships are cultivated and encouraged. And ÄUHSS` [OL ZPNUPUN VM [^V JVU[YHJ[Z ^P[O [OL ,\YVpean Maritime Safety Agency (,4:() for Cyprus and Romania, by which our ships are responsible for detecting and preventing marine pollution in ZWLJPÄJ HYLHZ KL[LYTPULK I` [OL ,< Do you have regrets about any of your business decisions? Once you choose to follow a certain path, it’s hard to have regrets about what you are doing PM `V\ ÄYTS` ILSPL]L PU P[ 0[ PZ [Y\L OV^L]LY [OH[ disappointments often appear on that chosen WH[O I\[ 0 ILSPL]L [OH[ P[ PZ LZZLU[PHS [V WLYZPZ[ HUK stick to your beliefs. Based on your own experience, what advice would you give to young entrepreneurs? 0 ^V\SK [LSS [OLT [OH[ [OL` ULLK [V ^VYR L_[YLTLly hard, with passion and a genuine love of what they are doing, to have a vision, to communicate well and to believe that things will always get IL[[LY [OYV\NO JVUZ[HU[ LɈVY[ NVVK VYNHUPZH[PVU and creativity.

BUSINESS

LEADER FOR THE SHIPPING SECTOR

42 | GOLD | The Business Magazine of Cyprus

What is your personal vision for Island Oil (Holdings) Limited? My vision is for it to be and to remain a healthy company, one that is established in the highly competitive sector of international shipping and shipping-related services, and to play an ecoUVTPJ ÄUHUJPHS HUK ZVJPHS YVSL PU [OL JV\U[Y` Also, for the people who work in the company, to maintain an environment that is characterised by its humanity, creativity and mutual respect. What does it mean to you to have been to have been chosen to receive a ʣʞʜʞ Business Leader Award? Such awards are important as they contribute to the promotion of a broader recognition of entrepreneurship and business leadership and [OLPY YVSL PU [OL JV\U[Y`»Z ÄUHUJPHS HUK ZVJPHS development.

THE LEADERSHIP ISSUE

BE 2nd KE DER SS LEA BUSINE S AWARD

VARNAVAS IRINARCHOS MANAGING DIRECTOR

LOGICOM PUBLIC LIMITED

hat business achievement do you feel most proud of? I believe that we have built a very strong team HUK [V H NYLH[ L_[LU[ ^L ^LYL UV[ HÉ&#x2C6;LJ[LK I` [OL Ă&#x201E;UHUJPHS JYPZPZ K\L [V [OL MHJ[ [OH[ VM 3VNPJVTÂťZ I\ZPULZZ PZ V\[ZPKL *`WY\Z >L HYL YLJVNUPZLK I` [OL ^VYSKÂťZ IPNNLZ[ [LJOUVSVN` THU\MHJ[\YLYZ HUK WYVVM VM [OPZ TH` IL ZLLU PU [OL MHJ[ [OH[ ^L OH]L ILLU PU]P[LK [V IL VUL VM [OL TLTILYZ VM [OL .SVIHS ;LJOUVSVN` +PZ[YPI\[PVU *V\UJPS Âś VUL JV\SK KLZJYPIL [OLT HZ [OL . VM [LJOUVSVN` KPZ[YPI\[PVU Do you have regrets about any of your business decisions? >L VWLYH[L PU HWWYV_PTH[LS` JV\U[YPLZ ZVTL VM ^OPJO ^VYR [V H KPÉ&#x2C6;LYLU[ [PTL[HISL MYVT \Z [OL` OH]L KPÉ&#x2C6;LYLU[ KH`Z VÉ&#x2C6; HUK ZV ^L OH]L [V IL VU JHSS ;OPZ PZ H YH[OLY PUO\THU ZP[\H[PVU HUK PM 0 JV\SK JVYYLJ[ something today, it would be to arrange things so that I have more time to spend with T` MHTPS`

BUSINESS

LEADER FOR THE SERVICES SECTOR

44 | GOLD | The Business Magazine of Cyprus

Based on your own experience, what advice would you give to young entrepreneurs? 0 ^V\SK ZH` [OH[ [OL` ULLK H ]LY` JSLHY Z[YH[LN` ]PZPVU WLYZPZ[LUJL WLYZPZ[LUJL HUK TVYL WLYZPZ[LUJL ;OL` HSZV OH]L [V \UKLYZ[HUK [OH[ HU` JVTWHU` [OH[ KVLZUÂť[ NYV^ will die. What is your personal vision for Logicom Public Limited? 4` WLYZVUHS ]PZPVU PZ [V JVU[PU\L [V ZLL 3VNPJVT NYV^ HUK WYVZWLY >L OH]L L_JLSSLU[ HUK L_[YLTLS` HISL THUHNLYZ ^OV ^VYR HZ a team here and it is my wish that they will L]LU[\HSS` [HRL JOHYNL VM [OL JVTWHU` What does it mean to you to have been to have been chosen to receive a ĘŁĘ&#x17E;Ę&#x153;Ę&#x17E; Business Leader Award? ;OL H^HYK ILSVUNZ [V [OL THUHNLTLU[ VM 3VNPJVT [V P[Z LTWSV`LLZ [V [OL )VHYK VM +PYLJ[VYZ HUK [V T` MHTPS` ;OL` OH]L Z\WWVY[LK TL [OYV\NOV\[ [OL `LHYZ HUK 0 [OHUR [OLT MVY [OPZ

2nd KE

DER SS LEA E N I S U B S AWARD

ARTEMIS ANTONIADOU MANAGING DIRECTOR

VOICI LA MODE GROUP ʨ- *647(50,:

hat business achievement do you feel most proud of? 0 ^V\SK ZH` [OL JYLH[PVU VM [OL 4HYRZ :WLUJLY (JYVWVSPZ IYHUJO PU 5PJVZPH PU ÔPJO ^HZ H [PTL ÔLU [OL MHZOPVU I\ZPULZZ WYV]PKLK opportunities to those who were willing and able to [HRL HK]HU[HNL VM [OLT ;OPZ WHY[PJ\SHY Z[VYL UV[ VUS` THKL \Z WYV\K PU [LYTZ VM [\YUV]LY I\[ P[ SLK [V V\Y UL_[ Z[YH[LNPJ HJOPL]LTLU[ ÔPJO ^HZ [V LU[LY H UL^ ZLJ[VY ¶ [OL JHMt YLZ[H\YHU[ I\ZPULZZ ¶ [OYV\NO [OL JYLH[PVU VM [OL *HMt 3H 4VKL JOHPU [OL ÄYZ[ VM ÔPJO ^HZ SH\UJOLK PU ^P[OPU [OL (JYVWVSPZ Z[VYL ;VKH` ^L VWLYH[L ZP_ JHML YLZ[H\YHU[Z Ä]L PU 5PJVZPH HUK VUL PU 3PTHZZVS Do you have regrets about any of your business decisions? 0 MLLS [OH[ LHJO KLJPZPVU HUK L]LY` Z[LW [OH[ ^L OH]L [HRLU ^P[O H ]PL^ [V NYV^PUN [OL .YV\W OHZ ILLU JVYYLJ[ H[ [OL [PTL >L OH]L SLHYULK UV[ [V [Y` HUK [\YU IHJR [OL JSVJR I\[ YH[OLY [V SVVR HOLHK [V OH]L a vision and redesign our strategies. Based on your own experience, what advice would you give to young entrepreneurs? ;OL` ZOV\SK OH]L HU HWWL[P[L MVY OHYK ^VYR ILJH\ZL UV[OPUN PZ MYLL ;OL` ULLK ]PZPVU HUK WLYZPZ[LUJL PU VYKLY [V HJOPL]L [OLPY NVHSZ ;OL` ZOV\SK UV[ NP]L \W LHZPS` [OL` T\Z[ [Y` [V [OPUR ºV\[ VM [OL IV_» YLM\ZL [V IL Q\Z[ H]LYHNL HUK KLTHUK [OL ]LY` ILZ[ VM [OLTZLS]LZ HUK [OLPY HZZVJPH[LZ ;OLZL HYL [OL WYPUJPWSLZ [OH[ 0 OH]L MVSSV^LK :V [OL TLZZHNL PZ WVZP[P]L [OPURPUN HUK OHYK ^VYR

BUSINESS

LEADER FOR THE TRADING SECTOR

What is your personal vision for the Voici La 4VKL .YV\W ʨM *VTWHUPLZ& >L OH]L LZ[HISPZOLK [OL .YV\W VU ÄYT MV\UKH[PVUZ NP]PUN [VW WYPVYP[` [V V\Y J\Z[VTLYZ HUK [OLPY ULLKZ >L HS^H`Z ZL[ V\Y ZPNO[Z OPNO HUK ^L UL]LY VɈLY HU`[OPUN [OH[ ^L ^V\SKU»[ JOVVZL MVY V\YZLS]LZ )HZLK VU [OLZL WYPUJPWSLZ ^L ZOHSS JVU[PU\L [V KL]LSVW [OL .YV\W»Z I\ZPULZZ ZV HZ [V OHUK P[ V]LY [V [OL UL_[ generation. What does it mean to you to have been to have been chosen to receive a ʣʞʜʞ Business Leader Award? ;OLZL H^HYKZ HYL HTVUN [OL TVZ[ PTWVY[HU[ and YLZWLJ[LK PU [OL *`WYPV[ I\ZPULZZ ^VYSK ;OL MHJ[ [OH[ 0 OH]L ILLU JOVZLU MVY HU H^HYK [OPZ `LHY PZ JLY[HPUS` HU OVUV\Y IV[O MVY TL HUK [OL =VPJP 3H 4VKL .YV\W www.goldnews.com.cy | GOLD | 45

THE LEADERSHIP ISSUE

BE 2nd KE DER SS LEA E N I S U B S AWARD

CONSTANTINOS SHIACOLAS BOARD MEMBER

J&P OVERSEAS

hat business achievement do you feel most proud of? As happens with most professionals, I turned the subject of my studies into my business. That business, in turn, became an enterprise employing 30,000 people with a turnover that is extremely high by Cypriot standards. I am extremely proud of this. Of course, it was done with the help of the company’s two main partners, Stelios Joannou and George Paraskevaides, who stood by me and enabled us to become one of the biggest contracting companies in the Middle East and beyond. We have gained the trust of governments who have awarded us billion-euro contracts. Do you have regrets about any of your business decisions? No, I have no regrets and I believe the proof that my decisions were correct can be seen in the way the company has expanded globally, in particular across the Arab world, where we have seen that our mentality is well-suitLK L]LU PM ^L ZWLHR H KPɈLYLU[ SHUN\HNL 0U many ways we are the same and, as a company, we have achieved a great deal there.

HONORARY

AWARD

OVERALL CONTRIBUTION TO ENTREPRENEURSHIP

Based on your own experience, what advice would you give to young entrepreneurs? ;OH[»Z H KPɉJ\S[ X\LZ[PVU ILJH\ZL L]LY`VUL PZ KPɈLYLU[ PU [OL ^H` OL [OPURZ HUK HJ[Z ;OH[ ZHPK L]LY` X\HSPÄLK LUNPULLY for example, has the potential to progress but he/she needs to be willing to take the opportunity – in our case we would provide it through the company – to work with an experienced person so as to learn L]LY`[OPUN YLX\PYLK [V IL HISL [V KLHS ^P[O the problems that will undoubtedly arise during the construction phase. What does it mean to you to have been to have been chosen to receive a ʣʞʜʞ Business Leader Award? No company succeeds thanks to just one person and it is with great satisfaction that I view this award as recognition of what I have achieved with the help of Stelios Joannou and George Paraskevaides, who were always extremely helpful and supportive, showing their appreciation for the work that I and everyone else did to make the company what it is today.

EY HONORARY AWARD: OVERALL CONTRIBUTION TO ENTREPRENEURSHIP 46 | GOLD | The Business Magazine of Cyprus

CELEBRATING

BUSINESS EXCELLENCE

STAVROS PANTZARIS

MANAGING DIRECTOR

EY CYPRUS (MAIN SPONSOR)

t is a unique pleasure for EY Cyprus to be supporting – for the second consecutive year – this important institution, initiated under the auspices of the CCCI and IMH, that honours the leaders of the Cyprus business world, who with their vision, capabilities and activities, have left their mark on our country’s business environment and who continue to contribute to making life better for our fellow citizens. At EY we believe that the entrepreneurial spirit can make the world a better place to live in. That’s why we encourage and support it. During the past few decades, we have been working very closely with the business world, adjusting and enriching our services to meet its needs. And I’m especially proud because EY, with our specialized services, [LJOUVSVNPJHS RUV^ɫOV^ HUK [OL L_WLYPLUJL VM V\Y L_LJ\[P]LZ OHZ ILLU Z[HUKPUN I` the side of Cypriot businesses for nearly 80 years now. I would like to congratulate all those who have been honoured with an award for what they have done, the struggles they’ve made, the victories and successes they have seen in their lives, for their personalities and also for their contribution to the economy and society of Cyprus, a Cyprus that creates, struggles and moves forward. I wish them every personal and professional success in the future.

PHIDIAS PILIDES PRESIDENT

CCCI (CO-ORGANISER) NISER)

he objective e of this successful new institution from rom the CCCI, organised in conjunction with IMH and with the support of our sponsors – EY Cyprus, European University Cyprus, Carrefour Cyprus and LOEL Zivana Gold – is to recognise and honour business people who, through their entrepreneurial activity, have proven their abilities, skills and business ethics. Qualities such as having a vision, being creative and outward-looking, and possessing L_JLSSLU[ RUV^SLKNL VM [OL ZLJ[VY PU ^OPJO they operate are the main criteria for the selection of the award winners. The ability of to lead, inspire and guide one’s associates, to implement innovative strategies, to have a vision and open up new horizons, while respecting one’s employees and competitors are the components of the quality that we honour with [OLZL H^HYKZ! I\ZPULZZ L_JLSSLUJL

THIERRY NOYER GENERAL MANAGER GER

CARREFOUR CYPRUS (GOLD SPONSOR) OR)

believe that the CCCI Business Awards are a great institution for the business environment of Cyprus. They are the

only business awards to place the emphasis on individual business leaders and to recogUPZL [OLT MVY ^OH[ [OL` HYL KVPUN ¶ MVY L_amp ample, their vision, their business practices, etc – and for their achievements so far.

CH CHRISTOFOROS HADJIKYPRIANOU MANAGING DIRECTOR

EUROPEAN UNIVERSITY CYPRUS (GOLD SPONSOR)

believe that these awards are very important since growth and innovation should be recognised and honoured. European University Cyprus supports this institution for the simple reason that the university needs to be connected to the real economy, businesses and entrepreneurship and to the future careers of its students.

EVROS PAPADOPOULOS MARKETING MANAGER BEVERAGES

LAIKO COSMOS TRADING LTD

ince these are the quintessential Cypriot business awards, we consider that our ‘national drink’ – Zivana o Loel – is perfectly suited to such an institution, which is why we decided to sponsor it for the second consecutive year with a purely Cypriot product.

www.goldnews.com.cy | GOLD | 47

THE LEADERSHIP ISSUE

DEVELOPING AND

IMPLEMENTING

A VISION FOR THE

FUTURE

US billionaire investor Wilbur L. Ross Jr., whose net worth is estimated by Forbes to be $2.9 billion, was elected Vice-Chairman of Bank of Cyprus following his $400 million investment in the bank in 2014. He sits on at least four more public company boards, including the worldâ&#x20AC;&#x2122;s largest steel company, ArcelorMittal, Exco Resources, Sun National Bank and WL Ross Holding Corp. He is also non-executive chairman and a major stakeholder of the Diamond S. Shipping Group. In this exclusive interview, he speaks to Gold about leadership. By John Vickers

48 | GOLD | The Business Magazine of Cyprus

WILBUR L. ROSS, JR.

You never stop learning about leadership. No-one has all the answers

Gold: Do you agree with the saying “Great leaders are born, not made”? Wilbur L. Ross: Great leaders must be born with some fundamental personality traits – intelligence, an outgoing personality, the ability to articulate – but they also need to acquire the ability to listen and distil inputs, to encourage teamwork, to take calculated risks and to react to change. Gold: What three qualities would you describe as essential for someone wishing to be an excellent business leader? W.L.R.: A comprehension of business fundamentals, team-building skills, and the ability to execute both strategy and tactics and to amend them as needed. Gold: How difﬁcult was it for you to reach the stage where you felt that you knew what good leadership is all about? W.L.R.: You never stop learning about leadership. No-one has all the answers. Gold: Did you make lots of mistakes on the way? Is this inevitable? W.L.R.: Mistakes are inevitable. The key is to correct them quickly enough to minimize

their impact and to avoid repeating them in the future. Gold: Did you have a good role model on which you based your own leadership style or did you react against a poor one? W.L.R.: Both good and poor role models are valuable learning experiences. In fact, often the bad models have a more lasting impact on your memory. Gold: Is it important for a good leader to be popular with his/her employees? W.L.R.: Popularity is good but it is more important for employees to respect and trust you. Gold: Not every good manager becomes a good leader. Why do you think this is? W.L.R.: Managing is mainly implementation. Leadership is about both developing and implementing a vision for the future. Gold: Is there an international business leader that you admire? W.L.R.: There are many outstanding leaders, including Klaus Kleinfeld of Alcoa, Jamie Dimon of J.P. Morgan, Lloyd Blankfein of Goldman Sachs, Jeff Bezos of Amazon and

Wilbur L. Ross, Jr., who celebrated his 78th birthday last month, is best known in Cyprus for his €400m investment in Bank of Cyprus in August 2014 and his subsequent appointment as Vice-Chairman of the island’s biggest banking group. Ross is the Founder, Chairman and Chief Strategy Officer of the private equity firm WL Ross & Co. LLC. He was Executive Managing Director of Rothschild Inc. for 24 years before acquiring that firm’s private equity partnerships in 2000. A graduate of Yale University and of Harvard Business School, he has assisted in restructuring more than $400 billion of corporate liabilities. He was appointed by President Bill Clinton to the Board of Directors of the U.S-Russia Investment Fund and served as Privatization Advisor to New York City Mayor Rudy Giuliani. His art collection, conservatively valued at $150 million, includes 25 major works by the Belgian surrealist painter René Magritte.

Masayoshi Son of SoftBank. Gold: Is there a speciﬁc leadership style that everyone should aspire to or do individual leaders create their own successful style? W.L.R.: Individual leaders need their own style and it must be tailored to some degree to the situation of the enterprise. There is no universal silver bullet. Gold: How would you describe your own leadership style? W.L.R.: Low-key and contemplative but decisive. Gold: What would you describe as your greatest professional achievement? W.L.R.: Acquiring the private equity business from Rothschild and developing it into a global presence. Gold: How do you manage to balance work and home life? W.L.R.: Poorly. Like most successful leaders I am a workaholic. Gold: How do you relax away from work? W.L.R.: Playing tennis and collecting art.

www.goldnews.com.cy | GOLD | 49

20 1 3 5 7 9 THE LEADERSHIP ISSUE

ESSENTIAL BOOKS

LEADING

2 4 6 8 10

By Sir Alex Ferguson (2015) In his 38 years in football management, Sir Alex helped grow Manchester United into one of the biggest commercial brands in the world. The individual stories are inevitably about football but the lessons can be applied by anyone, whether you run a business, teach in a classroom, or work in a small team.

ONWARD: HOW STARBUCKS FOUGHT FOR ITS LIFE WITHOUT LOSING ITS SOUL By Howard Schultz (2011) In 2008, Starbucks Chairman Howard Schultz returned as CEO eight years after stepping down, determined to help the company return to its core values and restore its financial health. Here he shares the story of his return and the company’s transformation under his leadership.

QUESTIONS OF CHARACTER: ILLUMINATING THE HEART OF LEADERSHIP THROUGH LITERATURE

By Joseph L. Badaracco Jr. (2006) Badaracco argues that literature provides us with memorable characters facing challenges similar to those confronting business leaders. Through deep analysis of the main characters in Death of a Salesman, The Last Tycoon and other stories, he addresses leadership dilemmas in a novel light.

WOODEN ON LEADERSHIP: HOW TO CREATE A WINNING ORGANIZATION

THE AMAZON WAY: 14 LEADERSHIP PRINCIPLES BEHIND THE WORLD’S MOST DISRUPTIVE COMPANY By John Rossman (2014) Amazon.com has gone from being an online bookseller to a global company revolutionizing and disrupting multiple industries, including retail, publishing, devicesand cloud computing. Insider Rossman introduces readers to the unique corporate culture of the world’s largest Internet retailer.

STEVE JOBS By Walter Isaacson (2011) In this acclaimed bestselling biography of Jobs, the ultimate icon of inventiveness, Isaacson tells the story of the rollercoaster life and searingly intense personality of the creative entrepreneur whose passion for perfection and ferocious drive revolutionized Apple and six industries: personal computers, animated movies, music, phones, tablet computing, and digital publishing.

TEAM OF RIVALS: THE POLITICAL GENIUS OF ABRAHAM LINCOLN By Doris Kearns Goodwin (2005) When Barack Obama was asked which book he could not live without, this was it. A monumental and brilliant work, it shows how Abraham Lincoln saved America by appointing his fiercest rivals to key cabinet positions. An inspiring study of a great leader.

NEVER GIVE IN! THE BEST OF WINSTON CHURCHILL’S SPEECHES

By John Wooden (2005) John Wooden’s goal in 41 years of basketball coaching never changed: it was to get maximum effort and peak performance from each of his players in the manner that best served the team. The book explains how he pursued and accomplished this goal.

Chosen by Winston S. Churchill (2003) Churchill was the most eloquent and expressive statesman of his time and the definitive collection of his speeches fills eight volumes but his grandson, Winston S. Churchill, has selected his favourites in a single tome, from his maiden speech to his last days.

PRIMAL LEADERSHIP: REALIZING THE POWER OF EMOTIONAL INTELLIGENCE

WHO SAYS ELEPHANTS CAN’T DANCE? INSIDE IBM’S HISTORIC TURNAROUND

By Daniel Goleman, Richard Boyatzis & Annie McKee (2002) Even timelier now than when it was originally published, this book established emotional intelligence in the business lexicon and made it a necessary skill for leaders. It vividly illustrates the power and necessity of leadership that is self-aware, empathic, motivating and collaborative.

50 | GOLD | The Business Magazine of Cyprus

By Lou Gerstner (2002) Gerstner’s memoir about how he transformed IBM into the industry leader of the computer age is probably the greatest American business story of our time. Step into into the office and mind of a CEO facing the challenge of a lifetime.

ON LEADERSHIP

11 13 15 17 19

Spanning more than 2,500 years and topics as diverse as 5th century BC military strategy and Premier League football management, here are our Top 20 leadership books. Take your pick and learn. They are listed by date of their original publication, starting with the newest.

12 14 16 18 20

DEVELOPING THE LEADER WITHIN YOU

LIAR’S POKER

By John C. Maxwell (1993) Maxwell’s first book provides a set of principles and practices available to leaders in every walk of life. “Leadership is influence... nothing more; nothing less,” he writes, explaining how managers make sure the work is done by others whereas a leader Inspires others to do better work.

By Michael Lewis (1989) Michael Lewis’ pell-mell progress through the dealing rooms of Salomon Brothers in New York and London in the mid-1980s, when they were probably the world’s most powerful and profitable merchant bank, is a funny, frightening, breathless tale of hysterical greed and ambition set in an obsessed, enclosed world.

ON BECOMING A LEADER

HIGH OUTPUT MANAGEMENT

By Warren Bennis (1989) This thought-provoking classic of business literature draws from hundreds of interviews to answer the question: What is a good leader? Bennis, a pioneer in leadership studies, examines the psychological and philosophical attributes of thinkers, scientists, executives and entertainers who all share an ability to unite people in a common purpose.

By Andrew S. Grove (1983) The former Chairman and CEO of Intel, shares his perspective on how to build and run a company. This now legendary management book is a practical guide for navigating real-life business scenarios and a powerful management manifesto with the ability to revolutionize the way we work.

ENDURANCE: SHACKLETON’S INCREDIBLE VOYAGE

HOW TO HAVE CONFIDENCE AND POWER IN DEALING WITH PEOPLE

By Alfred Lansing (1959) In 1914, Sir Ernest Shackleton and a crew of 27 set sail on board the Endurance, planning to cross the Antarctic overland. In October 1915, the ship was trapped, then crushed in ice. This gripping book, based on first-hand accounts of crew members, describes how they survived for 17 months.

By Leslie T. Giblin (1956) The world has changed so dramatically that many advice books from so long ago are no longer relevant, but the ideals Giblin espoused in 1956 still represent the bedrock fundamentals for getting the most depth and satisfaction from your interpersonal connections.

HOW TO WIN FRIENDS AND INFLUENCE PEOPLE

THE PRINCE

By Dale Carnegie (1936) The most famous confidence-boosting book ever published is, astonishingly, still a bestseller almost 80 years after it was first published. Carnegie offers practical advice and techniques, in his exuberant and conversational style, for how to get out of a mental rut and make life more rewarding.

By Niccolo Machiavelli (1532) The book about ruthless tactics for gaining absolute power and its abandonment of conventional morality shocked Europe on publication. The word “Machiavellian” is still used today. Machiavelli rejected traditional values of political theory, recognising the transient nature of political life. The Bible of realpolitik, it retains its power to alarm and instruct.

THE MEDITATIONS

THE ART OF WAR

By Marcus Aurelius (written 167 AD) Marcus Aurelius ruled the Roman Empire at its height, yet he remained untainted by the absolute power that had corrupted many of his predecessors. His words, as relevant today as they were in the second century, speak to the soul of anyone who has ever exercised authority or faced adversity.

By Sun Tzu (written 5th century BC) This vastly influential treatise on military strategy in the east, from the time of China’s Warring States (403-221 BC) onward, was not translated until 1782 but the book’s significance was quickly recognized. Towering figures of Western history, including Napoleon, have claimed it a source of inspiration. www.goldnews.com.cy | GOLD | 51

THE LEADERSHIP ISSUE

TOP OF THE WORLD

Leadership is not easy but many of its key principles can be taught and learned. Here are the Top 10 global leadership gurus, according to the research organisation Global Gurus.

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Is an internationally recognized leadership speaker and author who has written over 70 books and sold more than 19 million copies. He is a global top leadership guru because he thoroughly researches proven concepts and creates structures and narratives that support Leadership Development. As a speaker, he is structured, deliberate and inspirational.

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a dynamic and structured speaker,Â has set a new standard in combining personal development with leadership and taking his readers on a mythical journey. His mantra is that everyone, regardless of title, must be a leader in the new economy. They should take up challenges of personal excellence and do what is required.

a Harvard Business School professor for over 30 years, is an internationally renowned author on leadership and change. In 2001 Business Week magazine ranked him the No. 1 leadership guru in America. Today, Kotter International helps organisations execute strategies and gives them the capability to face future business challenges and react to them quickly.

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Â is an authority on leadership, productivity and innovation, helping individuals and companies reach their full business potential. He founded Jennings-McGlothlin & Company, which became the worldâ&#x20AC;&#x2122;s largest media consultancy. Best known in North America, he is a dynamic speaker with new ideas that shape leadership perspectives in those who read his books.

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is one of the worldâ&#x20AC;&#x2122;s humblest leadership gurus. His down-to-earth demeanour, compassionate attitude and warm and steady speaking style have made him one of the best leadership coaches in the world. His ideas and processes are unique and his licensed coaches and trainers using his methodology have made a difference in thousands of organisations.

52 | GOLD | The Business Magazine of Cyprus

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is best known for his Directive Communication system, which has transformed thousands of companies through his licensed trainers, culture change consultants and personal involvement. A dynamic, energetic and inspirational speaker, his philosophy is that there is no single leadership model that fits everyone; we should create our own for a more sustainable impact.

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official focus is not on leadership but his strategies and methods support and develop leadership across the board and he deserves his reputation as one of the best leadership speakers in the world. He is a well known international speaker famous for being the most dynamic, energetic and inspirational of all the leadership gurus.

has made a huge impact on the world as a person who simplifies unique concepts in leadership and makes them easy to apply. His leadership books (sales of more than 18 million copies), training and speaking reflect his belief in the natural goodness of people and that bringing out that goodness creates better organisations.

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is widely acknowledged as one of the worldâ&#x20AC;&#x2122;s leading authorities on talent, leadership and corporate culture. He advises Fortune 1000 CEOs and senior leadership teams on how to create and sustain a leadership and talent culture that drives superior operating results. John is a powerfully engaging, internationally-acclaimed keynote speaker and highly regarded CEO coach.

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Î&#x2122;s especially known for his groundbreaking research study on leadership which was translated into his book,Â The Leadership Challenge. This book combines keen insights with practical applications and captures both why and how leadership should be a concern for all. He is regarded as one of the Top 50 Leadership Coaches in America.

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Opinion

IS HISTORY REPEATING ITSELF? A GREATER BELIEF IN HUMAN POTENTIAL AND THE POWER OF DIALOGUE CAN PREVENT THE WORLD FROM MAKING THE MISTAKES AS IT DID YEARS AGO.

By Joseph F. X. Zahra

the helplessness with which Westhe second part ern governments are confronting of the 1800s and the growing threat of terrorism the start of the from ISIS and similar radical Is1900s saw the lamic groups. rise of ethnic Where is this leading to? One nationalism, with hundred years ago, it led to aumoves towards unification in counthoritarianism, racism and the tries like Germany and Italy and holocaust, and a World War. The border revisionism in Central and consequences meant more deaths, Eastern Europe. In the last twenty vviolence, poverty and deprivation. years, nationalism has raised its head We should have learnt from that W again, with political parties all over experience but humanity goes on Europe clamouring for ethnic purity repeating the same mistakes. It is in their countries. The refugee crisis concerning to see that, 100 years in Europe and the rise of terrorism later, we are unknowingly mir(although not necessarily connected) roring the same causes and symphave sown the seeds of xenophobia that can potentially create an era of terror (anarchy Info: Joseph F.X. Zahra is an economist, toms. People have either a short memory or a a founding partner and Managing pathological urge for self-destruction. It is difficult at the beginning of the 20th century) and racism Director of MISCO Malta and Director at (against the Jews in the early 1900s and against not to lose hope in humanity but we shouldnâ&#x20AC;&#x2122;t. POWERIMAGE/MISCO Cyprus. Muslims in this century). There is still much that can be done to mitigate The Great Depression of 1929 had a devasagainst the risk of violence, terror, struggle or war. tating impact on all countries, with personal income, prices and The answer lies in social justice, economic growth, dialogue and profits dropping to historical lows. It was a long depression which, cultural interaction. in some countries, lasted for over ten years. Compare this to the reInvesting in culture and education is critical in improving relacession that started in 2008, followed by the debt crisis in Europe tionships between countries and regions. Understanding history in 2011, and the fact that many economies in Europe are still exand culture is an essential feature of human empathy at a national periencing either zero or negative growth. Its effect on business and and international level. The encouragement of innovation, reconsumer confidence has been devastating and it has widened the search and start-up enterprises gives purpose to young people by inequality gap and fostered poverty. All this is very similar to what contributing to economic growth and social development. The happened between 1929 and the beginning of World War II. role of government is to ensure social justice by stamping out corThe start of the 20th century was characterised by countries led ruption, which results in inequality and poverty. The role models by weak governments throughout Europe as well as in Russia, in a new world will not be those we now consider to be celebrities which paved the way to the rise of populism. The leadership but ordinary men and women who have ventured into new envacuum in Germany and Italy in the early 1900s was swiftly materprises in a spirit of modesty and risk-taking. Enterprise thrives nipulated by the charismatic leadon dialogue and communication, on the ership of Hitler and Mussolini, exchange of trade and ideas, and it acts as PEOPLE HAVE EITHER and by the class struggle mostly a laboratory of human cooperation. Letâ&#x20AC;&#x2122;s A SHORT MEMORY OR A have less politics and prejudice, and a characterised by the communists PATHOLOGICAL URGE toppling the monarchy in Russia. greater belief in human potential and the Similarly, today we are witnessing FOR SELF-DESTRUCTION power of dialogue. 54 | GOLD | The Business Magazine of Cyprus

| FOREX |

FXTM: A True Innovator When Alpari founder Andrey Dashin established ForexTime (FXTM) in 2012, he took Olga Rybalkina with him as CEO of the new company. Despite starting again from the beginning, she has seen FXTM grow in size and stature, having quickly gained industry recognition as one of the strongest names globally. Here she tells Gold how she and her team have managed to succeed in such a highly competitive sector.

old: Is the Cyprus-based Forex industry weaker or stronger than it was in 2012 when ForexTime was founded? Olga Rybalkina: Like the global Forex industry as a whole, the Cyprus-based industry has really grown and evolved since ForexTime was founded three years ago. This is an exceptionally fast-paced sector and the growth of mobile and technological advancements offers new and interesting opportunities for brokers, such as trading apps and social platforms. However, the industry as a whole has also weathered a few storms, such as the SNB crisis in January 2015, which 56 | GOLD | The Business Magazine of Cyprus

By John Vickers

shone a light on some issues within the sector and enabled brokers with a comprehensive risk management strategy (including FXTM) to consolidate their positions. Overall, developments in the industry have been extremely positive as we move towards a more mature and well-regulated industry, where healthy competition benefits clients and furthers growth â&#x20AC;&#x201C; something which FXTM wholeheartedly welcomes and contributes to. Gold: In three years FXTM has enjoyed remarkable growth and success in a very competitive market. Whatâ&#x20AC;&#x2122;s the secret? O.R.: From the beginning, FXTM set out to be reliable, transparent, customer- and partner-centric, a true innovator and an authority within the Forex industry. These principles have guided the development of the company ever since and continue to

lead all our business decisions. As one of the most innovative brokers in the industry, we are committed to enhancing our clientsâ&#x20AC;&#x2122; trading experience by developing and releasing cutting-edge products and services on a regular basis. Our most recent release, the ForexTime App, is a must-have trading tool for traders on-the-go. It is available free from Google Play and the App Store. We also offer some of the best trading conditions around such as super-fast execution, 1:1000 leverage, low spreads for 0 pips and a great range of trading account types and platforms. Gold: The company has been receiving international awards, almost from the moment it started operations. How important are these to you? O.R.: The year-on-year recognition that FXTM receives for our high-quality trading

experience, competitive trading conditions and our trusted, transparent service is something that we take great pride in. When you take into consideration the high level of competition and strict criteria on which brokers are judged, being the recipient of such prestigious accolades is a true honour that recognizes FXTM’s position as one of the industry’s leading brokers. This year alone we have won five awards, ranging from ‘Most Trusted Forex Broker’ at the MENA Expo to ‘Best Broker Eastern Asia, including China’ and ‘Best Affiliate Program’ at the Forex Report Awards. It would not have been possible to achieve these outstanding results without the dedication of our strong management team and hard-working employees. Every award that we receive acts as an incentive for us to out-do ourselves by bringing even more new services, products and improved trading conditions to our clients. Gold: Given that FXTM has clients all over the world, you appear to be an excellent example of how the Internet has enabled a small country like Cyprus to play a major role in a global industry. Would you agree with this? O.R.: The Internet has been key to the growth of the Forex industry and the increasing popularity of online trading in general. From the very beginning, FXTM placed a special emphasis on providing clients with a secure and reliable trading platform that offers industry-leading execution speeds and enables them to trade from anywhere in the world from any device. In addition to the role that the Internet has played, Cyprus’ advanced infrastructure, business-friendly environment and well-educated workforce have helped the country emerge as an excellent place to run any business. Gold: The last time I checked your website, it was available in 16 languages. How much has this ‘we speak your language’ aspect of the business helped FXTM’s growth? O.R.: Being able to communicate directly with our traders in their own language is vital. As a customer-centric broker, we are committed to supporting our clients in every way we can, which is why we provide multilingual resources, including our website, the MyFXTM client area, customer support in the client’s native language, great trading tools such as the recently launched

ForexTime App which is available in English, Chinese, Arabic and Indonesian; and, engaging educational resources in a variety of languages. FXTM’s Customer Support Service is currently available in 20 languages and provides trading and technical support. Our clients have come to rely on us for friendly support in their own language and we recruit new support agents on a regular basis. Gold: Forex is a very specialized area of the financial services industry and is still relatively new to Cyprus. How easy/hard is it to recruit skilled/ experienced staff? O.R.: Although Cyprus has become a hub for the world’s online trading industry, recruiting high-calibre candidates with the right skills and work ethic is becoming increasingly challenging, as the pool of skilled professionals is finite. Due to the global nature of our business, we are looking to recruit local and international candidates with great language skills, passionate marketing professionals and exceptional IT specialists. At FXTM, we want more than just experience in the Forex industry; we look for well-rounded candidates who are able to integrate seamlessly into the company’s culture and apply their skills effectively from day one, bringing value to the company on both a personal and professional level. We offer an ultra-modern, hi-tech working environment; professional mentoring and a competitive benefit and salary package to ensure that our employees have everything they need to achieve their professional goals. Gold: What does FXTM look for in new recruits? O.R.: We are always looking for highly-skilled, talented professionals who have a genuine passion and drive for what they do, whether that is analyzing the currency markets, designing apps or providing the best possible customer support. Responsibility and respect form the core of our

HEALTHY COMPETITION BENEFITS CLIENTS AND FURTHERS GROWTH – SOMETHING WHICH FXTM WHOLEHEARTEDLY WELCOMES

business model and we expect all of our employees to put our clients’ needs first. In return, we offer an environment that empowers employees to reach their full potential. We have a ‘work hard, play hard’ mentality, where success is rewarded. Currently, we have more than 160 employees at our Limassol office and as we expand, we are always looking to hire new talent, from university graduates at the start of their career to more experienced professionals looking for an opportunity to advance. Gold: We’ve heard great things about the FXTM Intern Program. Can you give us an insight into what you offer? O.R.: We offer great opportunities for students and recent graduates to gain experience in a real, fast-paced business. All FXTM interns quickly acquire the skills needed to work in an international organisation. In addition to learning new skills, FXTM interns become part of the team at one of the best Forex brokers in the world. Our intern programs run for a period of two to three months – depending on the position. FXTM interns will never be stuck behind the photocopier or be asked to run to Starbucks for their manager! Rather, we provide all our interns with real tasks that are key to the success of our business. Gold: As we come to the end of 2015 and start thinking about the New Year, what are your plans and aspirations for FXTM in 2016? O.R.: 2016 is set to be an exciting year for FXTM as we expand our global reach into new markets. We will also be launching new products and services developed by our highly skilled R&D team that will be tailored to the current and future needs of our traders. As we continue to grow in 2016, we will be looking for fresh ideas and talented individuals, so any talented, dynamic professionals who are ready to accept a unique career opportunity should visit the FXTM Careers Page (www.forextime.com/careers) to check our current vacancies, including Internships, or just send a CV to careers@forextime.com. We will also have an exciting announcement to kick off the New Year, so make sure you keep an eye out for that! www.goldnews.com.cy | GOLD | 57

SPECIAL PROMOTIONAL FEATURE

DEMSTAR BUSINESS

SOLUTIONS

n 2016 Demstar will be celebrating 30 years as a major player in the Cyprus ICT landscape. Established in 1986, Demstar was one of the pioneering companies in the then emerging technology industry on the island and has since played a major role in the development and maturity of the market in Cyprus. Demstar is one of the few companies in Cyprus to have experienced the evolution of technology from the birth of the IBM PC, MS DOS and dot matrix printing up to today’s virtual and cloud servers and multifunction mobile printing. During its early years, Demstar established strong partnerships and alliances with pioneering multinational powerhouses such as IBM and HP and, later on. with Canon and Microsoft among others. The company was initially more focused on selling hardware products and services but it gradually started develop-

58 | GOLD | www.goldnews.com.cy

ing the soluing to company tion inteCEO Stelios gration Colocasbusisides, ness “This as has cusseen tomthe er comrepany quireemerge ments wiser became and more more decapable of Mr. Stelios Colocassides, manding and meeting the chal*OPLM ,_LJ\[P]L 6ɉJLY sophisticated. lenges of the ecoBy the beginning nomic environment of the 21st century, through in Cyprus by focusing on creating real value and a series of mergers and acdeveloping a more quisitions, Demstar partnership-orienthad become the ed approach to its biggest Cypriot ICT customers”. The company on the isnew beginning was land, with a portfomarked by Demstar’s lio of solutions and being presented with services that was the 2012 IN Business expanded to deliver Award for Best New Sersoftware applications, televice in the Market for its communications, gaming, pioneering Managed Print education and much more. Services solution. However, the challenges of Today, the “New Demstar,” [OL ÄYZ[ KLJHKL HUK LZWLas the company’s peocially the turbulent years of ple like to call it, focuses 2011-2013, forced Demstar on delivering real value to take a step back and solutions to the corporate rethink its strategy. Accord-

market place by providPUN JVZ[ LɈLJ[P]L YLsults-driven solutions and quality resources to enhance an organisation’s return on investment through LɉJPLU[ 0; ZWLUKPUN ¸0U Cyprus, we are fortunate to have demanding multinational customers with a more elevated level of technology needs, which must be delivered with the highest level of professionHSPZT 6\Y LɈVY[ [V Z\WWVY[ these customers makes us better,” Mr Colocassides says. Demstar’s strategic focus … information matters most! Cyprus is fast developing into a service-based marketplace where data information is a crucial fundamental asset for Services companies, whether in the SLNHS ÄUHUJPHS -? VY ZOPW management sectors or, indeed, in any major industry. The underlying factor in managing data is the optimal use of technology and technology partners, such as Demstar, to ensure Data Availability when needed

PU [OL TVZ[ LÉ&#x2C6;LJ[P]L THUULY possible and Data Protection to guarantee that critical assets are well- protected and supported. This is precisely the strategic focus of Demstar in delivering value-added solutions and services to its customers. Through strategic alliances and strong internal knowhow and experience, DemZ[HY MVJ\ZLZ VU [OL Ă&#x2026;V^ VM data within a customerâ&#x20AC;&#x2122;s daily operations from the time of its creation or entry into the company environment to its ^VYRĂ&#x2026;V^ Z[VYHNL WYV[LJtion, availability and printing so that the utilisation of this KH[H Ă&#x2026;V^ [OYV\NO [LJOUVSVN` becomes a companyâ&#x20AC;&#x2122;s strategic and competitive tool. Demstarâ&#x20AC;&#x2122;s solutions are based on industry-standard enterprise technology from most of the leading suppliers in the global ICT spectrum and they range from all essential hardware equipment to the application middleware

that makes a network more intelligent, secure and productive. Demstarâ&#x20AC;&#x2122;s solutions are based on industry-standard enterprise technology from most of the leading suppliers in the global ICT spectrum and they range from all essential hardware equipment to the application middleware that makes a network more intelligent, secure and productive.

Support Services

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7905; +6* MANAGEMENT :63<;065:

Custromer Experience

Our portfolio of solutions focuses on two main areas:

Infrastructure Solutions! -YVT [OL ZPTWSL provision of customersâ&#x20AC;&#x2122; personal devices to more sophisticated infrastructure solutions such as network security,

networking, servers and storage, virtualization and cloud computing, Microsoft technologies etc. In a world of constant multiple data threats, we develop solutions to ensure that information is always available when needed and well-protected.

Printing & Imaging solutions! -YVT [OL simple provision of multi-function products to the more holistic solutions of managed print services (MPS), output management HUK ^VYRĂ&#x2026;V^ THUHNLTLU[ solutions. Demstar can perform customer print audits in order to identify waste and savings in the printing environment and propose a design to enable the optimum use of printing and scanning at the lowest possible cost. Experience has shown that customers who introduced its award- winning MPS solution have achieved savings

of more than 30% from year one.

Customer Support Services >OH[ KPÉ&#x2C6;LYLU[PH[LZ +LTstar in the marketplace is its close proximity to its customers, by being an extension of their ICT strategy and support function. To ensure the best possible Customer Experience, Demstar has developed an industry-unique Customer Care CRM system which tracks end-to-end the whole interaction process with the customer, issuing alerts and [PJRL[Z ^OLU ULLKLK -\Y[OLYTVYL +LTZ[HY VÉ&#x2C6;LYZ H combination of service programs from simple warranty support to managed services and outsourcing, with the aim of helping customers by focusing on their business objectives and allowing Demstar to support their infrastructure.

DEMSTAR BUSINESS SOLUTIONS LTD www.demstargroup.com | Main Tel: + 357 22 742222 Direct: +357 22742182 5PJVZPH 6É&#x2030;JL 5LHZ ,UNVTPZ :[Y 5PJVZPH c 3PTHZZVS 6É&#x2030;JL Âś =HZPSLVZ *VUZ[HU[PUV\ :[Y 3PTHZZVS

www.goldnews.com.cy | GOLD | 59

| AML |

The Association of Certified Anti-Money Laundering Specialists (ACAMS) is the largest international membership organisation dedicated to enhancing the knowledge and expertise of Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) and financial crime detection and prevention professionals, from a wide range of industries in both the public and private sectors. ACAMS has members in 160 countries, including Cyprus where it recently established a Chapter. Angela Salter, Head of Europe, was in Nicosia last month and she spoke to Gold about the organisationâ&#x20AC;&#x2122;s work. By John Vickers Photo by Andreas Loucaides

Financial

CRIME

Fighters 60 | GOLD | The Business Magazine of Cyprus

hen we meet, Angela Salter is winding up a busy three-day visit to Cyprus, after attending an evening of AML/CTF networking and VIP presentations at the Hilton Cyprus which marked the launch of the Cyprus Chapter of ACAMS. In reply to a general question about why she is here, she explains that the organisation’s members on the island had been keen on a local Chapter: “We have been asked to come to Cyprus by our members who are keen to see our global education and training here,” she explains. “Normally, that is how it works for us. A certain critical mass is generated by the members themselves and then they ask us to come in and take things to the next level and that’s exactly what has happened here.” In addition to launching a Cyprus chapter of ACAMS, which will enable a more organised framework in which people will meet, talk to each other and share best practices, Salter notes that there is a growing demand in Cyprus for training, particularly for the CAMS (Certified Anti-Money Laundering Specialist) certification (“Regulators regard it as the gold standard in AML education,” she says), which is why the organisation has selected EIMF (European Institute of Management & Finance) as its preferred training partner locally. ACAMS was founded in 2001 by Charles A. Intriago a former US Congressional Committee counsel and Assistant United States Attorney, who launched the pioneering publication, Money Laundering Alert in 1989. So it’s a relatively new organisation, even though money laundering has been around for much longer. However, as Angela Salter notes, “AntiMoney Laundering as a profession has really grown since 9/11, due to the scale of terrorist crime, its sources of funding, and countries’ reactions to it, and even more since the global financial crisis. Our membership now is approaching 32,000, with about 50% of it in the US where we started. Today, our fastest-growing

membership is in Europe, Asia and the Middle East.” ACAMS does not have any statistics that indicate that its training and awareness-raising activities have had a tangible effect on reducing money laundering. What Angela Salter can say, however, is that most major institutions, companies, sectors of business, and consultants are now investing in training staff to deal with the problem on a more professional basis, which is an indicator of how serious a problem they consider it to be. “Supra-national bodies, regional, national and industry bodies are all focused on things that can be done to detect and prevent financial crime,” she says. “The demand for training is increasing – this is reflected in our growing membership – and it clearly has a value since firms are prepared to pay for it. We organise very big conferences all around the world and we see that everyone is coming together with a real will to try to put better procedures in place.” Moreover, she adds, the disillusionment surrounding banking and the financial services sector, particularly the global financial crisis, is driving moves towards greater transparency and a more ethical stance.

THE CULTURE at the top has TO BE pro-compliance There has certainly been one tangible effect of AML training and CAMS certification: on what people earn. ACAMS recently conducted a global salary survey of people working in compliance, which showed that those who invest in certifying typically earn over 40% more than those who have not invested. “AML is becoming increasingly important to institutions. Those who have suffered enforcement action have paid billions of dollars, brands have been damaged... For many reasons, the value of a good AML professional has increased and certification proves their competence.” I suggest that perhaps the banks should be doing a lot more but Salter disagrees with my assertion that it’s ultimately a banking problem. “It isn’t just a problem for the banks,”

she argues. “It may appear to have a more direct link to financial services but it’s a problem for many other businesses as well – luxury goods, real estate, various types of industry, casinos, law firms and so on. Anybody who takes on a customer is required to perform a level of due diligence. Large corporations have to look really hard at who they are doing business with. Reputations depend on this and today there is a big trend towards ethics, transparency and sustainability. Ultimate beneficial ownership is what everyone is looking at.” That said, Angela Salter recognises that banks can act and she points to two specific areas: “One is what people call the ‘culture of compliance’. We often hear about the ‘tone at the top’ and it is not enough to have compliance people in place. The culture at the top, from the executives and shareholders of a company, has to be pro-compliance in order for everything to be effective. I’m glad to say that executives of many institutions and even governments are insisting on that. More and more organisations are saying that they need it and where it was once considered the work of the head of AML or compliance, it is now viewed as a key area for everyone.” The second area where banks and others can act is technology and, says Salter, firms are investing in technology, in work flow tools and cyber security prevention and detection tools. “These days, when I talk to the head of compliance of a large institution, they tell me that their main challenge is finding enough of the right quality people to deal with the systems that are being put in place.” Prior to joining ACAMS, Angela Salter had a great deal of experience in financial services but not in AML. It’s a very interesting business, she says, and, in order to be seen to practise what she preaches, she is currently studying for her own CAMS certification. “So when I talk to people undergoing the training, I know how hard it is!” With all this education and regulation, is there any chance that money laundering will ever be completely eradicated? “When does crime ever disappear?” she replies. “Technology helps people do bad things as well as good. I don’t have a crystal ball but I’m not expecting to be out of a job because people have stopped money laundering!” www.goldnews.com.cy | GOLD | 61

Opinion

MUCH MORE THAN CHARITY

CSR IS A STRATEGIC BUSINESS MANAGEMENT TOOL FOR A SUSTAINABLE FUTURE

By Kyriakos Parpounas

n the turbulent economic diate attention its top management era we live in, the issue of and Board of Directors. corporate accountability CSR is a strategic business and responsible business management tool for a sustainable has become much more future. The European Commission important. It is obvious has proposed a new definition of that many of the problems accumuCSR as “the responsibility of enterlated in the international economy prises for their impacts on society”. were partly the result of irresponsible This requires a careful analysis of entrepreneurship by a large number the impact of the actions of each of financial institutions worldwide. company and how these affect sociThe diligence and effort required for ety and then the design of measures long-term business success gave way that companies can take to address to a frenetic run for immediate and these impacts. Think how different temporary profit, made in a clearly things would have been if the banks careless and irresponsible manner. had followed a correct CSR strategy In international business, especially and taken into account the misery in finance, a new entrepreneurship they might cause the general public “ethos” prevailed, aptly characterthrough their decisions based on a ized as “short-termism”. Unfortudesire to achieve temporary profits. nately, the results of this anomaly In Cyprus, there is a widely-held dramatically affected broader society and Cyidea that CSR is limited to initiatives such as doInfo:Kyriakos Parpounas is General Manager of Green Dot (Cyprus) prus and Greece found themselves at the focus nations, scholarships, tree planting, the provision Public Co Ltd. of the cyclone. of medical equipment, support for charities, etc. Similarly, many people’s lives around the world While all these social actions may be beautiful have been – and still are – affected by irresponsible entrepreand appreciated, they are certainly not CSR. neurship, such as the recent events involving a major autoThe difference lies in the fact that, unlike charitable work, CSR maker. should be relevant to the business and to a company’s principal Both examples illustrate eloquently the importance of the activity. It is a strategic management tool that addresses the practical implementation of a business strategy based on the question of how we operate our business and the impact of our three Ps (profit, people, planet), known as the Triple Bottom operations on profits, people and the planet. Line approach (3BL). Any undertaking looking to maintain its CSR is about how we earn money in a business, not how we profits in the long run (long-term sustainability), must take care spend it. The money required for the integration of CSR into of its people, the society in which it operates and the sustainathe DNA of a business should be regarded as an investment in bility of the planet from an environmental perspective. Clearly, the future of the company, the people and the place rather than therefore, the exercise of responsible entrepreneurship is neither a simply as another cost. luxury nor a matter of communication departments and the adAs long as CSR is still perceived as charity work, a company is vertising business. It is a matter unlikely to be concerned about whether that should be reflected in the it destroys the environment, exploits its CSR IS ABOUT DNA of the organisation and employees, pays its taxes, etc. HOW WE EARN MONEY influence corporate strategy. To CSR should be discussed and decided achieve this, the issue of Corpoprimarily in the Boardroom and only IN A BUSINESS, rate Social Responsibility (CSR) NOT HOW WE SPENT IT later in the marketing and communicashould be brought to the immetion department.

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52 | GOLD | The Business Magazine of Cyprus

| FUNDING F |

N R WO KIG T HE

O CRW D

CROWDFUNDING CRO CR RO R OWDFUNDING IS BECOMING E AR A POPULAR W A OF RAISING CAPIAY CAPIIC WAY TAL BUT REGULATION IS NEEDED TO OFFSET THE RISKS. By Amalia Hadjipapa

ro rowdfunding is a means m of raising finance for in projects from ‘the pr cro crowd’, often by m means of an Interne net-based platform through which project owners pitch their idea to potential backers, who are typically not professional ty profession investors. It typically takes many forms, not all involving ta takes the potential for a financial fina the return. The investors may pro The provide funds as a donation, in return for a reward. donation, Crowdfunding is still a relatively new phenomenon of tthe Internet generation, with mode modest volumes but growing quickly. In th the UK alone, the market has been gr growing at a rate in of 400% per year. It involves mostly reetail investors and small sm unlisted retail coompanies and start-u companies start-ups. One of its ap ppeals is that it is convenient con appeals and siimple (you can learn about new fundsimple ra conv raisings from the convenience of your i perf but is it? iPad) It all sounds perfect, T tw main areas of There are generally two c crowdf funding: crowdfunding: LOAN-BASE SECTOR THE LOAN-BASED h e peer-to-peer or peer-to-business where lendin ng may take place lending place. The reward i usually non-mo here is non-monetary. INVE ESTMENT BA INVESTMENT-BASED CROWDFUNDING Here, the return may take the form of debt, equity or other security. Investment-based crowdfunding usually involves three parties: The project owner seeking finance. The Internet platform that acts as the intermediary between the project and the investor. The platform provides a mechanism for projects to find investors and vice-versa. The Investor. This method of raising capital usually attracts unlisted, smaller businesses and maybe start-ups, innovative or otherwise. Project sizes are relatively small and most crowdfunding platforms are small businesses themselves. Since crowdfunding usually involves new innovative ideas and startups, there is a significant potential of capital loss. There is a risk of dilution through further capital raising, a lack of realistic exit options, potential con-

flicts of interest between investment platforms and issuers, the potential impact of platform failure, the danger of not being covered by any investor compensation scheme, plus the information provided by the platform regarding the issuer may not provide an accurate picture of the issuer and investors may be misled. Furthermore, the information provided is not subject to any recognized transparency rules or recognized format (a prospectus, for example). EU regulation was not designed with crowdfunding in mind, and so member states and national authorities have been trying to work out how to treat it; some regulators deal with it on a case-by-case basis, some are seeking to clarify how crowdfunding fits into existing rules and others have introduced specific requirements: Italy has had some form of regulation since 2012, the UK introduced relevant regulation in April 2014, France followed in October 2014 and Spain in April 2015. Some member states like Germany and Austria apply their Payment Services Acts and their Prospectus Laws where applicable, whereas Finland, the Netherlands, Sweden, Latvia and Denmark are currently examining the creation of crowdfunding legislation. The objective is to support crowdfunding platforms and give them legal certainty, improve financing for issuers and provide alternative sources of finance. The components of a potential regulatory regime should therefore include: Proportionate capital requirements (to cover a potential platform failure) Segregation of assets (an investor protection tool) Proportionate organisational rules The nature and extent of the platform’s responsibilities in relation to investors A potential crowdfunding regime should more or less encapsulate similar protections as those afforded by MiFID and, in return, would grant a passport to crowdfunding platforms that meet the qualifying conditions to seek investors from all over the EU.

Changing

With The Times

Info: Amalia Hadjipapa is a Partner at Marangos & Hadjipapa LLC. She specialises in Corporate Law and Mergers & Acquisitions.

EU regulation was not designed with crowdfunding in mind

Innovation delivered!

Microsoft and European University Cyprus would like to thank their Innovation Partners for their support in making the Microsoft Innovation Center Cyprus a reality

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| CONFERENCE |

THE CYPRUS FIDUCIARY SECTOR: THE WAY FORWARD

T Costas Argyrides, Bank of Cyprus

George Panteli, Ministry of Finance

Niki Charilaou Ioannidou, Bank of Cyprus, Igor Makarov, Baker & McKenzie, Christos Michael, First Names Ltd, Simon Dilloway, KYC Cube & Bart Kosters, IBFD

Niki Psilogenous, Dinos Antoniou, Stalo Vassilopoulou, Kyriacos Constantinou, Alexis Stephanie Christodoulou & Takis Orphanou, G.A.P. Vassilopoulos Group

Yiannakis Lazarou, Ministry of Finance

Demetris Demetriou, Natalie Mavridou & Odysseas Demosthenous, Demstar Business Solutions Ltd George Savvides, CFA

Networking cocktail

Igor Makarov, Baker & McKenzie

Christos Rotsas Rotsas & ltd 66Co | GOLD | The Business Magazine of Cyprus

Simon Dilloway, Past Director of the Security Institute

Neofytos Neofytou, Tax Atelier & Odysseas Demosthenous, Demstar Business Solutions Ltd

he 2nd Cyprus Fiduciary Association Forum was held on November 6 at the GrandResort, Limassol. The conference identified and examined international and local developments that have taken place over the past year in the fiduciary and international business sectors. Professionals from Cyprus discussed ways in which the administrative services sector can develop further and thus enhance Cyprusâ&#x20AC;&#x2122; standing as an international business centre. Representatives of the local business sector summarized developments in the industry, assessed the way forward and proposed key geographical markets that Cyprus should target in order to expand its role as a provider of international business services. The conference was organized by the Cyprus Fiduciary Association. Its main sponsor was Bank of Cyprus while Demstar Business Solutions and Western Union Business Solutions were sponsors. Coordination was by IMH with Gold Magazine and Goldnews.com.cy as communication sponsors.

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| CONFERENCE |

he Digital Transformation Forum was held by Oracle on 5 November at Lemon Park, Nicosia. Participants in this free Oracle event had the opportunity to hear from experts about how they can speed up the process of digital transformation in their organisations. Services including Oracle Public Cloud Services and PaaS (Platform as a Service), challenges and solutions of Cloud Integration, the acceleration of innovation with Big Data and Internet of Things in the Cloud were among the issues discussed during the Forum, while special reference was made to the key announcements made at Oracle OpenWorld 2015 which had taken place in San Francisco a week earlier.

Petros Koutsoftas, Ambrosia Oils, Demetris Triantafyllou FBME Bank

Organiser

Platinum Sponsors

Yme van den Born and Waqas Rehmat, Noventum & Nicos Rossides, Cyprus Institute

Media Sponsor Antonis Skoullos, Oracle Cyprus Katerina Tzouvara, Oracle Greece

Stavros Theophilou, Blue Sun Automation Limited, Stavros Charalambous, George Violaris & Paris Argyrides, Trust International Insurance Co. (Cyprus) Ltd

Antonis Skoullos, Oracle Cyprus & Costas Psyllides, Cyta

68 | GOLD | The Business Magazine of Cyprus

Liviu Gherman, Oracle Romania

Michael Papadopoulos, NetU Giorgos Papadakis, Oracle Greece

Monica Kumar, Oracle US

| INTELLECTUAL PROPERTY | Tony Ha djilo uc as

RIGHTS

ISSUE

By Chloe Panayides

aris iol V os

St eli

CYPRUS CAN BECOME A REGIONAL HUB FOR INTELLECTUAL PROPERTY

pon meeting with Tony Hadjiloucas, Partner, PwC Cyprus, to discuss the everubiquitous term ‘IP’ – that is, Intellectual Property – he begins with an eyeopening fact: “PwC research shows, on a global scale, that more than two-thirds of a company’s value is intangible. Thus, the market capitalisation of an average company in relation to its tangible assets is less than one third. Just think about that.” Dutifully, I do. By developing local businesses’ understanding of IP and how to optimise it, as well as creating optimum conditions to attract, for example, large international technology companies to the island, Cyprus could be poised to reap immeasurable profits. In the interim, prior to achieving the goal of transforming Cyprus into an IP hub – a prime location chosen by corporations to centralise and manage their IP – there is a mighty amount of work to be done. Tony Hadjiloucas has 20 years’ experience – chiefly in corporate finance and administration and, in particular, as an adviser to IP-rich companies and individuals on matters such as valuation, strategy, IP exploitation and management – with PwC firms in three countries, including 10 years in London. He has assisted many of the world’s largest consumer goods, technology and media companies in extracting value from

70 | GOLD | The Business Magazine of Cyprus

their IP and regularly provides advice on transactions involving IP or IP-rich companies, licensing, restructuring, process outsourcing and disputes. “Firstly,” Hadjiloucas explains, “It is important to understand what exactly constitutes IP. Intangible assets may be split into core and non-core and they span all kinds of areas from licensing and royalty agreements, trademarks and trade names, to patented technology, computer software, Internet domain names, and more.” Whilst Cyprus is credited by Hadjiloucas as still being at an embryonic stage when it comes to IP – given that the majority of businesses here are small- to medium-sized enterprises (SMEs), which precludes the allocation of a dedicated strategy team – companies are, he says, nevertheless becoming more sophisticated and they understand, more and more, the imperative need to invest time and effort in protecting these business drivers.

“An IP strategy generally focuses on generating value from intangible assets. There are numerous aspects to such a strategy, and what is developed depends very much on the context of each company. There are many ways to realise value from intangible assets.” When probed as to how an IP strategy may be developed, Hadjiloucas expresses his resolute belief in the importance of every company conducting an ‘IP audit’. “An IP audit initially involves identifying all intangibles, both core and non-core,” he explains. “Core constitutes anything integral to making a business run, from key technology to corporate branding. For these, a company must ensure that they are properly protected, insured and used in an optimal manner. Measuring the return on IP investment is a key part of this process. “Non-core intangible assets, meanwhile, may be sold or licensed on the market, used as ‘equity’ in a joint venture with a third party or even donated for Corporate Social Responsibility purposes.” Further to categorising all intangible assets in this manner, Hadjiloucas points out that an IP audit encourages the posing of vital questions. “These might include questions such as: What is our return on investment in IP (e.g. brand investment)? Should we consider co-branding or brand extension to add value? and Could we get more out of our core IP or profitably license-out noncore?” In a case where a company wishes to sell or an investor is considering buying a company, carrying out an IP audit is equally as important, considering how much a company’s value is inextricably linked with IP. “Overall,” Hadjiloucas notes, “It is vital to align your IP strategy with your corporate strategy, to be consistent, and to value ideas.” While the idea of an IP audit may appear to be a daunting task for those inexperienced in IP issues, “At PwC, we have leveraged our specialised IP knowledge and experiences to support our clients

in a range of capacities,” Hadjiloucas explains. These might include IP transactions (such as quantifying and assisting in negotiations related to the value of IP assets); strategic decisions (this could be evaluating IP opportunities or identifying potential alliances/strategies to minimise costs); IP management; licence management; and litigation support. Clients have often reaped the benefits. For example? “A UK deal between two car company giants resulted in the new owner of the company finding, again in the non-core portfolio, an industrial design for a certain vehicular component. It was used to create a joint venture with a 3rd party, resulting in the gain of capital. “Another company had, tucked away in its non-core portfolio, a technological design developed by an employee. The company managed to find a buyer who paid tens of millions for it. It really was a case of being a hidden gem.” As we turn our attention to current IP legislation (in effect as of January 2012) in Cyprus, we are joined by Stelios Violaris, international tax partner at PwC Cyprus, who recalls how, in accordance with the EU 2020 strategy, Cyprus is due to align its tax legislation to the latest EU guidelines so as to really incentivize the generation (research and development) and commercial management of IP. “This, coupled with the fact that the effective tax rate on IP income is a maximum of 2.5%,” he says, “makes Cyprus really attractive compared to other jurisdictions. It’s now one of the most efficient IP legislations in the EU, if not the outright most efficient one.” Referring to the ‘IP lifecycle’, Violaris

believes adamantly in the benefits that will befall in Cyprus should it succeed in elevating its status to IP hub: “The IP life cycle requires a lot of people, from a range of professions, thus resulting in invigorated employment opportunities and business transactions. Most types of IP – during their life cycle of development, acquisition, protection and enforcement, management and monetisation, and reporting/communication – will require legal services, patent agents, transaction support, IP company administration, fiduciary, licensing management, royalty audits, forensics, accounting, tax advice and compliance and more.” So with the attractive legislation in place, what hurdles remain? “The tax law by itself doesn’t equate with automatically turning Cyprus into an IP centre,” says Violaris. “Our efforts should be to convince international organisations to come here purely on commercial and business merit. Further to transferring to Cyprus, we want companies to develop fully-fledged infrastructure here and to utilize our highly educated workforce, which, in my view, is our biggest attribute,” he adds. “The Cyprus economy has been on the road to recovery for a while now and that should give the foreign multinational investor the confidence to consider Cyprus as its IP regional/global hub,” Violaris argues, noting that in addition, Cyprus ‘ticks all the boxes’ when it comes to having such hubs established here. “For us, it is about actively raising awareness in the right fora with the right audiences and lobbying certain markets, such as the US, the UK and Russia, in a targeted manner,” he concludes.

ON A GLOBAL SCALE, MORE THAN TWO-THIRDS OF A COMPANY’S VALUE IS INTANGIBLE www.goldnews.com.cy | GOLD | 71

Opinion

STAYING FOCUSED

TRAILING LESS DEVELOPED COUNTRIES MEANS THAT CYPRUS STILL HAS A LONG WAY TO GO By Kyriakos Iordanou

n the latest Global Competmore appealing to international invesitiveness Report (GCR) retors and enhancing compliance and leased recently by the World control. The GCR, however, indicates Economic Forum (WEF), that these are not enough. Corrective Cyprus is ranked 65th and boosting measures have failed to among 140 economies, fallimprove Cyprus’ competitiveness. ing seven places compared with the We all need to comprehend that there is no alternative to learning from previous year. It has clearly not perpast mistakes and working for a better formed well enough, trailing 24 other future. To do so, new foundations EU member states and third from last need to be laid fostering efficiency, inwith respect to developed economies novation, technological advancement, (ahead of Slovakia and Greece). I market sensitivity, the optimum utilidon’t think that anyone can be proud zation of talent, accountability, transof this result. It is evident that Cyprus parency and better overall governance has to perform immensely better in and administration of public finances. Both the the areas of Macroeconomic Environment, FiInfo: Kyriakos Iordanou is General Manager of the Institute of Certified Government and the private sector should use nancial Market Development (trustworthiness, Public Accountants of Cyprus the GCR as their benchmark tool to ensure much confidence and efficiency all receive low scores) better results in the next appraisal. and Market Size. The GCR also indicates, as an If everything goes to plan, 2016 will be the year when Cyprus expected consequence, a reduction in GDP per capita, which is exits the Memorandum of Understanding and is deemed to cause for concern. have fulfilled its obligations. The Minister of Finance is quite Some might argue that such an outcome could have been optimistic about the economy’s anticipated performance and anticipated, having in mind the predicament of the Cyprus growth. Let us not forget, though, that next year’s parliameneconomy three years ago. On the other hand, following a series tary elections will, as usual, make the political parties eager of measures taken in order to “treat” economic malpractice over the past two years or so, and the implementation of the Troika’s to appear as voter-friendly as possible and the Government economic adjustment programme, one could reasonably expect strikingly generous. that, three years down the road, structural issues would have This could prove detrimental to all the hard work and been fixed. Indeed, the Government presents the upgrades by the sacrifices made so far. We should not get carried away by iminternational rating agencies, the anticipated fiscal statistics for proved statistics as the problems are not yet behind us. Making 2015 and projections for 2016 as an undisputed success. political promises and opening the Government coffers for the Being placed 65th in the GCR and trailing countries which sake of votes could severely harm the country’s medium- and long-term economic competitiveness are actually less developed than and its stability. We cannot afford to Cyprus can only mean one NEXT YEAR’S be complacent and lose track. thing: there is still a long way to It is imperative to stay focused on go and certain things must be PARLIAMENTARY our goals and objectives, to remain dealt with immediately. ELECTIONS WILL prudent, down-to- earth and comMany professionals and MAKE THE POLITICAL mitted without any deviations. The government officials are striving PARTIES EAGER TO future of Cyprus as a credible and to maintain Cyprus as an sound international business centre of international business centre, APPEAR AS VOTERrepute must be secured in order attracting investors and operatFRIENDLY AS POSSIBLE good to safeguard long-term prosperity and ing as a gateway to other parts AND THE GOVERNMENT growth. Focusing on improving comof the world. There have been STRIKINGLY GENEROUS petitiveness should be a non-negotiable considerable improvements to objective. legislation, making the country 72 | GOLD | The Business Magazine of Cyprus

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| TAX |

TAXATION OF OFFSHORE ACTIVITIES

UNDER CYPRUS DTAS

By Olga Chervinskaya

yprus has concluded over 40 Double Taxation Agreements (DTA) regulating various aspects of international taxation. However, offshore activities have, until recently, been outside the specific scope of these DTAs. An ‘Offshore Activities‘ article was first introduced in June 2013 into the DTA with Lithuania which became effective on 1 January 2015. Since then, similar DTAs have been signed with Norway, Switzerland and Guernsey. The article on offshore activities normally addresses, inter alia, the following areas: Exploration and exploitation activities not triggering permanent establishment (PE) Transportation of supplies/personnel Income from employment

EXPLORATION AND EXPLOITATION ACTIVITIES NOT TRIGGERING PE All four DTAs provide for a no PE safe harbour cap for exploration and exploitation activities not exceeding 30 days in any 12-month period commencing or ending in the fiscal year concerned. The Swiss DTA has a slightly different wording, meaning that a Swiss tax resident company engaged in continental shelf activities in Cyprus for a period of 30 days is considered as having a PE in Cyprus whereas Lithuanian, Norwegian and Guernsey tax resident companies are not. From a practical point of view it may be relevant to note that most exploration and exploitation activities rarely last 30 days or less, which means that most such activities will trigger a PE in Cyprus and, as such, be subject to 12.5% income tax. TRANSPORTATION OF SUPPLIES/PERSONNEL Activities connected with hydrocarbon exploration and exploitation, such as

transportation of supplies/ personnel between onshore and offshore facilities, are normally considered as triggering a PE in Cyprus (based on current tax practice). However, the DTAs include a specific provision by which such activities are taxable only in the state of residence (the Swiss DTA being an exception). This means that a Lithuanian, Norwegian or Guernsey tax resident company deriving profits from the transportation of supplies/ personnel to a location, or between locations, where exploration or exploitation activities are being carried on in Cyprus, should not be subject to Cypriot tax. In the case of a Swiss tax resident company engaged in such activities in Cyprus, profits from them are subject to Cypriot income tax if they constitute a PE in Cyprus. INCOME FROM EMPLOYMENT Under DTAs with Lithuania, Norway and Guernsey, income from employment is taxable in the residence state if the employment is carried on offshore for an employer

who is not a resident of Cyprus and provided that the employment is carried on for a period not exceeding 30 days in any 12 month period commencing or ending in the fiscal year concerned. Salaries, wages and similar remuneration derived by a resident of Lithuania, Norway and Guernsey in respect of an employment exercised on board a ship or aircraft engaged in the transportation of supplies/ personnel to a location, or between locations, where exploration or exploitation activities are being carried on in Cyprus, may be taxed in Lithuania, Norway and Guernsey respectively. The Swiss DTA enables Cyprus to tax salaries, wages and other similar remunerations derived by a Swiss resident in respect of an employment connected with continental shelf activities carried on through a PE or a fixed base in Cyprus, to the extent that the employment is exercised on its continental shelf and borne by that PE or a fixed base.

MOST EXPLORATION AND EXPLOITATION ACTIVITIES RARELY LAST 30 DAYS OR LESS, WHICH MEANS THAT MOST SUCH ACTIVITIES WILL BE SUBJECT TO 12.5% INCOME TAX

4 | GOLD | The Business Magazine of Cyprus 74 | GOLD | The Business Magazine of Cyprus

Info: Olga Chervinskaya is a Senior Manager Tax Services at EY Cyprus. The views and opinions expressed in this article are those of the author and under no circumstances is Ernst & Young Cyprus Limited responsible for the content or such views.

Savvas

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Andreas

Angelos

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Opinion

TOY STORY ENGINO IS A PERFECT EXAMPLE OF HOW SMES CAN BOOST COMPETITIVENESS IN EUROPE By Dr Olga Kandinskaia

here is evidence prompt more companies to shift suggesting that the manufacture of many goods many American consumed in the US back to the companies are US.” It said that this shift could taking manufaccreate 2-3 million jobs, reduce turing back to the unemployment by 1.5-2 percentUS. This growing trend is expected age points, and add around $100 to boost the competitiveness of billion in annual output to the US the US economy and help it grow economy. out of its debt. Closer to home, Most of the evidence of this shift we have an interesting example of has come so far from US coma small company which, at a time panies, with only a few examples of crisis, took a very unorthodox from Europe. The BCG analysts decision to move its manufacturing cautiously concluded that Europe to Cyprus. is a different story from the US, Engino, an export-oriented SME yet the Engino case demonstrates producing construction toys of its the opposite. It seems that similar own unique design, had investtrends are beginning among Eued heavily in R&D to develop a ropean companies, even among high-quality innovative product SMEs, and these trends need to be and, from 2007-2011, its manufacnoticed and supported in approturing was outsourced to China. At the end of priate ways by European governments, which Info: Dr Olga Kandinskaia is Assistant Professor of Finance and Director 2011, owner Costas Sisamos took the strategic should give strong support to capital projects of MSc Management at the decision to start manufacturing in Cyprus. by SMEs with the potential to create value in Cyprus International Institute of Management (CIIM). In August 2011 the Boston Consulting the economy. Engino moved out of China four Group (BCG) published its first “Made in years ago for reasons very similar to the ones listAmerica” report, in which it concluded that ed in the BCG reports for US companies. It was China’s overwhelming manufacturing cost advantage over the a remarkably brave strategic move, which, against many odds, US was shrinking fast. Within five years, the report said, “ris- has already brought positive results, proving that innovation ing Chinese wages, higher US productivity, a weaker dollar, and manufacturing do have a place in Cyprus. and other factors will virtually close the cost gap between the Engino’s case is an illustration of a type of SME that is a US and China for many goods consumed in North America.” worthy recipient of government funds. Such investments will The BCG recommendation was that companies should ungenerate high returns in the future and create value for Europedertake a rigorous, product-by-product analysis of their global an firms, thus helping the European economy to recover from supply networks in order to carefully assess their total costs. It the crisis. The problem of the massive debt load is best solved went on to say that for many products sold in North Amervia economic growth rather than austerity measures, which ica, the US would become a more attractive manufacturing have had a limited effect so far. option. Engino is the first case of a positive The main conclusions of story of a company from Cyprus to be BCG’s second “Made in Amerpublished in a prestigious international INNOVATION AND ica” report (March 2012) were academic journal (Business Case Journal MANUFACTURING DO that certain industries were of the Society For Case Research, SumHAVE A PLACE IN CYPRUS mer 2015). Is it time to re-think how “nearing the point at which rising costs in China could we project the image of Cyprus?

76 | GOLD | The Business Magazine of Cyprus

Opinion

MIND THE GAP, GEORGE THE UK CHANCELLOR OUGHT TO REMEMBER ELEMENTARY ERRORS MADE BY HIS PREDECESSORS

By Savvas Savouri

ntroduce a “timingensured there will be a rush to beat gap” between the the new tax regime over the course of announcement of the next five or so months. This could a tax rise and its easily have been avoided had the animplementation and you nouncement and its execution been are entering treacherous timed more closely. economic ground. On the substance of the ChanOne has only to reflect cellor’s announced but delayed tax on what unfolded from the Budget change, I believe that the UK’s resof March 15, 1988. Back then, idential market has long demanded Chancellor Nigel Lawson announced a change in tax strategy. However, I the end of multiple buyers collectively have not seen an overhaul in stamp claiming mortgage interest tax relief; duty as the most pressing need. This which at the time could still be has actually long been related to the rebated at a tax-payers highest rate. levying of Capital Gains Tax (CGT), The starting point for this new tax and not exempting main residences regime was, however, delayed until from this. As an economist, I see no August 1. This led to a four-month reason why CGT should not be paid frenzy of buying to beat the deadline. Few will argue when we sell our main homes, and. CGT on all home Info: Dr. Savvas Savouri is a against the claim that this timing error was the sales would, by informed calculations, provide the Partner and Chief Economist catalyst for the residential property price crash which Exchequer with tens of billions of pounds each year in of Toscafund. followed, with all its collateral damage to the UK tax receipts, in contrast with the Chancellor’s estimate economy. of £1 billion in the years to 2021. We are talking Whilst the now Lord Lawson subsequently blamed the Inland here of significantly more than what will accrue as a result of his Revenue for warning him that lenders required a period to ill-conceived and woefully poorly timed stamp duty changes. Such prepare for the change, the fact is that an elementary economic a move would also undeniably act to temper house price inflation. timing mistake was made. Indeed, I have long argued that the absence of CGT on main resiI am not judging Lawson’s tax change per se, but rather the dences has turned the property ladder into a fast-moving upwards timing of its implementation. Indeed, this timing-gap has beescalator, with those on it enjoying the ride while those trying to come a case study in how not to act, one which it would seem the step onto it are prevented by its speed. present Chancellor isn’t familiar with. While I despair as to why Osborne fell into the policy-trap of On November 25, the same sense of perplexity and forebodchanging stamp duty and making the announcement worse by ing that I had felt back in 1988 filled me when George Osborne introducing a timing-gap, I do not expect his errors to trigger a announced an increase in stamp duty for those buying a home repeat of what Lawson’s produced back in 1988. The UK econin addition to their main resiomy is fundamentally sound dence, but delayed the increase and its residential market will I SEE NO REASON WHY until April next year. Again withstand the unnecessary CAPITAL GAINS TAX SHOULD shock which will no doubt be I am not judging the tax rise but the timing-gap between its NOT BE PAID WHEN WE SELL triggered by Osborne’s failure to remember the elementary announcement and its impleOUR MAIN HOMES errors of the past. mentation. The Chancellor has 78 | GOLD | The Business Magazine of Cyprus

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BOOK SHELF

BOOKS OF 1

Biography

Literature & Fiction

Over half a century since The Spy Who Came in from the Cold made John le Carré a worldwide, bestselling sensation, David Cornwell, the man behind the pseudonym, remains an enigma. This fascinating study has already been acclaimed by many critics as the best biography of 2015. It is indeed great reading, especially if you love the man’s books and want to understand more about his inspiration.

The acclaimed author of The Corrections and Freedom has imagined a world of vividly original characters – Californians and East Germans, good parents and bad parents, journalists and leakers – and he follows their intertwining paths through landscapes as contemporary as the omnipresent Internet and as ancient as the war between the sexes. Franzen’s latest daring and penetrating novel is a grand story of youthful idealism, extreme fidelity... and murder.

How can the USA come to terms with its fraught racial history? The author attempts to answer these questions with a lyrical personal narrative in the form of a letter to his adolescent son, sharing the story of his own awakening to the truth about history and race. Hailed as the ‘new James Baldwin’, Coates weaves a lyrical personal narrative, history and fresh, emotionally charged reportage.

JOHN LE CARRÉ: THE BIOGRAPHY By Adam Sisman BLOOMSBURY PUBLISHING (2015) R.R.P. £25.00 (£12.50 FROM AMAZON.CO.UK)

PURITY: A NOVEL By Jonathan Franzen (Fourth Estate (2015) R.R.P. £20.00 (£13.60 FROM AMAZON.CO.UK)

80 | GOLD | The Business Magazine of Cyprus

BETWEEN THE WORLD AND ME By Ta-Nehisi Coates Text Publishing Company (2015) R.R.P. £10.99 (£7.69 FROM AMAZON.CO.UK)

History

Business

Food & Drink

As technology continues to accelerate and machines begin taking care of themselves, fewer jobs will be necessary. Unless we radically reassess the fundamentals of how our economy and politics work, we risk a future of massive unemployment and inequality as well as the implosion of the economy itself. This was the winner of the prestigous 2015 Financial Times / McKinsey Business Book of the Year Award.

This is not a cookbook for beginners or those accustomed to simple, straightforward cooking, although the recipes for over 120 of the most popular dishes from the innovative Soho-based restaurant NOPI have been adapted for the home cook to recreate. If you are an Ottolenghi fan or you want to try your hand at restaurant-style cooking, this is a collection to inspire, challenge and delight.

RISE OF THE ROBOTS: TECHNOLOGY AND THE THREAT OF MASS UNEMPLOYMENT By Martin Ford (Oneworld Publications, 2015) R.R.P. £18.99 (£12.91 FROM AMAZON.CO.UK)

NOPI: THE COOKBOOK By Yotam Ottolenghi & Ramael Scully Ebury Press (2015) R.R.P. £28.00 (£12.99 FROM AMAZON.CO.UK)

THE YEAR 6

Mystery / Thriller

Science

Fantasy

Music

Humour

This gripping psychological thriller is told from three different viewpoints, each giving a slightly different version since the characters are complex and flawed, meaning that they lie, cheat and deceive so nothing is really as it first appears and, more importantly, nobody is as they first seem. Don’t be put off by comparisons between this and Gone Girl. It will have you hooked until the very last page.

100,000 years ago, at least six human species inhabited the earth. Today there is just one: homo sapiens. How did we succeed in the battle for dominance? And what will our world be like in the millennia to come? Bold, wide-ranging and provocative, Sapiens challenges everything we thought we knew about being human. Harari’s book is an extremely lucid, illuminating and brilliantly written history of our species.

If you are among the millions who have enjoyed the Game of Thrones books and TV series, you will definitely want to read this single volume that brings together the first three official prequel novellas to George R.R. Martin’s ongoing masterwork, A Song of Ice and Fire, set a century before A Game of Thrones when two unlikely heroes wandered Westeros… Dunk and Egg.

Following successful rock autobiographies by Keith Richards, Bob Dylan and Pete Townshend (don’t include Morrissey in the list) comes another long-awaited memoir by one of rock and roll’s most eloquent stars: Elvis Costello. The man born Declan Patrick MacManus has written his own story with the same inimitable touch as he reveals in his lyrics, describing how his career has now endured for almost four decades. Unsurprisingly excellent.

THE GIRL ON THE TRAIN By Paula Hawkins (Doubleday, 2015) R.R.P. £12.99 (£6.49 FROM AMAZON.CO.UK)

SAPIENS: A BRIEF HISTORY OF HUMANKIND By Yuval Noah Harari (Harvill Secker, 2014) R.R.P. £25.00 (£11.00 FROM AMAZON.CO.UK)

A KNIGHT OF THE SEVEN KINGDOMS By George R.R. Martin (Harper Voyager, 2015) R.R.P. £20.00 (£7.99 FROM AMAZON.CO.UK)

UNFAITHFUL MUSIC AND DISAPPEARING INK By Elvis Costello (Viking, 2015) R.R.P. £25.00 (£17.00 FROM AMAZON.CO.UK)

10.

THE ROAD TO LITTLE DRIBBLING: MORE NOTES FROM A SMALL ISLAND By Bill Bryson (Doubleday, 2015) R.R.P. £20.00 (£9.00 FROM AMAZON.CO.UK)

Twenty years ago, Bill Bryson went on a trip around Britain and wrote about it in Notes from a Small Island, which became the UK’s bestselling travel book ever. Here he goes back to see what has changed. Once again, with his matchless instinct for the funniest, quirkiest, idiotic, endearing, ridiculous and scandalous, he gives an amusingly perceptive insight into Britain today.

www.goldnews.com.cy | GOLD | 81

IN GOOD COMPANY

BANKING ON PEOPLE (;3/25,1* &'%%$1.¶6 &25( $66(7 ,76 3(56211(/ By Effy Pafitis | Photos Andreas Loucaides

7+( %$1. +$6 $/:$<6 ,19(67(' ,1 $775$&7,1* $1' 5(7$,1,1* +,*+ &$/,%5( ,1',9,'8$/6 :+2 $5( &200,77(' 72 7+( ,03/(0(17$7,21 2) 285 675$7(*< 82 | GOLD | The Business Magazine of Cyprus

harged with managing financial assets in the millions and navigating the monetary complexities which have become today’s post-crisis reality, it is rare that financial institutions are considered in terms of the human resources behind their operations. Indeed, it is rarer still for them to be evaluated as a workplace for their staff, with their HR policy – rather than financial strategy – taking centre stage. Georgia Stylianidou, HR Manager at cdbbank, talks to Gold about what the firm’s employees mean to the company and how its people constitute its most significant core asset. The bank currently employs 98 people in Cyprus, a workforce that Georgia Stylianidou describes as its key resource and a valuable component of cdbbank’s success. “It is thanks to the hard work and efforts of our people that cdbbank has managed to grow steadily and remain successful,” she

tells Gold, noting how, given the significant role its Human Capital plays in its profitable operations, “the bank has always invested in attracting and retaining high calibre individuals who are committed to the implementation of our strategy.” Staff satisfaction begins with a carefully planned organisational structure, one which allows for close cooperation among employees at all levels. “Our organisational structure is lean and flat,” Stylianidou explains, “thus enabling a shared vision, customer-driven business orientation, innovation in products and services, faster decision-making and improved internal communication.” With few levels of middle management between staff and executives, employees are more involved in decision-making processes and are thus able to enhance the efficiency of achieving organisational objectives through the cultivation of a positive working environment. “Our HR policies are consistent with the corporate strategy and objectives of the bank and reflect the organisation’s culture and philosophy,” she says. “Each line manager is an ‘HR manager’ in his or her own team with direct involvement in and responsibility for the management and further development of their staff.” It is a priority for the bank, she contin-

ues, to sustain excellence in HR through continuous training and development, making sure that it is an integral part of the organisation’s strategy. Staff members and management alike have a shared responsibility in the development of the required knowledge and competencies through classroom training, e-learning, on-the-job-training, job rotation and job enlargement. The bank’s benefits package, the HR Manager confides, consists of a medical scheme, a provident fund, life and personal accident schemes and low-interest loans. Social activities such as a Christmas dinner, a Children’s Christmas party, barbecues, a futsal team and more also offer opportunities for staff bonding. Through their everyday work life, cdbbank’s people are given the opportunity to carry out a multiplicity of tasks, work in teams and fulfil their full potential. Young employees have the opportunity to bring and develop new ideas, thus promoting innovation and growth. The bank, Stylianidou explains, is guided by a set of core values that define its decisions and actions and serve as the cornerstone of its corporate philosophy that is embraced by all cdbbank staff. “Integrity and professionalism are not just slogans, but our modus operandi,” she says. “We see our clients as partners in long-term relationships of trust and make sure they receive the best professional service.” The excellence of the bank’s staff is the flip side of this same coin. “We attract and continually invest in our high-quality human resources, providing opportunities for training and professional growth so that they are equipped to deliver results. And as a small, flexible organisation, we are keenly aware of the need to keep abreast of new developments in line with our commitment for continuous improvement.” “The small size of the bank,” Stylianidou says, “enables staff to forge strong working relationships and to develop a sense of belonging, combining a professional set-up with a family feel. We believe in people who are challenged by change and are committed to make things happen.” Cdbbank offers each and every one of them ample opportunity to shine and ascend to the pinnacle of professional success, elevating the bank’s operations and commitment to customer relation excellence as they do so.

www.goldnews.com.cy | GOLD | 83

Lunc Lunch with ANDREAS HADJIKYRIACOS

THE MANAGING DIRECTOR OF GNORA COMMUNICATION CONSULTANTS TALKS ABOUT HIS LOVE OF JOURNALISM, ELABORATES ON HOW THE SOLUTION TO THE CYPRUS PROBLEM MAY HINGE ON THE PRICE OF A PACKET OF CIGARETTES, AND EXPLAINS WHY HE HAS DECIDED NOT TO CELEBRATE ANY MORE BIRTHDAYS.

Gold

F 84 | GOLD | The Business Magazine of Cyprus

By John Vickers

OP COOKSH Street u ro a 6A, Pind Nicosia

D SIDE SALA T CHICKEN S HERB CRU SALMON N IA G E W R O N S T R E S S 2 DE TR WATER 1L TOTAL

or our lunch date, Andreas Hadjikyriacos has chosen Cookshop, a tiny restaurant on Pindarou Street, Nicosia with a deserved reputation for serving interesting dishes prepared and presented with great flair and imagination. It is a recent discovery of his and one to which he has already taken to returning. He orders a small salad, followed by Norwegian salmon with spinach, dill rice and roasted vegetables while my menu choice is herb crust chicken fillet with cheese and raisin stuffing, mashed potatoes and oven baked vegetables. Plain water accompanies the meal, while old and traditional French music provides a pleasant background to our conversation.

€2.00 €10.00 €12.50 €7.00 €2.00 €33.50

The first thing I discover is that we appear to be unwittingly celebrating the 25th anniversary of our first meeting, which took place in 1990 when he returned from the United States and became a colleague of mine at the Cyprus Weekly, the first of several journalism/media posts that he has held over the years. He would later work for the Cyprus News Agency, and two Greek-language newspapers (Phileleftheros and Politis) before switching to TV, heading the newsroom at Mega before moving to Sigma and ANT-1, where he was anchorman on the main evening news.

It was probably inevitable that, having gained a fairly high public profile and a reputation for serious journalism (and a conspicuous lack of self-promotion), he would eventually start his own business. The surprise was that it wasn’t a newspaper or a radio/ TV station. “The widely held idea that every journalist has a secret desire to be a publisher was never true in my case,” he says. “I had always wanted to be involved in the media and I still miss journalism in a way, but not enough to go back.” Hadjikyriacos recalls that, after graduation – he studied Journalism & Political Science for his BA at Indiana University, followed by an MA in Managing Media Organisations at Northeastern University in Boston – his dream was to find a journalism job in the United States. “In the end I came back to Cyprus with 45 rejection letters in my suitcase,” he tells me, noting that the main reason for failing in that particular ambition was probably that he had aimed too high: “I applied to the Washington Post, the New York Times, Newsweek, Time, the Boston Globe and so on but those guys don’t hire inexperienced graduates!” For a while he didn’t let go of the idea of eventually working overseas but, as often happens, once he started a familyhis priorities changed and he set about building a successful career in the local media. By 2003, he was ready for a change and more independence, and he founded Gnora, a communication consultancy, which originally focused on a

totally new niche market: “I had always liked the idea of being involved in corporate and political image-making, which was virgin territory in Cyprus at the time,” he tells me. “So we specialized in media relations, crisis management and other areas. We also have a publishing department and we later added public affairs.” As for why he didn’t start a newspaper or a TV station, that was mainly a matter of capital: “You need plenty of money for something like that and I didn’t have it. On the other hand, to start a consultancy, you just need rent, electricity and your brains. So it was an easy decision!” One of the firm’s first successes was the Offsite electronic newsletter, which it sold 18 months later. Our main course arrives just as we are about to tuck in to what turns out to be the main topic of our conversation: a likely solution to the longstanding Cyprus Problem. As a journalist, Andreas Hadjikyriacos has spent all his professional life dealing with issues aris-

ing from the island’s division while, more recently, he has been involved with some of the key players (among other projects, Gnora Communication Consultants coordinated Nicos Anastasiades’ successful campaign for the Presidency in 2012-13). He admits to having become something of a cynic, though he is quick to clarify that he does not doubt the sincerity of the leaders of both communities on the island in their desire to bring about reunification, peace and prosperity.

“The UN and the two leaders have a vision of a reunited Cyprus and it’s good – essential in fact – to have a vision but it must be viable,” he says. In the end, he believes, everything is going to be about the economy and, in particular, about being able to raise the standard of living of the future Turkish Cypriot constituent state to that of its Greek Cypriot counterpart. Moreover, he illustrates his thinking by reducing the whole issue down to the price of a packet of cigarettes. “These cigarettes are sold here for €4.10,” he says, holding up a packet. “On the Turkish Cypriot side they cost the equivalent of €2. If there is a solution tomorrow, how much are they going to cost?” It will depend where you buy them, I say. “Exactly!” he responds. “And since it will be perfectly OK for everyone to buy their cigarettes at half the current price in the Turkish Cypriot part of the island, the kiosk owners and cigarette importers on this side are going to lose their customers and a lot of money. The price to the Greek Cypriots is so high because of the amount of tax that is included in the price. On the other hand,” he continues, “if the Turkish Cypriots are

WE MAY HAVE A VISION OF A REUNITED CYPRUS BUT WE NEED TO BE PRACTICAL TOO www.goldnews.com.cy | GOLD | 85

| LUNCH WITH GOLD |

obliged to sell them at the same price as the Greek Cypriots, their customers will argue that it is unfair to them, especially when they may be earning only half of their Greek Cypriot counterparts’ salaries. “We may have a vision of a reunited Cyprus but we need to be practical too. The vision will mean nothing unless very basic issues, such as the harmonisation of taxes, etc., are resolved.” Whichever scenario is chosen, Hadjikyriacos concludes, it is going to have a negative effect on one side or the other, partly because of the imbalance in the standard of living and GDP of the two communities. I remind him that this was precisely the situation that prevailed when East and West Germany were reunited and, in essence, the more prosperous West paid to raise standards in the East of the country. “For many Greek Cypriots, one of the problems with the Annan plan was the fact that they didn’t want to be paying for this change, even if our ridiculously high defence spending could be used to offset a percentage of the cost,” he counters. “Asking one side to subsidise the other can be a recipe for conflict. The real Cyprus Problem is this for me. Unless you find a solution to the ‘cigarette problem’, it will be difficult to make it work.” He laughs when I suggest that the best idea would be to ban smoking throughout the island – something that would not appeal to our chain-smoking president – and acknowledges that while creating a viable federal republic may be difficult, nothing is impossible. For all their problems, no-one questions that countries like Belgium, Germany and Switzerland have made the federal concept work. Andreas Hadjikyriacos considers himself lucky to have lived through the time of the Annan Plan, the referendum and Cyprus’ EU accession, describing

86 | GOLD | The Business Magazine of Cyprus

2004 as arguably the most significant year in the country’s history since 1974. We reminisce about how things have changed since then, and not only in terms of whether people view a settlement more favourably now than they did 11 years ago. “Just think,” he says. “In 2004, there was no Facebook, no Twitter, no YouTube. Wikipedia was just three years old. It’s another world now and it’s one in which young people on both sides have little emotional attachment to the pre-’74 Cyprus. What they know of the others is what they have heard at school and at home, so there is also a fear factor at work when it comes to reunification.” Those who oppose any kind of settlement at all costs are fearful, he says, and if they were unable to shake off even part of their fear in 2003, when free movement began, they are not likely to change now. And then there is a huge

“I’m trying to maintain some kind of a diet,” my dining companion complains, only half-heartedly, before using a witty analogy to explain his inability to be over-optimistic about the chances of resolving Cyprus’ division: “We were forced into marriage in 1960 and we got a divorce in 1963. Ever since then we’ve been talking with our ex about getting together again because everybody else is saying that we should. If we are going to do it – and part of us knows that perhaps we can make a success of things if we try – we need to be sure that we’re not going to face the same problems that caused us to split up more than 50 years ago!” All this talk of the past has made Andreas Hadjikyriacos remember another much more personal milestone: his birthday. Last year he turned 50 and he decided that it was time to put an end to big celebrations and parties. “I have a few more years to persuade

IT’S ANOTHER WORLD NOW AND IT’S ONE IN WHICH YOUNG PEOPLE ON BOTH SIDES HAVE NO EMOTIONAL ATTACHMENT TO THE PRE-’74 CYPRUS group on this side who simply don’t want to change things, he points out: “They argue that the Greek Cypriots have shown that they are capable of recovering and rebuilding after enormous setbacks (in 1974 and 2013) and so they question why they should take on all the problems of re-integrating the other community.” During the last exchange of views we have each ordered a slice of chocolate orange cake, which is now placed before us and turns out to be even more divinely delicious than we had anticipated.

myself that I’m still young,” says with a broad grin. “When I was 40, younger people would always wonder if it was OK to call me Andreas. Now, I can see that there is no chance and I hate it!” We leave the restaurant, noting that we’ve lived through some interesting times and it looks as if they are about to become even more interesting. And while “Mr Hadjikyriacos” can still find comfort in the thought that he is not yet as old as the Cyprus Problem, that may not still be the case in a few years’ time.

BUSINESS CLASS How often do you travel, whether for business or pleasure?

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Philippos Mannaris The CEO of Aon Hewitt in Cyprus on his most memorable corporate travel experiences, why Greece will always be his ffavourite international destination andâ&#x20AC;¦ fy Pafitiss gold-dispensing ATMs. By Effy

What iis your favourite international in ntern n t destination?

What is your favourite airline?

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How does Cyprus compare to this location?

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work

life

www.goldnews.com.cy | GOLD | 87 www.

WHAT’S

THINGS

to do ART SENSE AND INTELLECT This major group exhibition features still lifes by more than 40 leading Cypriot artists from the first decades of the 20th century to the present. EVAGORAS LANITIS CENTRE, LIMASSOL UNTILWEDNESDAY, JANUARY 27, 4PM-8PM, WEEKENDS 1PM-8PM, CLOSED MON

BLACK ATOLLS British artist Tom Dale presents a customarily ambitious and diverse body of work especially for the Nicosia NICOSIA Municipal Arts MUNICIPAL ARTS Centre.

CENTRE, NICOSIA UNTIL SATURDAY, FEBRUARY 20, 10AM-9PM, CLOSED SUN-MON

THE SECOND SEX Photographs on womanhood, empowerment, emancipation, success, sexuality, angst, objectification, ARTOS crime, violence CULTURAL AND RESEARCH and suffering. FOUNDATION, NICOSIA UNTIL WEDNESDAY, DECEMBER 23, 2PM-8PM

Loop Festival 2016 Ten acts from Cyprus, Greece, England and Poland create, imprivise and record on stage. Engomio Cultural Centre, Nicosia Tuesday, January 5 & Wednesday, January 6, 7.30pm

FESTIVALS 1ST NICOSIA OLD TOWN WINE & MUSIC FIESTA Three nights of international wine tasting and live jazz, pop and funk music. Patio Cocktail Bar, Nicosia Sunday, December 20-Tuesday, December 22nd, from 6pm

DANCE

THEATRE

NUTCRACKER: THE DARK SIDE Konstantinos Rigos, guided by Tchaikovsky’s exquisite music, creates his own magical tale with humour and imagination, ugliness and violence. Adults only (contains nudity). Rialto Theatre, Limassol Monday, December 28, 8.30pm

LOXANDRA The Cyprus Theatre Organisation’s production of Maria Iordanidou’s novel, starring Greek actress Elizabeth Constantinidou in the title role (Greek language).

88 | GOLD | The Business Magazine of Cyprus

LARNACA MUNICIPAL THEATRE THURSDAY, JANUARY 14 & FRIDAY, 15, 8.30PM

GREEK MUSIC FIVOS DELIVORIAS & LOPODITES The popular Greek rock singer-songwriter Fivos Delivorias returns to Cyprus for three performances with Cypriot rock band Lopodites. Ravens, Limassol Friday, December 22, 10pm Aloft, Ayia Napa Saturday, December 23,11pm Exantas Music Stage, Nicosia Thursday, December 24, 10pm GEORGIA KEFALA A live and unplugged performance by the singer of the popular Greek band Ble. Vinylio Wine Etc, Limassol Tuesday, December 22, 9pm-1am

AVALON ROCK & SPORTS BAR WEDNESDAY, DECEMBER ā PM

IRO Greek singer Iro Saia returns to Cyprus, accompanied Cypriot ed by Cyp ot singer s ge Georgia Geo g a Lardou.

SONIK DEATH MONKEY Debut album live presentation, plus special guests Procreation.

ANDREAS ELESNITSALIS The singer, who became known thanks to his appearances on Greece’s The Voice, performs in Larnaca for the first time. GIORGOS TSALIKIS The extremely popular Greek singer performs a single concert in Nicosia, with Christos Menidiatis, Eleni Hatzidou and Anna Iracleous. Kallipoleos 4, Nicosia Wednesday, December 23, 10pm PEGGY ZINA A festive show for Christmas night with the popular Greek singer Peggy Zina, plus Cypriot singer Loukas Giorkas. Lush Beach Bar, Mackenzie Beach, Larnaca Friday, December 25, 10pm

RED MUSIC STAGE, NICOSIA WEDNESDAY, DECEMBER 23, 9PM

HEAVY METAL

KINGSTON TOWN, LIMASSOL TUESDAY, DECEMBER , Ć41

KHRYSAOR Live presentation of Chaos, the band’s debut album, plus special guests Dark Void and Methysos.

PETROS IMVRIOS, TRIANTAPHYLLOS, GIANNIS KRITIKOS A straight transfer of the Athens show by three popular Greek stars for Christmas Day. Megaro Reception Hall, Xylophagou Friday, December 25 B.D. FOXMOOR The frontman of the recently disbanded Greek band Active Member is promoting his latest album. Free CD with every ticket. Savino Live, Larnaca Monday, December 28, 9pm

RED MUSIC STAGE, NICOSIA SUNDAY, .%29%6= ā PM LUCIFER’S CHILD First time live in Cyprus for the Greek band formedin 2013 by George Emmanuel (Rotting Christ) and Stathis Ridis (Nightfall).

PANOS KIAMOS Popular Greek singer Panos Kiamos performs a single live liv show in Cyprus. Monte Caputo, Limassol L Wednesday, December 30, 10.30pm Dece

Giorgos Tsalikis

Iro

RED MUSIC R RE STA STAGE, T G NICOSIA S SUNDAY, DEC DECEMBER , Ć ā PM Ć

Peggy Zina www.goldnews.com.cy | GOLD | 89

A DAY IN THE LIFE

Christiana Diola

“I live in Nicosia with my husband and our two sons, aged 8 and 12, and I’m usually up by 5.45am, getting breakfast for everyone – mine is a cup of tea and a piece of toast – and then taking the boys to school. I like to be at my desk around 7.45am and although it’s a bit of a cliché, every day really is different, depending on what we are doing as an Institute in the region and on whether I’ll be here or in Brussels, Athens or London. If I’m here, my first hour is dedicated to clearing out e-mails and making sure I’m on top of things in terms of administration, after which I’ll probably have meetings or conference calls, projects that need working

on, and so on. I’ll carry on until around 3pm when the children get home and then there’s a shorter stint until about 7pm. Due to the time difference with Cyprus, I tend to be on standby until then. After 1974, my parents were among the many who restarted their life in London, and that’s where I grew up. I had always had a keen interest in business, perhaps because we had relatives around who were involved in that, and I found the entrepreneurial side quite exciting. My other interest was current affairs and when I decided to studied Philosophy, Politics and Economics (PPE) at Oxford, I felt that it brought my interests

The Members & Stakeholders Manager, Europe Region of the Institute of Chartered Accountants in England and Wales (ICAEW) on family life, why she loves her job, and how she spends her free time.

together ‘under one roof’, so to speak. After graduation, the opportunity to become a chartered accountant came along and I took it. I can honestly say that I’ve never looked back as it has opened more doors than I could ever have imagined. I worked in London for EY and did my training there. Then I met a certain Cypriot! Not long after, I moved here and I worked for a short time for PwC before moving to the University of Cyprus for a very interesting few years of tutoring and working on various projects supporting research. Almost five years ago I was asked if I might be interested in applying to become the ICAEW’s representative in Cyprus. The Institute is a great employer and I believe that the work I’m doing today really does bring together all the different strands of my education and my special interests. The best thing about my job is interacting with people and bringing solutions to problems and it’s a part that I really enjoy. In the evening, once the boys are in bed I can watch TV. I’m addicted to various US series like Homeland and Madam Secretary. I do read for pleasure and the last book that I enjoyed was Finding Audrey by Sophie

Kinsella, which was both quite deep and entertaining. I try to work last family out, to do some Our outing. walking and running and I play tennis for fun. I like music – Coldplay, for example, as well as classical and choral A recent good read. music. I’m a violinist and I still pick up the instrument occasionally. We go as a family to the The latest album cinema – the by my favourite last thing we band. saw was Spectre as we’re all fans of James Bond and, of course, of Daniel Craig too! I also like Kate Winslet a lot, both as an actress and as an individual who stands up for the things she believes in. I haven’t really thought too far ahead about my professional development. The Institute is constantly growing and so there are always new challenges that make the job interesting. The variety keeps it stimulating and gives me job satisfaction. I don’t think that will ever stop.”

THE BEST THING ABOUT MY JOB IS

INTERACTING WITH PEOPLE 90 | GOLD | The Business Magazine of Cyprus

www.pwc.com.cy

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