When Deutsche Bank named John Cryan as its new chief executive three weeks ago, the commentary had an insidious subtext. He has “an enormous brain”, one friend told the FT. “Very thoughtful,” said a former colleague. Ominously for Mr Cryan, these comments echoed those made about Vikram Pandit when he unexpectedly stepped down as Citigroup’s CEO in 2012. He was “too cerebral”, said critics of the Citi boss.
My first — and probably still my favourite — factory visit was to London Rubber Company’s Durex condom plant in Chingford, London. Mind you, the sight of a latex sheath being test-inflated to a metre or more in length does tend to stick in the memory.
When the smartest, if not the most literate, guys in the room see “an opportunity to leverage our competencies in technology and risk management to capture this opportunity at accretive returns”, beware. Goldman Sachs plans to launch what was once called a bank, then a peer-to-peer lending platform, and now a “marketplace lender”.
As if the luxury goods industry were not already in a fragile mood, Johann Rupert, chairman of Richemont, owner of Cartier and Van Cleef & Arpels, gave it more to worry about this week. He warned of the damage it faces from growing wealth inequality, and resentment among the have-nots of those who flaunt luxury watches and jewellery.
Frederick Winslow Taylor is the ghost in the room at debates about new ways of monitoring staff. As the pioneer of “scientific management”, he was the man with a clipboard and stopwatch timing factory workers at the turn of the last century.
If the worst happens, there is one comfort: this is the best time in history to contract cancer. You stand a better chance than ever before of being cured or of living a longer life after less unpleasant treatment. There is a possible side-effect to consider, though: financial ruin.
I blame Sebastian Junger. The success of The Perfect Storm, the journalist’s 1997 book about a doomed fishing boat gave embattled corporate titans the perfect metaphor for what went wrong on their watch.
Imagine if the attorney-general of Switzerland asked the New York Police Department to drive up Park Avenue and arrest several senior officials of Major League Baseball. The cops would probably do it, if the extradition charges were drawn up correctly, but one or two New Yorkers might demand to know what business it was of the Swiss to interfere in a traditional American pastime.
“The managers have much pleasure in stating that the immense numbers who have travelled under their arrangements have been conducted in perfect safety — indeed in the history of the Midland Lines, no accident, attended with personal injury, has ever happened to an Excursion Train. In conducting the extraordinary traffic of this Great Occasion, the first object is to ensure safety, and that object has hitherto been most happily achieved.” (Thomas Cook poster for an 1851 trip to the Great Exhibition.)
Coming to San Francisco for the first time in a few years brings home how much it has been transformed. Whatever you call what is happening — a boom, a bubble or a flood of money into what was known as new technology before the “new” became redundant — has augmented the city’s reality.
When a group of wealthy investors compete with each other to buy an asset, surely they have a clear idea of its financial value? Jussi Pylkkänen, president of Christie’s, who on Monday night auctioned Picasso’s “Les Femmes d’Alger” (Version O) to an anonymous buyer for $179.4m, thinks they do.
Sometimes a species reaches the end of its natural existence. As its numbers dwindle, disappearance becomes inevitable and the last survivors of the doomed herd become objects of curiosity and pity. This is happening to chief executives who are also chairmen — but with none of the pity.
Scottish nationalism figured prominently in the campaign for Thursday’s UK general election. But the first true act of independence could be a move by HSBC, a bank that has never been happy in London, back to Hong Kong. The Scots expatriate clan that founded and still heads HSBC is losing patience — a virtue it never possessed in abundance — with being taxed, ringfenced and unappreciated.
Sky’s victory over Skype in the European court is an odd affair, provoking some predictable reactions. For a start, there is a certain irony in the first European tech start-up to build itself into a global brand being called out by a European court for it.
But when wealthy owners of brand names made out of generic and widely used words start to throw their weight around, scepticism is usually in order. What next? A freeze on Skyy Vodka? A brake on the SkyTrains used in cities from Bangkok to Vancouver? How about a trade embargo against the Isle of Skye?
Consider this, though. While confusion between Sky, the satellite television provider owned by Rupert Murdoch, and Skype, the Microsoft-owned video calling service, seems unlikely based on current habits, those habits can change – and fast.
“I have won a lot of promotions and been at Wembley and won the play-offs, [but] I think, individually, this was the biggest result.” If you follow sport at all, you get used to hyperbole. But this recent comment by Steve Evans, who manages the Rotherham United football team, stood out.
Berkshire Hathaway shareholders came out in record numbers to mark the golden anniversary of Warren Buffett’s control of the company but the celebratory atmosphere did not stop some tough questions being put. Mr Buffett was prompted to full-throated defence of partner 3G’s management practices. in a reminder that, for his folksy charm and liberal values, Mr Buffett remains a capitalist through and through..
This has not been a salutary week for European corporate governance. At Volkswagen in Germany and at Industrivärden in Sweden, a system intended to encourage stability and long-term growth has instead created self-indulgence.
When it comes to management challenges, fish fingers and circuses are at opposite extremes: one product is the acme of industrialised food processing, the other the ultimate expression of human creativity and energy. Somehow, private equity has found room for both: last week, Permira agreed to sell Iglo, which makes Birds Eye fish fingers in Europe, after nine years running the frozen foods company, while another buyout group, TPG Capital, led a deal to gain control of Montreal’s Cirque du Soleil.
Deutsche Bank is the last heavyweight contender. While the other European investment banks — Barclays, UBS and Credit Suisse among them — retreat to retail and private banking amid investor discontent and a regulatory squeeze, it is doing the opposite. It wants to become more like Goldman Sachs, not less.
Entrepreneurs tend to see regulation as the enemy of innovation and progress.
But while it is true that watchdogs can struggle to keep pace with fast-changing markets and to comprehend technology companies’ novel ways of working, it is hardly surprising they sometimes resort to random barking.