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INTERNATIONAL CEOS ON THE RISE.

THE DAWN OF THE MILLENNIUM IS USHERing in a true global marketplace for CEOs, with a record number of foreign CEOs running major companies in the U.S., the U.K., and several other countries around the world. In the U.S., CEOs originally from other countries as diverse as Egypt, French Morocco, and Pakistan are running major companies such as Goodyear, Alcoa, and Pharmacia & Upjohn.

In the past there have also been illustrious examples of highly successful CEO exports to the U.S., many of them from Britain. The U.K. is the most popular destination for U.S. CEOs running major companies overseas. The fact that the traffic in CEOs between the U.S. and the U.K. is so strong reflects the long-standing social, cultural, and political links between the two countries. It also reflects the fact that the U.S. and the U.K. enjoy the most substantial business relationship between any two countries, with more than $230 billion in two-way investment and $60 billion annually in two-way trade.

Americans are not the only successful CEO transplants in the U.K. Another interesting example of a cultural business potpourri is SmithKline Beecham, the pharmaceuticals group. Not only is the company a combination of organizations from two different countries--the U.S. and the U.K.--but it is run by Jan Leschly, a Danish-born executive, and its No. 2, J.P. Garnier, is French-born. Like SmithKline Beecham, the insurance group CGU Plc also has a Scandinavian connection in the form of its Swedish Chairman Pehr Gyllenhammer. Two Australians--Bob Scott, group CEO, and Philip Twyman, group executive director, complete the international sweep at the top of the company.

The international executive community has produced striking examples of executives who have honed their business skills in countries outside their own and then achieved great success in their home countries. In addition, the past few years have seen a series of international deals involving mega-mergers, joint ventures, and strategic alliances.

Dual nationality organizations like Royal Dutch/Shell and Unilever have had decades to fine-tune their governance and leadership development programs. The pace of the current commercial environment, however, may not allow more recent international merger and joint venture partners the luxury of time to demonstrate the bottom line benefits of alliances. If, as seems likely, the recent trend in international mergers and alliances continues, there will be an increasing demand, not only for highly efficient governance structures, but also for a steady flow of internationally experienced executives.

A recent survey of 111 U.K.-based companies by Cendant Mobility's International Assignment Services (IAS) division, reported that 64 percent expected international assignments to increase in the next five years and noted strong similarities between the issues faced by internationally active organizations on both sides of the Atlantic.

Several factors fuel the surge of international executive postings, including: the continuing globalization of business; the accelerating demand in an increasingly competitive global marketplace for the best leadership talent; the need for leadership talent capable of operating effectively across borders; a recognition by many executives of the value of international experience as a means of enhancing career prospects; and the increased willingness in many countries to assimilate executives from different cultures.

The reassuring lesson from the careers of foreign-born CEOs is that there is no single template for success. To a greater or lesser extent, all successful business leaders share key characteristics such as focus, the ability to formulate and communicate strategy persuasively, the talent for inspiring the executive team and other employees, a strong, balanced ego, ambition, personal integrity, and consistency.

In addition, foreign-born CEOs share many, if not all, of these qualities: broad cultural perspective, experience living and working in two or more countries, the ability to speak more than one language, education in more than one country, boundless stamina to work across different time zones, and the ability to relate naturally in different cultures.

This elite group of international CEOs listed in the accompanying tables represents the tip of an expatriate community iceberg that numbers several thousand people around the world. The success of this international CEO group does not obscure the risks, challenges, and high attrition rate faced by the companies, executives, their spouses, and children involved in international assignments. The issues most frequently bedeviling these assignments include spouse's career, children's education, career concerns on repatriation, and health care.

The IAS study showed that 56 percent of the organizations surveyed experienced failed international assignments. Nearly 40 percent of the employees surveyed would not work abroad again; between 20 percent and 40 percent return early and some companies experience attrition rates of almost 50 percent within the first year after repatriation. Previous U.S.-based research showed that 59 percent of international assignees felt there was a gap between their career expectations and their career path after an international assignment.

Another study, by USEXPAT, shows that 45 percent of all expat assignments included spouses who were employed before moving and that their boredom and frustration is a leading factor in early returns. An employee survey by Royal Dutch/Shell Group in 1993 showed that while over half the spouses of expatriate staff held jobs before the international assignment, less than 10 percent were able to continue working in their new countries--although a majority would have liked to do so.

Male expat executives still outnumber female counterparts significantly, but the latter have grown steadily and some studies say they account for about 15 percent of the expat population. The growth of dual career couples presents one of the most complex issues associated with international assignments. Another major hurdle facing potential international expatriates is the issue of providing suitable education for children during overseas assignments.

At an average cost of two to three times an employee's salary, international assignments are expensive. There is a clear interest on the part of expats and their companies to ensure that what could be a risky gamble becomes a career investment that pays dividends. However, even careful training provides no guarantee that an individual will be successful in adapting to foreign culture. This is particularly true when the family issues are taken into account.

The odds against achieving success at the in ternational level are still high. As the new millennium dawns, internationally active corporations will clearly need to upgrade the ways in which they plan international assignments, provide attractive career options on repatriation and deal with family issues.

 USA AND UK
 Selected Top Foreign-Born Executives
 USA
Company -- Title Name
Alcoa -- President & CEO Alain Belda
A-Med -- Founder Walid Aboul-Hosn
American International Underwriters -- President & CEO Martin J. Sullivan
Aramark -- Chairman & CEO Joseph Neubauer
Baker & McKenzie -- Chairman Christine Lagarde
Becton Dickinson -- Chairman & CEO Clateo Castellini
Case Corporation -- Chairman & CEO Jean-Pierre Rosso
Computer Associates -- Chairman & CEO Charles Wang
eBay -- Founder & Chairman Pierre Omidyar
Eli Lilly and Company -- President & COO Sidney Taurel
Ford Motor -- President & CEO Jacques A. Nasser
Fort James Corp. -- Chairman & CEO Miles Marsh
Goodyear -- Chairman, President & CEO Samir G. Gibara
Honeywell -- President & COO Giannantonio Ferrari
Intel Corporation - Chairman Andrew S. Grove
Intershop Communications -- Chairman Eckhard Pfeiffer
Intershop Communications -- Founder & CEO Stephan Schambach
Kellogg -- President & CEO Carlos Gutierrez
McKinsey & Co. -- Managing Director Rajat Gupta
NCR -- CEO Lars Nyberg
OpenGrid Inc. -- Chairman Philippe Kahn
Parmalat USA Corporation -- CEO Eric Dailey
Pharmacia & Upjohn -- President & CEO Fred Hassan
Philip Morris -- Chairman & CEO Geoffrey Bible
Rohm & Hass -- Chairman & CEO Rajiv Gupta
Sega of America -- Vice Chairman and COO Toshiro Kezuka
Sensormatic Electronics Corp. -- President & CEO Per-Olof Loof
U.S. Airways -- President & CEO Rakesh Gangwal
 Country
Company -- Title or Origin
Alcoa -- President & CEO Morocco [*]
A-Med -- Founder Lebanon
American International Underwriters -- President & CEO United Kingdom
Aramark -- Chairman & CEO Israel
Baker & McKenzie -- Chairman France
Becton Dickinson -- Chairman & CEO Italy
Case Corporation -- Chairman & CEO France
Computer Associates -- Chairman & CEO Taiwan
eBay -- Founder & Chairman France
Eli Lilly and Company -- President & COO Morocco
Ford Motor -- President & CEO Lebanon [**]
Fort James Corp. -- Chairman & CEO South Africa
Goodyear -- Chairman, President & CEO Egypt
Honeywell -- President & COO Italy
Intel Corporation - Chairman Hungary
Intershop Communications -- Chairman Germany
Intershop Communications -- Founder & CEO Germany
Kellogg -- President & CEO Cuba
McKinsey & Co. -- Managing Director India
NCR -- CEO Sweden
OpenGrid Inc. -- Chairman France
Parmalat USA Corporation -- CEO France
Pharmacia & Upjohn -- President & CEO Pakistan
Philip Morris -- Chairman & CEO Australia
Rohm & Hass -- Chairman & CEO India
Sega of America -- Vice Chairman and COO Japan
Sensormatic Electronics Corp. -- President & CEO Sweden
U.S. Airways -- President & CEO India
(*.)Citizen of Brazil since 1982
(**.)raised in Australia
 UK
 Country
Company -- Title Name of Origin
Arcadia PLC -- CEO John Hoerner USA
Associated British Ports PLC -- CEO Bo Lerenius Sweden
Barclays Banks -- CEO Matt Barrett Ireland
BBA PLC -- Group CEO Roberto Quarta USA
Billiton PLC -- Chairman & CEO Brian Gilbertson South Africa
BOC Group PLC -- CEO Danny Rosenkranz Born in Kenya [*]
The Body Shop International PLC -- CEO Patrick Gournay France
CGU PLC -- Group CEO Bob Scott Australia
Caradon PLC -- Group CEO Jurgen Hintz USA
Cookson Group PLC -- CEO Stephen Howard USA
Enterprise Oil PLC -- CEO Pierre Jungels Belgium
GKN PLC -- CEO C.K. Chow Hong Kong
Granada -- Chairman Gerry Robinson Ireland
Invensys PLC -- CEO Allen Yurko USA
Orange PLC -- CEO Hans Snook Canada
Pearson PLC -- CEO Marjorie Scardino USA
Pilkington PLC -- Group CEO Paolo Scaroni Italy
Rexam PLC -- CEO Rolf Borjesson Sweden
Rio Tinto PLC -- CEO Leon Davis Australia
Royal & Sun Alliance PLC -- CEO Bob Mendelsohn USA
Sema Group PLC -- CEO Pierre Bonelli France
SmithKline Beecham PLC -- CEO Jan Leschly Denmark
South African Breweries PLC -- Group CEO Graham Mackay South Africa
Standard Chartered PLC -- Group CEO Rana Talwar India
Tate & Lyle PLC -- CEO Larry Pillard USA
TI Group PLC -- CEO Bill Laule USA
Unilever -- Chairman Niall Fitzgerald Ireland
Wembley PLC -- Chairman Claes Hultman Sweden
(*.)Polish Parents; British national
 VARIOUS COUNTRIES
 Selected Top Foreign-Born Executives
Company -- Title Name
Australia
ANZ Bank Ltd. -- CEO Don McFarlane
BHP Ltd. -- CEO Paul Anderson
Burns Philp Ltd. -- CEO Tom Degnan
Coles Myer Ltd. -- CEO Denis Eck
CSR Ltd. -- CEO Peter Kirby
Goodman Fielders Ltd. -- CEO David Hearn
John Fairfax Ltd. -- Chairman Brian Powers
Lion Nathan Ltd. -- CEO Cordon Cairns
McPherson Ltd. -- CEO David Allman
Star City Casiono Ltd. -- CEO Neil Gamble
Canada
BC Telecom Inc. -- CEO Donald A. Carter
Canadian Airlines Corp. -- CEO Kevin E. Benson
Canadian Tire Corp Ltd. -- President & CEO Stephen E. Bachand
Charlwood Pacific Group -- CEO U. Gary Charlwood
Cominco Ltd. -- CEO David Thompson
MacMillan Bloedel Ltd. -- CEO W. Thomas Stephens
Placer Dome Inc. -- CEO John M. Wilson
France
Eridania Beghin-Say -- CEO Stefano Meloni
L'Oreal -- CEO Lindsay Owen-Jones
Promodes -- CEO Luc Vandevelde
St Microelectronics -- CEO Pasquale Pistorio
Germany
Deutsche Telekom AG -- CEO Ron Sommer
Hong Kong
China Light & Power -- Managing Director Ross Sayers
HSBC Holdings - Chairman David Eldon
Jardine Matheson Holdings Ltd. -- Managing Director Alasdair Morrison
Securities & Futures Commission - Chairman Andrew Sheng
Sino Land -- Managing Director Robert Ng
John Swire & Sons -- Executive Directo Peter Sutch
Italy
Dolma -- Managing Director Michael Davies
Agnesi -- Managing Director Frank Glaizal
Mexico
Banorte -- Charman & CEO Robert W. Chandler
Chase -- CEO John Donnelly
Citibank -- President Julio de Quezada
Sabritas (Pepsi's Salty Snack Division) -- President AI Bru
The Netherlands
Baan -- President & CEO Pierre J. Everaert
Grolsch Brewery -- Chairman J. Troch
South Africa
South African Airways -- CEO Coleman Andrews
Spain
Citroen Hispania -- CEO Francois Albert Cusey
Cristaleria Espanola -- CEO Claude Imauven
NH Hoteles -- CEO Gabrielle Burgio
Pryca -- CEO Georges Plassat
Telepizza -- CEO Leopoldo Fernandez Pujals
Switzerland
ABB Asea Brown Boveri -- President & CEO Goran Lindahl
Bally International -- CEO Bernd O. Wahler
Alusuisse Lonza Group -- CEO Sergio Marchionne
Kuhne & Nagel International -- President & CEO Klaus Herms
Nestle S.A. -- CEO Peter Brabeck-Letmathe
SGS -- CEO Antony Czura
Swissair - CEO Jeffrey G. Katz
Tag-Heuer -- CEO Christian R. Viros
Company -- Title Country
 of Origin
Australia
ANZ Bank Ltd. -- CEO UK
BHP Ltd. -- CEO USA
Burns Philp Ltd. -- CEO USA
Coles Myer Ltd. -- CEO USA
CSR Ltd. -- CEO South Africa
Goodman Fielders Ltd. -- CEO UK
John Fairfax Ltd. -- Chairman UK
Lion Nathan Ltd. -- CEO UK
McPherson Ltd. -- CEO UK
Star City Casiono Ltd. -- CEO UK
Canada
BC Telecom Inc. -- CEO Scotland
Canadian Airlines Corp. -- CEO South Africa
Canadian Tire Corp Ltd. -- President & CEO USA
Charlwood Pacific Group -- CEO Germany
Cominco Ltd. -- CEO UK
MacMillan Bloedel Ltd. -- CEO USA
Placer Dome Inc. -- CEO UK
France
Eridania Beghin-Say -- CEO Italy
L'Oreal -- CEO United Kingdom
Promodes -- CEO Belgium
St Microelectronics -- CEO Italy
Germany
Deutsche Telekom AG -- CEO Israel
Hong Kong
China Light & Power -- Managing Director New Zealand
HSBC Holdings - Chairman UK
Jardine Matheson Holdings Ltd. -- Managing Director UK
Securities & Futures Commission - Chairman Malaysia
Sino Land -- Managing Director Singapore
John Swire & Sons -- Executive Directo UK
Italy
Dolma -- Managing Director UK
Agnesi -- Managing Director France
Mexico
Banorte -- Charman & CEO USA
Chase -- CEO Born in Panama [*]
Citibank -- President Cuba
Sabritas (Pepsi's Salty Snack Division) -- President Cuba
The Netherlands
Baan -- President & CEO Belgium
Grolsch Brewery -- Chairman Belgium
South Africa
South African Airways -- CEO USA
Spain
Citroen Hispania -- CEO France
Cristaleria Espanola -- CEO France
NH Hoteles -- CEO Italy
Pryca -- CEO France
Telepizza -- CEO Born in Cuba (US Citizen)
Switzerland
ABB Asea Brown Boveri -- President & CEO Sweden
Bally International -- CEO Germany
Alusuisse Lonza Group -- CEO Canada
Kuhne & Nagel International -- President & CEO Germany
Nestle S.A. -- CEO Austria
SGS -- CEO UK
Swissair - CEO USA
Tag-Heuer -- CEO France
(*.)US and Columbia Citizen


EN ROUTE TO THE TOP: TODAY'S RISING STARS. TOMORROW'S CEOS

In today's bull-market world of overinflated P/E ratios and shooting CEO stars. It's getting tougher all the time to make out the winners. But we at CE have identified promising men and women we think you'll see in top spots, either at their current firms--or possibly at their competitors'.

GREGORY BRENNEMAN

PRESIDENT AND COO CONTINENTAL AIRLINES

Credited, with CEO Gordon Bethune, with the airline's recent turnaround. Named Outstanding Young Person of the World by the Junior Chamber of Commerce in 1998.

NICK EARLE

VICE PRESIDENT, HEWLETT-PACKARD

Currently chief marketing officer for HP's Enterprise Computing Organization. Joined HP in 1982 from Citicorp Merchant Bank in London.

MICHAEL FRAZIER

SENIOR VICE PRESIDENT GE CAPITAL

Also President and CEO of GE Financial Assurance, Frazier has been a GE man since 1980. Was previously president and managing director of GE Japan, from 1989-1991.

EVAN GREEBERG

PRESIDENT AND COO AMERICAN INTERNATIONAL GRP

With AIG since 1975, Greenberg was CEO of AIG companies in Japan and Korea before returning to New York in 1994.

DEBORAH HOPKINS

CHIEF FINANCIAL OFFICER, BOEING

Has been in her present position since November 1998, and was formerly vice president of finance and CFO for General Motors Europe.

JEFFREY IMMELT

PRESIDENT AND CEO GE MEDICAL SYSTEMS

In his current position since January 1997, Immelt has been at GE since 1982. He received his M.B.A. from Harvard University.

EUGENE LEE

VP, MARKETING CISCO SYSTEMS

Currently in the small/medium business unit, joined Cisco in Sept '97. Previously at Banyan System, be launched Switchboard, a Web white and yellow pages.

JAY IRELAND

PRESIDENT, NBC TELEVISION STATIONS.

At GE since 1980, Ireland's most recent position was vice president and chief financial officer of GE Plastics.

KAREN KATEN

PRESIDENT, PFIZER U.S. PHARMACEUTICALS

At Pfizer since 74. Named one of the "50 Most Powerful Women in American Business" by Fortune, and one of 25 "Top Executives," ala Business Week.

BARBARA KUX

EXECUTIVE DIRECTOR FORD MOTOR

A president of Nestle Polska Holding, '96-'99, she built from scratch the market-leading food business in Poland. Received Leading Foreign Investor Award, 1998.

ANN M. LIVERMORE

VICE PRESIDENT HEWLETT-PACKARD

Currently president and CEO of HP's Enterprise Computing Solutions business, Livermore joined HP in '82. Also a member of the UPS board of directors.

W. JAMES MCNERNEY JR

PRESIDENT AND CEO, GE Aircraft Engines

At GE since 1982, McNerney was prsident and CEO, GE Lighting before joining Aircraft Engines. He earned his M.B.A. from Harvard.

FREDERICK REID

EVP AND CHIEF MARKETING OFFICER, DELTA AIR LINES

Before joining Delta in July of '98, Reid was president and COO of Lufthansa German Airlines

PATRICIA RUSSO

EVP LUCENT TECHNOLOGIES

CEO of Lucent's Service Provider Networks group. Came from AT&T. One of Fortune's "50 Most Powerful Women in American Business" in 1998 and 1999.

HOWARD SELLAND

SVP, GROUP EXECUTIVE AEROQUIP GROUP, EATON

With Aeroquip since '63. During the 10 years he was president Aeroquip was twice recognized by Industry Week as one of the world's best managed companies.

JAYSHREE ULLAL

VP, GENERAL MANAGER, CISCO SYSTEMS

Currently in the workgroup business unit and enterprise voice business unit, Ullal received Entrepreneurial and Leadership Award from Silicon India.

LOUIS HUGHES

EXECUTIVE VP GENERAL MOTORS

At GM since 1966, Hughes started as a General Motors Institute student in current position since Oct. '98, Also chairman of Saab Automobile AB.
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Article Details
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Author:K. LYONS, DENIS B.
Publication:Chief Executive (U.S.)
Article Type:Brief Article
Geographic Code:1USA
Date:Feb 1, 2000
Words:2751
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