INTERNATIONAL CEOS ON THE RISE.
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'.
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.
VICE PRESIDENT, HEWLETT-PACKARD
Currently chief marketing officer for HP's Enterprise Computing Organization. Joined HP in 1982 from Citicorp Merchant Bank in London.
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.
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.
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.
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.
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.
PRESIDENT, NBC TELEVISION STATIONS.
At GE since 1980, Ireland's most recent position was vice president and chief financial officer of GE Plastics.
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.
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.
EVP AND CHIEF MARKETING OFFICER, DELTA AIR LINES
Before joining Delta in July of '98, Reid was president and COO of Lufthansa German Airlines
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.
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.
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.
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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|Author:||K. LYONS, DENIS B.|
|Publication:||Chief Executive (U.S.)|
|Article Type:||Brief Article|
|Date:||Feb 1, 2000|
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