TH BENDER

Bloomberg reports that “More CFOs Are Getting the CEO’s Job.” – A recent Bloomberg news article notes that CFOs are increasingly called up when trouble is in the Boardroom. One example is the copper miner Freeport-McMoRan, Inc., which instituted an “extreme austerity approach” during the pandemic, and CFO Kathleen Quirk, who helped reduce capital expenses by almost 30%. At DuPont, the board designated CFO Lori Koch to regain investor trust and “restor[e] operational discipline.” https://lnkd.in/dFu-Rf_H (July 18, 2024).   But this article is merely the capstone for several 2023-2024 news reports on this issue. A previous Bloomberg article noted the same trend, citing the example of Newell Brands Inc., the company behind Rubbermaid and Sharpie, which greatly simplified operations. The CFO behind that, Chris Peterson, then went on to become chief executive. It concludes that CFO positions are increasingly becoming the path to the top job at big US companies. https://lnkd.in/edBkE4NB (January 16, 2024)   Similarly, The Financial Times just reported a similar trend in the UK. A study found that about a third of the FTSE (British stock market index) 100 CEOs had previously served as CFOs (up from 21 percent in 2019). The article explains: “… finance directors make the best boardroom chairs. They are seen to have smaller egos (at least compared with some table-thumping chief executives), attention to detail, an understanding of risk management, and an intense focus on the bottom line.” Thus, chief financial officers are increasingly tapped for the chief executive role — “As ever, when a crisis hits, call the numbers guy or gal.” https://lnkd.in/eeP9seeS (March 14, 2024) Tilman Bender, managing director of the executive recruitment company TH Bender & Partners, confirms this trend based on his own experience. “First of all, whether true or not, there is a general perception that having a finance-savvy CEO will improve the bottom line when the business is mature, or the economic prospects flatten. In scenarios, especially after dynamic growth in sales or after an acquisition, shareholders focus on improving cash flow and margins. In such an environment, someone with a finance background is often considered the best placement. But thoughtful selection committees are aware of what to look for in candidates:  while financial acumen is important, additional skills are required to be a successful CEO – business savvy to keep clients and partners satisfied, emotional intelligence to work with stakeholders and employees, and a strategic eye to spot business opportunities. But, when located and attracted, finance-savvy CEOs and Country Managers can be extremely successful business partners to shareholders and executive management alike.” 

Our client is a well-known manufacturer of equipment for mining and tunneling applications. The new American leader will have the opportunity to create a multi-channel network with a strong focus on direct sales, leveraging a globally well-known brand. Interested? Do you know anyone interested? Apply here: https://lnkd.in/g75tixuT

Our client has been highly successful in supplying products to major retailers across America, so you may very well have their products in your home. This European company is now introducing a new category, Home Textiles, to their American clients. The new Category Leader will have the chance to make use of their connections and create successful programs by bringing together European design, a global manufacturing base, and American marketing expertise. Interested? Do you know anyone interested? Apply here: https://lnkd.in/gS5pjuCy

This is a great chance to establish a sales and manufacturing organization with the support of a leading provider of building materials who has been asked to offer the product in North America. Interested? Do you know anyone interested? Apply here: https://lnkd.in/geuHrUmq

This is an excellent opportunity to expand a company - and take advantage of a well-organized team with a budget to develop further. Please get in touch with our colleague Philip Legan if you are interested.

Our client is an independent division within a global group of companies. The US entity has a large installed base with the (realistic) potential to grow three times. This could be a perfect role for a self-starter with a strong sales orientation and the ability to lead a team. Interested? Do you know someone who might be interested? Apply here: https://lnkd.in/gsbjr_3f

It sounds counter-intuitive, but older company founders are often successful. – A new report in the Wall Street Journal presents the case of Morris Chang, who founded the “World’s most important company,” Taiwan Semiconductor Manufacturing (TSMC), at age 55. See https://lnkd.in/eC2YfDdy   The word “entrepreneur” is usually associated with those who founded their companies at a young age, such as Steve Jobs (at age 21) and Bill Gates (at age 19). However, it's the wisdom and strategic thinking that come with age and experience that often lead to a successful business. In the case of Chang, he developed a new business model for semiconductor manufacturing after he had lived and worked in executive positions in the US for 30 years at companies such as Texas Instruments and General Instruments. Then an opportunity opened up to create a new business model for the semiconductor industry. The new model was built on a competitive advantage that Chang identified: to manufacture chips and only manufacture chips.   But Morris Chang is not an outlier. The Wall Street Journal cites a study published in the American Economic Review which found that successful entrepreneurs tend to be middle-aged. In fact, the average age at founding for the 1-in-1,000 fastest-growing new ventures is 45 years of age. These entrepreneurs, with their wealth of experience and industry knowledge, bring a unique perspective and strategic thinking to their ventures. The study strongly thus rebuts the common idea that entrepreneurs must be very young, inspiring a new generation of entrepreneurs to value their own wisdom and strategic thinking.    The Wall Street Journal report and the study it relies on are confirmed by the views of Tilman Bender, managing director of the HR consultants TH Bender & Partners. He acknowledges the value of experience in entrepreneurship, stating, “It is a common request from clients – ‘please find us a young and hungry Country Manager for our US subsidiary who will make a difference.’ What the European parent companies sometimes overlook is that experience does matter. That includes existing business networks and contacts, knowing what works and what doesn't, the willingness to take more risk once financially secure, the wisdom to know personal limitations, and the absence of irrationally selfish motives. All those attributes matter and they are usually found in what we call ‘older’ executives.” However, he also cautions against general assumptions, highlighting that individual evaluation is crucial and a shot-from-the-hip attitude is not helpful.   Tilman adds, “Of course, experience counts for a lot, but there are exceptions —young entrepreneurs who build exceptional companies and older executives who are not as successful as one had hoped. Each candidate brings a unique set of skills, experiences, and perspectives, and it's crucial to evaluate them individually."

Es klingt kontraintuitiv, aber ältere Firmengründer sind oft sehr erfolgreich. – Ein neuer Bericht des Wall Street Journal präsentiert den Fall von Morris Chang, welcher im Alter von 55 Jahren das „wichtigste Unternehmen der Welt“, Taiwan Semiconductor Manufacturing (TSMC), gründete. Siehe https://lnkd.in/epcg_BbY Das Wort „Unternehmer“ wird normalerweise mit denen in Verbindung gebracht, die ihr Unternehmen in jungen Jahren gegründet haben, wie etwa Steve Jobs (mit 21) und Bill Gates (mit 19). Berufserfahrung und erreichte finanzielle Sicherheit der Gründer scheinen jedoch oft eine Grundlage für die Bereitschaft von Gründern zu sein die - immer riskante -Unternehmensgründung durchzuführen. Chang entwickelte ein neues Geschäftsmodell für die Halbleiterfertigung, nachdem er 30 Jahre in den USA gelebt und in Führungspositionen bei Unternehmen wie Texas Instruments und General Instrument gearbeitet hatte. Dann ergab sich die Möglichkeit, in Taiwan ein neues Halbleitergeschäft aufzubauen. Chang erkannte einen potenziellen Wettbewerbsvorteil für TSMC: die Expertise von Kunden entwickelte Chips kostengünstig zu produzieren. Diese entscheidende Erkenntnis, um TSMC auf diesem ungewöhnlichen Geschäftsmodell aufzubauen, erwuchs aus seiner Erfahrung und seinen vorhandenen Kontakten in der Branche. Er verstand seine Branche gut genug, um sie aufzumischen. Aber Morris Chang ist kein Ausreißer. Das Wall Street Journal zitiert eine Studie, die in der American Economic Review veröffentlicht wurde, die ergab, dass erfolgreiche Unternehmer eher mittleren Alters sind. Tatsächlich liegt das Durchschnittsalter bei der Gründung eines von 1.000 am schnellsten wachsenden neuen Unternehmen bei 45 Jahren. Frühere Erfahrungen in der Branche sagen die Erfolgsquote eines Unternehmens voraus. Die Studie widerlegt damit entschieden die gängige Vorstellung, dass Unternehmer sehr jung sein müssen. Der Bericht des Wall Street Journals und die Studie, auf die er sich stützt, werden durch die Ansichten von Tilman Bender, Geschäftsführer der Personalberatung TH Bender & Partners, bestätigt. „Dies ist eine häufige Anfrage von Kunden – bitte suchen Sie uns einen jungen und hungrigen CEO für unsere US-Tochtergesellschaft. Was die europäischen Muttergesellschaften manchmal übersehen, ist, dass Erfahrung sehr wohl zählt. Dazu gehören bestehende Geschäftsnetzwerke und Kontakte; das Wissen, was funktioniert und was nicht; die Bereitschaft, mehr Risiken einzugehen da man finanziell abgesichert ist; die Weisheit, seine eigenen Grenzen zu kennen; und die Abwesenheit irrationaler, selbstsüchtiger Motive. All diese Eigenschaften sind wichtig und sie sind öfter bei den sogenannten ‚älteren‘ Führungskräften zu finden.“

Rare opportunity to lead a well-established manufacturer and distributor of specialty chemicals. The company has achieved remarkable success and is preparing to enter additional high margin markets. Interested? or know someone who might be interested? Significant experience in the specialty chemicals market is a must! Apply here: https://lnkd.in/gvVXjT54 Or visit our website for more information: https://lnkd.in/gtcT3Ymr

The unusually generous compensation packages for US CEOs are increasingly being viewed critically (Handelsblatt). – Based on a new Equilar study, the German business newspaper Handelsblatt reports that CEO compensation in the US has reached a record high, even at companies that are running losses: the CEOs of the 100 US companies with the highest sales received an average of $23.7 million in 2023 (fixed salary, bonuses, options and shares). The prime example is Boeing CEO Dave Calhoun. Boeing shareholders just awarded him a compensation package totaling $33 million - 45 percent more than last year and at the same time the most generous compensation package the company has ever paid to a CEO. The Handelsblatt notes that Boeing lost more than $2 billion last year, and Calhoun is stepping down at the end of the year in view of the massive quality problems. This is causing discontent among shareholders and the population as a whole. At Boeing, 36 percent of shareholders voted against Calhoun’s generous compensation package. And at 3M's annual meeting, 54 percent of shareholders opposed an increase in CEO Mike Roman's pay. Finally, the Handelsblatt refers to a survey by "Data for Progress" - 80 percent of respondents would support a law that increases taxes on companies if their CEOs earn more than 50 times as much as the average employee. The Handelsblatt report can be found at https://lnkd.in/enThxJYi Tilman Bender, Managing Director of the Executive Search Firm TH Bender & Partners, notes that "New-to-the-American market, foreign owned companies are often surprised at how much higher the compensation levels of top managers are compared to their overseas colleagues. This often leads to a considerable need for explanation, especially because the responsibilities of employees in the parent company are often much greater than those of their American colleagues. Company management often sees no alternative and accepts the higher fixed salary that the labor market in the USA (and increasingly also in Canada) demands. But there are creative solutions when it comes to structuring variable compensation. This variable compensation should consider the employee's achieved success criteria in the medium and long term. Creativity and individual solutions often result in reduced fixed compensation while enabling the subsidiary to recruit top talent.”