January 30, 2001
Dow Jones Newswires
WSJE: CEOs Say Being Chief Is Not
`Mission Impossible'
By DAVID PRINGLE
Staff Reporter
Is the chief executive officer's job getting easier or harder? The CEOs
addressing the question in a session at Davos didn't seem too sure. On the
face of it, the trend toward financial reporting every quarter has placed
CEOs under a relentless spotlight. But rather than complaining about the
short-term pressure, Ron Sommer, chairman of the board of management
at Deutsche Telekom AG, said the need to report regularly to shareholders
helped him to get his message across. "I think it is much easier today than it
was for our predecessors," he said.
Michael Capellas, chairman and CEO of Compaq Computer Corp., also
brushed off suggestions that the top job is now tougher than it was five
years ago. In fact, he said the recent falls in the value of technology stocks
have helped CEOs in that sector by puncturing the hype and lowering
investors' expectations. "Quite frankly, I worry more about the stress on
our young engineers working all night," he said. However, he warned that
the constant pressure from financial markets, particularly in the U.S., will
mean a higher turnover at the top: "There is no doubt that because of this
pressure the failure rate of CEOs will be high . . . that's just the way it is."
The session, titled "CEO in the 21st Century: Mission Impossible?,"
highlighted how many CEOs actually relish fulfilling the numerous roles now
expected of them. While acknowledging that they had to be everything
from statesman to celebrity, none of the business leaders on the panel
accepted that the top job is becoming impossible. However, they did
stress that the CEO role is becoming ever more complex.
Mr. Capellas said the growing speed of change meant that CEOs could no
longer wait to read lengthy reports before making a decision. "At no other
time have we had to understand our business in such detail," he said.
Mr. Sommer added that his biggest concern is that he will overlook
something that turns out to be very important in five or 10 years' time. He
maintained that CEOs won't be judged by what is written in the
newspapers today, but by their successors.
Still, there was a consensus that business leaders have to continually
manage the financial markets' immediate expectations. "They will forgive
you once, maybe twice, but certainly not three times," said Daniel Vasella,
chairman and CEO of Novartis AG.
Several of the panelists stressed the importance of gut instinct, and Taizo
Nishimuro, chairman and former CEO of Toshiba Corp., said that while
management is a science, being a CEO is an art. He described the job as
"very hard." Having served as CEO of Toshiba for four years, Mr.
Nishimuro stepped down last year. "I have to confess that I feel so free
and relaxed since I resigned from CEO," he said. |
