Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: hlpinout who wrote (89337)	1/30/2001 7:48:17 AM
From: hlpinout	Read Replies (2) \| Respond to of 97611

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.