Homepage / Currency / Taiwanese bosses are the Chinese-speaking world’s oldest
Rocket Lab, a next generation space company, sets a milestone by reaching orbit Amazon's automated grocery store will launch Monday after a year of false starts Trump and tech have clashed on immigration, but the H-1B issue might bring them together The NSA was light years ahead of Siri and Alexa with voice recognition technology: Report Google CEO Sundar Pichai said he doesn't regret firing James Damore Cramer Remix: My advice for Lloyd Blankfein on cryptocurrencies Cramer: The Amazon Prime rate bump is a clarion call to buy the stock Cramer's game plan: Watch individual stocks amid the earnings deluge Amazon just hired a top Seattle doctor from Iora to add to its health group: Sources Facebook's News Feed will now have users decide 'high quality' news through surveys Overstock mixed up bitcoin and bitcoin cash, letting customers buy items at a steep discount Prominent crypto critic calls bitcoin a ‘bubble’ and says go to Vegas if you want to gamble US stocks will likely run higher for another 11 years, Wall Street's Tom Lee says A government shutdown may not affect stocks much, but a bigger political battle brewing will Jeff Ubben's ValueAct launching fund with social goals, following similar moves by Jana, BlackRock Dow stock Boeing is up over 100% in one year, and some say the run isn't over Google CEO: You don't need to code to be successful at many jobs of the future—but you'll need this Netflix could see a huge move on earnings next week Netflix shares to surge on big international subscriber gains, analyst predicts What will Trump say at Davos? Six analysts give their predictions I tried to get my iPhone 6 battery replaced — here's what happened Jan Koum got the idea for $19 billion WhatsApp after missing too many iPhone calls at the gym Home security firm ADT drops 10% in NYSE debut Cramer: I'm fine with Amazon raising monthly Prime prices because it's still cheap Staten Island-based 'CabbageTech' charged with bitcoin-related fraud after promising 300% returns in a week Kohl's shares could pop 50% as Amazon partnership ramps up Trump's market cheerleading tweets could end up fueling a bubble New GOP tax law will boost corporate earnings at least 10%, says Merrill Lynch wealth manager Rising mortgage rates could mean even fewer homes for sale this spring Nike shares jump after analyst predicts a rally on new sneaker sales Investor 'fear of missing out' runs wild as record amount of money flows into stocks the last four weeks A crucial German vote this Sunday is seen as the key near-term driver for euro/dollar Oil price rally will not persuade OPEC to end production cuts, analyst says LA Times' Levinsohn under investigation after report on sex harassment Amazon is raising its monthly Prime membership rate There's a new venture fund founded by a former DJI and Tesla engineer and an ex-Kleiner partner Amazon and Nvidia are hiring people to cozy up to health VCs The executive in charge of Facebook’s efforts to court China has left the company 6 global trends that can derail your portfolio in 2018 Huawei executives are self-imposing a fine of nearly half a million dollars for inflated sales data Square shares pop after analyst says its similar to 'Amazon or Google in their early days' London's 'almost toxic' housing market might not give investors the returns they are looking for Hot tech stock Nvidia has even more room to run, says technical analyst Gaming giant Nvidia, after 113% gain, could surge another 23%, BofA analyst says Walmart will see a larger breakout after ‘lost’ years, Oppenheimer analyst says The bull case for Netflix ahead of earnings The UK’s foreign minister wants to build a 22-mile bridge to France Rising hedge fund stars are crushing the market, taking crown away from Einhorn, Ackman New Zealand PM set to be only the second world leader to give birth while in office The bond yield that helps price all sorts of loans just jumped to its highest level since 2014 Berlusconi has been in politics for nearly three decades. This is the secret to his popularity Indonesian leader's third cabinet reshuffle could have elections implications Who are ‘Davos Man’ and ‘Davos Woman’? European stocks seen mixed ahead of earnings, data Bitcoin could be here for 100 years but it's more likely to 'totally collapse,' Nobel laureate says China says sunken Iranian tanker may be leaking bunker fuel South Korean group files complaint against Apple CEO over iPhone slowdown What happens during a US government shutdown Bitcoin is 'something regulators need to deal with but not ban,' says former FDIC chair Cramer Remix: How I decide which retailers are not buyable Cramer's lightning round: Hormel's one of the few food stocks I like Cramer tracks 4 growing market discrepancies: Rates, Trump, cryptocurrencies and stocks Asian markets poised to open with moderate gains despite softer US lead IBM executive says blockchain 'creates a lot of value' for manufacturers, retailers Bitcoin's on a wild ride, but investors have shown it's here to stay, analyst says Cramer: I've never seen a market like this in my life Atlassian beats estimates, but its shares fall anyway Snap laid off two dozen employees and half of them were from its content team Tesla bringing Model 3 to three East Coast showrooms This start-up founder has a novel strategy for getting ahead: Telling the truth Texas Instruments' long-time CEO is stepping down after the stock rallied 57% in the past year Trump says he called and thanked Tim Cook after Apple revealed its US investment plan There's 'no evidence' Tasers reduce police use of firearms, new study shows IBM shares fall despite first growth in 23 quarters Tim Cook tells Cramer: New tax law helped pave the way for Apple’s massive investment plan Uber's Kalanick ignored warnings from execs about buying self-driving truck start-up Otto, says report Washington, DC, and Austin are shaping up as strong contenders for Amazon's new headquarters Legacy airlines are facing new competitors on transatlantic routes Here’s how cities are reacting to being finalists for Amazon HQ2 A high schooler interviewed Apple CEO Tim Cook — and he told her his secret to success Another top Silicon Valley investor slams politically correct tech culture, praises China Steve Wozniak is still on Apple's payroll four decades after co-founding the company Bank of America loses its second head of tech and media banking in less than a year Three of the finalists for Amazon's second headquarters are in or near Washington DC Wrong on GE, market-beating value investor Bill Nygren says he is sticking by tanking blue chip Apple may have just saved the GOP Bitcoin rallies more than 30% to briefly top $12,000 in latest wild swing GE shares drop to 6-year low below $17 With eye on Brexit talks, May offers France money for border security Uber ex-CEO Travis Kalanick will officially be a billionaire Thursday, as deal with SoftBank closes The French government experiments with venture capitalism The World Bank’s “ease of doing business” report faces tricky questions Our Big Mac index shows fundamentals now matter more in currency markets The threat of tough regulation in Asia sends crypto-currencies into a tailspin Innovative materials from bamboo are helping a new industry to sprout A weak market for football rights suggests a lower value for sport Why driverless cars may mean jams tomorrow Chinese tech companies plan to steal American cloud firms’ thunder Masayoshi Son may raise yet more cash to pump into tech The hedge-fund delusion that grips pension-fund managers

Currency

Taiwanese bosses are the Chinese-speaking world’s oldest

DESPITE her father’s pleas, Cherry Liu refused to work for the family business, a small electronic-components company founded in 1979 on the outskirts of Taipei. A 34-year-old diamond dealer based in Sydney, Ms Liu says she is simply not passionate about gadgets such as circuit-breakers. Nor are her siblings. Her 64-year-old father cannot find a successor, but he will not even consider recruiting someone outside the family, she says. He fears that a newcomer might leave and take the family’s precious list of customers and suppliers with him.  

Taiwan’s economic boom was fuelled by people like Ms Liu’s father, entrepreneurs who started from nothing to build successful family-run companies, many of which are now huge. These firms still dominate Taiwan’s export-reliant economy, which specialises in high tech. Of all listed firms, 70% are family-run, compared with 33% for Chinese firms and 40% for Hong Kong-based ones. Almost three-quarters of family concerns are operated by their original founders, according to a report in 2017 by the Taiwan Institute of Directors.

  • Retail sales, producer prices, wages and exchange rates

  • Foreign reserves

  • Why commodity prices are surging

  • Why a judge’s injunction on DACA is unlikely to stand

  • Teenagers are becoming much lonelier

  • The Supreme Court considers the scope of automobile privacy

A succession crisis is likely to be the eventual result. Taiwanese business is run by the very oldest chief executives in the Chinese-speaking world, notes Allen Tsai of the Institute of Directors; the average age of a Taiwanese boss of a (listed) company is 62, compared with 47 for Chinese ones. These founders (and those of unlisted firms, too) usually eschew outsiders; their children are often uninterested. Only 9% of firms have written succession plans, according to PricewaterhouseCoopers Taiwan; the global average is 15%.

Foxconn, the world’s largest contract electronics manufacturer and one of Taiwan’s best-known firms, is among the firms dogged by speculation about succession. Its founder, Terry Gou, is 67; about a decade ago he enlisted the help of academics to develop succession plans for senior executives in different divisions and subsidiaries. Mr Gou was initially interested in finding a successor for himself, says Tang Ming-je of National Taiwan University, who took part, but later dropped the idea.

Mr Gou’s children have expressed no interest in taking over the business, although one of his sons, Gou Shou-cheng, discreetly involves himself in Foxconn deals. He runs a company that operates an electronics shopping mall in Taipei, and heads charities, all owned by his father’s company. But he keeps such a low profile that one analyst who monitors Foxconn was unaware of his role. Other large firms facing succession dilemmas include Quanta Computer and Tatung, a conglomerate.

Succession is not the only problem. President Tsai Ing-wen has called for the country’s companies to innovate, urging Taiwanese manufacturers to update their long-established pattern of taking orders from branded Western companies to make gadgets like computers and smartphones. Her government is trying to encourage new fields, including smart machinery, green energy and biotech. That may jar with the instincts of family-run firms. Wei Tsung-che, an economist with the semi-official Chung-Hua Institution for Economic Research, noted in a recent study that companies with ageing bosses often plan only for the short term, rely too much on their past experience and are reluctant to make bold, disruptive changes.

Their children, often educated abroad, could be potential disrupters if they want to work in the family firm. But they often find that their knowledge of current consumer preferences, from social-media platforms to apps, are ignored because their parents have the last word on strategy.

When the next generation is both keen to get involved and listened to, Taiwanese family custom can still send plans awry. In Japanese family-run firms one successor tends to be named, whether someone from the dynasty or an adult employee who is “adopted”. The usual practice in Taiwan, by contrast, is to divide up the company between all the children.

Sometimes sibling rivalry gets out of hand. Evergreen Group, which owns EVA Airways, one of Taiwan’s two big carriers alongside China Airlines, has suffered chaotic management ever since its founder, Chang Yung-fa, died in 2016. He had named Chang Kuo-wei, his fourth son by his second wife (formerly his mistress), as his successor and main heir. As his will was not legally watertight, his three half-brothers staged a boardroom coup and ousted Mr Chang as chairman, sending shares in listed subsidiaries of Evergreen Group southward. Now Mr Chang is getting his revenge by planning the launch of a rival third Taiwanese international carrier, called StarLux, in 2019.  

Source: economist
Taiwanese bosses are the Chinese-speaking world’s oldest

Comments are closed.