Extracts from the Investor Anniversary Book on Eight
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MARCUS “THE DISTRICT JUDGE” WALLENBERG On December 28, 1902, 38-year-old Marcus “the District Judge” Wallen- berg (1864–1943) invited Sigfrid Edström, a graduate engineer and tramway director from Gothenburg, to his home at Strandvägen 27. He had decided, following an earlier meeting in Gothenburg, that the young Sigfrid Edström, who was a few years his junior, had exactly the right qualities to sort out the problems at the com- pany Allmänna Elektriska AB (Asea) in Västerås. Edström, who was very much aware of his worth, held off for a long time and negotiated a higher salary in the process. In the light of the bank’s involvement in this loss-making company, Edström was to be Marcus Wallenberg’s most important recruit, in part because he saved Asea, but also because he introduced the “com- pany doctor” Emil Lundqvist into the circle. The latter was not only involved in the technical transformation at Asea but also at Scania-Vabis, Kopparfors and Stora Kopparberg. The fact that Edström was never invited to the Wallenbergs’ home ever again whilst Lundqvist was a frequent visitor remains a mystery. Perhaps it was significant that one was more sociable, self-aware and vain whilst the other was humble, nonconformist and slightly reserved. It was said that Wallenberg’s wife Whilst basically that was what he This was more than sufficient to Amalia hated the one and loved the wanted, he was not totally devoid of manage and build on the foundation other. Perhaps her husband, who vanity. Being made a Knight of the laid by his father and half-brother often met Edström at work, also had Swedish Royal Order of the Sera- and give his two sons solid ground something to do with it. phim was a source of great pride for on which to work during the crises of Marcus Wallenberg was, as wit- him. the 1930s. For them their father had nessed by many of his contemporar- He was known as the District Judge such great authority that at a meeting ies, a workaholic who hated external because, as with other lawyers of his of the board of Stora Kopparberg affectations. His focus was firmly on time, he held the academic title of one jokingly said to the other: “When work and the family, possibly with a Deputy District Judge. A law degree father died in 1943 did he ever resign little bridge as a distraction. Money also included a great deal of practical from the board?” should be spent on projects and economics. Unfortunately, he failed in not on clothes and consumption. A his ambition to become a naval officer striking example of this is the fact that as he was shortsighted. he had his suits made without pockets He was to become one of the most so that when they became worn they powerful men in the country when could be turned inside out and thus he gradually took over control of the last longer. The motto Esse non videri Stockholm Enskilda Bank, succeeding (to act, not to seem to be), which he his older half-brother Knut. He was adopted in 1931 when he became a also to become one of the most Knight of the Swedish Royal Order of prominent figures in industry when the Seraphim, describes a man who major power supply and engineering had no wish to be in the public eye. He projects were initiated in Sweden preferred instead to devote all his time and Norway both during and after and energy to the task at hand. World War I. VI VI JACOB WALLENBERG THE ELDER Jacob Wallenberg (1892–1980), was a banker of the classic British style: driven by a desire to do business, knowledgeable in practical economics, highly skilled in speculation on the stock markets and intellectual in his endeavor to see the whole picture. The fact that he learned his trade as a banker in the difficult post-war period and was later involved in dealing with the ”Kreuger Crash” was to serve him well for the rest of his life. In his role as owner of major companies, his chairmanship approach was more formalistic. He listened and controlled by initially saying no before in the end approving the deal as long as the executive management were sufficiently convinced to revert and determinedly pursue the matter. Becoming involved directly in the running of a company’s business was not his style. The people who worked with him described him as formal and old- fashioned and he consistently used strict forms of address even with his closest colleagues. His only true friends were people he met from the time when he trained as a naval officer and those Formally, the situation was corporate transformation projects or with whom he sailed. His boat was un equivocal. It was Jacob who for projects that were of national sig- named Refanut after the enchanted ship a good deal of the time maintained nificance. He did not take any such in the book Adalmina’s Pearl, written by control over the sphere, initially during initiatives himself even if he supported Zacharias Topelius. He won the Gotland his 19-year period as CEO of the the long-term investment in research Runt sailing race several times in Stockholm Enskilda Bank, which he did at the pharmaceutical company Astra. Refanut and it was on these occasions, with his father’s unconditional support. The age gap between the brothers was when challenges came at him in rapid Following his father’s death, various at least half a generation. Jacob hap- succession, that he revealed another individuals were brought in from pily held onto the old, tried and tested side to his character. outside to chair the family foundations. ways whilst Marcus wanted to keep Otherwise he was wary and This remained the case through to 1966 pace with the times. Marcus was prob- reserved, almost humble. In his will he although Jacob was always a member ably driven by the fact that ever since left part of his considerable fortune to of the board, contributing with his con- he was a child he had been slightly the family foundations, not in his own siderable gravitas and experience. He jealous of his older brother, who was name but in the name of his parents. became chairman of the bank in 1950 the one on whom their parents relied. The memory of his father, Marcus “the and he remained so until 1969 when Making his mark in the bank required District Judge” Wallenberg, was close he stepped down at the age of 77. He a particular effort on the part of the to his heart to the very end. There continued as chairman of the industrial younger Wallenberg son. was a strong feeling of trust between holding companies Investor and Provi- Jacob never had any family in the the two of them. He was closer to his dentia until 1978 when he retired aged traditional sense although he was very mother than anyone else throughout 86. As chairman of the Knut and Alice close to his adopted son Peder Sager his life. Many spoke about how he was Wallenberg Foundation he kept a firm Wallenberg, despite the fact that they always a man of his word and about his grip on the whole system for a further never lived together. Jacob was the sense of responsibility and his compo- two years. He was thus the formal head pater familias in the Wallenberg family sure. He never lost his temper or swore. for more than four decades. and he was a firm upholder of family Frugality led to his sisters sometimes However, it was not easy to get the traditions. This included celebrating calling him “Poor man Jacob”. better of his younger and more active the ”Amalia Day”, his mother’s birthday The question of who it was that brother Marcus, neither as CEO nor on May 29. This annual family tradition exercised true power in the third as deputy chairman of the bank or as evolved from a modest celebration generation of the Wallenberg family deputy chairman of Investor. Jacob was with Jacob’s naval officer friends, who is not easy to answer. Was it Jacob or forced to accommodate the wishes of were always welcome visitors to the was it Marcus? his brother, who was involved in major home of his mother Amalia. VIII VIII MARCUS “DODDE”WALLENBERG “The best interests of Sweden” was something of a doctrine for Marcus Wallenberg Jr. (1899–1982). When- ever the subject came up, he would talk about the religiousness of his fore fathers. Risking your reputation for not having worked in the best interests of the country was for him the worst that could happen. Perhaps he was still haunted by the old Bosch affair after World War II. There was also another explanation for Marcus Wallenberg Jr.’s consistent emphasis on what was best for Swe- den as a country—his background in sport. He grew up with the emergence of a broad-based sports movement and he became the country’s best tennis player and sailor. Having the opportunity to represent his country was a source of great pride for him. He sought to transfer the competitive element in sport to enterprise—fight- ing for the team and for the nation. In his corporate work he was to a large extent similar to a sports leader—consistently stubborn in pursuit of winning the next point, the next game, the next set and the next match. His leadership achievements were full of good suggestions to his co-workers and the most important Marcus Wallenberg Jr.