Succeeding for generations Stories of the world’s most enduring family businesses Succeeding for generations Stories of the world’s most enduring family businesses Contents Introduction

The history of Ernst & Young 4 Arvid Nordquist Sweden 77 amily businesses contribute significantly to economies around the Longevity is a key trait of family businesses — many of our featured Bankhaus Spängler Austria 7 Van Oord The Netherlands 83 Fworld — but they are often content to stay out of the limelight. For the companies have been in existence for well over a century. But these leaders of these businesses, the most important stakeholders are not businesses are not trapped in the past. Constant innovation is crucial to 15 GMR Group India 89 shareholders or markets, but their family and the next generation. Through surviving and competing in a rapidly globalizing world. Long-running family prudent investment and steady growth, they seek to pass on a stable, businesses know this better than anyone. Obeikan Investment Group Saudi Arabia 21 The growth DNA of family business 92 dynamic legacy to their children and grandchildren. Ernst & Young is no stranger to the unique challenges these companies Succeeding for generations celebrates these exceptional companies. face: our global organization is the result of the merger of two long-running Esteve Spain 27 Through in-depth interviews and stunning photography, we trace the family businesses. We are therefore pleased to have brought you histories of some of the world’s most enduring family businesses as they Succeeding for generations. It’s our tribute to a special breed of business. Oras Invest Finland 31 navigate through wars, recessions and market revolutions. By always keeping their eyes on the horizon, and with the experience of We hope you enjoy their stories. Avantha Group India 35 Timelines many decades — or even centuries — behind them, family businesses are better equipped than most to deal efficiently and successfully with both De Agostini Group Italy 41 Banking 12 internal and external challenges. But while family businesses have much in Cosmetics, fashion and luxury goods 24 common, each one is as individual as a fingerprint. The selection in Prym Group Germany 47 Succeeding for generations reflects this. Media and publishing 38 Spanning 14 countries and 2 continents, our featured companies range WICOR 53 from wine merchants to banks, and from manufacturers to publishers. Automotive 58 Some maintain an all-family management board, while others have handed Barceló Spain 61 over the day-to-day running of the company to outsiders. Some have Food and drink 70 remained in the sector in which they were originally founded, while others Berry Bros. & Rudd United Kingdom 65 have diversified intoa number of different industries. Some have been Shipping 80 passed down through many generations, while, in others, the third Papadopoulos Greece 73 generation is only now making its first foray into the business.

2 Succeeding for generations Succeeding for generations 3 Ernst & Young

ompanies like Ernst & Young mature rather than grow. They thrive in Oddly enough, it was his faltering hearing that set the wheels in motion businesses, but also control and direct them. While this notion is widely Roots intertwined Cthe rarefied air of big business, becoming an integral part of corporate towards the creation of Arthur Young & Company, the firm he formed with acknowledged today, at the turn of the last century it was, at best, life and part of the fabric of commerce and industry. his brother, Stanley, in the US in 1906. speculative and, at worst, fanciful. Today, the organization employs more than 140,000 people, operates in After having traveled to Switzerland and Algeria in search of refined air In its first year, the company recorded a total income of US$9,831.33. Ernst & Young was born out of two family more than 150 countries and has combined global revenues of US$21.3b. to aid his failing senses, and then being confronted with the realization By 1911, this figure had grown to US$250,000, thanks in part to Ernst’s businesses. To this day, it retains the spirit The figures can be overwhelming. Indeed, with such reach and scale, it is that his handicap would prevent him from following a career in law, Young progressive approach, but also his belief in promotion and business easy to forget Ernst & Young’s humble beginnings. sought his fortune in the United States, joining J. Kennedy Tod & Co. development. He was quick to recognize the merits of his workforce, and determination of its founders It’s hard to pinpoint the exact moment Arthur Young’s career began in — an international bank set up by another Scot and managed by an old stating in Ernst & Ernst’s 1920 operating memorandum that “the success earnest. Like that of so many great ambassadors of business, his story is classmate — in 1890. The experience was invaluable and bore fruit when of Ernst & Ernst depends wholly upon the character, ability and industry of peppered with unforeseen twists and unexpected turns, with the catalyst Young set up his first accountancy venture with Charles Stuart in 1894— the men and women who make up the organization.” for his success conspicuous by its absence. with funds of just US$500. Twelve years later, the partnership dissolved With foresight and resolve, Ernst built his company on these guiding The young Scot certainly didn’t set out to become one of the world’s and Young began again with his brother. In its first year, the ensuing principles. He persisted with his idealism, but also became acutely aware most influential businessmen. In fact, his earliest ambitions were modest firm secured fees of nearly US$100,000. It took a further six to reach of the significance of the team he had created. Perhaps as telling as any to say the least. “I was interested in sports, being particularly active in US$125,000, but Arthur Young & Company was off and running and soon other anecdote is that, during his 45-year management career, only a rugby football,” he noted in memoirs written at the behest of his partners. developed a reputation as a safe pair of hands. handful of people left. “As part of the science course … I competed with other boys in preparing Around that time, in about 1903, Cleveland-born Alwin C. Ernst, at Alwin Ernst and Arthur Young, whose names have become synonymous a collection of specimen insects and received a certificate for the best the tender age of 21, started a small public accounting firm with his with modern business, had much in common. Both started family collection in my class.” older brother, Theodore. Ernst & Ernst flourished and soon took on more accountancy firms with their siblings and both found success during a His competitive spirit would see him become captain of the rugby team partners, who benefited in particular from the US’s permanent introduction period of great change. With so many similarities, it seems ironic that the while studying for a master of arts degree at the University of Glasgow, and of income tax in 1913 and the resulting surge in demand for accountants. two never met, dying within days of each other in 1948. his steely determination would ensure he attained a bachelor of laws degree Although his timing proved to be flawless, Ernst had to start at the Forty-one years later, however, their legacies combined when the two Alwin C. Ernst Arthur Young while serving an apprenticeship at a Glasgow law firm. But while these bottom, beginning his bookkeeping career straight out of school. He companies merged to make Ernst & Young. The union brought together the achievements accurately illustrate his aptitude for sports and learning, they was a quick learner and soon started cultivating his own ideas about spirit and determination that helped shape two of the great international do little to explain his remarkable ascent in the world of business. how accountancy could produce information that would not only help companies of modern times. Arthur and Alwin would have been proud.

1849 Harding & 1863 Arthur 1881 Alwin C. 1890 Arthur Young 1903 Theodore 1906 Arthur (right) and his 1930s Arthur 1939 Thomas Clarkson joins forces 1948 Alwin Ernst and Arthur 1989 Arthur Young merges Pullein is founded in Young is born. Ernst is born. moves to the US to (left) and Alwin brother Stanley (left) form Young & Co. is the with Woods Gordon & Co. to expand into Young die within days of each with Ernst & Whinney to create England. Frederick pursue a career in Ernst (right) form Arthur Young & Co. in Chicago. first firm to recruit management consulting. other. They had never met. Ernst & Young. Whinney joins. accounting. Ernst & Ernst in from university Cleveland, Ohio. campuses. 1850s 1860s 1890s 1920s 1930s 1940s 1980s 2000s 1924 Arthur Young allies 1864 Thomas 1894 Young starts his first with Broad Paterson 1931 Alwin Ernst Clarkson starts firm, Stuart and Young, in & Co., England, while (by the fireplace, 1979 Ernst & Whinney forms and becomes 1859 Frederick a trustee and Chicago. In the same year, Ernst & Ernst teams up with his wife) 1944 Clarkson Gordon the fourth-largest accountancy firm in the 2000 Ernst & Young Whinney is made receivership firm Harding & Pullein is renamed with Whinney, Smith & celebrates his & Company allies with world. Arthur Young’s European offices unveils a new, integrated a partner. in Toronto. Whinney, Smith & Whinney. Whinney. 50th birthday. Arthur Young & Co. join several large local European firms. global organization.

4 Succeeding for generations Succeeding for generations 5 Bankhaus Spängler

The long view

In the past 180 years, economic crises have come and gone. Through it all, by staying true to its key principle of self-discipline, Austrian private bank Bankhaus Spängler has thrived

einrich Spängler was given a mysterious wooden cigarillo box when formal meetings a year to discuss the family’s business and succession Hhe succeeded his grandfather at Bankhaus Spängler in Salzburg, plans and allow members to exchange information. “What’s important Austria, in 1970. He had seen the box before, while working alongside is that our family identifies itself with the firm, holds up its values, his grandfather, Carl Spängler, a senior partner in the bank. It was a communicates what’s going on and avoids quarrels,” says Heinrich, who is Dannemann cigarillo box, but Heinrich knew it held something besides his now Chairman of the bank’s supervisory board. grandfather’s tobacco. Always eager to use any chance to pass along his The Spänglers captured some of their key goals for the bank in the ideas to the next generation, Carl Spängler presented his grandson with mission statement, including the desire to remain independent. At the the box and said: “Don’t open the box until I die.” same time, they acknowledge that remaining independent means being Six months later, in 1971, Carl Spängler passed away and Heinrich content with only moderate growth. Bankhaus Spängler consciously became the sixth generation of the Spängler family to join the bank’s avoids investments that are too risky, and the bank generally uses about management. According to his grandfather’s wishes, Heinrich carefully two-thirds of its customers’ deposits for loans to other customers. “Our reached for the box, flipped open the lid and lifted out 50 small pieces of customers know that the family wants the company to last for the long paper. The piece on top said: “Fifty years of banking experience.” Below term and is not speculating in order to have a bigger profit,” says Heinrich. that, Heinrich found that each sheet contained a kernel of wisdom about “During the financial crisis of 2008, when people did not know where to the family’s banking philosophy. One sheet said: “A loan is only good put their money, the deposits at Spängler grew by double digits.” business when it is being paid back.” A second said: “The government or To keep risk down, for instance, all interbank counterparties are the church is not necessarily a better debtor.” A third stated: “If somebody subjected to a credit assessment procedure and a limitation, depending on Above Alois Spängler (1800– 1875), father of the bank’s starts to build a house, as constructive as this is, be careful.” the party’s specific credit standing, and Bankhaus Spängler does not hold founder, Carl Spängler. Alois was Looking back, Heinrich says his grandfather probably didn’t want him any credit derivatives. The bank also pays particular attention to liquidity the first family member to enter to open the box earlier because its contents were so simple. However, risk, something it sees as critical for safeguarding the bank’s independence. the banking world and was later the banking truisms captured there illustrate the conservative style of This risk is consistently monitored with capital tie-up analysis and other mayor of Salzburg

the generations of Spänglers who have led the bank. To nurture that early-warning indicators. Opposite Chairman Heinrich philosophy and ensure that it is adhered to, the Spängler family has written Another approach codified in the mission statement is the goal of Spängler on the roof of a mission statement and formed a family council. The council holds two remaining family owned and family controlled, but not necessarily family Bankhaus Spängler in Salzburg

6 Succeeding for generations Succeeding for generations 7 Bankhaus Spängler

managed. “The best-qualified members of each generation should that trading business in 1828 and moved into its present-day headquarters management and family-office services. It also owns a capital investment Above, from left Carl Spängler represent the family owners on the board,” says Heinrich. “If the family on Salzburg’s Salzach River at the beginning of the 20th century. Built company, Carl Spängler Kapitalanlagegesellschaft, which employs 30 (1825–1902), the founder of cannot agree or nobody can be found from the family to take over a in 1881, the building is a former bazaar designed by Salzburg architects people and has issued more than 100 investment funds. Close to half are Bankhaus Carl Spängler & Co. position, then the family should focus on its role as the company’s owners, Valentin and Jakob Ceconi. On warm days, employees can be seen strolling publicly offered in Austria, Germany and Switzerland. Carl Spängler (1894–1971), leaving the open position to a non-family member. Being family managed is between the building and the riverfront during the official lunch break, for Of course, the banking sector has changed tremendously since Bankhaus grandson of the bank’s a goal, but not the most important one.” which the bank closes. Spängler was founded 183 years ago, but the bank’s conservative founder. He gave his grandson, For 166 years, the bank operated as a partnership run by four family Proud of its history as a family-owned company, Bankhaus Spängler philosophy has seen it through several banking crises and two world wars. Heinrich, the cigarillo box of banking truisms members. As of 1994, Spängler became a joint stock company with all its supports other family-owned businesses with its banking services and “We face new challenges and opportunities in a world changing faster shares owned by the family. The corporation has since been overseen by a with training sessions and discussion symposiums. A recent forum, than ever before, but we believe we can cope with these changes due to Franz Welt is the grandson management board and a supervisory board, a structure typical in Austria, for instance, featured Karl Weisskopf, the head of the German family- our manageable size, speed to market, understanding of our own goals of Richard Spängler and Switzerland and Germany. The bank’s current staffing of those positions owned manufacturing group Liebherr International, speaking about the and skillful organization,” Heinrich says. “Our business model shows that serves on the four-member is fully in line with the family’s mission statement. Two family members differences between listed companies and family-owned businesses. this is possible if you take the right approach, combining optimism and the executive board serve on the eight-member supervisory board: Heinrich Wiesmüller, the Bankhaus Spängler also teams up with the Institute for Management to necessary modesty.” Markus Wiesmüller works in son-in-law of the late Richard Spängler, who was a senior partner with offer custom-tailored courses for people running family businesses. Classes He describes the bank’s business model as one based on responsibility, the bank’s family management Carl Spängler; and Heinrich Spängler himself. Franz Welt, the grandson of are offered on 13 days throughout the year in the rococo Leopoldskron business awareness, positive thinking, humanity and, above all, decency department, which provides a Above, from left Heinrich Spängler (left), service to wealthy private clients Chairman of the supervisory board, and Richard Spängler, also serves on the four-member executive board, acting Castle in Salzburg. toward partners, employees and customers. And exercising these character Dr. Heinrich Wiesmüller, Honorable as the bank’s risk manager. “This is something we learned during our The company’s long survival was made possible because it has been traits is a message that Heinrich relays to the next generation of Spänglers, Carl Philipp Spängler and Chairman of the supervisory board decades of business,” says Heinrich. “Mixed boards are the best possible carefully handed down from one generation to the next. Today, the seventh who will be taking over in the coming years. Markus Wiesmüller represent way to manage the company if you want to take advantage of both the generation, represented by Markus Wiesmüller and Carl Philipp Spängler, So far, however, Heinrich is not planning to leave that advice in a wooden the seventh generation of Members of the executive board, the family (from left): Dr. Rudolf Oberschneider, family’s insight and the best talent available on the market.” works at the bank in its family management department, which provides box on his desk like his grandfather did. That’s because the next generation Dr. Helmut Gerlich, Franz Welt and The roots of Bankhaus Spängler go back to a medieval trading business personal and comprehensive service to wealthy private clients and families. of the family already knows the story of the cigarillo box very well. “It all Dr. Werner Zenz that started with the transport of salt to the south and the import of wine, It advises on challenges specific to family companies, such as the transfer goes back to what my grandfather taught me: the value of self-discipline. silk and spices from Venice. Originally, the Spänglers were winegrowers of wealth, successor selection and risk management. The next generation should stick to the bank’s philosophy, deciding on Right Carl Spängler (1864–1902), son and innkeepers in southern Tyrol. Then, two cousins set out — one to Officially called Bankhaus Carl Spängler & Co., the bank operates at 13 given situations with responsibility, awareness and the necessary open- of the bank’s founder. He was married to Katharina Mayr, whose father owned the Salzburg and the other to Venice — and began to supply the archbishops locations, has a staff of 240 and focuses on two primary areas of business: mindedness,” he says. “My grandfather often quoted Gustav Mahler as Overleaf Heinrich Spängler tavern Zum Goldenen Schiff in Salzburg who ruled Salzburg at the time with wine and silk. The bank emerged from interest-bearing business such as deposits and loans, and securities, asset saying: ‘Tradition is not to conserve the ashes, but to hold up the flame.’” on top of the world

8 Succeeding for generations Succeeding for generations 9 Bankhaus Spängler

10 Succeeding for generations Succeeding for generations 11 Timeline: Banking

1781 The first chartered 1811 bank is established in Banking 1690 First incarnation Philadelphia in 1781. of Barclays Bank By 1794, there are 17 1993 France begins a more. At first, bank trial of the chip and PIN charters may only be system for credit and The engine of the obtained through an Early 19th debit cards, which stores act of legislation. But in century users’ information 1838, New York adopts Mayer Amschel 1889 The Hong Kong on a chip instead of global economy the Free Banking Act, Rothschild’s and Shanghai Banking a magnetic strip. which allows anyone five sons set up Corporation is founded who meets certain legal businesses in in 1865 to finance the specifications to engage Frankfurt, London, growing trade between The history of banking runs from in banking. Paris, Vienna China and Europe. The 1967 The world’s first ATM and Naples. They founder, Scotsman Thomas comes into public service in gold lending to electronic transfers 1770 Gurney’s develop systems Sutherland, wants a bank London. It works by matching Bank is founded to exchange coded operating on “sound Scottish radioactive checks with PIN — and everything in between by brothers market information banking principles.” Still, the numbers. Inventor John 1994 The Stanford Federal 1587 The first public bank is set up in Venice as John and Henry and build a original location of the bank Shepherd-Barron plans to make Credit Union becomes a state scheme to keep merchants’ money safe Gurney. It later successful business is considered crucial and the PINs six digits but his wife can the first bank to offer its and allow financial transactions without the merges with that remains in the founders choose Wardley only remember four, so that customers internet access physical transfer of coins. Barclays Bank. family today. House in Hong Kong. becomes the global standard. to their accounts.

1800BC 400BC 1100 1200 1300 1400 1500 1600 1700 1800 1900 2000

1800 BC It is common 1100 During the third century 1661 The first bank 1784 The Bank of New York 1946 Fidelity Investments is for people to keep their AD, banks in Persia and other notes to be issued in is founded on 9 June 1784, founded in Boston, Massachusetts. valuables in temples. territories in the Persian Europe are created in making it the oldest bank in Bankhaus Spängler is founded in Priests begin lending gold Sassanid Empire issued letters Sweden, some time the US. Alexander Hamilton, Vienna — but its roots go back to 1953

to those who need it and of credit known as sakks. behind China, where founding father and US 1828 a medieval trading business. so the concept of banking Fragments found in the Cairo paper currency has Treasury Secretary under 1948 Akbank Haci Omer Sabanci begins to develop. Genizah indicated that, in the been used since the George Washington, writes founds the Sabanci bank as a 12th century, checks similar seventh century. its constitution. A little more shareholder. Today, the Sabanci Group is an industrial and to today’s were in use. Stockholm Banco issues than 220 years later, the 2008 The US and UK the notes because bank merges with the Mellon financial conglomerate, still 60.6% owned by the family. Governments provide customers were Financial Corporation to billions to shore up banks demanding the return become the Bank of New in the midst of the global of coins that had been York Mellon. 1983 The first financial crisis. There follow lent out. Instead, the system to allow a swathe of new regulations notes can be used as customers to for banks, including a currency and eventually access their bank measure to force banks to exchanged for coins.

1983 accounts from hold more capital in reserve. home electronically, using a computer and phone line, is launched in Britain. 1472 The oldest bank in the world, Monte dei Paschi di Siena, is established in February 1472 by the 400 BC Banking becomes more sophisticated in ancient Greece, General Council of the Siena Republic to grant loans when credit transfers take place in different geographical locations to “needy persons” at a minimal interest rate. The 1953 Edmond de Rothschild, of the without physical money changing hands. bank moves beyond its charitable role in the 16th French , establishes the century and assists farmers and city institutions. self-named Swiss private banking group.

12 Succeeding for generations Succeeding for generations 13 Rothschild

Deep roots

One of the world’s most famous families, the Rothschilds have maintained a focus on philanthropy and sustainable business for more than two centuries

he Rothschild dynasty began simply: with one man and his five sons. the Rothschild dynasty. Edmond believed that bankers could not create TIn the early 19th century, Mayer sent his sons wealth in the long term if they were not fully involved in the society and abroad to establish a European network of banks. Salomon went to Vienna, country to which they belonged. In the 19th century, the Rothschilds Amschel to Frankfurt, Nathan to London, Carl to Naples and James to helped the British Government finance its fight against Napoleon and later Paris. But little did he know that, 200 years later, the business empire that to build the Suez Canal. They helped the French state develop railways bore his name would be among the most respected in the world, having and they invested in land in Palestine, paving the way for ’s future contributed to the industrial, financial, social and cultural history of many industrialization. They funded schools, hospitals, museums and scientific nations. Today, Rothschild is one of the world’s largest privately owned research. They also made their art collections available to the public. “It banks. Its 49 offices in 26 countries provide global financial advisory, is this kind of dedication that I strive to preserve and promote,” the Baron corporate banking and private banking and trust services to governments, says. “There is no sustainable finance without fairness.” corporations and individuals. His wife, , Vice-President of the Edmond de Only the London and Paris branches of the family have survived the Rothschild group, is dedicated to this particular aspect of the family many upheavals of history, but the Rothschild philosophy remains as strong motto. She is responsible for helping the Maldives Government become as ever. Baron , descendant of dynasty founder carbon neutral by 2020 and for securing international finance and Mayer Amschel, believes that the family’s motto, “Unity, integrity and investors to implement wind farms, waste recycling plants and sustainable activity,” has enabled it to survive and evolve. “Unity” refers to the family’s transport solutions — among other initiatives. At the core of the belief in emphasizing general interests over personal ones. “Integrity” Rothschild values lies a special perspective on the banking profession: Above The Rothschild family’s points to ethics and mutual respect between a banker and his clients. namely, that it must assist, anticipate and grasp the challenges of the newly renovated home in “Activity” signifies a love for work and a passion for the banking profession. modern era. Judengasse, Frankfurt am “Our values are just as important as our aims; they are the cornerstone The Rothschilds strive to adhere to this philosophy even in their non- Main, 1887 of our identity,” the Baron says. “It is these values that have enabled us to banking activities, of which there are many, from education to wine. The Opposite Ariane de ride out both present storms and those to come.” family, for example, produces brie at the Ferme des 30 Arpents in Seine- Rothschild is committed to In the 1860s, Benjamin de Rothschild’s grandfather, Baron Edmond, et-Marne just outside Paris. Ferme des Arpents Brie is currently the only securing funding for various took over from his father, James, the founder of the Paris branch of French brie with an official farm label; the entire manufacturing process is environmental initiatives

14 Succeeding for generations Succeeding for generations 15 Rothschild

environmentally friendly. It also supports the regional economy by ensuring The key word is preparation. For more than 200 years, the Rothschilds Above, from left The the continuation of one of France’s most famous products: cheese. have been careful to plan for the handover to the next generation well in Rothschild coat of arms shows the family motto: “Our non-financial businesses always bring us back to reality,” says advance and to involve the younger generations in the family business “Unity, integrity and activity” Ariane de Rothschild. She believes that one of the causes of the recent at an early age. The Baroness sums up the Rothschild savoir-faire in financial crisis was the excessively large gap between the real economy transmitting the business from one generation to another: “We have four The five sons of Mayer Amschel and the financial economy: finance must be at the service of the daughters who, despite their young years, are completely au fait with our bring their goods to the Elector economy, not the other way around. In the new world now taking shape, business affairs. They often accompany us and we frequently discuss family of Hesse, in pastel, by Moritz Daniel Oppenheim, 1861 even if it takes some time finally to emerge, she believes that balance, business with them. They are aware that, in later life, they must undertake sobriety and moderation will be key issues. duties and responsibilities, but we also attach a great deal of importance to Opposite, from left The five The current financial climate has been a testing one for family empires, their personal development. We want them to choose freely their lifestyles brothers were sent abroad in the with companies capitalizing on economic turmoil in order to make and their careers, bearing in mind that they have a name, a background early 19th century to establish a European network of banks acquisitions and even hostile takeovers. For the Rothschilds, however, and a memory to honor.” this sort of activity goes with the territory when you are involved in global For the Rothschilds, philanthropy and the arts have been inextricably An oil painting of Baron economic competition. In their view, family businesses actually have a linked to the type of capitalism they helped invent in the 19th century. James de Rothschild, also greater ability to withstand onslaughts of this sort by reacting quickly and From the very beginning, they have felt that their privileged inheritance by German painter Moritz battening down the hatches: by definition, they have much better control brought with it solidarity, social responsibility and a duty to contribute Daniel Oppenheim of their capital. This, combined with in-depth knowledge of their market, to universal knowledge. Today, the Rothschild family runs 12 foundations, creates a solid footing for future growth and defense of the business. which focus on education, medical research, intercultural dialogue, culture Another key issue for family businesses, and Rothschild is no exception, and social entrepreneurship. It is a global endeavor, with bases is succession. It can be a complicated process, particularly in a long- in Geneva, Paris, New York, London, Jerusalem, Barcelona, Mumbai running company with an international profile and a sprawling family tree. and Cape Town.

16 Succeeding for generations Succeeding for generations 17 Rothschild

While the Rothschild bank is a modern business in every sense of the This page, from left Interior word, the family behind it is keenly aware of the weight of both history courtyard of a gothic palace with a falcon attacking a duck and their responsibility to future generations. For Benjamin de Rothschild, and a peacock, School of the past 25 years have shown that too many companies have had short- Altichiero. The artwork uses sighted and single-minded aims; too much external growth with too little coloured ink on parchment thought behind its implementation. Good business, he believes, requires and is part of the Edmond de loyalty, foresight and looking beyond whatever is trendy or profitable at Rothschild Collection at the Louvre Museum the time. But this conservative approach does not mean that a business must forsake growth in the name of stability. Benjamin de Rothschild Baron Edmond de Rothschild likes to quote Joseph Schumpeter, who said: “Motorcars travel faster than they otherwise would because they are provided with Opposite Baron and Baroness Benjamin de Rothschild brakes.” Family groups can travel fast, but they rarely have accidents. The Rothschilds and art The Rothschilds’ advice to future generations is to introduce changes so The Edmond de Rothschild Foundations have a longstanding tradition of that nothing really alters — to maintain the features that have created and support for the promotion of arts and culture. Each generation has made sustained the company’s success over the centuries. its own contribution to building an exceptional philanthropic legacy, and Prudence, responsibility and a keen eye for judging the ways of the our current initiatives continue to exemplify this commitment. One world, coupled with a rare independence, are the main assets that have legendary example is the prints and drawings collection donated to the kept the Rothschild brand thriving for more than 200 years. Louvre Museum by Baron Edmond de Rothschild; another is the launch of the Ariane de Rothschild Prize to recognize the talent of emerging artists from across Europe.

18 Succeeding for generations Succeeding for generations 19 Obeikan Investment Group

The evolution of Obeikan

Now in its second generation, this Saudi Arabia-based manufacturer is preparing for further expansion — and succession

bdallah Obeikan draws a parallel between business and Charles with profits made from OIG’s existing operations reinvested throughout ADarwin’s natural selection thesis, in which the 19th-century English the 1990s to establish a book store, food-container and product-packaging naturalist claimed that more evolved species were better equipped to businesses, a paper mill and a technical fabric operation. adapt to certain environments. Considering that his own enterprise, the Growth was steady but sure, with Abdallah and his team convinced Obeikan Investment Group (OIG), has accrued US$1.3b worth of assets, it that the group’s success hinged on a number of factors. The first was is a subject that he is well placed to comment on. In his mind, a successful to offer a total solution in both the packaging industry and educational company starts out as a baby and goes through teething, childhood and its services, Obeikan’s main businesses. Establishing strategic alliances with teenage years before becoming an adult. The businesses that make it this businesses operating in the same industries has also contributed to the far, he believes, have evolved and adapted to their environment and have group’s expansion. Since its inception, OIG has formed partnerships with emerged as the strongest survivors. In his mind, you are either a lion or companies in the packaging and education industries throughout Saudi you get eaten. Arabia and the MENA region. OIG’s own survival story, from inception to industry leader in the Finally, exporting has made a big contribution to OIG’s growth, with 60% Middle East and North Africa (MENA), started in 1982 when Abdallah’s of its products and services sold throughout the MENA region, as part of brother, Dr. Fahad Al Obeikan, launched it with their father. At the time, the company’s strategy to establish a customer base beyond Saudi Arabia. the business was just a commercial printing operation