The lesson from a week of governance chaos is that companies with founders at the helm may be more likely to succeed, but they are by no means destined to.
There’s almost nothing a fund manager loves more than a founder-led company. All the empirical evidence suggests that if a business is run by its founder, it will retain the culture, drive and ambition to deliver for the investors who come along for the ride.
Founders are bolder when it comes to investing in their companies and, in the long run, they deliver better results for shareholders than those run by professional chief executives.
Loading...
Jonathan Shapiro writes about banking and finance, specialising in hedge funds, corporate debt, private equity and investment banking. He is based in Sydney. Connect with Jonathan on Twitter. Email Jonathan at jonathan.shapiro@afr.com
