In search of a "Goh Chok Tong"
by admin , June 3, 2010, 0420hrs
By Loh Chee Kong
cheekong@corporateobserver.com.sg
You can take Wee Cho Yaw out of United Overseas Bank (UOB) but you can't take UOB out of Wee Cho Yaw. The 81-year-old patriarch said as much in an interview this week with the Business Times when he talked about finding someone from outside the Wee clan to succeed him as chairman.
"Positions are not important to me because everyone recognises me, I have contributed to this bank. I can be honorary chairman or adviser to the bank. I still can monitor the operations of this bank. I still can give advice to the management, that is good enough for me," he said.
For anyone who is familiar with the workings of UOB - and the considerable clout yielded by Wee Cho Yaw, a name synonymous with UOB as the newspaper pointed out - that means, in short, things will stay the same, regardless of the position Mr Wee holds.
And it should be noted that the market completely ignored the remarks with the share price intact.
The passing of Far East Organization founder Ng Teng Fong in February arguably leaves Mr Wee as the only living business titan in Singapore, with a business acumen honed in a bygone era where good corporate governance meant running an obsessive eye over every aspect of operations while having dedicated and trusted family members holding the reins.
Mr Wee's reluctant decision stems from a March proposal by the Monetary Authority of Singapore (MAS) to bar financial institutions from appointing an immediate family member of the CEO as board chairman. While this would not affect existing chairmen who do not meet the requirement, such as at UOB where Mr Wee is the chairman and his son Wee Ee Cheong is the CEO, Mr Wee said he needed to plan ahead.
"I have to do it, whether in two or three years, I don't know, it depends," said Mr Wee, adding that ideally, the new chairman should be a Singaporean given that UOB is a local bank.
Yet, with Mr Wee continuing to call the shots - albeit in the background - the question is what difference will it make by having a chairman from outside the Wee family, Singaporean or not?
... It will have to take all of Wee Cho Yaw's legendary acumen to ensure a smooth succession and that the new man he brings in is big enough to make his own mark under his considerable shadow - and constant promptings.
In short - and to borrow loosely a political analogy - he has to find a "Goh Chok Tong".
By Loh Chee Kong
cheekong@corporateobserver.com.sg
You can take Wee Cho Yaw out of United Overseas Bank (UOB) but you can't take UOB out of Wee Cho Yaw. The 81-year-old patriarch said as much in an interview this week with the Business Times when he talked about finding someone from outside the Wee clan to succeed him as chairman.
"Positions are not important to me because everyone recognises me, I have contributed to this bank. I can be honorary chairman or adviser to the bank. I still can monitor the operations of this bank. I still can give advice to the management, that is good enough for me," he said.
For anyone who is familiar with the workings of UOB - and the considerable clout yielded by Wee Cho Yaw, a name synonymous with UOB as the newspaper pointed out - that means, in short, things will stay the same, regardless of the position Mr Wee holds.
And it should be noted that the market completely ignored the remarks with the share price intact.
The passing of Far East Organization founder Ng Teng Fong in February arguably leaves Mr Wee as the only living business titan in Singapore, with a business acumen honed in a bygone era where good corporate governance meant running an obsessive eye over every aspect of operations while having dedicated and trusted family members holding the reins.
Mr Wee's reluctant decision stems from a March proposal by the Monetary Authority of Singapore (MAS) to bar financial institutions from appointing an immediate family member of the CEO as board chairman. While this would not affect existing chairmen who do not meet the requirement, such as at UOB where Mr Wee is the chairman and his son Wee Ee Cheong is the CEO, Mr Wee said he needed to plan ahead.
"I have to do it, whether in two or three years, I don't know, it depends," said Mr Wee, adding that ideally, the new chairman should be a Singaporean given that UOB is a local bank.
Yet, with Mr Wee continuing to call the shots - albeit in the background - the question is what difference will it make by having a chairman from outside the Wee family, Singaporean or not?
Supporters of MAS' proposal would point to the fact that this would loosen the Wee family's grip on the bank and improve corporate governance on the assumption that there will be greater oversight when the chairman and the CEO are unrelated - and by extension, the implicit assumption that an adversarial relationship in which both men check on each other is the ideal arrangement.
Which makes one wonder whether blood ties or common greed is a greater motivation for any collusion - bearing in mind that it is not uncommon to hear of family members turning against one another over money.
The proof, as they say, is the pudding. Under the Wee family's stewardship, the 75-year-old UOB is one of Singapore's best-run businesses.
It will have to take all of Wee Cho Yaw's legendary acumen to ensure a smooth succession and that the new man he brings in is big enough to make his own mark under his considerable shadow - and constant promptings.
In short - and to borrow loosely a political analogy - he has to find a "Goh Chok Tong".
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