Fathers' Day

As many countries around the world celebrate Fathers' Day, I ponder on father-son relationships in the business world.

Today also happens to be the 58th birthday of Lakshmi N. Mittal, chairman and CEO of ArcelorMittal. There was an interesting article in the Sunday Times two months ago:
http://business.timesonline.co.uk/tol/business/industry_sectors/natural_resources/article3778499.ece I cannot envisage CFO Aditya Mittal (32 or so) going head-on against a decision made by his father. Let me quote only part of one sentence: "[Aditya] is already seen as likely successor to his father Lakshmi at the steel giant they created two years ago". There you go... Could this have anything to do with the fact that the family controls some 45% of ArcelorMittal's capital?

Similar examples are countless: Pinault, Bouygues, Agnelli, Baring, (late) Michelin, Riboud, to name but a few. Depending on the ownership structure, quasi-hereditary successions at the helm of a company can be viewed skeptically by shareholders and public alike. Why would the CEO or chairman's offspring be more talented at becoming the next CFO, managing director or CEO than a gifted peer who has a proven track-record within the company or in the competition? Indeed, some children's personalities pale in comparison with fathers that were ebullient, extrovert company-founders. And it surely requires a fair bit of assertiveness and self-confidence to suggest, let alone force through, changes in strategy or business practices.