Boyden Report Reveals Battle Hardened Brazilian Executives In Demand
Talented Brazilian executives are in strong demand at home and in more mature markets as the need grows for management with experience in overseeing volatile environments and complex economic issues, according to The Boyden Report: Brazil – Walking on the Big Stage: The “New Brazil” released recently by
Boyden Global Executive Search.
“Brazil and its executive class have enormous strengths that stand out among their global peers, said Chris Clarke, President and CEO of Boyden World Corporation. “Brazil has built an economic foundation by focusing on its domestic position in key sectors such as technology, renewable energy and agribusiness rather than pursuing a strategy that involved international risk. Brazilian executives and government decision makers, from banking to manufacturing, deserve much of the credit for the strategy leading to their success.”
The Boyden Report, based on a series of interviews with senior executives of Brazilian multinational subsidiary organizations, global companies and business institutions, examines important factors moving Brazil into its position as a first tier economy with predictions that the nation will move from the tenth largest economy in the world to the fifth largest by 2016. The number of “home grown” multinationals is increasing as are impressive opportunities for growth among foreign multinationals.
Highlights from the report:
Characteristics of Brazilian Management - Brazilian executives have been forced to grow and adapt in extraordinary economic circumstances, giving them experience, adaptability and flexibility not shared by their more sheltered European and US counterparts. In addition, Brazilians’ ability to navigate the complexities of the taxation system and certain elements of government bureaucracy make them more effective in multinational organizations abroad.
“There is good reason why a lot of the multinational companies that have been operating here for years are sending their executives to be trained in Brazil,” said Mr. Itzaina of Rolls-Royce.
“I have never seen Brazilian executives more in demand,” said John deMarmon Murray, Managing Director of Boyden Sao Paulo. “In some cases, Fortune 500 companies now stipulate that we must present Brazilian candidates for board positions. The reason is that they want someone on the board who can visualize the world through the eyes of an emerging market and who has guided their businesses through the ups and downs of the Brazilian market over the last 15 years.”
Financial Transparency and Stability Support Greater Role in G20 - Brazil’s banking system and fund management sector are usually transparent. All onshore funds must provide daily liquidity reports to Brazil’s Security and Exchange Commission, funds must disclose every month what they were holding 90 days prior and financial institutions must maintain an 11 percent capitalization rate, compared with 8 percent under the Basel regulations that other global banks follow. These impressive standards have led to calls for Brazil to take a greater role in G20 global reforms.
“During the entire world economic crisis – and this is a very strong signal –there was not one single financial institution that went bankrupt in Brazil,” said Mr. Crupi of Abbott Brazil.
“The Real currency has been strong and has also contributed to the confidence and credibility of Brazil amongst foreign investors,” said Jose Pedro Rossi, Managing Director and Head of the Financial Services Practice at Boyden Sao Paulo. “This confidence has grown as investors realized that Brazilian banking regulations have been strong and effective in keeping banks out of trouble. With this success, the financial market is healthy and active, presenting excellent opportunities for specialized executive talent.”
Brazil is a Global Leader in Renewable Energy - Brazil has been investing in hydro-electric plans and ethanol fuels for 30 years, as the rest of the world struggles with rebalancing their renewable energy credential. The nation sources more than 80 percent of its energy from hydro-electric projects and Brazil has the largest and most successful ethanol industry in the world.
“Brazil has reached a world leadership position in renewable energy,” said Mr. Taylor of Taylorenergies and CleanStar Brasil Bioenergia. “It will probably be at the forefront of new innovations as well.”
“The Brazilian economy ‘emerged’ some time ago for large global companies,” said William Penney, Managing Director of Boyden Sao Paulo. “Now small and medium sized companies are flocking here and Boyden has a substantial amount of client work helping such firms find their very first people in Brazil.”
The Boyden Report also offers 10 key points of advice in attracting and retaining executives for companies based or operating in Brazil.