difficult and necessary “sacrifice” on the part of leaders
In any corporate integration, there are nuclear factors that can destroy or facilitate its work. The main one is to achieve a valuation that will be accepted by the buyer or whoever leads the resulting group, and that will be welcomed by the shareholders of the smaller enterprise. Another, more personal but no less key, is how the end company’s management is set up, because this can influence whether to move forward with a transaction or not. The merger between BBVA and Sabadell fell through in 2020 due to the inability to bring closer positions in the valuation of the Catalan company.
He The distribution of power was more or less deliberate. The project that went overboard is that Carlos Torres will remain president group, who has been working at BBVA since the end of 2018, and his colleague from Sabadell, J.Osep Oliu will be vice president Newly created.
According to this formulation, The Basque group will elect a CEOa position held by the Turk Onur Genç and the then number two in Sabadell, Jaime Guardiola will remain in touch to facilitate stage transition.
Born in 1949, Oliu He turned 75 in April this year, compared to Carlos Torres, 58, although in banking the institutions are led by older bankers. An operation such as the one proposed could be the culmination of his career, reintegration of income to Sabadell owners.
After the failure of the operation, the Turkish head of BBVA Genç had an idea of fragility, favoring investments in Turkey, reinforced precisely by a larger stake in Garanti with part of the unused check in the failed merger. Expanding its presence in emerging markets is generally not popular with the regulator.
But Torres wanted to dispel rumors of Genç’s replacement (Turkey 1978) with public support and recognition of him as an “outstanding professional and team leader” for his responsibility for BBVA’s growing results with one of the highest profitability of all. industry in Europe.
The situation of the CEO of Sabadell is no longer what it was then, because Guardiola (Barcelona, 1957) stepped aside, passing the baton to Cesar González Bueno (Madrid, 1960), who took over the previous executive functions of Oliu and stands behind cancellation of Sabadell. check.
Zero profitability at that time today exceeds 12% and in the first quarter of this year alone he earned 308 million, 50.4% more. As with Oliu, if the merger is successful This will be the key to the success of the strategy invented by Gonzalez Bueno.who could also take up a position in the new company with Sabadell’s final guarantee of increased profitability.
Management Tips
Any corporate meeting also involves sacrifice of board members which often represent capital and support strategies. Whoever leads the company also influences the second and third lines of management because of the tendency to rely on leaders who are known to be trusted.
If BBVA’s plans come true, chair dancing guaranteedalthough the final outcome may be influenced by the European Central Bank (ECB) supervisor deciding to end the idiosyncratic executive presidency in Spanish banking in favor of a government scheme in which the president and CEO act as a countervailing force, and are also committed to ensuring maximum diversification of the board’s professional profiles .
It was four years agoIt was planned that Sabadell would appoint at least two members of the new council. administration, but re-evaluating the organization and improving its fundamentals can stimulate the desire for a higher position.