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Generational Growth in Uncertain Times - Executive's Club of Chicago Lecture

Timing is everything. William Wrigley, Jr., Executive Chairman of Wm. Wrigley, Jr. Company spoke on April 29 as part of the Executives’ Club of Chicago’s CEO Breakfast series. Mr. Wrigley’s speech had been scheduled for over a year, but following the preceding day’s announcement of the proposed sale of Wrigley to the Mars Company, it promised to be an even more interesting presentation.

Mr. Wrigley opened his comments by discussing the sale of the company. He indicated that Wrigley would continue as an independent, wholly owned subsidiary of Mars. He posited how this transaction will benefit all of the company’s stakeholders—its customers, employees and stockholders. While the stockholders will enjoy a significant near term gain, he offered that the employees and customers would benefit by the cross-pollination of cultures between two of the leaders in their industry.

His remarks focused on three principles upon which Wrigley is centered, permitting it to ensure cross-generational growth:

1. Manage and lead for the decades. Resist the impulse to compromise the long term for short term results.
2. Build resilience to survive the down cycles. Don’t over exploit the good times.
3. Resist pressure to “sacrifice the soul” of the company. Build a culture of trust where trust equals accountability.

Mr. Wrigley concluded by stating that in a multi-generational business, leadership of a company is often afraid to change its mode of operations for fear that it would be disrespectful to their ancestors. In contrast, the by-word at Wrigley has been and will continue to be to “respect the past, but do what is right for the future.”

Although Mr. Wrigley touched on the Mars transaction and its perceived benefits, I was struck by the fact that he could have given virtually the same speech last year or last week focusing, as he did, on the past. While he didn’t acknowledge it is any real way, the world for the Wrigley Company, its employees and the Wrigley family has changed irrevocably.

Certainly the family has benefited, at least in terms of a very healthy premium on the price of its stock holdings; perhaps, less so in terms of its family/business legacy. But, has the company won long term? Have its employees?

This publication is part of Blackman Kallick’s marketing of professional services, and is not written tax advice directed at the specific facts and circumstances of any person and/or entity. Contents of this publication are of a general nature, and you should not act on this information without obtaining professional advice from your business advisor that is appropriately tailored to your individual needs and circumstances. This written advice is not intended or written to be used, and cannot be used by any taxpayer, for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.