Is 20 years too long to be CEO of a big company? Very few last that long these days, but Cisco’s John Chambers, who announced he is stepping down in July, is one of the few who has. In an interview with Fortune’s Susie Gharib last month, he talked about the challenges of leading the networking company through at least five different disruptions in the business. “You’ve got to have the courage to see things coming and make changes before it is obvious to others,” Chambers said. He attributed his own ability to lead through change in part to his experience overcoming dyslexia as a child, and learning “to make a weakness a strength.”
Separately, are you looking to hire “digital natives”? Be careful. Some lawyers now say that’s a code word for age discrimination.
Enjoy the day! And if you have some free time, read Dick Stolley’s story below on the epic battle over salvaging the Luisitania
| Alan Murray | |
| @@alansmurray | |
| alan.murray@fortune.com |
Top News
• Hedge fund managers paid well despite lull year
The New York Times reported the top 25 hedge fund managers reaped $11.62 billion in compensation in 2014, citing an annual ranking to be published on Tuesday by Institutional Investor’s Alpha magazine. Those men (no women made the cut) only managed to achieve low-single digits returns for the year, underperforming S&P 500's gain of about 14%. But NYT says hedge fund firms are "bigger than they have ever been," and their influence is also swelling. New York Times (subscription required)
• Panera lists unacceptable ingredients
Panera Bread founder and CEO Ron Shaich says the standard his bakery-cafe is held to is higher than what makes business sense. He thinks to himself, "How do I want to feed my daughter?" when it comes to decisions about Panera's menu and ingredients. Panera has committed to publicly share a comprehensive list of ingredients that have been removed from its menu. In total, about 168 of Panera’s roughly 460 ingredients need to be reformulated to fit Panera’s new standards. Fortune
• Activists score another victory
Mall owner Macerich settled a proxy fight with two activist hedge funds, agreeing to add two directors and to reverse moves that helped thwart a takeover bid for rival Simon Property Group. Macerich's new directors will replace two existing members, keeping the size of the company's board at 12. The company also removed a shareholder rights plan, or a so-called poison pill, that was used to help it fend off a $16.8 billion takeover offer from Simon. WSJ (subscription required)
• Comparing Valeant to Berkshire Hathaway
"Valeant is a very early-stage Berkshire." That's a quote from hedge fund manager Bill Ackman, who spent some time yesterday defending one of his biggest investor-activism setbacks. Ackman's view is that Valeant, which has bought a lot of rivals though it recently failed to acquire Botox maker Allergan, is a "platform company" that systematically makes deals to increase value. That reminds Ackman of Warren Buffett's quintessential "platform." Fortune
• Yellen met with firm at center of leak probe
U.S. Federal Reserve Chair Janet Yellen said she met with a research firm that later published confidential information from the central bank. The meeting with Medley Global Advisors occurred in June 2012, months before the firm unveiled details of a September Fed meeting a day ahead of the publication of the central bank's own record of the discussions. That has led to an investigation into Medley, though Yellen has said she did not convey any confidential information. Reuters
Around the Water Cooler
• The epic battle over Lusitania
There has been a fairly unusual battle brewing over the Lusitania, a boat that was sunk by Germans 100 years ago and has remained an obsession for a retired venture capitalist since 1982. Gregg Bemis, who originally bought the wreck as an investment as he figured there would be millions in scrap metals, has spent heavily out of his own pocket also exploring the historical significance of the boat. The problem? Bemis’s force has collided with an immovable object: A cautious, conservation-minded Irish bureaucracy. Fortune
• The Manhattan sky isn't the limit for condo boom
New York's Manhattan has garnered a lot of press for ultra-luxury condominium towers that are being built across the island at record-shattering prices. But Bloomberg argues that the city's largest residential construction boom is in the farther reaches of the outer boroughs. It points to plans for 200 luxury rentals in Sheepshead Bay as proof. That project is a 45-minute subway ride from midtown Manhattan. “There’s a lot of opportunity for developers to serve New Yorkers who are not billion-dollar bankers,” said David Maundrell, president of Brooklyn brokerage AptsandLofts.com. Bloomberg
• 6 very fit and healthy CEOs
Crossfit. Iron Man triathalons. Daily runs and long swims. These are some of the activities that America's fittest CEOs have pursued to stay healthy and lean. Twitter CEO Dick Costolo kicks off the list, with a mention that he celebrated last Memorial Day by putting himself through the intense Murph Crossfit workout. Check out the Fortune story to see what other executives made the cut. Fortune
Fortune's 5 things to know today
Tech conferences and an array of earnings — 5 things to watch in the week ahead. This week's story can be found here.
