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Lessons from history: The corporate cult of personality

Barclays, Boeing and Bloomberg all bear the names of their founders. But just how dependent are companies on a single individual?
Lessons from history: The corporate cult of personality
  • Fundsmith looking to minimise disruption – and reassure investors – whenever its founder passes the baton
  • Associating a brand with a key individual is an issue from a risk management perspective

Recent events indicate that Terry Smith may take the view that the best time to mend a roof is when the sun is shining.

Though you wouldn’t think that the Fundsmith Equity Fund requires any remedial actions – it boasts a cumulative return of 126 per cent over the past five years – its founder is taking steps to ensure that any future transition of managerial responsibilities will be as seamless as possible.

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