Leadership is an important driver of success especially in multinationals operating in a diverse environment characterized with diverse markets and human capital. Good leadership ensures that various departments, units and subsidiaries operate as an effective and efficient unit. Good leadership is a multifaceted concept that is determined by various factors including smooth transition and the qualities of the incoming leader.
Therefore, experience and familiarity of the organizational culture and market are important factors in determining the success of any incoming leader. Timothy (Tim) Armour, is one such leader; a veteran in the investment sector who spent over three decades at Capital Group before being elected as its Chairman.
Education and Work History
Since graduating from Middlebury College in 1983 with his first degree in economics, Timothy D. Armour has never changed employers or careers. He has spent an incredible 32 years at Capital Group working his way through the company’s ranks from an associate to the chairman of the multinational’s management committee. The eight-man management committee, which he is the current chair, is the apex of the company’s leadership tasked with making vital decisions that has since seen the company emerge as one of the leading investment management companies globally.
Armour’s rise was crowned on 28 July 2015 when the Group’s Board of Directors formally elected him as the successor to Jim Rothenberg, who passed away suddenly. While Rothenberg, the then Chairman, passed away suddenly there was nothing sudden about Armour’s ascension to the position. His taking over as the overall Group’s Chairman was eminent as he had served in various positions within the company including serving as an investment analyst specialized in equities. Before his election, he was the Group’s Deputy Chairman.
Views on Market Selloff
Having served in the industry for many years and as part of the Group’s eight-man collegiate management structure, Timothy D. Armour has a deep and well-informed insight into how investment industry operates, locally and globally. On the recent tumble in stocks across global markets triggered by China’s decision to lower interest rates while relaxing banking laws to entice investors, Armour believes that such tinkering with the markets are necessary to jolt them and remove excesses.
Therefore, the U.S. Federal Reserve should consider revising interest rates upwards to reduce cases of investors taking unnecessary risks. Additionally, he believes the recent turbulence should be expected in the future as China, a global market leader, continues to adjust. Despite this, he believes China still offers investment opportunities as its economy is still robust.
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