Panel, Conference Presentation
Shifting Tides: How CEOs Navigate Today's Challenges
Milken InstituteAndy Serwer, David Solomon, Barbara Humpton, Jeff Harmoning, Carmine Decibio, Bob Backus
- Panel Context: Moderator Andy Serwer notes that CEO responsibilities have shifted over the last decade from traditional financial oversight (10-Ks, 10-Qs) to managing core, non-peripheral issues like diversity, sustainability, privacy, and technology.
- Goldman Sachs Focus: CEO David Solomon states that topics such as diversity, climate, and technology are not optional "peripherals" but are central to the business, clients, shareholders, and employees.
- Goldman Sachs Progress vs. Perfection: Solomon emphasizes a strategic shift from seeking "perfection" to measuring "progress" on complex issues, citing his personal evolution after seven months as CEO.
- Viacom Strategy: CEO Bob Backus asserts that for content companies, culture and diversity are critical for attracting and retaining talent, noting that the company's composition must mirror its global, diverse audiences.
- Siemens Sustainability Goal: CEO Barbara Humpton outlines a corporate strategy built on global megatrends, including a specific goal to be carbon neutral by 2030.
- Workforce Development: Siemens is engaging with the American Workforce Policy Advisory Board to address low unemployment by creating pathways for new workforce skills, particularly in manufacturing and mechatronics.
- EY Employee Benefit: CEO-elect Carmine Decibio reveals that EY will grant its U.S. employees the week of July 4th off, a move calculated to have a neutral impact on P&L while appealing to a millennial workforce (average age 27.5).
- General Mills Evolution: CEO Jeff Harmening highlights a 150-year business adapting to new consumer values, citing the acquisition of the U.S. market's largest natural pet food producer and expansion into the natural and organic sector.
- General Mills Inclusivity: The company explicitly supports inclusivity, noting 49% of professionals and 40% of officers are women, and cites a 2012 public support for gay marriage to foster a culture of belonging.
- Goldman Sachs Technology Investment: Solomon argues that technology investment is capital-intensive, requiring a system to prioritize opportunities like robo-advisors, which he describes as an "evolution" of the business rather than a disruption.
- Siemens Digital Transformation: Humpton states Siemens has transformed into a top-10 software company globally through digital twins and product lifecycle management, asserting that automation will "elevate" human roles rather than replace them.
- Viacom Content Philosophy: Backus rejects content mandates from the CEO's office to preserve creative freedom, arguing that while the company must protect employees and safety, audience choice drives the marketplace and "wild and woolly" creativity is a strength.
- Viacom Acquisition: The company recently acquired Pluto TV, the largest free streaming service in the U.S., to complete its strategy of serving the free-price point market.
- EY Blockchain Applications: EY utilizes blockchain for supply chain authentication (e.g., tracking wine from vineyard to bottle) and AI for reading contracts, viewing these as tools to make junior staff work on more interesting tasks.
- General Mills Product Strategy: The company adjusted its "Trix" cereal portfolio to offer both natural (no artificial colors/flavors) and traditional versions to satisfy conflicting consumer demands without losing market share.
- General Mills Soil Commitment: The company committed to generating one million square acres of regenerative habitat over the next decade to address topsoil loss.
- Congressional Testimony: David Solomon describes testifying before Congress as a necessary responsibility of leadership, noting that transparency is required for society and communities where the company operates.
- Viacom Culture Repair: Backus cites a dramatic culture improvement since 2016, attributing success to open communication, transparency, and over 50% women in key leadership roles.
- Viacom-CBS Merger Rumors: Backus dismisses merger rumors as "noise," stating the company's focus remains on executing its current plan, including a projected $2 billion in ad business transactions.
- Siemens Climate Logistics: Humpton details the logistical challenge of carbon neutrality, specifically the need to update electrical grids and power infrastructure to support the electrification of vehicle fleets and building efficiency.
- EY Tax and Inequality: Decibio argues that while tax reform was positive, income inequality is best addressed through reskilling and education rather than purely punitive tax policies.
- General Mills Lobbying Stance: Harmening advocates for uniform national food regulation (e.g., organic standards) rather than state-by-state rules, arguing that fragmentation increases costs and hinders commerce.
- Goldman Sachs Social Media: Solomon utilizes Instagram to communicate with a predominantly millennial workforce (75% under age 30) to foster authentic, human connection rather than using traditional corporate channels.
- Goldman Sachs Personal Branding: Solomon defends continuing his hobby of DJing post-CEO appointment, asserting that leaders must remain human and that personal interests should not be abandoned.
- Siemens Communication: Humpton uses Twitter to share her perspective on women in leadership and vulnerability, aiming to encourage others to bring their "whole selves" to work.
- General Mills Communication Philosophy: Harmening stresses that while platforms vary, the message must remain clear, consistent, and authentic across all audiences (investors, employees, consumers).
- American Workforce Policy Advisory Board: Humpton confirms participation with the board, chaired by Secretary Ross and Ivanka Trump, to identify pathways to success beyond four-year degrees and promote business training investments.
- EY Entrepreneur of the Year: Decibio describes a 30-year-old global competition that now emphasizes companies with a social purpose, connecting startups with larger corporate clients to foster mutual learning.