Why Leaders with Big Egos Worry Wesfarmers CEO Rob Scott

25 Jul 2023

Why Leaders with Big Egos Worry Wesfarmers CEO Rob Scott

Australian conglomerate head Rob Scott (AMP 179, 2010) on the danger of hubris

Re: Robert Scott (AMP 179)

Topics: Leadership-Leadership Style Business Ventures-Business Conglomerates Career-Career Advancement

In a recent profile in the Australian Financial Review, Rob Scott (AMP 179, 2010), CEO of Australian conglomerate Wesfarmers, discussed his career path and management philosophy.

“I actually think that one of the biggest dangers in leadership is ego and hubris,” Scott, a former Olympic rower and only the eighth chief executive in Wesfarmers’ 100-plus year history, told the Review. “There are plenty of examples of leaders who have had really big egos. They might be seen to be really successful, but then when they walk out the door, things fall apart around them. There’s a much stronger correlation with superior shareholder returns from those leaders who have the sense of humility and self-awareness.”

The article tracks Wesfarmers’ recent rise in stock price (about 40% over the past five years) and notes Scott’s expectations that the near future will see growth in the conglomerate’s healthcare and lithium businesses. “That’s the great thing about the Wesfarmers model,” Scott tells the paper. “We have the capacity to allocate capital and adjust the portfolio so that our group remains contemporary and relevant for what opportunities the market holds.”

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