Abstract

This case deals with the CEO selection at Hong Kongbased Global Brokerage Group GBG a mediumsized financial brokerage house dealing in securities futures foreign exchange wealth management and precious metals Since its inception in 2001 the company led by founder Anson Chan and his close knit cohort of family and friends achieved steady growth and a solid presence in the local brokerage industry In 2013 Anson believed it was time to prepare the company for its next phase of growth via listing on the stock exchange of Hong Kong To transition GBG from a privatelyheld business to a publiclylisted entity his priority was to professionalize the company with clear segregation of roles and responsibilities at the top management level In view of the upcoming IPO Ansons first task was to appoint a strong CEO The case sets out the industry context the importance of regulations administered by the Securities and Futures Commission and GBGs organizational and operational structure Students take on the role of Anson who is reviewing the profiles of six potential candidates and weighing their pros and cons Who should he choose

Learning Objectives

CEO is a key organizational role and after analyzing the case students will be able to 1 Identify the bases of power as shaped by the structurenature of the industry 2 Recognize the sources of power within an organization and how it impacts management and operations 3 Identify specific CEO selection criteria based on the companys goals and value creation process 4 Use a decision making model to select a candidate with the most appropriate personjob and personorganization fit evaluate outcomes