At key moments during the crisis—during which Bear Stearns says he remained in “constant contact” with his office—Mr Cayne shot rounds of 96, 98 and 97, reports the newspaper, citing scores posted on an online database, GHIN.com. That is impressively consistent, although given his handicap of 15.9, “his scores during that stressful time certainly ballooned a bit higher than normal”, says law and golf blogger, Tom Kirkendall. “But think how bad this could have gotten for Bear Stearns if Cayne had not been able to get his golf therapy.”
Indeed. Golf Digest has published a 200-strong list of the top golfing chief executives in the Fortune 1000. Perhaps, to add value to this, every chief executive should be required to post his or her golf scores, for unusual volatility could be a useful indicator of trouble at work. On the other hand, a relatively calm performance like Mr Cayne’s might reassure investors that though things are worse than usual, they are not getting out of hand.
The central role played by golf in business life is under-reported—except maybe in Japan—perhaps because journalists can’t afford the green fees let alone the membership dues of the swanky clubs to which chief executives belong. Nor are bosses exactly rushing to draw attention to yet another perk.
Yet, “no matter how sophisticated business becomes, nothing can replace the golf course as a communications hub”, argues a new book, “Deals on the Green”, by David Rynecki. “It’s where up-and-comers can impress the boss and where CEOs can seal multibillion-dollar deals. Its no coincidence that many of the most admired people in business—Jack Welch, Bill Gates, Warren Buffett, Sandy Weill—always carved out time in their busy schedules for golf.”
“Golf brings out a person’s true character”, argues Mr Rynecki, who then provides various business lessons illustrated with examples of famous bosses “at work”. Messrs Gates and Buffett deepened their friendship by playing golf, not least because (perhaps in contrast to when they play bridge) “they don’t take themselves seriously when they are on the course”.
Stan O’Neal, now the boss of Merrill Lynch, got noticed because “some of the more influential Merrill people got to spend time with [him] on the course and saw a different side of him”, enabling him to go on to be the first African-American to lead the firm.
Mr Welch, arguably the best golfing chief executive ever, is the “patron saint of corporate golf”, argues Mr Rynecki, stripping the traditional holder of the title, John D. Rockefeller, of his halo. Rockefeller took up golf when he was nearly 60, and played nearly every day for the next 33 years, even claiming (wrongly) that his quest to shoot par would enable him to live past 100. But although he played with such corporate titans as Henry Ford and Andrew Carnegie, he banned all talk of business from the course.
Mr Welch, by contrast, regarded golf as a key part of his managerial armoury, which he deployed with great success during his long, glorious reign at General Electric (GE). The firm was already known as a “golf company” when he took charge. But under Mr Welch, “golf became an essential tool for any manager looking to move up”. Golf “was a litmus test for character. It showed whether a person had the guts to work in Welch’s GE.”
Not everyone is convinced. The other week, reports DealBreaker, two veteran Wall Street tycoons railed against the game. Hank Greenberg, the former boss of AIG, complained that golf was a distraction from business: “A lot of people like to get away from their work. You have to wonder about whether they like what they’re doing.” Carl Icahn, the legendary corporate raider, sees golf as a symbol of all that is wrong with the clubby higher echelons of American business: “These guys would rather play golf, slap each other on the back. I want a guy running a company who sits in his tub at night thinking about the challenges he faces. The guy who can’t let it go. The focused guy.”
But enough about guys.
The most troubling aspect of “Deals on the Green” is that women are almost entirely absent from it—except as wives, girlfriends or even groupies—until chapter 16, which is all about how corporate golf may hold back female executives. The chapter makes a strong case that the biggest obstacle to women getting to the top in business is less a glass ceiling than a “grass ceiling”. On the rare occasions when women get to golf with their male counterparts, they play off a different tee. Augusta, Pine Valley and most of the other prestigious male-only clubs, says Mr Rynecki, are “like majestic, genteel proving grounds for business deals”.
John Mack, the boss of Morgan Stanley, “has made a habit of appointing golf friends to the board”, says Mr Rynecki. Apparently more open-minded than most bosses, Mr Mack, then boss of CSFB, organised a series of events to introduce female executives to golf as a tool for business. Yet his enlightenment proved quite limited. When they arrived, the women found themselves confined to the driving range and the short course “while the men played the real course”.
There are currently only 11 female chief executives of Fortune 500 firms, and, tragically, nobody thinks that number will increase much any time soon. Could the male monopolisation of corporate golf be to blame? Mark Twain famously dismissed golf as a “good walk spoiled”, but sadly for many promising female executives a more apt definition of the game may be “a good career spoiled”.
Business.view A Tiger in the boardroom Economist.com
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