Nvidia scandal proves why a good CEO is a paranoid one
Assume you will be hacked, assume you will be honey trapped, assume you will have to answer for every indiscretion – this is the advice a modern CEO should follow, writes Giles Kenningham in today’s Notebook
Nvidia scandal shows all big corporates are at risk
The Nvidia scandal has highlighted the fact that there never has been a more precarious and volatile environment for big corporate entities to operate in.
We live in a world of radical transparency where nothing is off limits. If you are a successful booming tech company, the geo-political implications are massive. Authoritarians and rogue states are willing to do anything to get an advantage. Executives (and indeed all employees) in these companies need to be on the lookout. To quote Andy Grove, the former chief executive of Intel, “only the paranoid survive”.
Assume you will be hacked. Assume you will be facing a honey trap. Assume you will have to answer for every indiscretion. A good friend who used to work for a former PM of a strong UK ally was warned about honey traps by his country’s security services before heading to a pariah state. “Remember,” they said, “If you are a five out of ten at home, you are a five out of ten on the road.” Salient advice.
Couple this with the fact there are multiple routes to exposure thanks to tech and social media. Everyone can be a whistle-blower, everyone can be an amateur journalist, airing their grievances on a platform of their choice hoping their clip might go viral. The result in some instances is millions are wiped off share prices and the lifespan of CEOs are radically reduced.
Corporate governance will now have to cover personal conduct in a way it has, to date, not. Nothing can be hidden. The threat of malign state entities and unscrupulous commercial actors of taking down big tech companies who are in some cases, more powerful than governments, has never been greater.
A class act
The steady growth of class actions in the UK has put the behaviour of big companies in the spotlight. One bubbling away in the background that deserves a lot more press scrutiny involves the high street brand Johnson and Johnson.
Several thousand claimants represented by KP Law have accused the company of selling talcum powder contained with contaminants linked to cancer. J&J for their part vehemently deny the claims saying the product was compliant with regulatory standards.
The claim is set to become the largest product liability case in UK history.
The trial is listed for 2028 so a verdict is a way off. However the growth in the wider class action regime is a positive move giving access to justice for thousands who previously had no legal recourse.
Quote of the week
“These increases should not be seen as the first of an inevitable long sequence of hikes. That is not inevitable.”
Andrew Bailey on another potential interest rate hike
Dubai doesn’t deserve all the flak
I have been in Dubai this week. It has come in for a lot of flak recently but compare it to a crime-ridden London where police estimates suggest more than 70,000 mobile phones are swiped every year. Probably only in Dubai (and maybe Singapore) can you safely leave your mobile phone on a table in a bar for hours on end. The same goes for your personal safety – men and women can walk around at four in the morning without any fear of being mugged. London could learn a lot from the UAE.
London is a culinary capital
London has transformed itself into a culinary destination over the past two decades so it was to my surprise to learn that the capital only has two Michelin star-rated pubs. The Kerfield Arms in Camberwell is one. It got the award in February this year, less than 12 months after opening. The food is exquisite and the wine list rivals any top London restaurant. At a time when it feels like we hear daily stories of boozers going to the wall we need to do more to ensure these great British institutions remain a fixture of the high street. Let’s hope the 20 per cent cut in business rates for them coming into force next year gives them a much-needed boost.
Giles Kenningham is the founder of Trafalgar Strategy and a former head of press for Number 10