Menu Search Facebook Twitter
Search Close
  • Capital Coahuila
  • Capital Hidalgo
  • Capital Jalisco
  • Capital Morelos
  • Capital Oaxaca
  • Capital Puebla
  • Capital Quintana Roo
  • Capital Querétaro
  • Capital Veracruz
  • Capital México
  • Capital Michoacán
  • Capital Mujer
  • Reporte Índigo
  • Estadio Deportes
  • The News
  • Efekto
  • Diario DF
  • Capital Edo. de Méx.
  • Green TV
  • Revista Cambio
Radio Capital
Pirata FM
Capital Máxima
Capital FM
Facebook Twitter
X Welcome! Subscribe to our newsletter and receive news, data, statistical and exclusive promotions for subscribers

Carlos Slim Keeps it in the Family as Grandkids Join Boards

Building a bridge to the next generation, which appears to be part of the longer-term plan, is notoriously tricky

Mexican tycoon Carlos Slim Helu speaks with his son and Chairman of the Board of Directors of Grupo Carso, Carlos Slim Domit, before receiving a recognition from WBC for his support for boxing via Telmex foundation at Soumaya museum, in Mexico City, photo: Reuters/Edgard Garrido, File
By Reuters Whatsapp Twitter Facebook Share
2 years ago

MEXICO CITY/MADRID — Mexican billionaire Carlos Slim has put two of his grandchildren on boards of his companies, a major step in the succession of one of the world’s largest family business empires.

Daniel and Rodrigo Hajj Slim, both in their early 20s, are sons of Slim’s second-eldest daughter Vanessa and Daniel Hajj, chief executive of the family’s most valuable asset, America Movil. The sons were made directors at smaller companies.

Slim has said publicly that his succession plan is done, having put his three sons in key positions of his telecoms-to-banking empire, worth some $50 billion, and transferring much of his wealth to his children.

But building a bridge to the next generation, which appears to be part of the longer-term plan, is notoriously tricky.

Daniel Jr.’s appointment to the board of Slim-owned metals miner Minera Frisco was approved by shareholders in April 2015, according to a public filing to Mexico’s stock exchange. The Slim family holds a direct stake of 78 percent.

Rodrigo joined the board of Spanish real estate business Soinmob Inmobiliaria Española SA in March this year, according to a filing in Madrid.

As in the United States, most businesses in Mexico are family-run. But barely 5 percent of them make it to the third generation successfully, according to Hector Macias, a corporate governance expert at PWC.

“Transcending generations is not very common. It’s very complicated,” Macias said, explaining that sometimes younger generations are not interested or have very different ideas, disrupting the hoped-for transition.

Macias noted that the way family companies survive is by getting relatives in young, as Slim appears to be doing.

Unlike its northern neighbor, where less than one-third of S&P 500 companies are founding family-owned, according to consultancy McKinsey & Co.’s Family Business Practice, almost all of Mexico’s biggest listed firms are controlled by a family.

Bernard Black, a professor of law and finance at Northwestern University who has researched international corporate governance, said that while family businesses all over the world will put relatives on their boards, it was unusual to appoint them at such a young age.

It would be much more usual when you’ve got younger family members to start them out in positions in the company. What are they bringing to the board?”

— Bernard Black, professor of law and finance at Northwestern University

Arturo Elias, Slim’s spokesman and another son-in-law, declined to comment on the appointments or on whether Daniel and Rodrigo were studying or working.

Despite their entry to the empire, the grandchildren are not yet named as significant shareholders in America Movil, its latest U.S. Securities Exchange Commission filings show.

Diego Enrique Osorno, who recently published an unofficial biography of Slim, said the move was not that surprising as Slim’s children and sons-in-law were also in their 20s when they entered the family companies.

“He’s said he wants to create a family business. I think he must be keen for the other grandchildren to get involved,” Osorno said.

The nomination of the Hajj Slims to the boards was first reported by Spain’s El Confidencial newspaper.


Comments Whatsapp Twitter Facebook Share
More From The News
Latest News

Democrat Jones wins stunning red-state A ...

3 days ago

Asian stocks mixed ahead of Fed rate ann ...

3 days ago

NFL Network suspends analysts over sexua ...

3 days ago

Minnesota announces restrictions on usin ...

3 days ago
Most Popular

French PM says Disputed Labour Bill Open ...

By The Associated Press

Business Leaders Bullish About Long Term ...

By Lázaro González

New Delivery App Rappi Says It's Not Sel ...

By Caitlin Donohue

Power Lunch to Close

By The Associated Press

Daily Exchange: Dollar Continues Descent ...

By Notimex