< Previous30 C EO M I D D L E E A S T MAY 2 0 1 9 BUSINESS | THE INVISIBLE WOMEN his decades-long battle with motor neu- ron disease. He later left her to marry one of his nurses. The Cambridge scientist was diag- nosed with the incurable degenerative disease at the age of 22 and given two years to live. Defying his fatal diagnosis for more than half a century, Hawking died on March 14, 2018, at the age of 76, having been recognised as one of the world’s most brilliant scientific minds. A year on since he died, Stephen Hawking’s profound fame lives on through his work and continues to make headlines. But the world really only be- gan to pay attention to his ex-wife Jane, the woman who washed, clothed and fed her wheelchair-confined husband for 30 years, after she published her book about their lives that later turned into the award-winning film, The Theory of Everything. Even then, Jane tells CEO Middle East, the filmmakers discounted her role, failing to capture crucial elements of the exhausting reality of her life in Stephen’s shadow. “We went to America for our honey- moon at a physics conference,” she recalls during an interview at the Emirates Airline Festival of Literature in Dubai. T 21, A NEWLYWED JANE HAWKING got on a plane from England to America with her then 23-year- old husband, British physicist Stephen Hawking, to spend her honeymoon with him at a physics conference. In her book Travelling to Infinity: My Life with Stephen, Jane shares how she sacrificed her own identity and career to support her prodigy husband, not just as his wife and the mother of their three children, but as his primary carer through A HER TIME TO SHINE: MAY 2 0 1 9 CEO MIDDLE E A ST 31 “Two years later, we went to Seattle for another conference where I had Ste- phen on one arm and a six-week-old baby on the other. None of our major travels appear in the film and I’m really disap- pointed about that. They said they were trying to squeeze 25 years into two hours so that wasn’t important. But I think there was a huge amount of work involved in that [travel].” Her tone isn’t bitter though, and the petite English author is empathetic as she shares her advice to women in cir- cumstances that lead them to shutdown their own ambitions. Trailing behind her husband for decades, Jane, 74, says she has “been through quite a few situations” when she felt her own personality was “suppressed”. “But I just had to keep going in that situation,” she says. “I had to persevere because it was my husband and my children who were at stake, and if I wasn’t there I just didn’t know what was going to happen to him. “And you know I’m glad I did because it’s given me such insights into the human condition. I’m very lucky because my perseverance has been rewarded and I am doing things in my own right, and I’m having a rewarding degree of recognition. “So my advice for people in difficult situations is: do try and be true to your- self, give as much as you can, but don’t let yourself be taken advantage of more than you’re capable. [And] remember that one day, your patience will be re- warded and then you’ll be able to shine.” Jane, who has also written Silent Music and Cry to Dream Again, advises wives who are playing second fiddle to their eminent husbands not to lose sight of their own gifts. “I think there are a lot of women in that situation,” she says. “I think any great man has single- track vision and his motivating force is his creativity – and the families do tend to get left behind. I think in this day and age, it’s actually possible for women to have a career of their own and they shouldn’t lose sight of their own poten- tial [and] creativity. And they should make sure that in a marriage, everybody is equal. You don’t put the scientist, the great writer, the great playwright, the great actor – you don’t put them on a pedestal.” She adds however: “I say that but whether it’s easy to put into practice, I don’t know. I didn’t find it very easy.” Now married to musician Jonathan Hellyer Jones, Jane says she is “very lucky” now to have a husband who is “caring and so supportive” of her work. As to why she’s kept her Hawking name after she remarried, she explains that it would be “an awful waste of time” to change it on her passport and documents. “Anyway, I don’t think my publisher would like that,” she jokes, but adds that the Hawking name is part of her person- ality and the name her children carry. Asked how she’d like to be remem- bered, Jane says: “Primarily of course as Stephen’s first wife, but also as somebody who did have her own personality and did have a life of her own.” “I THINK ANY GREAT MAN HAS SINGLE- TRACK VISION AND HIS MOTIVATING FORCE IS HIS CREATIVITY – AND THE FAMILIES DO TEND TO GET LEFT BEHIND” “I’M VERY LUCKY BECAUSE MY PERSEVERANCE HAS BEEN REWARDED AND I AM DOING THINGS IN MY OWN RIGHT” 76 Stephen Hawking’s age when he died, after being diagnosed with motor neuron disease at 22 Jane Hawking washed, clothed and fed her wheelchair-confined husband for 30 years32 C EO M I D D L E E A S T MAY 2 0 1 9 BUSINESS | THE INVISIBLE WOMEN perhaps with the exception of his third wife, Graca Machel – was as close to the legendary leader. Mandela and Le Grange were an unlikely pair. When they met in the mid- 1990s, South Africa had only recently emerged from decades of a brutal apart- heid system, and Mandela had only three years earlier been released after 27 years in prison. Le Grange, on the other hand, was a child of the apartheid system, a privi- leged white citizen brought up to believe that people like Mandela were inferior. She was, she now admits, a scared and bigoted proponent of the system that Mandela struggled so hard to topple. “Growing up, I believed that white people were the superior race. We were conditioned to believe so through our schools, churches and media which were censored to suit the apartheid regime’s propaganda of segregation and superior- ity,” she recalls. “We were driven by fear that the black majority are dangerous, vicious and hate white people.” Her relationship with Mandela, how- ever, changed her perspective forever. “I realised that I was indoctrinated,” Le Grange recalls, thinking back to the first years of her time at Mandela’s side. “I now recognise any human being for their humanity rather than focusing on our differences or what sets us apart. It was a long process of unlearning my thinking and questioning my beliefs, but necessary to arrive at clarity in my own mind.” Le Grange stayed with Mandela until his death in December 2013. Her memoir, Good Morning Mr. Mandela, was published the following year. Le Grange sees it as her mission to “humanise” one of the 20th century’s most notable statesmen and keep his legacy alive at a difficult time in her country’s history. “[Mandela] was a kind and gentle human being, but a strong, steadfast strategist and sometimes pragmatist,” she recalls. “He had human frailties like us all but made every attempt to ensure that he is aware of these and that his frailties never affected others…[because of him] I am much more aware of the people around me, their struggles and humanity.” Le Grange’s words come at a tough time for South Africa. In February 2018, President Jacob Zuma – a member of Mandela’s African National Congress OR 19 YEARS, ZELDA LE GRANGE WAS the quiet and crucial, but of- ten unsung, companion to South African leader Nelson Mandela. “He was a fair-minded humanitarian,” explains Zelda Le Grange, the late South African leader’s long-time personal secre- tary. “He irrevocably changed my thinking and outlook on life.” Beginning with her entry to the presidential typing pool in 1994, the two became even closer. Five years later, he handpicked her to remain in his service after he retired from office. Over the years, she was dubbed Mandela’s ‘rock’, his ‘right hand woman’ and even his ‘white granddaughter’. She became his aide-de-camp, manager, confidante and gatekeeper all rolled into one. Nobody – “I NOW RECOGNISE ANY HUMAN BEING FOR THEIR HUMANITY RATHER THAN FOCUSING ON OUR DIFFERENCES OR WHAT SETS US APART” F Brought up in apartheid-era South Africa, Le Grange changed her perspective after meeting Mandela NELSON MANDELA’S “RIGHT HAND WOMAN” IS ON A MISSION TO HUMANISE THE LEADER AND BRING HIS MESSAGE OF UNDERSTANDING TO A MODERN AUDIENCEMAY 2 0 1 9 CEO MIDDLE E A ST 33 – was forced to resign after nine dif- ficult years characterised by a struggling economy and corruption scandals. Three years earlier, Le Grange found herself in the crossfire after accusing Zuma’s gov- ernment of making white South Africans feel unwelcome. Looking back, she places the blame on the now defunct and discredited Bell Pottinger PR agency, which she accuses of running a smear campaign to “dis- credit people in South Africa and drive racial divisions. They have dismally failed at dividing us,” she says of the incident. “While there are still occurrences of racism, the majority of South Africans are at peace and learning to live together despite our hurtful past.” Despite the challenges, Le Grange remains confident that Mandela’s legacy will live on as long as South Africans continue to care. That confidence will be tested at the country’s upcoming election in May, which will see Zuma’s predeces- sor, Cyril Ramaphosa, attempt to main- tain the ANC’s majority. “They should never give up on South Africa. We are on our way to being the miracle nation that we are,” she says proudly. “We can turn things around and they must vote in the upcoming national elections to help secure a future for our country.” Will this happen? Le Grange thinks so; as Mandela showed the way. “Change is possible, as is the utter metamorphosis of one’s own thinking. It is possible to love irrespective of our differences.” Michelle Obama gave up her career as a lawyer to support her husband’s presidency Pioneering physicist Mitza Maric was the only woman in her class at university Lillian became a Disney Legend in 2003, for her contribution to The Walt Disney Company Zelda Fitzgerald personified the carefree, high- spirited ideals of 1920s America Le Grange, known as Mandela’s ‘white granddaughter’ stayed with the leader until his death wife of F. Scott Fitzgerald The Great Gatsby author F. Scott Fitzger- ald is said to have derived his writing in- spiration from his wife Zelda, often lifting excerpts from her diaries for his female characters, much against her will. While Zelda was also a writer, according to the Encyclopedia of Alabama, her husband “resented” her only novel. wife of Barack Obama In her recently published memoir Becom- ing, Michelle Obama shares how she gave up her much-loved job at the University of Chicago Medical Centre to support her husband’s campaign. Michelle, a Harvard-educated lawyer, also took a big step away from her career to play the role of first lady. wife of Walt Disney According to The Walt Disney Family Museum, Mickey Mouse might have been Mortimer Mouse if Lillian hadn’t inter- vened. She worked as Disney’s personal secretary and provided input on many of his ideas. Her career includes work as an ink artist on the film Plane Crazy. wife of Albert Einstein Einstein’s first wife Mitza was a bril- liant physicist, whose contribution to the theory of relativity is still under debate. Some contend she co-authored Einstein’s papers while others say she was just a sounding board. Regardless, her contri- bution as one of the world’s first female physicists cannot be ignored.34 C EO M I D D L E E A S T MAY 2 0 1 9 IN THE FIRING LINE A RAFT OF NEW UAE LEGISLATION MEANS FINANCE OFFICERS ARE INCREASINGLY COMING INTO FOCUS WHEN LEGAL CHALLENGES EMERGE, ESPECIALLY IN MATTERS RELATED TO TAXATION AX AND LEGAL EXPERTS IN THE UNITED ARAB EMIRATES (UAE) ARE FORECASTING a rise in the number of neg- ligence claims against chief financial officers (CFOs) and financial advisers in cases where issues are found with a company’s tax filings and disclosures. Between September 2016 and September 2018, the UAE introduced several new pieces of federal legisla- tion - laws, legislative decrees, cabi- net decisions and ministerial decrees - all of which included new elements related to taxation. T BUSINESS | TAX AND LEGAL BY MEGHA MERANI In 2017, the Tax Procedures Law was issued, followed by the Federal Decree-Law on Excise Taxation, and the Federal Decree-Law on Value Added Tax. A 5 percent value-added-tax (VAT) was implemented in the UAE from January 1, 2018, as part of gov- ernment efforts to diversify revenue streams under fiscal and economic reforms following the sharp drop in oil prices that started in mid-2014. “CFOs or senior executives re- sponsible for financials can be held MAY 2 0 1 9 CEO MIDDLE E A ST 35 “WITH THE POTENTIAL SCOPE OF DIRECTOR’S LIABILITY, BUSINESSES MAY WANT TO PLAN AHEAD AND VERIFY AGREEMENTS WITH DIRECTORS AND THEIR LIABILITY INSURERS” “I HAVE SEEN AND COUNSELLED ON MATTERS WHERE ERRORS BY FINANCIAL HEADS AND TEAMS HAS RESULTED IN, MILLIONS OF DIRHAMS IN TAX PENALTIES BEING APPLIED BY THE FEDERAL TAX AUTHORITY (FTA)” disbursements versus reimburse- ments, many of which could lead to litigation against CFOs and other executives, Abuwasel says. Thomas Vanhee, Partner at Dubai-based GCC tax firm Aurifer, says that businesses face very impor- tant risks in terms of their financial exposure when dealing with tax. “With the potential scope of di- rector’s liability, businesses may want to plan ahead and verify agreements with directors and their liability in- surers,” he says. POTENTIAL ACTION Even though, unlike in other jurisdic- tions, tax procedure laws in the GCC do not provide for a joint personal liability in respect of company direc- tors, executives, managers or any other officers who are responsible for the day-to-day management of the company, Vanhee says he “certainly expects” that the tax authorities will implement such a provision in the near future. “Tax authorities in the GCC have extensive powers and are legally entitled to apply very hefty fines,” he says, adding that the VAT regime should be considered in the day- to-day context of a business’ overall liability. The course of legal action a busi- ness can take against an executive is also based on the company’s struc- ture, Abuwasel says. “How the company takes recourse against a CFO depends on the form of the company, whether it is a joint stock company or limited liability company for instance, and also the position and authorities of the CFO,” the lawyer explains. “For example, if the CFO is a list- ed manager subject to the Commer- cial Companies Law, recourse would liable for negligence in managing tax disclosures that result in liabilities and/or penalties,” Mahmoud Abuwa- sel, co-founding Partner at law firm Bin Nakhira & Partners, tells CEO Middle East in an interview. “I have seen and counselled on matters where errors by financial heads and teams has resulted in mil- lions of dirhams in tax penalties being applied by the Federal Tax Author- ity (FTA). Companies can look into recourse against those responsible for financial affairs, in addition to the general manager or CEO, if negligence or gross negligence is established. “Tax filings are delicate and sensitive, with severe repercussions if not perfected properly, which would require payment of any penalties (i.e. 1 percent per day up to 300 percent of the due amount) before an appeal can be brought forth before the Tax Dispute Resolution Committee or the Federal Primary Court.” Errors include, for example, miscalculated time of supply, interna- tional transactions and mis-assigning Thomas Vanhee, Partner at Dubai-based GCC tax firm Aurifer Mahmoud Abuwasel, co-founding Partner at law firm Bin Nakhira & Partners36 C EO M I D D L E E A S T MAY 2 0 1 9 be taken by triggering the relevant provisions in that law. If the CFO is merely an employee, then recourse would be triggered by the Labour Law and the employment contract, and any internal rules and policies of the company. “This liability can also extend to the external financial advisers of a company if negligence is established. For example, in February 2018, the Dubai International Finance Centre Courts ruled on a matter brought forth against one of the big four in the Middle East for negligence and deceit in a claim filed by eleven claimants following charges by the US Drug Enforcement Administration and the US Treasury.” In February last year, CEO Mid- dle East’s sister title Arabian Busi- ness reported that Dubai Courts would proceed to examine the role of Deloitte and Touche (Middle East) in the collapse of Lebanese Canadian Bank (LCB) in light of charges brought against it by the US Drug Enforcement Administration and the US Treasury. In a landmark decision, a judge in the Dubai International Finance Centre Courts ruled that the claim against Deloitte and Touche (Middle East) (DTME) for negligence and de- ceit had a “real prospect of success” and should proceed to trial. The judgment extends potential liability for DIFC institutions, like DTME, for the acts or omissions of foreign agents in other jurisdictions. “Now, we see a similar situation bubbling with respect to Abraaj,” Abuwasel adds. Arabian Business reported last month that three former executives of the Dubai-based Abraaj Group – the firm behind the world’s largest private equity insolvency case – have been arrested on US criminal charges of allegedly mishandling $230m in investors’ money. The firm’s woes have critically put the Gulf ’s corpo- rate governance, as well as the role of auditing firms, in the spotlight. Big Four firm KPMG said last year that it had initiated a review into its audit practice and related corporate governance standards to determine how best to avoid incidents of the nature last year, where it’s statements have been accused of missing details that could have helped detect the alleged breach of fiduciary trust at Abraaj earlier. Abuwasel adds: “There is generally a concept of ‘auditing the auditors’, which does not exist in the region here and leaves third party accounting and, especially, bookkeeping service providers with little oversight – leav- ing recourse to those damages by their actions or omissions.” However, according to Auri- fer’s Vanhee, companies in the UAE and wider region have yet to prop- erly grasp the gravity of compliance breaches in matters of taxation. “Tax due diligences are currently largely absent in the GCC whereas in mature tax jurisdictions they are a very important part of any deal,” Vanhee explains. “This shows the lack of under- standing by the C-suite of the conse- quences of non-compliance. “In addition, budgets allocated to tax reviews or to recruit in-house tax experts are often largely insuf- ficient. A compliance culture should be part of the DNA of the business to avoid any risks. The pharma sector is a good example where the compliance standards are high.” BUSINESS | TAX AND LEGAL “TAX DUE DILIGENCES ARE CURRENTLY LARGELY ABSENT IN THE GCC WHEREAS IN MATURE TAX JURISDICTIONS THEY ARE A VERY IMPORTANT PART OF ANY DEAL”MAY 2 0 1 9 CEO MIDDLE E A ST 37 “TAX AUTHORITIES IN THE GCC HAVE EXTENSIVE POWERS AND ARE LEGALLY ENTITLED TO APPLY VERY HEFTY FINES” foreign-invested subsidiaries tend to either not engage any tax and legal consultants – due to cost pressure or a mind set of not paying for con- sultants at all – or opt for cheaper solutions such as tax agents render- ing advice on taxation matters,” he shares. “The last months have shown that this strategy has not paid off in many cases, leading to severe damages to the respective company. In my view, investors will need to readjust their approach, as they will realize that liabilities under the VAT law continue to accumulate. The measures that will be taken will range from replacing relevant managers to correcting past transactions and revising internal VAT procedures for the future.” Echoing the lawyer’s sentiment, Aurifer’s Vanhee stresses the impor- tant of vetting advisers. “Buyer beware,” he warns. “Important issues require skilled experts. Due to insufficient planning, some businesses had not allocated sufficient budget to tax compliance. Some business still have not under- stood its importance.” Appropriate advisers could be lawyers, accountants or economists, he says. Important questions to ask, Van- hee says, include: “Is the adviser a regular speaker? Is he well connected with other tax advisers? Has the ad- viser published articles on taxation? Does the adviser have any relevant tax experience?” He adds: “Tax legislation is complex and fast pace. Only advisers who devote themselves exclusively to taxation will be able to tackle the trickiest matters.” TAXATION IS A COMPLEX TASK Only advisers who devote themselves exclusively to taxation will be able to tackle the trickiest matters, says Aurifer’s Vanhee BEWARE OF ‘EXPERTS’ Dr. Constantin Frank-Fahle, Senior Lawyer at SCHLÜTER GRAF Legal Consultants, stresses that execu- tives need to be severely cautious when deciding on the experts they consult. He tells CEO Middle East: “Un- der the Procedural Law (Federal Law No. 7/2017 on Tax Procedures and its Executive Regulation No. 36/2017), tax agents can be registered, among other things, if they hold an accred- ited qualification and have at least three years of practical experience in either tax, qualified accounting or law. Experience shows, however, that while the formal requirements can be met, the advice they provide does not always meet the quality standards required to comply with the investor’s legal obligations.” Going with a bargain-priced option or attempting to make do without a consultant at all can lead to significant damage, Frank-Fahle adds. “I have also noticed that CFOs of Dr. Constantin Frank-Fahle. Senior Lawyer at SCHLÜTER GRAF Legal Consultants38 C EO M I D D L E E A S T MAY 2 0 1 9 SEO FOR CEOS AS BUSINESSES BATTLE FOR TOP RANKING ONLINE, LEADERS NEED TO ENSURE THEIR DIGITAL MARKETING TEAMS ARE ON TRACK BUSINESS | TECHNOLOGY I N THE CURRENT DIGITAL AGE, ENTERING the world of search engine optimisation (SEO) is no longer a consideration – it is a step all CEO’s must take in order to ensure successful and sustainable business development. During my time in the industry I have witnessed an array of topics and issues which should concern senior management of local and international businesses in terms of digital marketing. In general, a CEO’s attention to results should cascade down to all aspects of the business, both internally and externally. This focus on results must trickle down into the marketing departments’ output, otherwise we risk confusion between action and results. With the prominence of digital marketing for businesses set for further growth, the below shortlist of points provides every CEO with recommendations on focus areas to ensure marketing fundamentals are geared towards efficiency and effectiveness. FREE TOOLS HAVE THEIR USES, TO AN EXTENT Many services provide free tools, which deliver audience insights and increase brands’ visibility. However, for those focused on watching their business grow, it’s insufficient to rely purely on free tools in the long term. BY OLGA ANDRIENKO HEAD OF GLOBAL MARKETING, SEMRUSH.COMMAY 2 0 1 9 CEO MIDDLE E A ST 39 For example, whilst a free domain name works effectively for a personal blog, it does not foster confidence in potential clients, thereby hindering future growth. You would witness a similar effect if all accounts are driven purely through social networks, particularly if you offer professional value- added services. A WEBSITE IS MORE THAN JUST AN INFORMATION PORTAL Despite the amount of resources offered through the internet, it is astounding how many companies use their corporate website as a digital brochure with company information. While it is recommended to share who you are, what you offer and how you change the lives of your customers for the better with website visitors, a web page is much more than that. It is a strategic conduit to release company news. Websites are part of business development – they are a tool to attract prospects and customers. From a B2C point of view, clients are geared towards the end result and having their needs resolved. Therefore, while case studies and relevant company information should be shared, you cannot stop there; take advantage of the interactivity offered by the internet to connect with customers. DON’T LOSE YOUR FOCUS WHEN IT COMES TO WEBSITE DESIGN The process of creating a business’ first website is extremely exciting for everyone involved. However, using the creativity which comes from this excitement has pros and cons. When creativity is in overdrive, there’s a penchant to see pages linked to other pages, certain images to be used, the effect of parallax or animation, debates on typography – it’s easy for confusion to set in. In this climate, the website’s design becomes extremely stressful with an array of changes driven by usability concerns. Often, the project does not look exactly how it was originally envisioned. These delays have cost implications due to repeatedly having to pay website designers, but losing focus on what is truly important – that your website captures the interest of your audience – is arguably more expensive. To avoid these pitfalls, if you already have a ‘minimum viable site’ with basic features such as subscription forms and buttons, it may be worth maximising a low budget by investing in tools to assist in automating and optimising the browsing experience over enhancing the design. If you are considering further investment in your website, some of the first questions to ask are whether the intended changes are likely to attract more subscribers or customers. An option may be investing in animations to a slider or a tool that assists in making landing pages more optimised and orientated, in turn obtaining conversions. Another key element to consider during website design is to avoid including too many elements. If your page is too heavy and takes more than three-to-five seconds to load, visitors are more likely to head back to the search engine and move on to the next option. RESULTS STILL REQUIRE EFFORT AND TIME Solving SEO issues is key to long-term success and requires the investment of time – patience is a virtue here. When a visitor arrives at your site with zero previous knowledge of your brand or company, conversion will not be instant. In fact, with all the possibilities offered by the internet, the purchase process has actually become ‘slower’. People do not tend to impulsively buy online. These days people come to the store, see something they like, search the internet for the same product, compare recommendations from other buyers, investigate the specifications of that product, and then decide whether to purchase or not. With digital products or high-level professional services, more contact is usually required between the company and the customer to aid conversion. In this sense, providing a wider depth of knowledge of the product or service is vital. Supplying an E-book or newsletter, which can be consumed in a short time, can serve as the lead magnet to your target market and source vital data in the form of contact details. Following the initial contact between a potential customer and company, it’s vital to nurture that relationship with relevant content that is valuable to the prospect, (i.e.) position yourself as a solution to their problem. Properly investing in SEO and SEO tools will make all the difference. Do so wisely, and your results will speak for themselves. “DESPITE THE AMOUNT OF RESOURCES OFFERED THROUGH THE INTERNET, IT IS ASTOUNDING HOW MANY COMPANIES USE THEIR CORPORATE WEBSITE AS A DIGITAL BROCHURE”Next >