The China Post news staff
Dr. Frank Stangenberg-Haverkamp, chairman of the executive board and family board of E. Merck KG, the holding company of the science and technology company Merck Group, shared the Family’s secret to success to over one hundred Taiwanese business representatives and entrepreneurs at the PwC Symposium on June 20, in Taipei.
Merck will be celebrating its 350 years anniversary next year. Being the oldest pharmaceutical and chemical company in the world, the company’s unique corporate governance system plays a key role for its sustainable growth.
With more than 50 thousand employees operating business in 66 countries and over € 15 billion annual turnover in 2016, the German based tercentennial company has overcome the challenges with industrial revolution, two World Wars, hyperinflation and the era of globalization. Today Merck is stronger than ever, enabling new technologies in the digital age, solving the toughest problems in life science and discovering new treatment to improve human lives.
Combining the Best of Two Worlds
Merck has adopted a special corporate structure in which the Merck Family holds 70 % ownership of Merck KGaA, through E. Merck KG holding company, the remaining 30 % is publicly traded at the German Stock Exchange and in the DAX 30 Index. A unique governance system allows the Family to maintain its culture and focus on long term mission and goals. On the other hand, as a listed company, Merck complies with public trading regulations for financial transparency. As a result, the company aims on creating benefits for its investors, and at the same time is bold in investing into long term, cutting edge technologies.
Strict Separation of Ownership and Corporate Governance Different from many family owned businesses, Merck Family members are not assigned to management position or even work at Merck KGaA. It is a mandate that the Family does not interfere with day-to-day business in the company, but as the owner, they make the decision for Merck KGaA Executive Board positions and ensure that the long term vision is aligned.