Since the global economic crisis which started to unfold in late 2008, the pace of recovery in the international economy has been moderate. In fact for this year, the advanced economies are projected to experience low to moderate growth. Significant growth is expected for emerging market economies such as China and India. It is now evident that the process of full recovery will be long and arduous.

Bank-of-Jamaica

During the period under review, Jamaica resumed its borrowing relationship with the International Monetary Fund (IMF). This was preceded not only by the negative impact of the global economic and financial crisis on the domestic economy, but also by a prolonged period of low economic growth as well as a high public debt. The IMF’s 27-month Stand-By Arrangement with Jamaica, in the amount of approximately US$1.27 billion, is expected to support the country’s economic reforms. Prior to the IMF Agreement, the Jamaican Government successfully implemented the Jamaica Debt Exchange (JDX). The intended effect of the JDX was to force interest rates down dramatically and thereby to reduce the country’s trillion dollar debt. The support from the IMF together with the successful completion of the accompanying conditionalities, are intended to return the economy to a path of sustainable growth.

Apart from the reduction in interest rates, for the 2010 financial year, other positive economic indicators for the domestic economy include the moderation of annual inflation rates in line with expectations, a relatively stable foreign exchange market and also an increase in the Net International Reserves. Notwithstanding these positive indicators, the unemployment rate remains high at 12.4% and growth in real Gross Domestic Product continues to elude the country. Some analysts hold that it is not possible to pursue development by a focus on economic indicators only. Their belief is that social and economic development must complement each other. For them, Jamaica cannot achieve macro-economic stability with the social structure currently in place; consequently, the country for many years has been plagued by anemic growth.

Commenting on the Sagicor Group’s Operating Results for 2010 President and CEO Richard Byles (#8) offered the following analysis of his company. “Consolidated Total Revenue of $25.66 billion was 8% below that for 2009, principally due to the effect of 2009 revenue from discontinued operations – divestiture of a Cayman subsidiary, but also the impact of lower interest rates and unrealised exchange losses in 2010 and contributions from a large single premium contract in 2009. New insurance sales stayed strong across all lines of business and contributed to a healthy growth in Net Premium Revenues, when the effect of the large single premium contract in 2009 is excluded. Net Investment Income in the current year was affected by lower interest rates but at the same time benefited from significant realized capital gains. Unrealized foreign exchange (FX) losses from a strengthened J$ and weaker Euro depressed the category “Fees, Commissions and Other Revenues”. At the same time, the Banking Group expanded its fee based revenue business.”

Bruce Bowen President and CEO Scotia Group Jamaica Ltd

Bruce Bowen President and CEO in 2010, Scotia Group Jamaica Ltd. (Scotia Group) report to shareholders reported that “The Group demonstrated its resilience and commitment to our customers and shareholders as; once again, we achieved strong financial results. These were achieved despite significant challenges posed by weak loan demand, declining credit quality due to the continuing recession, rising unemployment during the year, and lower interest rates precipitated by the Jamaica Debt Exchange (JDX) programme in February.

In his report to shareholders Chairman and CEO Douglas Orane (He announced on December 14, 2010, that Mr. Don Wehby will be appointed as Group Chief Executive Officer effective July 1, 2011, at which time he would assume the position of Executive Chairman) offered that

Douglas Orane, Executive Chairman of GraceKennedy Limited, a position he assumed on July 1, 2011

“During 2010, the world economy continued to be characterised by uncertainty despite signs of recovery while economic activity in the local economy remained sluggish. The GraceKennedy Group maintained focus on the needs of our customers enabling a creditable performance, with some of our major business segments showing improved results compared to the prior year. There were, however, other business segments that had disappointing results. In keeping with the Group’s objective of improving returns for our shareholders, the dividends paid in 2010 were $1.35 compared to $1.15 in 2009, an increase of 17.4%. The frequency of dividend payments was also increased to three per year from the traditional two per year. Our Group Revenues for 2010 were $55.3 billion, a decrease of 3.6% when compared to the prior year of $57.4 billion. The Net Profit Attributable to owners of the company was $2.25 billion, representing a 12.6% decrease compared to $2.57 billion for 2009.”

Richard Byles Chairman of Desnoes and Geddes offered this explanation for the results of his company. “The last financial year was a particularly difficult one for Desnoes and Geddes Limited due primarily to the severe economic compression of the Jamaican economy, with Gross Domestic Product falling by 1.6% in the reporting period. This contraction was a result of the global recession generally and more specifically the impact of two large consumer-focused tax packages and the Jamaica Debt Exchange (estimated to have removed J$80B of purchasing power from the economy on an annualized basis). This difficult economic environment was made even worse by the discriminatory SCT regime, which was introduced in March 2009 and served to make our primary products less price competitive when compared with other alcohol beverages. This new regime is counter to what pertains in most other markets where products are taxed on their percentage of alcohol by volume, regardless of type or description. However, the imposed system of taxation in our market favors beverages with higher levels of alcohol content and penalizes beers and stouts with rates as much as 1,000 per cent more than tonic wine………………… Our net profit for the reporting period was $789 million, 49% less than the year before. Turnover of $13,332 million was a decline of 1%, the result of weaker volumes.

Grantley Stephenson President and CEO of Kingston Wharves Limited (KWL)

But what of the CEO’s who performed in this same environment and made the top 10 list. In his report to shareholder Grantley Stephenson President and CEO of Kingston Wharves Limited (KWL), pointed to improvements in productivity as a major factor in the results achieved. “In the face of increases in volumes across most cargo types handled by the port, productivity was successfully maintained, and in some areas exponentially improved. Twenty-foot Equivalent Units (TEUs) handled increased by 25% or 51,198 over 2009 while maintaining productivity at 21 Average Container Moves per hour in 2010.”

Stephenson also cited containment of cost as another key factor in the company performance.” In response to the rising cost for inputs such as fuel and electricity, KWL continued to enforce several measures to contain costs such as tighter monitoring of purchases and the awarding of contracts. The Company continued its conservation efforts and energy efficient practices in 2010 and will culminate in an overall energy audit in 2011 and the necessary action plan developed and implemented.”

Christopher Barnes , President and CEO Gleaner Company Limited

By his own account and reports Oliver Clarke credits Christopher Barnes with the improved financial performance of The Gleaner in 2010. This performance saw a Gleaner CEO making The Top 10 List for the very first time at number 3.

After four years as deputy managing director, Christopher Barnes final moved up and officially assumed the top job at the Company on February 1 2011, with Oliver Clarke, announcing that he was stepping down on January 31.

Clarke, who has served as the company’s managing director for 34 years, would remain chairman of the board of directors.”I will still be around and will be doing duties that Chris (Barnes) and I have agreed on,” said Clarke as he thanked the staff for their support and friendship over the years.

In his annual report to shareholders Barnes commented that, “We have closed out 2010 with much to celebrate having been successful in keeping a tight rein on our costs allowing your company to report fairly good financial results boosted by pension fund related income. The profit of the Group from continuing operations for 2010 improved by over $270 Million when compared to 2009. Trading profit for 2010 was $211M and showed an improvement of $3M over 2009. The company’s year-end balance sheet remains strong, shows a healthy working capital base and remains virtually debt free. We fought to the wire with our sales efforts, which helped to partially offset earlier revenue shortfalls.”

Jeffrey Hall, Group Managing Director of Jamaica Producers Group

Jeffrey Hall makes his very first appearance on the list and also marks the first time for a Jamaica Producers CEO. Appointed Group Managing Director of Jamaica Producers Group in July 2007 after joining the Board in 2004 and joining the Group in 2002, the appointment saw him replacing his father Dr. Marshall Hall, who has retired.

Less than four months into his appointment he announced sweeping management changes at Jamaica Producers, saying it was in keeping with the turnaround plan he was guiding. “We are confident that the group has adopted the right long-term strategy for building shareholder value and that the priorities for the senior-management team going forward were around effective execution of that strategy,” said Hall at the time.

Hall was on a mission to reshape Producers into a company less dependent on its traditional banana business and more focused on building out its processed and fresh-food segment as a growth market. Hall was taking steps to realign both businesses towards growth opportunities as neither of them was delivering a satisfactory level of performance. The Serious Food Group consists of JP’s juice and smoothie, fresh desserts, soups and chilled distribution businesses in the United Kingdom. Producers Holdings is the vehicle created for JP’s farming, logistics and snack-food businesses.

William McConnell making his return to The Businessuite Top 10 at number 5, following a

Hon. William McConnell former Managing Director Lascelles, deMercado & Co. Ltd

number 1 ranking in 2006 and 14 for 2008 indicated in his report to shareholder that “The Group Statement of Comprehensive Income shows that for the financial year ended September 30, 2010, the Group returned Operating Revenues of $25,974.7 million and a Profit Before Tax (PBT) of $3,589.0 million. Compared to the previous year, the Group achieved both revenue growth as well as an increase in profitability. Operating Revenues increased by $1,062.4 million or 4.3% whilst PBT increased by $722.9 million or 25.2%.

But it was a series of events starting with the announcement that came on 20^th May 2011 from The Board of Lascelles, deMercado & Co. Ltd announcing that, consequent upon the retirement of Hon. William McConnell as its Managing Director effective June 30, 2011, it had appointed Mr. Fraser Thornton, a director of Lascelles, deMercado & Co Ltd., as Managing Director, effective July 1, 2011. This as we now realize was part of a master plan to reclaim the company he lead for many years from the trouble it was now facing. It is argued my some that as the CEO who lead the sale of the company to the Duprey lead CL Financial Group it was his duty and responsible to bring it back from the brink of destruction and salvage his legacy.

Gerald Yetming, Chairman of The Board of Lascelles, deMercado & Co. Ltd is his 2010 report to shareholders sought to calm fears and doubts by making the following statement “The promise in last year’s statement that there would be no fire sale of CL’s assets has been fulfilled. This remains the case. You may be assured that all decisions affecting your Group or any part of it will be taken by your Board, acting in the best interests of your Group.”

On Friday July 29, 2011 the master plan began to unfold as William McConnell was back in the news leading a group of investors including Pan-Jamaican Investment Trust engineering a takeover of Lascelles deMercado, three years after a majority stake was sold to Trinidad and Tobago’s CL Financial group.

The entity to be used by McConnell for the takeover is Black Sand Acquisition Inc, a company registered in St Lucia and chaired by McConnell. The intrigue and chess like strategic moves now underway for what is now referred to as a hostile take over is the kind of plot and story line that movies like Wall Street and Barbarians at the Gate are made of.

Patrick Hylton Group President and CEO of National Commercial Bank Group – Jamaica

Patrick Hylton Group President and CEO of National Commercial Bank Group – Jamaica

continues to amaze and defy the odds delivering spectacular performances year over year. He is the only CEO to maintain a consistent presence on The Top 10 List since inception in 2005. His highest ranking been number 4 for 2006 and truly represents the essence of The List.

Hon. Michael Lee-Chin OJ Chairman in his opening statement to shareholders says it all “I am sure I speak on your behalf when I say that our organization has demonstrated its capacity to sustain itself and to continue delivering value during a financial year when challenges were many and success was difficult. The growth in profitability could not have happened by accident; it was indeed the result of the proactive and prudent management of the Patrick Hylton-led team, guided by the supportive oversight of our Board. I thank the directors, executives and all other employees for their contribution to the financial year’s results.”

Donovan Perkins at PanCaribbean Financial Group makes his second appearance on the

Donovan Perkins President and CEO PanCaribbean Financial Group

list at number 7 following a number 8 showing in 2006. In his 2010 report to shareholders he commented that, “2010 was a year where we continued to demonstrate and build on our brand vision, to be loved by our customers…and admired by our competitors. Despite a challenging market, we grew while many financial market players saw adverse operating results. For the 10th consecutive year, PanCaribbean has reported record profits, one of only two companies listed on the Jamaica Stock Exchange that have achieved this remarkable and consistent performance over the past decade.” BM