Lee, who passed away on Monday, stepped down as the group’s chairman and passed the baton to his sons, Martin Lee Ka Shing and Peter Lee Ka Kit, in 2019 through a notably uneventful transition, according to the South China Morning Post.
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Lee Shau Kee, center, chairman of Henderson Land Development, and his sons Peter Lee Ka Kit, right, and Martin Lee Ka Shing, left, attend the 44th Annual General Meeting of Henderson Land Development in Hong Kong, China, May 28, 2019. Photo by Oriental Image via Reuters |
But while smooth successions at family businesses are common, they are never easy, according to Marleen Dieleman, who heads research at Singapore’s IMD Business School.
Leading up to Lee’s retirement, the family had spent decades preparing for succession to ensure a seamless transition, Bloomberg reported, citing Jeff Yau, a Hong Kong-based analyst at DBS.
“They have a professional management team which has taken care of the business for over 30 years,” he said when the transition took place in 2019.
At the time, Lee also mentioned that he had remained in the background and allowed his sons to take charge for years before he felt assured enough to transfer control.
The role of each brother was clearly defined, with Peter, the older one, handling business in mainland China and Martin, the younger one, overseeing Hong Kong, reflecting their distinct personalities.
“Peter is flexible and Martin is practical,” Lee said while explaining their responsibilities. “They have all along a good division of responsibilities.”
The late patriarch also stayed on as director to provide inputs on major matters.
Additionally, Henderson disclosed the appointment of his two sons as co-chairmen and co-managing directors months in advance to give the market ample time to adjust to the change and minimize disruptions.
Still, the transition may not have happened as soon as he intended, as by the late 1990s, he was losing patience with his successors, according to the New York Times.
In 1998, he shared with Hong Kong journalists that Peter was still not prepared to lead the family business despite a decade of training, noting that he was merely earning a “passing grade.”
Around the same time, investors and analysts were skeptical about Martin, who had to move past his youthful enthusiasm for sports cars and nightlife. Nonetheless, both sons ultimately earned his trust.
Among Hong Kong’s big four property conglomerates, which also include CK Hutchison Holdings, New World Development and Sun Hung Kai Properties, Henderson was the last to transfer leadership to the next generation.
The Cheng family of New World Development similarly experienced a smooth handover in 2012 while Victor Li, son of Hong Kong’s richest man Li Ka-shing, took over as chairman of CK Hutchison Holdings a year before Lee’s retirement.
In contrast, the Kwok family at Sun Hung Kai faced succession challenges much earlier after the death of its patriarch Kwok Tak-seng in 1990.
By the time of Lee’s passing, he was the second-richest person in Hong Kong and his net worth was estimated at US$30 billion.
He was once the richest person in Asia in 1996 and 1997 and the fourth wealthiest globally in 1996. He is also known for his vast philanthropic legacy.
