Robb Report - 08.2019

(Darren Dugan) #1
GUTTER CREDITS

For others, dissatisfaction with politics
in their home countries is the driver.
Monty Python actor John Cleese has
moved to St. Kitts and Nevis in protest
of what he calls Britain’s toxic political
culture following the Brexit referendum.
“It’s one of the nicest islands I’ve ever
been on,” he told a British news show.
“The relationship between the races is
absolutely superb.”
Escaping hefty personal and
corporation tax and capital controls is
another draw. Many of the Caribbean
islands that sell passports are also low-tax
offshore financial centers, notably Antigua
and Barbuda, Dominica, Grenada, St. Kitts
and Nevis, and St. Lucia. Citizenship can
help a tax lawyer make the case that you
don’t owe money in other jurisdictions,
although lawyers point out that to change
your tax residency and take full advantage
of a low-tax domicile, you have to spend
a considerable amount of time in your
new home—more than in the jurisdiction
whose taxes you are trying to avoid.
Most countries that sell passports do not
require buyers to spend more than a week
a year in the country.

T


he system of buying a passport is
complex and varies from nation
to nation, and an applicant
generally needs an advisor, approved and
licensed by the relevant government.
The best known is Henley & Partners,
run by Christian Kaelin—dubbed “the
Passport King”—a Swiss lawyer, author
and businessman who single-handedly
created the modern global passports-
for-sale business by spotting the market
opportunity and then working with
governments to create sales schemes.
Governments typically investigate
applicants, using external agencies,
including Interpol. If approved,
applicants have different ways to pay:
Hand over a onetime contribution
to the national treasury, invest in a
local business, or invest in local real
estate, which, usually after a five-year
holding period, they are free to sell.
Nonrefundable fees range from $35,000
per application in the Caribbean to
$560,000 in Austria. The process typically
takes six months.
For the countries that sell passports,
especially the smaller Caribbean islands,
those fees can really add up. Take
Antigua: More than $400 million has
been generated there through citizenship
investment, which represents about 15
percent of annual government revenue
and 20 percent of all foreign investment.
Speaking in the boardroom of his office,
which overlooks Buckingham Palace,
Kaelin describes the passport trade as
“globalization at its best.”

The Business

in just eight years, McLaren Automotive has emerged as
a major player in the highly competitive supercar market,
and the driving force behind its impressive performance
is industry veteran Mike Flewitt. Having started his career
more than 30 years ago on the Ford production line near
Liverpool, England, he was named CEO of McLaren
Automotive in early 2012. During his tenure, the company
has seen annual increases in both its production (it built
its 20,000th hand-assembled car this year) and its global
profits. In 2018 alone, total sales (comprising 4,806 cars)
were up nearly 44 percent from the previous year. Flewitt’s
leadership style and genuine love of the business have
played a large part in the brand’s wildly successful ride.
VIJU MATHEW

What’s the one thing
you have to do every day to
stay sane?
When I arrive at the office,
I have to have time on my
own to review the day,
confirm that the diary and
my priorities are in line. At
the end of the day, I simply
want to have dinner with
my wife.

Your biggest annoyance
at work?
I dislike having to ask twice
for something to be done. I
am always happy to explain
and discuss. I sometimes
wonder if being polite and
asking is misunderstood
for making it optional, but I
regard politeness as part of
the basic respect we should
show all our colleagues.

What do you look for in
an employee?
Passion and commitment.
I expect everyone on the
team to do what it takes to
deliver the goals we set.
Anything less lets down
the team.

How long should a
meeting last?
As long as needed. Some

meetings are simply
communication that is
better delivered in person
rather than by electronic
means, but many are about
discussion, listening,
debating different views to
align on the best approach.

Email, text or phone?
I like email.

One adjustment everyone
can make in their lives to be
more successful?
Consider if you are doing
what you want to do. I
measure personal success
on how happy I am and not
by how much I earn. I take
great pride in the business
and feel a real part of what
is happening at McLaren.

What’s the best advice you
were given?
If you are doing the right
thing, persevere—it will
turn out right. You just do
not always know what the
right outcome is.

What would you tell your
younger self?
Enjoy the journey. I am 57
and have been in the
automotive industry for 36

years and love it. I have
friends now retiring
and I just want to keep
being part of what I enjoy
so much.

One thing you want to
improve in your work life?
My fitness. I have always
worked out in some way or
other, but it’s the first
thing that gets canceled to
create more time.

Do you have a favorite app?
Apple News. Some days it’s
the only news I read. I can
configure it to give me
news about the issues I’m
interested in.

What was your first job, and
what did you learn from it?
I worked on the production
line at Ford’s vehicle
assembly plant in
Liverpool. You learned to
build relationships to
survive. It was a pretty
tough industry at shop-
floor level at that time, but
the same advice is true
now—just in a different
context.

What is your daily driver?
The McLaren 600LT.

Out of Office with


MIKE FLEWITT
CEO OF McLAREN AUTOMOTIVE

ROBBREPORT.COM 131


G2G_Aug_BIZ_Passport.indd 131 7/3/19 12:25 PM

For others, dissatisfaction with politics
in their home countries is the driver.
Monty Python actor John Cleese has
moved to St. Kitts and Nevis in protest
of what he calls Britain’s toxic political
culture following the Brexit referendum.
“It’s one of the nicest islands I’ve ever
been on,” he told a British news show.
“The relationship between the races is
absolutely superb.”
Escaping hefty personal and
corporation tax and capital controls is
another draw. Many of the Caribbean
islands that sell passports are also low-tax
offshore financial centers, notably Antigua
and Barbuda, Dominica, Grenada, St. Kitts
and Nevis, and St. Lucia. Citizenship can
help a tax lawyer make the case that you
don’t owe money in other jurisdictions,
although lawyers point out that to change
your tax residency and take full advantage
of a low-tax domicile, you have to spend
a considerable amount of time in your
new home—more than in the jurisdiction
whose taxes you are trying to avoid.
Most countries that sell passports do not
require buyers to spend more than a week
a year in the country.

T


he system of buying a passport is
complex and varies from nation
to nation, and an applicant
generally needs an advisor, approved and
licensed by the relevant government.
The best known is Henley & Partners,
run by Christian Kaelin—dubbed “the
Passport King”—a Swiss lawyer, author
and businessman who single-handedly
created the modern global passports-
for-sale business by spotting the market
opportunity and then working with
governments to create sales schemes.
Governments typically investigate
applicants, using external agencies,
including Interpol. If approved,
applicants have different ways to pay:
Hand over a onetime contribution
to the national treasury, invest in a
local business, or invest in local real
estate, which, usually after a five-year
holding period, they are free to sell.
Nonrefundable fees range from $35,000
per application in the Caribbean to
$560,000 in Austria. The process typically
takes six months.
For the countries that sell passports,
especially the smaller Caribbean islands,
those fees can really add up. Take
Antigua: More than $400 million has
been generated there through citizenship
investment, which represents about 15
percent of annual government revenue
and 20 percent of all foreign investment.
Speaking in the boardroom of his office,
which overlooks Buckingham Palace,
Kaelin describes the passport trade as
“globalization at its best.”

The Business

injusteightyears,McLarenAutomotivehasemergedas
amajorplayerinthehighlycompetitivesupercarmarket,
andthedrivingforcebehinditsimpressiveperformance
isindustryveteranMikeFlewitt.Havingstartedhiscareer
morethan30yearsagoontheFordproductionlinenear
Liverpool,England,hewasnamedCEOofMcLaren
Automotiveinearly2012.Duringhistenure,thecompany
hasseenannualincreasesinbothitsproduction(itbuilt
its20,000thhand-assembledcarthisyear)anditsglobal
profits.In2018alone,totalsales(comprising4,806cars)
wereupnearly44percentfromthepreviousyear.Flewitt’s
leadershipstyleandgenuineloveofthebusinesshave
playedalargepartinthebrand’swildlysuccessfulride.
VIJUMATHEW

What’stheonething
youhavetodoeverydayto
staysane?
WhenIarriveattheoffice,
Ihavetohavetimeonmy
owntoreviewtheday,
confirmthatthediaryand
myprioritiesareinline.At
theendoftheday,Isimply
wanttohavedinnerwith
mywife.

Yourbiggestannoyance
atwork?
Idislikehavingtoasktwice
forsomethingtobedone.I
amalwayshappytoexplain
anddiscuss.Isometimes
wonderifbeingpoliteand
askingismisunderstood
formakingitoptional,butI
regardpolitenessaspartof
thebasicrespectweshould
showallourcolleagues.

Whatdoyoulookforin
anemployee?
Passionandcommitment.
Iexpecteveryoneonthe
teamtodowhatittakesto
deliverthegoalsweset.
Anythinglessletsdown
theteam.

Howlongshoulda
meetinglast?
Aslongasneeded.Some

meetingsaresimply
communicationthatis
betterdeliveredinperson
ratherthanbyelectronic
means,butmanyareabout
discussion,listening,
debatingdifferentviewsto
alignonthebestapproach.

Email,textorphone?
Ilikeemail.

Oneadjustmenteveryone
canmakeintheirlivestobe
moresuccessful?
Considerifyouaredoing
whatyouwanttodo.I
measurepersonalsuccess
onhowhappyIamandnot
byhowmuchIearn.Itake
greatprideinthebusiness
andfeelarealpartofwhat
ishappeningatMcLaren.

What’sthebestadviceyou
weregiven?
Ifyouaredoingtheright
thing,persevere—itwill
turnoutright.Youjustdo
notalwaysknowwhatthe
rightoutcomeis.

Whatwouldyoutellyour
youngerself?
Enjoythejourney.Iam 57
andhavebeeninthe
automotiveindustryfor36

yearsandloveit.Ihave
friendsnowretiring
andIjustwanttokeep
beingpartofwhatIenjoy
somuch.

Onethingyouwantto
improveinyourworklife?
Myfitness.Ihavealways
workedoutinsomewayor
other,butit’sthefirst
thingthatgetscanceledto
createmoretime.

Doyouhaveafavoriteapp?
AppleNews.Somedaysit’s
theonlynewsIread.Ican
configureittogiveme
newsabouttheissuesI’m
interestedin.

Whatwasyourfirstjob,and
whatdidyoulearnfromit?
Iworkedontheproduction
lineatFord’svehicle
assemblyplantin
Liverpool.Youlearnedto
buildrelationshipsto
survive.Itwasapretty
toughindustryatshop-
floorlevelatthattime,but
thesameadviceistrue
now—justinadifferent
context.

Whatisyourdailydriver?
TheMcLaren600LT.

Out of Office with


MIKEFLEWITT
CEO OF McLAREN AUTOMOTIVE

ROBBREPORT.COM 131

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