Robb Report - USA (2019-08)

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

morethan 30 yearsagoontheFordproductionlinenear

Liverpool,England,hewasnamedCEOofMcLaren

Automotiveinearly2012.Duringhistenure,thecompany

hasseenannualincreasesinbothitsproduction(itbuilt

its20,000thhand-assembledcarthisyear)anditsglobal

profits.In 2018 alone,totalsales(comprising4,806cars)

wereupnearly 44 percentfromthepreviousyear.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

automotiveindustryfor 36

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

MIKE FLEWITT

CEO OF McLAREN AUTOMOTIVE

ROBBREPORT.COM 131