th
ou
ght (^) le
ad
er
137
I
t is odd, perhaps, that Jean-Dominique Senard is not already a household
name among global business leaders. But that is beginning to change this
year. On May 17, Senard, who is 66, retired from a role he has held for seven
years, as chief executive of Compagnie Générale des Établissements Mi-
chelin. In January, he was elected chair of Renault; in March, he became board
chair of the Renault–Nissan–Mitsubishi alliance, the industry leader in auto sales
(and a top producer of electronic vehicles). The alliance has been in visible tur-
moil since its former chair and CEO, Carlos Ghosn, was arrested in Japan in
November 2018, on charges related to appropriation of funds. Senard’s first
months involved efforts at reconciliation and a proposed (but unaccepted) merg-
er with Fiat Chrysler.
Senard’s accomplishments at Michelin include a doubling of shareholder
value during his tenure. This was an especially noteworthy feat for a 130-year-old
premium tire company — the world’s second-largest by revenue, after Bridges-
tone — in a highly competitive, discount-oriented business. Senard also led the
company through a digital transformation, fueled by a series of shrewd acquisi-
tions, establishing it as a proficient innovator in materials, tire design, and analyt-
ics. For example, Mich elin uncorked a new revenue stream from advanced tech-
nology for trucking and logistics, using cloud-based networks of sensors to
monitor vehicle performance, shipment locations, and transport conditions
around the world.
While Senard settles into his new role at Renault–Nissan–Mitsubishi, his
other signature issue — a high-minded, passionately held perspective on the pur-
pose of corporations — is being tested in a separate context. In April 2019, the
French parliament approved a corporate governance framework called PACTE
(Plan d’action pour la croissance et la transformation des entreprises). This frame-
work was partly inspired by a report coauthored in early 2018 by Senard and
Nicole Notat, the president of Vigeo Eiris, a French not-for-profit agency that
rates corporate practices on nonfinancial measures. The report focused on the
role of corporations in relation to the common good, encouraging them to take
on social and envi ronmental responsibilities alongside their commitments to
profits and shareholder returns.
Senard recognizes that if his approach to corporate governance catches on