Copying and distributing are prohibited without permission of the publisher
We are devo
01 April 2001
AES' decentralized structure has bred unprecedented profits ?
even in high risk markets. Why does AES go right where others go wrong? Taimur Ahmad talks strategy with AES CFO Barry Sharp and AES Enterprise President John Ruggirello.
Read more:
[BOT]
[project finance]
[project finance]
[non recourse]
[limited recourse]
The AES approach slashes through conventional power industry
management thinking ? a strategy rooted in a radically
decentralized corporate structure, quite unlike that of most other
industry contenders.
To begin with, no investment is centrally coordinated; executives
in the field make almost all their own decisions; their
decentralized management structure gives them a flexibility that
has created some of the highest returns on equity in the industry.
In fact, the company's return on equity has averaged 20% annually
over the last five years, a trend that AES predicts will continue,
and its market capitalization puts it around $28.5 billion.
Moreover, each project is treated as a separate business. Explains
Barry Sharp, AES' CFO, ?the principle which is really fundamental
to our discipline and which we've stuck to since the beginning is
evaluating and thinking about each business on its own terms.?
What this means in practical terms is investing...
Take a free website trial to read this article. It’s easy to get a trial – just follow this link or email info@projectfinancemagazine.com.
Or, if you’re a subscriber or have an active trial, simply log in below to read the article.
Subscribe
Subscribers have unlimited access to all current and archive content. Start your
subscription today - click on the button below.
Subscribe
Free trial
Taking a free trial will give you access to the latest news and analysis, as
well as the online deals database, BenchBase. Start your free trial today.
Free Trial