Insights From the 10th Annual Energy CEO Breakfast

CEOs in the energy industry are grappling with a myriad of challenges—from rising capital costs, to inflation, to margin pressures, to geopolitical uncertainties, to shifts towards renewables and alternative energies. At the heart, these issues require human answers, and leaders who are adaptable and courageous to steer through them, leading their companies to a pathway of sustained growth.

Discussions around the leadership requirements to thrive as a CEO in the energy industry took center stage during Egon Zehnder's 10th Annual Energy CEO Breakfast in Houston. The event, led by consultants Trent Albaugh, Partner and panel moderator, Carol SingletonSlade, Global Energy Practice Leader, Elias Margonis and Alex Payne, featured insightful discussions with esteemed panelists:
 

• Jim Fitterling, Chair and CEO of Dow and NED at 3M 
• Jim Hackett, Chair of SLB and Nuscale Power and NED at Fluor Corp and Enterprise Products Partners 
• Vicki Hollub, President and CEO of Occidental Petroleum and NED at Lockheed Martin 
• Michael Lewis, CEO of Uniper and NED at United Utilities Group Plc 
• Miguel Stilwell d’Andrade, CEO of EDP  

Read on for the main takeaways from the conversation: 

Transformation is inevitable for CEOs, but it’s crucial to remain authentic amid change. Leaders must evolve without losing sight of their core values and identity. Staying connected with employees, customers, board, and investors will provide critical input in decision-making, but it’s also important to not forget the lessons you learned that got you to the CEO seat.  

As one participant highlighted, the cornerstone to effective leadership and personal development lies in inner work— especially in the spotlight of the CEO role where every action is scrutinized. “Continue to be true to yourself. There is always unintentional transformation. Become better leaders with time,” one CEO highlighted. While exposure brings both opportunities and challenges, when CEOs embrace their truth, decisions and actions resonate with integrity.  

What you say, but more importantly, what you do, will be closely watched by the organization. As another participant emphasized, the visibility as a CEO is magnified exponentially. People watch if leaders follow through on their words. Being authentic in all communication coming from the CEO builds trust and credibility both internally and externally.  

As some of our Egon Zehnder colleagues recently wrote, “Authenticity generates respect and builds loyalty, and it invites the sense of belonging and inclusivity so needed to attract and retain top talent today.” A global study by Egon Zehnder in partnership with Kearney found that employees from across generations value leaders who are transparent and open in their decision-making and intentionally listen to and empower others. At our breakfast, this sentiment resonated. As one CEO highlighted, “Don’t forget that it’s about the people who work with you. Stay connected. There is gap between what you are trying to do and what's happening.” 

Preserving core cultural elements while embracing new perspectives is a critical component to a successful acquisition. Leadership teams must focus on what’s best for the new enterprise, combining the strengths of each organizational culture. Not only does this create a smoother transition, but a strong company culture is one of the best ways to attract and retain talent. 

When pockets within the acquired organization share a similar culture, it fosters a smoother integration process, with employees more inclined to embrace the new organizational structure. Additionally, a committed leadership team plays a pivotal role in removing bureaucratic barriers and facilitating a conducive environment collaboration and adaptation. By leading with integrity and modeling the behaviors expected of employees—in other words, the organizational culture—leaders can establish a foundation of trust and accountability.  

Success lies in bridging the gap between leadership decisions and frontline realities. Leaders must prioritize the well-being and development of employees at all levels of the enterprise, recognizing that people are the most valuable resource and their success is intertwined with the success of the organization. As a CEO put it: “You can’t be smartest person in the room. As a leader, it is your role to enable people to bring their best personal and professional self to work.” 

This also takes diversity, equity and inclusion (DEI) into account, making it clear that inclusion doesn’t come at the expense of merit—when CEOs focus on creating environments where multiple perspectives are heard and valued it benefits the entire organization. 

Navigating energy transition challenges requires a balance between long-term plans and short-term actions. Policy alignment and strategic planning are essential for meaningful progress. Master plans coupled with agility in forming partnerships will pave the way for a sustainable future. While it has been a more difficult road for energy companies in Europe due to regulatory uncertainty, the Inflation Reduction Act (IRA) has helped to position the United States to develop both short and longer-term energy transition strategies. 

These key takeaways encapsulate the essence of our discussions and serve as guiding principles as we navigate the dynamic landscape of the energy industry.  

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