Franjo Luković, CEO of Zagrebacka Bank, the leading bank in Croatia, is winner of Nacional’s selection for Manager of the Year. Second place went to another banker – Zdenko Adrović, the head of Raiffeisen Bank, the largest foreign bank in the country. Banking is one of the rare branches of the economy which is experiencing an expansion in Croatia. Rounding up the list of the top managers in 2001 are Ivica Todorić, private businessman in third place, Branko Gretić, bankruptcy manager of Tisak in fourth and Emil Tedeschi, owner of family business Atlantic and one of Croatia’s youngest managers in fifth.

Bankers in Leading Positions The first two positions went to bankers, one of the rare branches in Croatia which is undergoing expansionPanel of Thirteen Journalists

The top Croatian managers were selected by a panel of the country’s thirteen top journalists specialized in the area of economics. Each panel member was given a list of 65 candidates, and was given the task of selecting their picks of 5 directors, CEOs or leading businessmen and to rank them according to their influence and to briefly explain their choice. Journalists from virtually every newspaper, except Večernji List, participated in the panel.

Journalists from Večernji List agreed to participate in the panel, and were even photographed. However, when they failed to submit their selections by the given deadline, they stated that they were withdrawing from the panel since they were unable to compile their lists. Milan Gavrović, journalist at the Feral Tribune, was unable to participate due to familial reasons. Certain newspapers had two panel members, which voted independently. The only request that came from the panel was for Nacional to not publish who voted for whom, and therefore, the ranks given to the winners is not given. Branka Stipić, editor of the Money Section in Jutarnji List commented on her list that if she were free to make her selection outside the candidate list, she would have certainly included Josip Boban, director of AD Plastic in Solin, who succeeded in winning the difficult battle against a wealthy Canadian company. As a result, AD Plastic has managed to pay out its employees, and quickly thereafter, doubled the number of employees. The company exports everything it manufactures, and does not complain that the kuna is too strong.

Based on the ranks given by the analysts, Nacional created a points system, where the top person on the list received five points, and the fifth one point, and thus made a list of the ten top managers in the country. Karlo Radolović, the director who pulled the Uljanik Shipyards out of subvention and turned business around into a profit, and will now enter the privatization process with the European Bank for Reconstruction and Development, made sixth position on the list. Seventh went to Darko Marinac, director of Podravka, while eighth went to Djuro Gavrilović. Ninth place was shared (equal number of points) by Juroslav Buljubašić from SEM, Boris Galić, director of the AZ Pension Fund and Želimir Vukina, general director of Lura. Djenio Radić, CEO of Plava Laguna from Poreč, was the only tourism operator considered worthy enough to fall within the ten top managers in Croatia in 2001.

Among those selected, unfortunately, there was not a single woman. Only a few votes were given to Ivana Šoljan, CEO of Iskon Internet, and only one went to Tatjana Holjevac, CEO of VIPnet, but these were not enough votes to bring these ladies into the running for top spot. Similarly, only a few votes went to the following businessmen: Damir Vrhovnik, director of Viktor Lenac Shipyards; Ante Vlahović, director of Rovinj Tobacco Factory; Milan Artuković, director of Franck; and Vladimir Smolec, owner of Digitel. It is interesting to note that Željko Čović, CEO of Pliva and Željko Perić, that company’s financial director, received the same number of votes.

Top Bank in Croatia

Under the leadership of Franjo Luković, who some consider to be the strongest businessman in the country, Zagrebacka Bank has become, and remained, the leading bank in Croatia. Since graduating nearly thirty years ago from Zagreb’s Faculty of Economics, Luketić has dedicated himself solely to banking. First at Yugobank, where for sixteen years he was director of the Foreign Banking Sector, and in 1989 he became the bank’s assistant director. For a short time he worked in Čačić’s company ‘Coning’, before being appointed director of Zagrebacka Bank in 1991. He is also president of the supervisory board for Lura.

Colleagues describe Luković as a quiet manager, which is also seen by his minimal presence in the Croatian media. They stressed that the characteristic which sets him apart from other managers is that he always thinks long-term and holds the strings in his hands. He is known to support the internationalization of the bank and the overall market. He remained independent during the HDZ regime, and continued to do business professionally and to keep the best interests of the bank in mind, which was seen when he declined Nevenka Tudjman’s loan application. His tact and patience paid off this year in the negotiations to sell the majority share package of the bank to the world consortia, Unicredito/Allianz, which will ensure the continued development of the bank in the region. The bank, together with its partner Allianz, has become an active participant in pension reforms.

Under the leadership of Luković, in the last few years the bank has become the creator of market development in the region. The bank has received a number of distinguished awards which have confirmed its reputation as the best domestic bank in the region (The Banker, Finance Central European, Emerging Markets Investor, Kristalna kuna, Best Pubic Relations Award…). They have the largest number of clients, 1.5 million citizens and 100,000 companies, and 2001 saw a new 1.5 million DEM in foreign currency savings. A short history shows that this bank is the rightful owner of the title Best Bank in Croatia: it was the first bank to go public on the Zagreb Stock Exchange, the first to implement credit business, in 1996, it was the first to go public on the London Exchange, the first bank in Central Europe to offer its own employees the chance to participate in the ownership structure, the first to receive a credit rating from three foreign rating agencies, it founded a housing savings trust, won over the market in Bosnia Herzegovina by buying Hrvatska Bank Mostar and Universal Bank Sarajevo, and took over a part of the assets and liabilities of Commercial Bank Tuzla…

Top Croat in a Foreign Bank

Five years ago, Zdenko Adrović became the first Croat director of a foreign bank in Croatia – Raiffeisen Bank (RBA), which since that time has become the leading foreign bank in the country.

Adrović spent the majority of his career at Privredna Bank (PBZ), where he achieved some significant results: first as assistant director of the Loans Division, then as director of the Investment Division. From 1991 to 1996, he was the bank’s executive vice-president. He left that position in 1996, with the opinion that PBZ should have gone into the recovery process much earlier in order to save tax dollars, and he went to RBA. He was born in Slavonski Brod, he graduated in economics, specializing in foreign trade, and he completed graduate studies in Corporate Finance in Zagreb. He is married and has five children. Under Adrović’s leadership, who never fails to mention that RBA’s success is the result of teamwork, the bank has become the strongest foreign bank in the country, in terms of both capital, balance and market share.

The first three quarters of 2001 show the bank is in expansion: the active balance at the end of September exceeded eight billion kunas, three billion more than at the beginning of the year. Business loans have grown by 89% to 2.4 billion kunas, while personal loans have grown by 96% to 2.6 billion kunas. In the same period, the number of personal accounts has doubled, to more than 132,000. In the first three quarters, RBA saw profits of 178.2 million kunas, which is more than for the whole of 2000. In mid December personal savings were at 740 million DEM.

The Rise of Agrokor

Ivica Todorić’s company, Agrokor, was more successful this year than ever. Current assessments show that the overall revenues this year could amount to 4.7 billion kunas, an increase of 34%. Regardless of the harsh competition, Agrokor is definitely a company on the rise: this year the gross profits are 148.38 million kunas, a 16% increase over 2000 which had 89.9 million kunas in profit, and 3.5 billion kunas in revenue.

Agrokor, which Todorić launched 25 years ago to produce and sell flowers, today unifies a number of profitable companies: Jamnica, Ledo, Solana Pag, Konzum, Agropreradu Zvijezda, PIK Vinkovci, Sojara Zadar, Hotel Opera, Credit Bank Zagreb and the Bosnian Kiseljak. Even though the media connected Todorić to the HDZ centers of power, today no one has questioned his managerial qualities, and he achieved his reputation as a capable and perspective businessman by caring for his employees and their continuing education.

Heroic Recovery of Tisak

By profession an economist, Gretić, a man who does not tolerate mystification in economics, saved the publishers in Croatia and achieved the impossible. He succeeded in bringing around one of the largest and most complicated bankruptcy proceedings in the country, and thus saved Tisak from complete failure with only minimal losses. No employees were left without their jobs or their paychecks.

He began his career in the former regime at the Nutritional-Technology Institute, and then he was executive secretary of the Croatian Unions Alliance. In the final Communist government, he was Minister of Labor and Employment. After this, he was director of Večernji List before become a private businessman for a short time. He himself assessed the bankruptcy proceedings of Tisak as a heroic job in a heroic timeframe. In a little over a year and a half, he managed to harmonize, as he says, the ins and outs, and to create the conditions for the company to again become a golden hen, which promises to again become one of the ten most successful companies in the region.

Emil Tedeschi

In July of this year, when it was officially announced that Emil Tedeschi, majority owner of the family business Atlantic Group, has succeeded in acquiring Cedevita after long negotiations with Pliva, he confirmed that he not would build his future only on importing and distributing foreign brands (Wrigley, Durex, Duyvis, Gillette, Johnson&Johnson, Elite…). In acquiring Cedevita, Tedeschi announced that he saw the future of this instant multivitamin drink with a 30 year tradition in the creation of a new palette of products and in the modernization of the current production of teas.

Tedeschi comes from a wealthy family of Korčula traders who are by tradition businessmen. He tried his career in the media for a short time, but after only eight issues of Novi Danas, he concluded that publishing in Croatia is overburdened with politics, and then he oriented his business on imports and distribution. From a small family owned business with only a few employees, Atlantic has grown into an empire with over 400 employees, and Emil Tedeschi has become a businessman to watch out for.

Panel of Judges who selected the 2001 Croatian Manager of the Year

The panel that selected the 2001 Croatian Manager of the Year was comprised of 13 journalists from various media, who follow the economy and finance. Up until the last second, it was uncertain who would win – Franjo Luković or Zdenko Adrović

Hasim Bahtijari, editor-in-chief, Sindikalna Akcija
Branka Stiptić, editor of the Money section, Jutarnji List
Ratko Bošković, columnist, Jutarnji List
Željko Ivanković, editor-in-chief, Banka Magazine
Ante Gavranović, editor-in-chief, Privredni Vjesnik
Jagoda Marić, journalist, Novi List
Darko Markušić, editor of Finance section, Vjesnik
Mirela Klanac, journalist, Novi List
Miomir Štrbac, editor of Economy section, Slobodna Dalmacija
Djuro Tomljenović, editor of TV program Poslovni Klub
Viktor Vresnik, assistant to editor-in-chief, Vjesnik
Berislav Jelinić, journalist, Nacional
Ljubica Vuko, journalist, Slobodna Dalmacija

Comments regarding the top ten managers

1. Franjo Luković (Zagrebačka Bank)
“Most successful bank with a great increase in revenues and profits. Constantly implementing new services for their clients, increasing loans and creating a stable financial flow in the Croatian economy.” Ante Gavranović

“For the high bank profits, creating new value for shareholders by the sale to UniCredito, for the development of bank assurance with Allianz and the most successful role in pension reforms.” Ratko Bošković

“They have remained the strongest and sold off well.” Viktor Vresnik

“In the transaction of selling the majority share of Zagrebacka Bank, he showed his key characteristics: patience and focus on strategic goals, while not losing control during the long negotiations. The bank launched a series of new services and focused on expansion through the region, which is impossible without a foreign partner. Weakness: lack of reorganization in the bank.” Željko Ivanković

2. Zdenko Adrović (Raiffeisen Bank)

“Greatest growth while maintaining client confidence.” Viktor Vresnik

“The biggest banks can no longer be clam, they have to watch out for RBA.” Jagoda Marić

“For positioning the bank on the Croatian market, forming a team and attracting depositors.” Ratko Bošković

“With well selected and inventive management, he succeeded in virtually doubling the bank’s activities.” Mirela Klanac

3. Ivica Todorić (Agrokor)

“He has great managerial insight in logically handling his companies holdings, and he deserves special praise for his concern for employees, stipends and attracting the best young experts to his company.” Miomir Štrbac

“He has the basic quality which set a good manager apart: he sees at least one step ahead. He chose the hard path to success in developing domestic products while not cutting costs in layoffs. Well deserved title of top class manager.” Branka Stipić

“Indicator of success is his recent announcement of a 10% pay rise for employees.” Berislav Jelinić

4. Branko Gretić (Tisak)

“He managed to return a company drained of most its capital back on its feet, without forcing people onto the streets. An artist!” Branka Stipić

“Showed his teeth to the banks who gave Kutle loans whenever he asked. He will show his true worth in Tisak when the big shots are gone.” Jagoda Marić

”Gretić showed that bankruptcy with restructuring can be done in Croatia, when the main creditors are also interested.” Darko Markušić

5. Emil Tedeschi (Atlantic)

“His greatest quality is that he is in a business he knows, and which he excels in. He does things step by step, but with big steps.” Željko Ivanković

6. Karlo Radolović (Uljanik)

“Building a Croatian boat is supposedly the slowest and most expensive in the world, but Uljanik is building them, looking for new employees and signing new contracts.” Branka Stipić

“For a successful recovery, business with a profit and the excellent non-standard boats they build.” Ratko Bošković

“This is in an industry without perspective, whose leaders are looking for help from the state and the people, because it is supposedly of strategic important. Radolović has brought Uljanik its recovery, and brought it a profit.” Željko Ivanković

7. Darko Marinac (Podravka)

“Perhaps other companies have more impressive gains and profits, but Podravka has shown that it can export even with an overvalued kuna and with little help from banks.” Jagoda Marić

“Under his leadership, Podravka has undergone restructuring and expansion. He deserves special praise for expanding the range of products of a not so successful domestic company, and signing a series of exclusive distribution contracts which will place their products on the foreign markets. Mirela Klanac

8. Djuro Gavrilović (Gavrilović)

“After returning from abroad where he could have lived a very easy life, and enthusiastically build a modern industry according to all the standards of the business.” Željko Ivanović

“Gavrilović’s return to Petrinje and his investments in Croatia, when no one else wanted to invest, are finally starting to pay off.” Darko Markušić

“Considering the drama he went through to retake ownership of his family business during war time, it is more than success for Gavrilović to have created such a famous brand name.” Mirela Klanac

9. Boris Galić (AZ-Fond)

“Regardless of the advantages of strong logistics in Zagrebacka Bank, he succeeded in positioning himself as one of the best young managers in the financial sector, in a branch which is still developing.” Mirela Klanac

“One of the potential leaders of the new wave of domestic managers, who has succeeded in attracting virtually 40% of the pension market.” Berislav Jelinić

“The name Boris Galić will be increasingly recognizable, even though there are still no official statistics which confirm that the fund he runs in the leading one in the country.” Ljubica Vuko

9. Zelimir Vukina (LURA)

Želimir Vukina, general director of Lura and member of the executive board
Former Pliva employee, Vukina today is most responsible for the restructuring of Lura, which began in August 1999 with the merger of the former Lura Group companies. He is the main strategist who created the plan for Lura to grow into a regional foodstuffs company by 2005.

“A smart expansion of the product palette.” Viktor Vresnik

9. Juroslav Buljubašić (SEM)

“He started from practically nothing, and in only a few years succeeded in building a respectable shipping company for passengers. Faced with unloyal competition from the monopolist Jadrolinija which wanted to crush him at any cost, he not only endured the pressures, but he is constantly increased the size of his fleet. He is particularly successful in finding and taking advantage of new markets niches which are not attractive to Jadrolinija, and smaller shipping companies are more profitable.” Miomir Štrbac

10. Djenio Radić (Plava Laguna)

“He has succeeded in advancing his tourism services and creating a recognizable image in both the country and outside. Since he is also responsible for positioning new acquisitions in the tourism empire of Androniko Lukšić (Hotels Argentina in Dubrovnik and Croatia in Cavtat), I believe he will do the same in these areas.” Ante Gavranović

“Constant concern for development, following the market needs today make Plava Laguna perfect model on what to do with the remaining tourism companies on the Adriatic Sea.” Miomir Štrbac