(Bloomberg) -- After a round of executive promotions in late February, Emirates Chief Financial Officer Michael Doersam began building a new structure that aimed to give the German-born finance chief more direct supervision over his enlarged corporate functions.
Over the next months, Doersam and close staff members worked on the so-called strategic center that would oversee human resources, finance, legal, and information technology. Details were hashed out at several meetings that included at least one off-site gathering, and employees were told where they would sit in the new organization, according to people familiar with the process.
Then in late October, Doersam issued a surprise memo: The strategic center would not go ahead after all. Instead, “all team members who were moved will be returning to their original teams with no further impact,” the memo obtained by Bloomberg said.
“Following recent executive discussions, we have now decided to change our course of action, and we will not be moving forward with the implementation of the strategic centre as planned,” the CFO wrote.
Doersam shelved his plan after he failed to garner internal backing from other senior managers, said the people, who asked not to be identified discussing internal processes.
The abrupt reversal points to possible frictions among executives who sit in the leadership team alongside Doersam and Emirates President Tim Clark, the 75-year-old Briton who is widely expected to step down sometime in the not-too-distant future after running the world’s largest international carrier for more than two decades.
“Emirates Group has been putting in place new management structures over the past months and this initiative was one of many that were on the table,” the company said in a statement. “The decision not to proceed was made by our executive team including our Chief Financial and Group Services Officer. It is normal for organisations to pivot or re-organise structures after review.”
The back and forth in the Emirates executive suite provides a rare glimpse behind the scenes of a company with a globally recognizable brand and a complex corporate structure. Sheikh Ahmed bin Saeed Al Maktoum, the uncle of Dubai’s ruler, holds the post of chairman and chief executive officer at the state-controlled carrier.
Clark, meanwhile, is the corporate face of Emirates and runs the company day to day. At the same time, Sheikh Ahmed wields power to decide key moves, including a possible initial public offering, major aircraft orders and who will follow Clark. The Sheikh oversees several other aviation assets and banks, though Emirates remains a top priority and he is briefed on a regular basis on decisions at the carrier.
When Clark, one of the most prominent and sought-after voices in aviation, will eventually leave and who might succeed him remains one of the most closely watched transitions in the industry. Doersam, who has been Emirates CFO since 2021, isn’t considered a serious contender to succeed Clark, according to people familiar with succession planning.
Besides the CFO, two other leaders stand out in the executive ranks.
In late February, Chief Operations Officer Adel Al Redha and Chief Commercial Officer Adnan Kazim, both Emirati nationals who have spent many years at the company, were promoted to the added role of deputy president. Al Redha, who has been at Emirates since 1988, handles flight operations, airport services and engineering, while Kazim — a three-decade veteran at the airline — oversees passenger sales and airline partnerships, among other areas.
Together, the executive team occupies offices on the ninth floor of Emirates headquarters near Dubai International Airport, alongside executive vice presidents including Richard Jewsbury, head of corporate and customer experience planning.
Then there’s Ghaith Al Ghaith, the CEO of sister airline FlyDubai. He is considered a possible contender for Clark’s role because he previously worked at the carrier and has years of experience running a large airline.
Clark had previously planned to retire by the middle of 2020, and Sheikh Ahmed announced the move late in 2019, with Clark agreeing to retain an advisory role. With Covid throwing the global aviation industry into chaos, that transition never happened and Clark remained to steer the airline through the crisis.
In an interview in June, Clark said he’s giving other executives “more work on the top table” to ensure the government has a plan in place “if anyone drops out.”
“All I’m trying to do is make sure that the succession and the ability to deliver a very, very bold and brave plan going forward over the next 15 years is in the right hands,” Clark said at the time.
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