Starting Their Own Firms: Asian Executives Defect from American Companies

Bureaucracy and red tape have always, it seems, been a part of the American way of business. But in Eastern countries, such as China, these processes are much less stringent and because of that several Chinese executives are defecting from American-run companies to start their own firms. Mary Ma, an executive at TPG Capital, is the latest executive to do just that.

Ms. Ma is the former chief financial officer of Lenovo and joined TPG's Asian team in 2007 as partner and managing director. Ma is one of only a handful of high-profiled women, much-less Asian women, in the buy-out business. Ma will run her own firm with Louis Cheung who is leaving his post as president of Ping An Group in March.

Mary Ma's departure signifies something deep about the way Asian business-people view American corporations. Ma's move is just the latest in a series of departures - Asian executives leaving western firms to start or work for Chinese-focuses buy-out funds. Most of them cite the heavy bureaucracy in American business as their main reason for exploring their options in Asia. "Besides," says one of the defectors, "it is fun to build to new business."

Interestingly, the defections are coming at a time when private equity in growing in China. The demand for local experts is high and Asians are generally thought to be more welcoming of other Asians, as opposed to Western influences.

As interesting is that Mary Ma, and a handful of other defectors from TPG, are leaving the firm just after many of them took home millions in 2010 as their share of profits sky-rocketed. TPG's sale of its stake in Shenzhen Development Bank was a highly successful and profitable deal. Some wonder if this increased take-home pay has enabled those like Ma to venture out on their own.

Photo credit: Clemson/Flickr