Scientific research centers, and he puts his name on almost all of them. You want the world to know about it by putting your name on all the things you do support. I dont keep it a secret, thats for sure. [ticking] when sony, the Electronics Giant thats the epitome of japan incorporated, lost its cutting edge, it did something radical. It hired a westerner, sir Howard Stringer, as its new ceo. Sony is no longer the coolest. This is the coolest. You can take ipod and beat us over the head with it, but its only one product, and we have 1,000 products. Still, talk about a tough job. He has to turn sony around in a culture thats not always easy for a westerner to understand. Sorry. Thats all right. Were you lost in translation too . Welcome to 60 minutes on cnbc. Im steve kroft. In this edition, we talk with a trio of business moguls, carl icahn, eli broad, and sir Howard Stringer. We begin with carl icahn. It takes a certain breed of stock market investor to thrive in queasy times, and icahn is one of that breed. He has a knack of turning someone elses loss into profit for himself. But he can also help others improve their bottom line through the socalled icahn lift, an upward bounce that often happens when he starts buying a beleaguered stock. When the financial crisis hit in 2008, many investors were tearing their hair out, but not icahn. The state of the economy changes, but icahns investment philosophy remains the same. As he told leslie stahl in march of 2008, carl icahn looks to pounce while everyone else is losing their shirts. The day we visited icahn enterprises, the stock market was swinging wildly, at one point, dropping 300 points. So has this been a bad day . This is not a great day. Tough day, tough day. Wow, this is beautiful. Look at your view. Icahn works in a skyscraper suite overlooking new yorks central park. I think i lost today. You did . Yeah. Actually, he lost big. Well over 150 million that one afternoon. But when we spoke with him a few days later, icahn told me, no big deal. He lives by the moguls credo never let em see you sweat. I was buying that day. I mean, seriously, i was very happy about that. You looked like you were im not frazzled andcause you were well, im always frazzled. I mean, i look good now i combed my hair but im alwaysgot so much going on, and i enjoy that. [bell clanging] one of his biggest holdings, motorola, plunged 19 that day. But icahn, the ultimate risk taker, was gobbling up more shares in the company. Motorola is a perfect example of how carl icahn operates. First he chooses a company he thinks is poorly run and trading below value. Two years ago, he started buying up millions of shares of motorola. Now he controls over 1 billion worth of stock. As he usually does, hes been making demands in order to jolt up the sagging stock price. First one dump the ceo that happened in december. Then break up the company. His goal is always the same to reap a hefty profit for himself. Hes been successful, say wall streeters, because hes intimidating and relentless. With me, i think, generally, they take the attitude, try to make peace. Try to work with him because hes not going away. Is it cause you just have so much money . Well, and they know my nature. Itsthey know im not whats your nature . That im not going away. That im obsessive guy. That im coming in here. Ive done it, and theres no way that im leaving until they do something. Thats eminently refinanceable. Hes been hunting down vulnerable corporate prey since the 1980s, when he was reviled as a black hat corporate raider. Why does everybody say that youre the man Everybody Loves to hate . Love to hate . Well, youre hurting my feelings. Thats me interviewing him in 1986 after he took over twa. Carl icahn unfair to flight attendants. He was seen as ruthless because he fired people, slashed salaries, cut routes. The management of twaits trueshould have done this a long time ago. And as the company went into bankruptcy, siphoned off money for himself. I own it. Its my money. I worry about the bottom line, because if i lose, you know, im answerable to my bank account. Back then, when icahn targeted a company, management would often pay him socalled greenmail just to go away, but that kind of shakedown isnt tolerated anymore. Ladies and gentlemen, carl icahn. Today hes called an activist because when he targets a company and makes money, so do the other shareholders, the icahn lift. Last year, year and a half, the stocks that we became activists in, their values went up 55 billion. Another success came when Software Giant oracle bought its competitor, bea systems. I just figured it out. Icahn, a major stockholder in bea, coerced oracle into raising its bid. How much did you make . About 300 million. [chuckling] but i took a risk. I mean, i took a risk. But, hey, how bout the other shareholders . All of the shareholdersif you add up what they made, youre talking 2 billion, 3 billion the shareholders made. Thank you. [ticking] its a sad commentary. Coming up carl icahns favorite target ceos. They give them all this money for doing a terrible job. And for my way of looking at it, why . You do seem to have special contempt for ceos as a category, as a group. Were gonna be run by morons, right . When 60 minutes on cnbc returns. Theres a reason no one says easy like monday morning. Sundays are the warriors day to unplug and recharge. What if this feeling could last all week . With centurylink as your trusted partner, it can. Our visionary Cloud Infrastructure and Global Broadband network free you to focus on what matters. With Custom Communications solutions and dedicated support, your business can shine all week long. Ameriprise asked people a simple question in retirement, will you outlive your money . Uhhh. No, that cant happen. 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Just waste. Now why is that a problem . Because thats whyone of the problems in our competing this is the specter coming because we cant compete with asia, and we still walk around with our head in the sand. Its a sad commentary. He gets really worked up over fat ceo paychecks and bonuses even when the Company Loses money. They give them all this money for doing a terrible job. And from my way of looking at it, why . You do seem to have special contempt for ceos as a category, as a group. Were gonna be run by morons, right . Okay. I have no contempt for them. Theyre well, you dont have cont they have responsibilities. Youve called them morons. What do you mean, you no, no. You know, that is unfair. You didyou have i have a metaphor that the guy that gets in the company. He moves up the ladder. Hes like the fraternity president in college. Hes the guy that you like. Hes always there when you need a buddy. He doesnt make waves. You never know what you cant ever figure out when hes studying because hes always at the eating club with the fraternity when you go over there. And thats the guy that moves up the ladder in the corporate world. You really think thats who becomes the ceo . In many cases, absolutely. Now, are there great ceos . Yes. I mean, i want to make it clear. There are a lot of exceptions. He says, too often, boards of directors dont hold managements feet to the fire, so other investors often call on him to step in. Hey, i get calls all day from smart guys, hedge funds that will come call, why dont you look at this one . Im sort of the guy in school that the other guy goes to and says, why dont you beat that guy up, you know . He loves a good fight, no doubt about it. Im looking as im walking along here, all your paintings are battle paintings. Many a ceo has passed these bloody scenes of a warrior vanquishing his enemies as they head to a meeting with icahn. Does it tell me something about you . Is what im trying to figure out. Not really. It sends a slight message to people who come. With the sword in the hand . Yeah. Even as a kid, his mother said he was like genghis khan. He was an only child growing up during the depression in far rockaway, part of queens, new york. My father said, son, look, you have no talent really. I said, well, thanks, dad. Thanks for making me feel good about that. Clearly mr. Icahn didnt get his son, who was smart and ambitious. Carl got into princeton and paid for half his tuition with his winnings at the poker table. I was always very good, if you call iti dont know if you call it talent or whatever. I was always good at making money. Was her ever. Hes said to be worth 14 billion. Do you live a glamorous life . Id say no. Absolutely not. Hes married to gail golden, his second wife and former assistant. How you doing . Because he is such a workaholic, gail says they have little time to enjoy the money hes made. Do you have a yacht . We have a yacht, but we dont use it much. You dont have a lot of houses . Yeah, we do, but we dont go. [chuckles] can she have anything she wants . She takes it. She dont ask me, you know . I have no idea what she buys. But why do you care . Well, you know, i just donti wouldnt like Somebody Just frittering away money. I mean, it still means something to me. Im a kid from far rockaway. I still would not you have 14 billion, and she wants to go well, you say ive got 14 billion. I never said it. So how do they spend their money . More and more on philanthropy, like building this track and field stadium for the School Children of new york city. Raise your hand. And building two Charter Schools in poor neighborhoods in the bronx. These are overseen by icahns foundations, which gail runs. Call them just to make sure. She works in the office, and so does his son. Thats my son. Brett, an analyst at the icahn firm, plays chess with his dad on the weekends, for money, of course, and recently, brett began winning. Beat the hell out of me. Tell em how you beat the hell out of me. No, no. Hes too good. Hes too good. He just says that cause he wants to get odds. Thats bull. He beats me. I heard that you went out and hired somebody to teach you to play better so you can beat him again. Well, i got a grandmaster. Icahn, along with his son and 40 other analysts and lawyers in the firm, work long hours looking for more companies to target. And these guys do a great job. Somebody left. I dont know who that is. Ill find out. They also work on icahns hedge fund. Keep working. Thats good. After the fund had been averaging gains of 30 a year, it slid to just 7 in 2007. Has anybody questioned whether, since you didnt do so well last year, whether youre losing it . Losing the touch . Nobody calls me. They dont call me. I dont know if can we read anything, though, into just 7 . Some years, youre gonna make 70 . Some years, youre gonna make 7 . You should always do better than the market, and you shouldnt lose. One of the big raps against you is that what carl icahn wants to do is go in and get a fast, quick profit out of the company, and he doesnt think down the road. Yeah, but i can only talk facts. In every company weve gone into that we get control, weve put millions and millions of dollars into them. Its true. Sometimes he takes over bankrupt Companies Like a chain of nevada casinos, puts millions into them, and turns them around. But more often, he buys up a stock, agitates to get the price upthe icahn lift and gets out. I make money. Nothing wrong with that. Thats what i want to do. Thats what im here to do. Thats what i enjoy. Today you tell me youre a shareholder activist. I dont saythe name is the same. An activist is the same as a raider, you know. They call it whatever you want. Rose by any other name. So you havent changed . I havent changed at all. Not one iota. Im still doing the same thing. I go in, buy a lot of stock in an undervalued company. It helps the other shareholders a great deal. But im not putting myself in a cloak and saying, oh, shareholders, you know, im doing a great job for you. Im saying so you dont do it for the other shareholders. You do it for you, but it does happen to raise all the boats. It helpsit helps the shareholders immensely. In january 2011, motorola was split into two Companies Motorola mobility and motorola solutions. Seven months later, Motorola Mobility agreed to be purchased by google for 12. 5 billion. Carl icahn says the deal is a vindication of his investment and efforts to split up the company. But even carl icahn isnt completely recession proof. Since our report first aired in 2008, icahns fortune has dipped a little from its thenreported 14 billion. In 2011, Forbes Magazine estimated icahns net worth at 13 billion, making him the 25th richest person in america. [ticking] coming up the billionaire philanthropist changing the culture of los angeles. Youve said that your sense of being a wealthy man actually increased the more you gave money away. I think its true. I dont feel im here to just maintain the status quo. Im here to make things better or different. Meet eli broad when 60 minutes on cnbc returns. At wvalues matter. Ket, so were transparent about the fresh wild seafood we sell. And the species we dont. Independently rated for sustainability. Traceable from dock to store. Sent fresh from over 50 u. S fisheries with responsible fishing practices. Like bornstein seafoods because to us, value is inseparable from values. Whole Foods Market Americas Healthiest Grocery store. Fifteen percent or more fifon car insurance. D save you Everybody Knows that. Well, did you know certain cartoon characters should never have an energy drink . Action blahbechtblah blublublubblah geico®. Introducing the birds of america collection. Fifty stunning, handpainted plates, commemorating the state birds of our proud nation. Roud. Blahbechtblah blublublubblah geico®. Fifteen minutes could save you fifteen percent or more on car insurance. Ii like to think of myself as more of a control. Enthusiast. Mmm, a perfect 177degrees. And thats why this road warrior rents from national. I can bypass the counter and go straight to my car. And i dont have to talk to any humans, unless i want to. And i dont. And national lets me choose any car in the aisle. Control. Its so, whats the word . Sexy. Go national. Go like a pro. [ticking] in this era of belttightening, its kind of refreshing to take a look at people whose favorite pastime is giving money away. Such a man is eli broad, a selfmade billionaire who is one of the most generous philanthropists in america. Along with supporting education reform, medical research, and the arts, he also wants to transform los angeles into a cultural capitol. Eli broad likes to think big, but some of his critics say he can act very small. As he told morley safer in april 2011, eli broad doesnt really care what anyone says. All he wants to do is die poor. Well, relatively poor. I believe in two things one, Andrew Carnegie said, he who dies with wealth dies in shame, and someone once said, he who gives while he lives also knows where it goes. Theres no one quite so civicminded in america. Eli broad and his wife, edye, have become paparazzi pets because of the money they lavish on los angeles, so far, more than half a billion dollars. Eli, over here now who says money cant buy you love . And eli and your lovely wife, right here please. Behold his footprint on los angeles. Hes a driving force behind 16 major public institutions. In the center of downtown, the a cultural corridor, anchored by the magnificent disney hall, home of the los angeles philharmonic. [sprawling symphony music] next to it, the home of the los angeles opera, the museum of contemporary art, the high school for the performing arts, and the school of music. In greater los angeles, three Scientific Research centers, a theater, an art center, and another contemporary art museum. He puts his name on almost all of them. You said that your sense of being a wealthy man actually increased the more you gave money away. I think its true. I dont feel im here to just maintain the status quo. Im here to make things better or different. And you want the world to know about it by putting your name on all the things you do support. I dont keep it a secret, thats for sure, broad took us to grand avenue. This is quite a vista. Which he plans to transform into a vibrant city center, rivaling new yorks museum mile. Disney hall, designed by frank gehry, almost did not get built. Broad rescued the project by putting up his own money and putting the squeeze on fellow plutocrats. Its really become the symbol of our city. And then theres his own museum, the broad. This is a rendering. Its still a parking lot, but it will eventually hold his 1. 6 billion art collection. How much is this going to cost . Something approaching 1 billion . More. More . More. We were interrupted by an angeleno driving by. Eli, buy the dodgers. Buy the dodgers eli, buy the dodgers. You could be the George Steinbrenner of los angeles . Oh, no, no, no. Ive got enough on my plate, broad runs his Philanthropic Foundation like a forprofit business, not a charity. Charity, he says, is just writing checks. He practices what he calls venture philanthropy. We dont give it away. We invest it, and we want a return. Remember, i started work as a cpa, so that gave me fiscal discipline in everything i did in business, and i guess some of it carries over to philanthropy, eli broad says, i want results, and if youre not gonna show me results, im not gonna give you the money, and incidentally, after one year, if you dont show me results, im gonna stop funding you. New york mayor michael bloomberg, no mean philanthropist himself, admires broads uncuddly approach and the 32 million he has given to new york schools. Eli broad sets the standard. I think its really being a role model for others. And they look at eli, and because of him, they get the ideas, im going to be innovative and be philanthropic and do some other things. The leverage of eli broad is really quite amazing. Amazing to the extent of almost 1 2 billion hes poured into improving public education. He spends even more on medical research. He teamed up with harvard and m. I. T. To create you guessed it the Broad Institute in cambridge, massachusetts. The broad is the worlds leading genomic medicine institute. All discoveries are free, available to anyone. Let me be rude and ask, how much have you put into this institute . 600 million total. Broad grew up in detroit, the only child of immigrant shopkeepers. At 21, he married edye lawson. We borrowed 25,000 from her parents. And that 25,000 led ultimately to. A lot of money. In 1957, broad and a partner launched a nofrills homebuilding business. He was a millionaire by 27. He bought sun Life Insurance in 1971 and sold it in 1999 for 18 billion, and thats when he and edye decided to give most of it away. Youre giving 75 of your wealth away. Maybe more by the time its over. Or maybe more. You have two children. Yes. What about them . Theyre well taken care of. Theyre different than their dad. Different how . They dont have, frankly, the ambition to build a great business that i had. Youve been open about admitting that you were not a great father. Look when i started, it was 247 as they say, and i didnt spend enough time with the kids when they were growing up. I admit that. Is that something you regret now . I do to some degree. We all go back and would do things over differently in our lives. [ticking] coming up. Micromanaging philanthropy. Elis a control freak. I worked on a house for him. I didnt want to do it. Why didnt you want to do it . I just told him i didnt like him. He said, youll learn to like me. Eli broad, when 60 minutes on cnbc returns. Hard it can be. How. To breathe with copd . It can feel like this. Copd includes chronic bronchitis and emphysema. Spiriva is a oncedaily inhaled. Copd maintenance treatment. That helps open my airways for a full 24 hours. You know, spiriva helps me breathe easier. Spiriva handihaler tiotropium bromide inhalation powder does not replace rescue inhalers for sudden symptoms. 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We have a serious hairball issue. We clean it up, turn around, and there it is again. Its scary. Little bit in my eye. [ michelle ] underneath the kitchen table, underneath my work desk, weve got enough to knit a sweater. [ doorbell rings ] zach, what is that . The swiffer sweeper. The swiffer dusters. Its some sort of magic cloth that sucks in all the dog hair. Its quick and easy. Pretty amazing that it picked it all up. I would totally take on another dog. [ kevin ] really . [ kevin ] really . There is no car because there was no accident. Volvos most advanced accident avoidance systems ever. The future of safety, from the company that has always brought you the future of safety. Give the gift of volvo this season and well give you your first months payment on us. [ticking] eli broad is a selfmade billionaire and one of americas most generous philanthropists, but as he told morley safer in april 2011, its his passion for contemporary art that brings balance to his life. Civilizations are not remembered by their Business People or bankers or lawyers. Theyre remembered by the arts. He has collected over 2,000 works of art. Unlike most collectors, almost all of broads art is available for loan to museums. He loaned these pieces to the l. A. County museum of art and threw in a 50 Million Building to house them. One of his favorite artists is the irrepressible jeff koons. And here, a veritable cornucopia of koonsian genius. All, of course, painted and sculpted by hired craftsmen. Koons is nothing if not worshipful of eli broad. You know, morley and eli, i just have to say standing here, what a fantastic location. I mean look at the Natural Light that is coming in on these works. Its just a tremendous gallery. And the balloon dog . What does it do to you . Do you get some kind of emotional kick . I do. It makes me smile, it makes me feel good. It make me proud, and it especially makes me proud when i see young people and others looking at the work. And it introduces them to art in a way that no other work really does. And a piece that quite honestly mystifies me. Michael jackson and a chimp, is it . Michael jackson and bubbles. When i made this series, the banality series. Series of banality . Of images. I was trying to communicate to people that whatever you respond to, its perfect. If you find koons artspeak incomprehensible, well just wait. These are to make references to be in the womb a little bit, uh, before birth and prior to any kind of concept of death. Do you totally get what hes talking about . Not to the extent that jeff does, but i do listen and understand and learn from the artists, especially jeff, but not all artists are as respectful as jeff koons. Take architect frank gehry. Elis a control freak. I worked on a house for him. I didnt want do it. Why didnt you want to do it . I just told him i didnt like him. He said, youll learn to like me. Broad fired gehry then built the house anyway using gehrys drawings. After two years and seven different models, i was impatient. I think he wanted to spend another year or two designing it, and i said, frank, a work of art is never finished; its only abandoned. They worked together again three years later to build disney hall, and once again, broad fired gehry. But he had to eat humble pie when the disney family insisted that he hire gehry back. We did it. We built it. We werent friends. Youve made your peace with him. At the same time, youve. I wont do a project for him. Thats true. Elis middle name is Strings Attached. Eli Strings Attached broad. Christopher knight, the art critic for the los angeles times, has been broadwatching for years. Hes a firstgeneration, male, selfmade gazillionaire, and people in that category typically believe and with good evidencethat they know how to make something a success, and that can be a problem. With science, broad leaves the details to the experts, but when he dangles his money and his art in front of most major museums in l. A. , he sees himself as the expert. And if they dont play, he wont pay. Well, i am a perfectionist, and on things i know something about, i do get involved. Weve talked to a number of people who say that you can turn into a bully. I dont think im a bully. But on the other hand, im not a potted plant either, no, i am sure youre not a potted plant. But these people who say some pretty unkind things about you will not talk publicly. They clearly are scared of you. I dont know why theyre scared of me. Well, because youre a rich guy and, therefore, a powerful guy, and youve got a temper. Ive got strong views on things. But even your good friend frank gehry says, eli can be a real pain in the ass, i can understand why frank could say that, because i am impatient, and patience has its limits. Number one, its his money, and you dont have to take it, so im sympathetic with that. Eli is not a micromanager as much as he has ideas on how you can make society better, and hes devoting his own money to doing it. Kind of hard to argue with that he doesnt have the right to do it, and you dont have to play the game if you dont want to. When youve got one 800pound gorilla in the room, youre scared to death of the guy. Everybody does want something from eli, and since he is the biggest game in town, nobody wants to alienate him. I just appreciate you all so much. Just watch this crowd at the gala for the Los Angeles Museum of contemporary art, which broad bailed out for 30 million. It was a scrum of culture vultures, fashion victims, and art victims, dealers and collectors, a night when skinniness was next only to godliness, when philanthropy and social climbing, selfaggrandizement and greed dissolved into one gigantic air kiss, all under the benevolent eye of that feared and admired dictator, eli broad. Beyond the altruistic part of it, ego plays a part in this . Oh, absolutely. A desire to be loved . A desire to be respected. Im not doing these things to become the most popular person in the city. I wanna be the most respected person. We left him on the roof of his art foundation, this fully contented man, this master of all he surveys. Whats this at the very end here . I know what this is. What is it . Its bigfoot. It is bigfoot. And who is the biggest foot in los angeles right now . I dont know. I dont think so. While eli broad continues his mission to make los angeles one of the worlds cultural capitals, he hasnt forgotten his home state of michigan. In 2007, eli and his wife, edythe, pledged 26 million to build a contemporary art museum on the campus of Michigan State university. Designed by worldrenowned architect zaha hadid and opened in 2012, the new museum is named you probably guessed it the eli and edythe broad art museum. [ticking] coming up sony imports a ceo. Do you ever just get out and walk around in tokyo . I do, though i dont shop. Theres nothing my size. Sir Howard Stringer, when 60 minutes on cnbc returns. I told my dentist about my sensitive teeth, he told me theres a whole new way to treat sensitivity. He suggested i try new crest sensistop strips. [ male announcer ] just apply to the gumline of sensitive teeth for a quick 10 minutes. The special ingredient forms a lasting barrier that provides immediate relief and up to one month of protection. See why dental professionals endorse crest sensistop strips to treat sensitivity. Thats 1 strip. 10 minutes. And up to 1 month of protection. Satisfaction guaranteed. [ woman ] life opens up when you relieve sensitivity. Satisfaction guaranteed. Easy like monday morning. S sundays are the warriors day to unplug and recharge. What if this feeling could last all week . With centurylink as your trusted partner, it can. Our visionary Cloud Infrastructure and Global Broadband network free you to focus on what matters. With Custom Communications solutions and dedicated support, your business can shine all week long. In june 2005, sony appointed sir Howard Stringer its chairman and ceo. He was the first westerner to lead what is the epitome of japan incorporated. Once a nimble innovator known for the coolest gadgets, sony had lost money in 2004 for the first time in a decade. Stringer was given the job of turning the corporation around, and in january of 2006, six months ago into his new his job, sir howard told leslie stahl that not being japanese meant that he could shake the company up in ways his predecessors never could, but thats also what makes his job so hard. Why did you take this job . I thought about taking this job for well over a week because i knew that the reason i got the job was because it was in financial difficulties, and so i knew that i would have to use every personal skill i have to persuade and cajole and convince that for the greater good of the company, we might have to do some tough things. Like fire thousands of people, something sonys japanese executives, so entrenched in the tradition of jobsforlife, could never do. In Howard Stringer, they saw a guy who would cut like hell but somehow be nice about it. You have announced a new Restructuring Plan where youre going to eliminate 10,000 jobs, 11 of 65 factories. Have you announced which of the 11 factories will be eliminated . Some of them. We know what they are. Were all were taking care of the employees before we take care of the press. So you know what they are, and youre just not going to tell us. Im not gonna tell you, no. Doesnt mean im not gonna do what ive announced im gonna do, but it does mean im gonna do it carefully. Its not as easy to be cavalier about peoples jobs as one can be in the United States. But its also not easy to run a company. [speaking japanese] where youre never quite sure what the heck people are saying. Howard. [speaks japanese] yes, i havent been to hawaii lately. Didnt understand a word i said . No. No. That was japanese. Not speaking the language is only the beginning. Just standing up makes sir howard stand out hes a foot taller than everyone. Do you ever just get out and walk around in tokyo . I do, though i dont i dont shop. Theres nothing my size. The two weeks a month he spends in japan are filled with cultural disconnects. Whether its a shaky interpreter during a speech. Sorry. Thats all right. Were you lost in translation too . Or an upsidedown Business Card exchange. Oh, sorry. Oh, wrong way. There you go. Take one yourself. Thank you very much. Or a justnotdone peck on the cheek for a factory worker. [nervously giggling] its clear that sony has never had a leader quite like Howard Stringer. Sony long defined the leading edge in gadgetry transistor radios in the 50s, trinitron tvs in the 60s. From sony, the one and only. And, in the 70s, the revolutionary walkman. The sony walkman is a tiny stereo cassette player with truly incredible sound. But if sony had the market cornered for 25 years, it took apple just months to steal it away. Sony walkman im gonna show you something. Oh. Aha. Ooh. Yes. Hurts. Yeah. It hurts. This is the symbol a major symbol of where sony went off the tracks. What happened . Theres no question that the ipod was a wakeup call for sony, and the answer is that steve jobs was smarter at software than we are. Stringer says steve jobs came up with the ipod and itunes, a simple system for people to download music, while sony, worried about its record company, wasted precious time trying to figure out how to keep people from stealing songs. We tried to have a secure device, and that was a myth. That was a mistake. A mistake. Sad for the Music Company, mind you. Well, of course, apple didnt have a Music Company to worry about. Sony had a Music Company. This is true. Its not just the ipod. Samsung hurt them in flatscreen tvs. In videogames, Microsofts Xbox challenged the playstation. One gets the feeling that sony is no longer the coolest. This is the coolest. You can take ipod and beat us over the head with it, but its only one product, and we have 1,000 products. [ticking] coming up the affable axwielder cuts down wall street. On the day of the announcement, you got a tepid, if not negative, response from wall street. Why, i think the tepid response from wall street is because wall street now always wants more blood than you can possibly deliver. More stringer and sony when 60 minutes on cnbc returns. Ameriprise asked people a simple question in retirement, will you have enough money to live life on your terms . I sure hope so. With healthcare costs, who knows. Umm. Everyone has retirement questions. So ameriprise created the exclusive confident retirement approach. Now you and your ameripise advisor. Can get the real answers you need. Start building your confident retirement today. Performance, is now an american thing. Introducing the all new chrysler 200 americas import. Many americans who have prescriptions fail to stay on them. Thats why we created programs which encourage people to take their medications regularly. So join us as we raise a glass to everyone who remembered today. Bottoms up, america. See you tomorrow. Same time. Another innovation from cvs health. Because health is everything. Oats go wow go power oats go go power yayyyy the ultimate arena for business. Hour after hour of diving deep, touching base, and putting ducks in rows. The only problem with Conference Calls eventually they have to end. Unless you have the comcast business voiceedge mobile app. It lets you switch seamlessly from your desk phone to your mobile with no interruptions. Ive never felt so alive. Get the future of phone and the phones are free. Comcast business. Built for business. [ticking] when sir Howard Stringer was named chairman and ceo of sony in 2005, he was tasked with turning around japans troubled giant. But as leslie stahl reported in january 2006, sonys bigness was one of its biggest problems. So all of a sudden, the entrepreneurial company, over 60 years, has become this big elephant. Professor hirotaka takeuchi, is dean of one of japans most prestigious business schools. I dont know if you heard steven jobs speech, the title of which was stay hungry, stay foolish. and sony wasnt hungry anymore. As hungry or as foolish. The man sony is counting on to fix thatand foster unity and cooperationis an unlikely choice, and not just because hes a sir rather than a samurai. You do not have the typical resume of a ceo. No mba. No. Youre kind of a rare bird. Odd, i think, is probably the word. But youre very unceolike. I dont have a financial background. I mean, i never i used to deliberately say that i never want to be in management. I still dont know how i got into management in the first place. Born in wales, he lived in a house with no electricity then won a scholarship to a fancy boys school in england and went on to college at oxford. You came to new york when you were, what, 20. . 2. 2. Right. You were an englishman. You arrived in new york, you got a job, and you were drafted, and you went and fought for the United States in vietnam. I would use the word fought loosely. Served. I served. You served. But you werent an american citizen. Nope. Why did you do that . Because im too stubborn. I was too stubborn to go back. It was my great adventure, coming over to america with 200 in my pocket and looking for work all on my own. After vietnam, the work he found was here at cbs news; in the 70s, producing documentaries, in the 80s, running the cbs evening news with dan rather, which he still says was his favorite job ever. But perhaps more defining is what happened when he was promoted to president of cbs news. In 1987, he oversaw the first layoffs in the companys history. He had to fire 200 colleagues and friends. Yet this is the amazing thing. I dont know anybody who blamed you. Now, how did you manage that . By communication. I did it myself. I mean, i didnt send a memo to somebody and say, your job is over. And it was emotionally very draining, and it affected me. But he had to do it again, and on a much larger scale. Stringer has actually worked for sony for the last eight years, winning notice and praise for turning around its ailing north american movie and music divisions. You eliminated 9,000 jobs here. And you have been dubbed by a newspaper the affable axwielder. Yes. So you have this reputation of being able to somehow manage these downsizings and maintain your reputation as a good guy. I hope i wasnt chosen because of my axwielding skills. Youre usually offered a job because someone has not done a job well or theres a crisis. And, boy, is there a crisis now how to restore sonys competitiveness in todays cutthroat global market. Hello. Hes already unified his workforce. What japanese executive does this working the rope line at americanstyle townhall meetings . And he never misses a chance to get out on the factory floor. How are you . To see and be seen. There are a lot of young people who say, go on, shake it up more. Do more talk to me all the time. You know, fight. Get rid of those old that crust of management. Go on, fight for it. Motivating Young Workers is the easy part. Firing some of them wont be, especially with some analysts saying the cutbacks dont go far enough. On the day of the announcement, you got a tepid, if not negative, response from wall street. I think that the tepid response from wall street is because wall street now always wants more blood than you can possibly deliver. Still, sony simply has to change. Profit margins for many Consumer Products have disappeared. It seems theres trouble wherever you look. For sony, they have always been a yokozuna. Now, what does that mean . Yokozuna is a sumo wrestler whos the highest grand champion. Oh, okay. Right . Yeah, theyve always been at the top. Theyve always been at the top. Theyve always been a rule maker rather than a rule breaker. Now they have to become a rule breaker, and thats going to be tough to do. Rule breaking means bold and innovative. And in electronics, they think theyre on the way. Their bravia flatscreen tv is a big hit. They hope the new digital walkman will be just as cool as the ipod, and a lot is also riding on the upcoming playstation 3. So you can see that theres a level of realism thats superior to anything else out there. To tout all his new products, stringer is in perpetual motion around the world. Spielberg, sir, come in here on the red carpet in hollywood, in black tie in new york, at a new sony facility in india. Well, they have trumpets for me. Ill do anything you ask. Whats your travel schedule for the next couple of days . Well, i go to los angeles on sunday for a movie premiere. I go back to new york on monday night. I go to japan on saturday. Oh. I then come back to london on thursday, back to new york on the following monday. You are in constant jet lag. Yeah, actually, i am. Seven hours sleep is tantamount to a miracle. I celebrate it. Stringer sees his wife, jennifer, a doctor, and their two children just a few days a month. Now, your family is not in tokyo; its back in england, in the countryside. Yes. You said at the town meeting. Right. At the factory the other day. I dont see my family very much. My family is you. And there was a sadness in your voice, actually. Yes. Yes, this is a tale repeated around the world with all of these globetrotting business executives. You dont know quite what im inflicting on my children, and so i overcompensate when im around them, and i tend to walk in with bundles of sony devices as a sort of social bribery. Its daddy. Remember me . If hes going to pay such an awful personal price, he doesnt want to feel like just another costcutting ceo, totally transforming the company to fit the model of american industry. Sony, he says, deserves better. This is not a company on its last legs. This is a company with great traditions. I have to look after some of those traditions, because thats why the company was successful in the first place. And im not sure that leaping on board an American Business model of ruthlessness and viciousness and counterattacks all the time is a good thing necessarily for somebody else. And so, taking care of somebody elses culture is part of the joy and opportunity of this job. I have things to learn from the japanese, and not just the other way around. Since our report first aired, sony and sir Howard Stringer have endured Tumultuous Times with mixed results. And 2011 was an especially tough year for both. The Company Posted its second biggest annual loss, its Playstation Network was hacked, and its wideranging operations were severely impacted by natural disasters in japan and in thailand. All that bad news was not good for sir Howard Stringer. In february 2012, it was announced that he would be replaced as sonys president and ceo but remain on as chairman. Thats our edition of 60 minutes on cnbc. Im steve kroft. Thanks for joining us. [ticking] maybe someone will come in here while were talking and put handcuffs on me. I dont know. Pattie dunn has been charged with four felonies. Shes at the center of the hewlettpackard leak investigation story. I have a story to tell. Im innocent. Its one of the biggest, fastest, most hightech sailboats on the high seas. Isnt she beautiful . A triumph of science, vision, money, and an abundance of ego. I just wanted the biggest boat. Lets admit it. Its ego. What . I mean. Do i have an ego . Yes. If there were a hall of fame fosi