Born in San Salvador to French and German parents, Ariane de Rothschild, née Langner, grew up in Latin America and Africa. She studied economics in Paris before obtaining an MBA at Pace University in New York. In 1999, she married Benjamin de Rothschild and began working for the Rothschild Group. Today she is a member of several supervisory boards of the Rothschild Group banks and Vice Chairwoman of La Compagnie Financière Edmond de Rothschild. She is President of the Ariane de Rothschild Foundation and sits on the boards of directors of various Edmond de Rothschild Foundations, where she plays a strategic role in bringing innovation to philanthropy in many fields: the arts, culture, health & research, the environment and social entrepreneurship. She is the mother of four daughters.
Terrafemina: You are Vice Chairwoman of La Compagnie Financière Edmond de Rothschild. This is a first for a woman in this family of strongly-rooted traditions. How did the transition come about?
Ariane de Rothschild: After I got married, I began by concentrating on the group’s non-financial activities (vineyards, foundations, hotels). Then when all four of my daughters were in school, I wanted to return to my career in finance. Before I married Benjamin, I used to work 14-hour days in the trading room. I told him I could join the family bank, or work for another group. He encouraged me to work with him. Without his support, it would never have happened; he had to force things along. Up to now, women have had very little to do with the business. A woman could be a Rothschild and make wine, but having a hand in banking and pure finance was simply not done.
TF: When you married Benjamin de Rothschild, you embraced the family’s values, making them your own. What did you identify with in these values?
Ariane de Rothschild: It’s important to understand that my husband is rather atypical, which is why we get along so well. What fascinated me about him is that you cannot pigeonhole him. I had an Anglo-Saxon upbringing, where recognition is merit-based, not gained via one’s past or one’s family. My parents are entrepreneurs from very modest backgrounds – and always in the thick of the action. I respect that. Nonetheless, there are aspects of the Rothschild family and history that absolutely fascinate me. This is a family of exceptional entrepreneurs, some of whom sought to stretch the limits and took real risks. The breaking points and transformations that mark their family story are also very interesting. I can identify with the family for these aspects. The refined, worldly side interests me much less.
TF: So you embody continuity with this heritage but also represent a break with the past, a renewal?
Ariane de Rothschild: I think so. Coincidences are such that I will contribute to this break. First, because we have four daughters and when the next generation takes up the reins, it will be made up of women. In addition, a woman with my position in the banks represents a substantial break with what came before, and the start of a new period.
TF: How do you transmit this heritage and these values to your daughters?
Ariane de Rothschild: I try to strike a balance between their freedom of expression and their upbringing. We generally live among 18th century French collector’s items and furniture, which are very precious but also burdensome for children, and this environment can be stifling. This is why I let them have certain areas – such as their rooms – where they can express themselves freely with contemporary paintings and very modern works they choose themselves. It’s important to evolve; my husband was brought up in a very strict way and tends to rebel against his father. In my opinion, you can combine genuine open-mindedness with respect for heritage and values.
TF: Are you preparing them to become women financiers like you, so you can pass along the torch?
Ariane de Rothschild: They will follow whatever path they choose, as long as they do their best and aim for excellence. I believe it’s more important to educate the mind than to earn degrees, although degrees are essential. But I also tell them that it’s not possible to receive dividends and derive economic benefit from something they do not understand. This is true regardless of what they decide to do in life – whether they are dancers, artists, etc. I have no issue with that, as long as they respect the heritage they receive and keep an eye – even a distant one – on the business.
TF: Is this what you refer to as “family capitalism”?
Ariane de Rothschild: Yes, it’s when the family holds the capital and oversees the business. In the last three years, debate has focused on the degree of involvement of family shareholders and managers. In my view, if you earn dividends, you cannot be unaware of where they come from. I don’t think you can leave total responsibility up to managers; it’s our duty to the children not to be passive. We have executives, but it’s up to us to supervise them and set the tone, because ultimately it’s our capital. Above all, I think family capitalism is interesting because of the values it conveys. This is the major difference with many large, publicly-listed companies, which often are in search of an identity.
TF: In addition to your responsibilities at the bank, you are very involved in the Rothschild Foundations, especially in the field of social entrepreneurship. Is this a major challenge for the 21st century?
Ariane de Rothschild: For me, social entrepreneurship represents the logical combination of our business with the philanthropy that is part of the Rothschild family fabric. For six years, we have been restructuring this sector of our activity. Before we practiced patronage-based philanthropy, whereas now we follow a different model: “return on commitment.” The idea is to use business tools for philanthropic purposes. As a result, we are more involved in projects, and we truly support them with dedicated teams. It’s important to provide a structure and set goals; this is what we call “impact investing.” The financial crisis has revealed the limitations and misuses of the capitalistic system, focused on the short term, and the race for the highest numbers, which puts me ill at ease. I think that social entrepreneurship really represents a worthwhile field to test viable models that can generate profits while meeting clear social standards.
TF: France recently adopted a law introducing mandatory quotas for women on boards in major companies. As a woman of finance, what is your opinion about this?
Ariane de Rothschild: I am very optimistic about the growing importance of women. The issue of quotas is something I’ve discussed with my husband, who like many people does not think they are a good idea because they undervalue women. I agree with the idea that imposing quotas will not necessarily be positive for women’s image in business; people will always tend to say that they occupy a certain position to fill the quota. But in light of the difficulties that I have experienced personally, and continue to face on a daily basis, I think that quotas are necessary to reach a balance.
TF: Do you believe that women bring a different viewpoint to finance and corporate governance in large companies?
Ariane de Rothschild: Yes, I think they bring a more global vision. Women’s days will always be more difficult; they must work twice as hard, and after work they have to manage the children, school, various details.... But this is what makes it magical to be a woman. We have a greater tendency to have both feet on the ground because we are constantly brought face to face with this reality. I think it’s healthy, and in this capacity women on boards have something to contribute. However, I wouldn’t support a project run exclusively by women: like men, we have the weakness of our strengths, and I believe that only balance between the sexes can lead to progress. This is something I observe every day with my husband, and it’s very stimulating.
Interview conducted by Terrafemina on May 23, 2011, when Ariane de Rothschild spoke at Unesco.