Barbarians at the Gate: The Fall of RJR Nabisco

In the tapestry of American corporate history, few figures stand out quite like Ross Johnson. Born during the depths of the Great Depression in Winnipeg, his early years were marked by modest means and a restless ambition that would come to define his career. Unlike the classic corporate climbers who steadily ascend the ladder, Johnson's rise was more akin to a storm sweeping through the established order. He was not a company man; he was a deal man. His early years were peppered with after-school jobs, entrepreneurial ventures like renting comic books, and a knack for social influence that made him a natural leader among peers much older than himself.

His corporate journey was far from linear. Spending nearly two decades in relative obscurity in Canadian firms, Johnson finally found his stride in his early forties when he took over at Standard Brands. Here, his unconventional style flourished. He was a party animal and a master of the expense account, using lavish entertaining as a tool to build relationships and influence. His meetings often extended late into the night, filled with raucous language and irreverence, breaking every mold of traditional corporate decorum.

Johnson’s philosophy was simple yet radical: 'We're going to have a party, a very sophisticated, complicated party.' This was not mere bravado but a declaration of intent to shake up the stodgy, slow-moving corporate world. He surrounded himself with a loyal band of 'Merry Men,' young managers who shared his disdain for the status quo and reveled in chaos as a catalyst for change.

His rise was marked by a series of bold moves, including ousting his tyrannical boss Henry Weigl at Standard Brands and transforming a sleepy company into a high-energy, high-risk enterprise. Yet, even as he embraced excess and flamboyance, Johnson was a shrewd operator, skilled at navigating board politics and leveraging personal charm to his advantage.

Johnson’s story is a powerful example of how personality and timing can intersect to redefine leadership. He embodied the shift from the old guard of corporate stewardship to a new breed of executives driven by deal-making and shareholder value. His journey sets the stage for the larger drama of RJR Nabisco, where the clash between tradition and innovation would play out on an epic scale.

As we move forward, we will explore how this maverick leader’s vision collided with the entrenched values of Reynolds Tobacco, setting off a chain of events that would culminate in one of the most spectacular corporate battles in history.