Name: Ethan Allen’s CEO on Effective Leadership Strategies
Uploaded: 2026-07-21T19:24:00Z
Duration: 2 min 42 s
Description: “The main job of a leader is to help their people become better,” says Farooq Kathwari, CEO of Ethan Allen Interiors.

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“The main job of a leader is to help their people become better,” says Farooq Kathwari, CEO of Ethan Allen Interiors.

https://m.wsj.net/video/20260721/190408e8-a9f9-4910-a66c-5fcc196e482f/1/hls/manifest-hd-wifi.m3u8

Ethan Allen’s CEO on Effective Leadership Strategies

The stock has had its ups and downs. What do you think about it as a public company? Is this a good investment for shareholders?

It is because one of the important things that we have done is that we have been able to generate a reasonable amount of cash. So we have been able to give. Our dividend rate is about close to 7%, 8%.

7 or 8%, wow. And it's safe?

And it's safe. We have no debt. We've had no debt for the last 25 years. We have close to $190 million of cash. So we give a fair amount of dividends. And that's why I think a lot of the folks are interested, and we want to keep it that way. We want to make sure we run the business the right way.

Kathwari told me a key part of running the business well is leadership, which brought us back to the cricket field. Tell us about your leadership principles, Farooq. And I understand that that's kind of something you're very interested in.

Well, you see, I started my career, as you said earlier, as a captain of a cricket team. That's what I did. I played cricket. Even at New York University, the first thing I asked, "Is there a cricket team?" They said, "Yes."

The cricket team at NYU?

At NYU.

How good was that team?

It was pretty, well, it was all right. I became the captain in three months or four months when I came. But going back to my days of cricket was I learned that you as a captain have to lead. You have to make sure you train the people. You motivate them. You have to inspire them. So I decided my business model would be based on a cricket team. That also means we have one team, one program. When I took over Ethan Allen, we also operated four or five different other businesses. I said, "It's not a cricket. How can I be captain of five different teams?" So cricket has played a very important role in establishing the principles. Our leadership across the board understand that the main job of a leader is to help their people become better. And 20 years back, 25 years back, I established based on my earlier background of establishing five leadership principles, which every weekend, I get 40 reports. They don't all report to me, but they all have to talk. Every weekend, they have to write on five things. First is on talent. What have they done to prove talent? Second thing they have to talk about is what have they done to provide better service? Third, marketing, fourth, technology, and fifth social responsibility. So 40 leaders have to write every week on that subject, and I have that discussion with them continuously.