(c) WirtschaftsWoche, by Melanie Bergermann, Volker ter Haseborg and Dennis Pesch
Hans Georg Näder’s Penchant for Luxury Risks Ottobock’s Corporate Health. Prosthetics Billionaire’s Mounting Troubles Converge in Unsightly Espionage Scandal
He must be somewhere. But where? This man is simply elusive. On a Wednesday in mid-May, the global community of orthopedic technicians converges at the Leipzig Trade Fair. Yet Hans Georg Näder, the industry’s patriarch and global market leader, is conspicuously absent. His team cites his packed schedule, ruling out any interviews. They’re not even certain if he’ll make an appearance at his company Ottobock’s booth.
Then, suddenly, he materializes. As usual, he’s sporting an attention-grabbing scarf—this time with a blue-green mandala pattern—paired with a purple polo shirt, his eyes concealed behind sunglasses. Näder exchanges a few words with his staff and informs WirtschaftsWoche that he’s too “busy” for a conversation. Then, he vanishes.
“Busy” is almost an understatement. The 62-year-old is under unprecedented pressure. Hans Georg Näder has transformed Ottobock, a medium-sized orthopedics company from Duderstadt, into a global market leader. He empowers individuals with disabilities through innovative products, embodying Sigmund Freud’s concept of the “prosthetic god.” This is the luminous side of his story. The other side is far from radiant.
In an office building in downtown Göttingen, three men descend from the rooftop terrace, catching a final glimpse of sunlight before entering a dim conference room. Here, they’re ready to share their experiences with Hans Georg Näder. These men once worked for Näder. Today, they’re his competitors. From Näder’s perspective, these three aren’t just rivals, but adversaries—enemies, even. Näder has filed lawsuits against them. More on that later.
The case of these Göttingen defectors suggests what can transpire when Näder perceives his honor as tarnished. Associates criticize him as distrustful, mercurial, and resistant to advice. But there’s more to it. Näder’s eccentric lifestyle is putting his company at risk.
Duderstadt, a small town in southeastern Lower Saxony, 30 kilometers from Göttingen, is where Näder often leaves imprints of his success. He’s renovated half-timbered houses, gifted the town a community center, and supports underprivileged children. His estate features an art museum with free admission. Duderstadt is where Näder grew up, the only child of entrepreneurs Max and Maria Näder. Max built the company, being the son-in-law of founder Otto Bock. After high school, Hans Georg enrolled in business administration and tried his hand as a pub owner; the Café Wunderbar in Göttingen had to close. His father cut off his funding. Max Näder brought his son into the company. In 1990, the handover occurred. Hans Georg was 28. He dropped out of university.
“He arrived with incredible momentum,” says someone who worked with him then. He was driven by the idea of creating innovative products. For instance, the world’s first fully mechatronic knee joint: everyone shook their heads. Näder believed in it. Today, the computer chip-controlled C-Leg is one of Ottobock’s key revenue generators. In 2003, consulting firm EY named Näder Entrepreneur of the Year. Followers say this was his peak. Afterward, Näder was increasingly absent from the company. When present, his subordinates often found him erratic. “Some days he was in a great mood, euphoric,” they said, “then the mood would change.”
“Flickering Point Cloud”
Näder’s father passed away in 2009, a profound loss for the company chief as well. Twice he was forced to take time off: burnout. However, according to former employees, he always wanted to be perceived as the strong man, both internally and externally. They say he would retroactively reverse decisions made by others during his absence — even when those decisions were correct. For his 60th birthday, Näder published a book. Important companions contribute their voices to create a “flickering point cloud,” as the preface states, “in which the complex personality of Hans Georg Näder takes shape.” Well then. His long-time managing director Harry Wertz notes about Näder: “One of his less favorable character traits is that he often doesn’t want to listen and can sometimes be resistant to advice.” Näder doesn’t discuss his plans, “he simply does it.”
In the eyes of many, the best example of this is the failed acquisition of Freedom Innovations in the USA seven years ago. Authorities intervened after the purchase; Ottobock had to divest parts of it. More than 70 million euros were invested, the majority of which was lost. Former executives say they advised Näder to wait for a “go” from antitrust authorities before the purchase. But Näder reportedly rushed ahead. Näder’s spokesperson disagrees: “This is incorrect on multiple levels.”
As part of a change in the company’s legal structure, Näder transitioned from Ottobock’s managing director to chairman of the administrative board in 2017. Since then, he has managed the management. The leadership of the finance department in the executive board has been replaced five times. “He didn’t want to cut costs,” complains a former top manager. Another says one must always be prepared for the frequently traveling Näder to suddenly appear at the company to introduce yet another new idea. The press spokesperson explains: “Mr. Näder can get excited about topics and ideas. His way of leading the company doesn’t require him to be constantly present at the location, but rather excels in that he finds inspiration and networks all over the world.” He is “a visionary and entrepreneur who intervenes in the company when he considers the chosen direction or decisions to be ‘wrong’.”
These changes of direction have consequences. Only 42 percent of Ottobock employees trust the management, according to a survey conducted last year. The company is now on its third CEO after Näder, Oliver Jakobi. Jakobi is seen as someone who executes what the owner commands. This seems to be how Näder likes it. An insider characterizes him thus: “He trusts no one. Anyone who doesn’t do what he wants is viewed as an opponent.” Näder’s spokesperson describes her boss as the “opposite of distrustful.”