The Devil’s Broker is an interesting book about John Hawkwood who was the most wily, reliable and successful mercenary leader in 14th century Italy. The book was written by Frances S Saunders, Faber and Faber Ltd, London 2004 and tells the interesting story about Italy and Mr. Hawkwood. To start with Mr. Hawkwood, in centuries gone, kings lead their troops into another land and to the victor was the spoils. The King took leadership of the land, collected the future taxes and emptied the country’s treasury to pay for the war he just fought. The army that was with him would loot the country and take the valuables and occasionally other lords to ransom them off. Mr. Hawkwood fought with the King and saw the riches that were offered to the victors, what happens in peace? Fortunately, there is always a war somewhere so Mr. Hawkwood joined a group of mercenaries to plunder and take valuables and eventually became one of the leaders. After scoring big in France his travels took him to Italy.

Italy in the 14th century was not a unified country, it consisted on parts ruled by cities, part ruled by counties and the papal states. The papal states is what makes Italy different than other countries. In most countries, the church sets up a building or varying sizes and descriptions and then the leaders are interested in saving the souls of the population. In Italy, they were also interested in being a government which depending on the Pope at the time, would see an idealized government or an expansionist government. At the turn of the 14th century, the French King had essentially moved the centre of the Catholic Church from to Rome to Avignon, while Italy was in turmoil or not united. Eventually, the Pope decided to go back to Rome but to do so he would need to defeat the rulers of the city states for some had ambition to rule over the country. In steps a man such as Mr. Hawkwood who works both sides of the street because he is a mercenary, how he does it is part of the book. The thing to remember is mercenaries  work for the highest bidder and whoever pays them cash. The city states needed to be defended, rather than having a standing army the city states paid the mercenaries to defend them. In this strategy, most of the locals would not be killed when fighting happens or the locals would be defending the city behind the walls of the city.

In the stock market, there are mercenaries today which are the companies either trying to break successful companies up to realize higher shareholder values or tear companies down because the financial books are suspect. Many companies just need to continue to do what they do well and not worry because monopoly or oligopolies protect them. The monopolies can be barriers to entry, legislation, the accepted rule in the country, but something that protects them. To go after shareholder value means to break the monopoly which would destroy the company. Other companies are fair game in the name of shareholder value. Mercenaries have a role in the market and it is one more thing management has to have a position on. Generally as long as the company is making money and paying dividends, the shareholders are going to loyal. Change the formula and mercenaries are welcomed into the company.

There are more questions than answers, till the next time – to raising questions