The ECONOMIC CLUB of WA SH I NGTON, D.C. THE PREMIER FORUM FOR LEADERS
ANNUAL REPORT 2013–2014
The ECONOMIC CLUB of WA SH I NGTON, D.C. THE PREMIER FORUM FOR LEADERS
ANNUAL REPORT 2013–2014 2 THE ECONOMIC CLUB OF WASHINGTON, D.C. | THE PREMIER FORUM FOR LEADERS MESSAGE from the PRESIDENT
he 2013–2014 season was a very busy one for The Economic It is structured as a group mentor model which matches Economic T Club of Washington, D.C. We hosted 11 Signature Events Club professionals with the students to provide guidance and featuring 13 internationally recognized leaders from government leadership tools to help ensure successful college completion. and business during this 27th season. Seven Executive A total of 40 volunteers, 23 Economic Club members and 17 other Conversations, our small group peer-to-peer business discussions, individuals from Economic Club member organizations, have were hosted along with two rounds of Member-hosted Dinners agreed to serve as mentors. I want to thank all the Economic Club and several special events. members who are participating in the mentoring program.
We also launched two new initiatives in the past season. One, In a follow-up to the $500,000 in community grants that were the Global Initiative, will concentrate on increasing the number presented to 10 area nonprofit organizations as part of the of foreign-based government and business leaders who are 25th anniversary celebration in June 2012, the Economic Club featured guests of the Economic Club. The program was piloted presented another $400,000 in grants to another 10 community in September 2013 with the appearance of Takeshi Uchiyamada, organizations in a special ceremony at the September 18, 2013, Chairman of the Board of Toyota Motor Corporation. In a first Signature Event. These grants were made possible by the generosity for the Economic Club, simultaneous translation was employed of the sponsors of the anniversary celebration. The Board decided at the event. Mr. Uchiyamada’s remarks received widespread to share the success of that celebration with another group of local international media coverage, thereby enhancing the visibility nonprofit organizations with a primary mission of preparing of Washington, D.C., as an important forum for global leaders. underserved youth for success in school, the workforce, and life. Again, I want to thank all the 25th anniversary sponsors who helped Extensive international coverage also resulted from appearances make this second round of community organization grants possible. by U.S. Treasury Secretary Jacob Lew and Dr. Jim Yong Kim, President of The World Bank Group. Five television cameras, For the coming year, we welcome your participation and covering for at least seven different networks including NHK from look forward to gaining expert insight into the critical Japan, broadcast Secretary Lew’s remarks. Several media outlets issues confronting the world today from the distinguished from Japan, China, and Europe also covered both events. leaders who will address the Economic Club.
A second initiative launched in the past season is the Economic Sincerely, Club’s Leadership Mentoring Program. This program is designed to add to the value of the David M. Rubenstein/Economic Club of Washington, D.C. Scholarship Program by providing scholarship recipients with mentoring support throughout their college careers. DAVID M. RUBENSTEIN | PRESIDENT
ANNUAL REPORT 2013–2014 3 The ECONOMIC CLUB of WA SH I NGTON, D.C.
he Economic Club of Washington, D.C. is a group of Among the ambassadors who were guests during the past season T more than 650 distinguished business leaders representing were those representing Argentina, Austria, Belgium, Brazil, top echelon companies and organizations based in the D.C. Denmark, Egypt, Finland, France, India, Italy, Japan, Korea, the metropolitan region. Members are senior executives of major Netherlands, Poland, Russia, Singapore, and Switzerland. corporations, heads of some of the largest business and trade organizations in the United States, managing partners The impact of speaking at an Economic Club Signature Event of major law, accounting, and consulting practices; former is amplified by the global media coverage that results from an members of Congress, presidents of pre-eminent academic appearance. Most events are covered by several national and institutions, and leaders of national nonprofit organizations. international television outlets, global news services, web-based publications, foreign press, and major national reporters and Together, these members and their guests provide a premier photographers. Among the news outlets that routinely cover platform for international economic, business, and government Economic Club events are both television cameras and print luminaries to share insights about the critical economic, financial, reporters for Agence France Presse, Bloomberg, and Reuters news and political issues of the moment. Since its founding in 1986 services. Other outlets include CNBC, CNN, C-Span, Fox Business, as a nonprofit, non-partisan organization, the Economic Club NHK (Japan Broadcasting Corporation), POLITICO, Dow Jones/The has served as a global interface among the world’s governments Wall St. Journal, The Financial Times, Market News International, and international businesses. Members of Congress, other U.S. National Journal Group, The Washington Post, and Xinhua News political leaders, and serving ambassadors from countries all over Agency (China). This international dissemination of our speakers’ the world regularly attend the Club’s Signature Events to interact key points is one of the reasons why so many prominent leaders with Economic Club members, guests, and featured speakers. seek out the Economic Club as a first choice speaking platform.
4 THE ECONOMIC CLUB OF WASHINGTON, D.C. | THE PREMIER FORUM FOR LEADERS The list of speakers who have addressed the Club over the past 28 years metropolitan region’s business community closer together and includes a President of the United States, a former Prime Minister provide opportunities for area business leaders to share information of the United Kingdom, the Speaker of the House of Representatives, and learn from each other about unique industry trends. The chairs of the Federal Reserve Board, every Secretary of the Treasury Club also is committed to giving back to the greater community since 1986, other Cabinet members and federal government officials, in which our members live and work. Members actively support members of Congress, leaders of Fortune 100 corporations, and heads education initiatives that annually award $30,000 in doctoral of multi-national companies headquartered in other countries. candidate fellowships. The David M. Rubenstein/Economic Club of Washington, D.C. Scholarship Program presents nearly In addition to the Signature Events presenting featured speakers, $500,000 each year in college scholarships to seniors graduating the Economic Club sponsors other programs that draw the from Washington, D.C., public and public charter schools.
ANNUAL REPORT 2013–2014 5 OFFICERS*
PRESIDENT VICE PRESIDENTS – MEMBERSHIP VICE PRESIDENT – EDUCATION David M. Rubenstein Christopher G. Caine Dr. Jeffrey A. Eisenach Co-Founder, Co-Chief Executive Officer President and CEO Senior Vice President The Carlyle Group Mercator XXI, LLC NERA Economic Consulting
VICE PRESIDENT David Geanacopoulos VICE PRESIDENT – AUDIT Carol A. Melton Executive Vice President, Gary H. Tabach Executive Vice President, Public Affairs Managing Partner, Greater Washington Global Public Policy and General Counsel Deloitte & Touche LLP Time Warner Inc. Volkswagen Group of America, Inc. SECRETARY VICE PRESIDENT – PROGRAMS Stuart L. Solomon VICE PRESIDENTS – NOMINATING Deborah J. Kissire Managing Director Metro Washington Vice Chair, East Central Carol A. Melton Accenture Managing Partner Executive Vice President, Ernst & Young LLP Global Public Policy GENERAL COUNSEL Time Warner Inc. Wendelin A. White VICE PRESIDENT – FINANCE Co-Managing Partner, Washington, D.C. Office John C. Lee, IV David B. Pollin Morris, Manning & Martin LLP Senior Advisor Co-Founder and President Schneider Electric The Buccini/Pollin Group EXECUTIVE DIRECTOR Mary Brady
COMMITTEE GRANTS GLOBAL INITIATIVE CHAIRS TASK FORCE TASK FORCE RESOURCE DEVELOPMENT CHAIRS CHAIR Hon. Dave McCurdy President and CEO Lyles Carr Eric Spiegel Senior Vice President President and CEO American Gas Association The McCormick Group, Inc. Siemens USA STRATEGIC PLANNING Christopher G. Caine Katherine Brittain Bradley President President and CEO * current of as July 2014 Mercator XXI, LLC CityBridge Foundation
6 THE ECONOMIC CLUB OF WASHINGTON, D.C. | THE PREMIER FORUM FOR LEADERS BOARD of DIRECTORS*
Gina Adams Deborah Dingell Robert G. Liberatore Linda D. Rabbitt Senior Vice President, President Director Chairman and CEO Government Affairs D2 Strategies Chrysler Group LLC Rand Construction FedEx Corporation Corporation Margaret Dunning Edward J. Mathias** Meredith Baker Managing Partner Managing Director Todd S. Rich President and CEO Widmeyer Communications, The Carlyle Group Partner CTIA, The Wireless a Finn Partners Company The JBG Companies Association Kathleen Matthews Raul J. Fernandez Executive Vice President, Joseph Rigby Brian D. Berry Chairman Global Communications and Chairman, President and CEO Senior Vice President, ObjectVideo Public Affairs PEPCO Holdings Inc. Eastern Region Marriott Columbia Property Barry M. Granger International, Inc. Kenneth A. Samet Trust, Inc. Vice President – President and CEO Government Marketing Deryl McKissack MedStar Health Thomas S. Bozzuto and Government Affairs Chairwoman and CEO Chairman and CEO DuPont McKissack & McKissack Gary Shapiro Bozzuto Group President and CEO Michael Harreld Robert Milkovich Consumer Electronics Katherine Brittain Bradley President Executive Vice President and Association President PNC Bank of Greater Chief Operating Officer Eric Spiegel CityBridge Foundation Washington First Potomac Realty Trust President and CEO Teresa Carlson Kim Horn Hon. Susan Molinari Siemens USA Vice President, Regional President Vice President, Katharine B. Weymouth Global Public Sector Kaiser Permanente Public Policy and Government Publisher and CEO Amazon Web Services Mid-Atlantic States Relations for the Americas The Washington Post Google Inc. Tim Coughlin** Dr. Steven Knapp Jonathan W. Witter Managing Director President Cheryl A. Moore President, Edgemoor Investment George Washington Executive Vice President and Advisors, Inc. University Chief Operating Officer Retail and Direct Banking Capital One Bank Debra L. Lee Howard Hughes Jack Davies Medical Institute Owner Chairman and CEO Jeff Wood Monumental Sports BET Networks Mark Ordan Market President and Entertainment President and CEO Bank of America Washington Prime Group * current of as July 2014 ** ex-officio
ANNUAL REPORT 2013–2014 7 SIGNATURE EVENTS 27th SEASON: JULY 2013 – JUNE 2014 Eleven Signature Events hosted by The Economic Club of Washington, D.C. during the 2013 – 2014 season, global leaders representing governments, international businesses, and financial institutions presented their expert analyses of the most pressing issues confronting the world today. Some of the opinions they shared are captured in the following excerpts of their remarks.
“… one of the fascinating parts of my job is that I get to talk to these THE HONORABLE extraordinarily innovative VALERIE B. JARRETT and intelligent people who SENIOR ADVISOR TO PRESIDENT BARACK OBAMA AND ASSISTANT TO THE PRESIDENT FOR PUBLIC have a range of ideas, but the ENGAGEMENT AND INTERGOVERNMENTAL AFFAIRS JULY 23, 2013 ones that really resonate with us are ones that are not just n introducing Ms. Jarrett, Economic Club President David narrow self-interests, but ones I M. Rubenstein said, “clearly [she] is the most senior advisor and the most trusted advisor to the President of the United States …” He that really will grow our economy went on to describe the roots of her close association with the Obama and make the economy strong.” family. President Rubenstein explained that when Ms. Jarrett was Deputy Chief of Staff for Chicago Mayor Richard Daley, “… she interviewed a young woman for a job named Michelle Robinson, who was then affianced to somebody named Barack Obama. … she got to meet Barack Obama at that time, 20-some years ago.” Since that first meeting, President Rubenstein explained, Ms. Jarrett has been a close friend of the Obamas and a key participant in all of President Obama’s campaigns for political office.
8 THE ECONOMIC CLUB OF WASHINGTON, D.C. | THE PREMIER FORUM FOR LEADERS REPRESENTATIVE DAVE CAMP (R-MI) CHAIRMAN HOUSE WAYS AND MEANS COMMITTEE JULY 18, 2013 “… the current Code is indefensible. People have this sense that if only they knew somebody in Washington, they’d be paying a lower rate. There’s a real sense of unfairness in the Code … the cost of compliance is enormous — it’s over $168 billion a year and 6 billion hours … there’s this huge sort of complexity … that is really unproductive.”
enator Baucus and Representative Camp S made a joint appearance at the Economic Club to discuss their bipartisan effort to move “Not only are Dave and I forward tax reform legislation. Economic Club President Rubenstein said in introducing the working together, but Senator duo, “You gentlemen are doing something [Orrin] Hatch [R-UT], the very unusual in Washington, which is getting together from both parties, a Democrat and a ranking Republican, and I are Republican. You don’t see much of that being working together. We [have] done today.” Senator Baucus has since left the agreed on the approach Senate to serve as Ambassador to China. While Chairman Camp remains committed to the cause … to start with a clean of tax reform, all efforts to develop bipartisan SENATOR MAX slate. … get rid of all tax legislation have stalled in a mid-term election year. BAUCUS (D-MT) expenditures, roughly CHAIRMAN SENATE FINANCE COMMITTEE valued at $12 trillion JULY 18, 2013 over 10 years — that’s a very rough number — and then we start to build back. What do we want to put back into the Code? … What’s that revenue used for? Is that revenue going to be for rate reduction? Is that revenue going to be used for static revenue reduction? It’s probably almost entirely a rate reduction.”
SIGNATURE EVENTS | ANNUAL REPORT 2013–2014 9 “I don’t think it is widely understood JAMES P. GORMAN how healthy our financial system CHAIRMAN AND CHIEF EXECUTIVE OFFICER is now, and that needs to be known, MORGAN STANLEY because that drives the economy. That SEPTEMBER 18, 2013 doesn’t mean there isn’t going to be n his introduction of Mr. Gorman, President Rubenstein some trader tomorrow do something I said, “Morgan Stanley is, of course, one of the best-known financial service organizations in the stupid or some bank somewhere world. It has a market cap today of do something stupid — individual about $57 billion, has about 55,000 employees, and has annual revenue institutions will always mess up. The of about $33 billion.” Mr. Gorman, a system, though, is much healthier …” native of Australia, has a law degree from the University of Melbourne and an M.B.A. from Columbia Business School. He serves on the Board of Overseers of the Columbia Business School and the Business Council, is a board member of the Partnership for New York City and the Institute of International Finance, and a member of the Financial Services Forum. He is a former board member of the Securities Industry and Financial Markets Association in Washington, D.C., and served as Chairman in 2006.
“Elected leaders have a responsibility to make our THE HONORABLE economy stronger, not to JACOB J. LEW create manufactured crises SECRETARY OF THE TREASURY that inflict damage. The very SEPTEMBER 17, 2013 last thing we need now is a fight ith debate raging on Capitol Hill about W over whether we raise the debt whether to raise the debt ceiling for the United States treasury before an impending ceiling. Not when we face serious deadline of a zero cash balance, Secretary Lew made the case at the Economic challenges both domestically and Club for the urgency of Congressional action. He told Economic Club members and guests, “America does not want to relive what happened in internationally that require our full 2011. That drawn-out debt ceiling dispute and brinksmanship led to business attention, and not when we know uncertainty, a drop in consumer confidence, and the first-ever downgrade of our Nation’s AAA credit rating. The resulting drop in financial markets the kind of damage a financial undercut economic growth for months. Anxiety spread across the country and economic crisis can cause.” and around the world as Congress delayed action until the very last moment.”
10 THE ECONOMIC CLUB OF WASHINGTON, D.C. | THE PREMIER FORUM FOR LEADERS “Some people say hybrid vehicles such as the Prius are only a bridge to the future, but we think it could be a long bridge and a very sturdy one TAKESHI UCHIYAMADA because there are CHAIRMAN OF THE BOARD TOYOTA MOTOR CORPORATION many more gains SEPTEMBER 30, 2013 we can achieve r. Uchiyamada is known as “the father of the Prius”, described on with hybrids.” M the Prius website as “The hybrid that started it all”. Mr. Uchiyamada joined Toyota right out of college in 1969 after earning an applied physics degree from Nagoya University. When he spoke at the Economic Club, Toyota had recently recaptured the honor as the largest automobile company in the world, having sold about 9.7 million cars worldwide in 2012 and on track to sell 10 million cars in 2014, according to President Rubenstein. Other company statistics cited by President Rubenstein credited Toyota “with a market cap of about $207 billion and revenues annually of about $230 billion; 331,000 employees, about 32,000 employees in the United States.” Mr. Uchiyamada spoke to the Economic Club through an interpreter with simultaneous translation employed.
“. . . [DuPont is] in our third century. We moved from an explosives company ELLEN KULLMAN to a chemical company. We’re now CHAIR OF THE BOARD AND moving into an integrated science CHIEF EXECUTIVE OFFICER DUPONT company and really creating great OCTOBER 10, 2013 products and services down our value
n the day that Ms. chains to enable our customers to be O Kullman was the successful, using all the power that science featured guest at the Economic has. It is that transformation and Club, Forbes magazine named her one of the most highly regarded women in the business world, ranking her as the that broadening that is really driving third most powerful woman in American business and me, it’s driving my senior team in one of the 40 most powerful women in the world. In her creating the growth, both top line dialogue with President Rubenstein, Ms. Kullman talked about DuPont today, describing the company as “no longer and bottom line, for our company.” the chemical giant … Rather, we’re combining biological science, chemistry, materials science, and engineering to drive new growth opportunities.” She also said that one of the most pressing issues confronting the United States today is the need to create “an appropriate regulatory regime — tax regime — to help U.S. companies compete in a global economy.”
SIGNATURE EVENTS | ANNUAL REPORT 2013–2014 11 “… we believe you need to do a couple things to help with these long-term deficit issues. Number one, you need to focus on health care costs, implement the Affordable Care Act as well as the health care savings we have in our budget. Number two, immigration [reform]. Immigration THE HONORABLE causes economic growth …” SYLVIA MATHEWS BURWELL DIRECTOR OFFICE OF MANAGEMENT AND BUDGET DR. JIM YONG KIM MARCH 11, 2014 PRESIDENT THE WORLD BANK GROUP irector Burwell participated in a wide-ranging discussion D with Economic Club President Rubenstein when she DECEMBER 10, 2013 was the featured guest. Among the issues they discussed were r. Kim is the 12th president of the Obama Administration’s FY2015 budget, the Bipartisan D the World Bank and the first Budget Act, Obamacare and the impact the 2013 government nominated to the position without a shutdown had on the economy. According to Ms. Burwell, the political or finance background. Born President’s budget sets “… discretionary spending [that] at in Seoul, Korea, Dr. Kim’s family immigrated to the United its current levels will be as a percentage of GDP at the size States when he was five years old. He grew up in Iowa, attended that we had in the Eisenhower administration.” She also the University of Iowa, transferred to Brown, and graduated said that Obamacare is helping the economy. “In the period magna cum laude from there in 1982. He received his medical that the Affordable Care Act has been passed, the CBO has degree from Harvard in 1991 and then proceeded to earn a Ph.D. lowered its health-care cost estimates for the period of 2014 in anthropology from the same institution. While he was still to 2020 by one trillion dollars.” Shortly after her appearance in medical school, Dr. Kim co-founded Partners in Health, a at the Economic Club, Director Burwell was nominated by nonprofit organization initially started to provide community President Obama and confirmed by the Senate to serve as health care in Haiti. Partners in Health now provides care in 12 Secretary of the Department of Health and Human Services. other countries around the world and employs 13,000 people. After serving as executive director of Partners in Health, Dr. Kim joined the World Health Organization and managed that organization’s global HIV/AIDS program for several years. He then taught medicine at Harvard “I always try to remind myself, I get to wake up every morning and Medical, Harvard School of Public go to work and my mission is to end poverty in the world. … my Health, and Brigham and Women’s Hospital until he was recruited in job is to try to think about all the ways that we can help 2009 to be the 17th president of countries grow their economies, provide jobs, reduce Dartmouth College. In 2012, he became the President of the World poverty, and I get to do it in 188 countries in the world.” Bank. His diverse background provides Dr. Kim with a unique perspective on the role of the World Bank and the challenges it confronts around the world.
12 THE ECONOMIC CLUB OF WASHINGTON, D.C. | THE PREMIER FORUM FOR LEADERS r. Nassetta and Mr. Sorenson, the leaders of the two M largest hotel management companies in the world, “… as the world joined Economic Club President Rubenstein for a discussion about the changing nature of the hospitality industry and continues to the importance of technology to this business. Hilton and become a Marriott operate a combined total of about 8,000 properties smaller place around the world and together employ almost 700,000 people globally in owned, managed, and franchised properties. and globalization continues to pick up steam, what “It’s a business CHRISTOPHER we’re seeing is everybody loves. J. NASSETTA actually more Our people love PRESIDENT AND brand loyalty CHIEF EXECUTIVE OFFICER it, our guests love HILTON WORLDWIDE particularly because it, our owners MARCH 20, 2014 … at our scale, with love it. … You can the geographic understand any distribution that we have in 91 countries with business, but you love ARNE M. chain-scale diversification across all the various hotels and you love SORENSON price-points, all connected together with Honors, to talk about hotels PRESIDENT AND our loyalty program, and with underlying it very and who’s taking CHIEF EXECUTIVE OFFICER good products and services that are being delivered, MARRIOTT INTERNATIONAL, INC. the toiletries and MARCH 20, 2014 what we’re finding — notwithstanding the Internet, what’s happening in notwithstanding the ability to shop — is that our the minibar. You can like it for the business market share in individual markets, and in regions riddles, you can like it for the grand questions and globally, is going up, not down, that people are around global development, but you can also becoming more and more loyal to our brands.” like it just because you’ve got a favorite hotel in the world and you’ve got an experience that you’d like to talk to people about. Whether you’re on the soccer field with other parents or you’re talking in sophisticated business circles or you’re talking to government folks, everybody likes the hotel business, maybe to complain about it every now and then, but they love to travel, they love the experience, they love the memories that they get and take from it.”
SIGNATURE EVENTS | ANNUAL REPORT 2013–2014 13 RANDALL L. “… this low growth, it’s not a STEPHENSON CHAIRMAN, BUSINESS ROUNDTABLE; coincidence that it is occurring CHAIRMAN AND CHIEF EXECUTIVE commensurate with the lowest OFFICER, AT&T INC. level of private-sector investment JUNE 17, 2014 in this country as a percentage r. Stephenson appeared at the M Economic Club in his capacity of GDP since World War II. The as Chairman of the Business Roundtable (BRT), an association of percent of our population that’s chief executive officers of leading U.S. companies with $7.4 trillion working is at its lowest level in annual revenues and more than 16 million employees. BRT member companies comprise more than a third of the total value of in 36 years. All of us who run the U.S. stock market and invest $158 billion annually in research businesses [know] … if you’re and development — equal to 62% of U.S. private R&D spending. not investing, you’re not going to In his remarks, Mr. Stephenson outlined the agenda the BRT has created to increase the slow rate of economic growth in the United grow. And if you’re not investing, States. He told Economic Club members, “The business community you’re not hiring. If we want has coalesced. We believe there is nothing in this town that ought to get at the core of why to trump growth. Without economic growth, safety nets become irrelevant, health care becomes unaffordable, retirement benefits the U.S. is not growing, we are, frankly, unsustainable. … some people very prominent in this believe we have to address town — some economists — who talk about this 2% growth as being the new normal. I just think it’s important that we not confuse normal those areas that are getting with acceptable. The idea that something is settling into a pattern, in the way of investment and that now becomes normal, to us ignores what is achievable and and hiring. … What public what is achievable with just some very specific action. … There is no fundamental reason why this economy cannot grow in excess of 4% policies are beginning to distort right now.” In a follow-up conversation with President Rubenstein, markets and are getting in the Mr. Stephenson also addressed issues of importance to AT&T. way of investment and hiring? The answer to that became four pillars of growth. It’s called the BRT Growth Agenda. First and foremost is restoring fiscal stability. The second may not surprise you, and that is business tax reform. The third is expanding global trade and the fourth is fixing an immigration system that’s flat broken.”
14 THE ECONOMIC CLUB OF WASHINGTON, D.C. | THE PREMIER FORUM FOR LEADERS WES BUSH “… I haven’t met anyone, CHAIRMAN, CHIEF EXECUTIVE OFFICER, either in Congress or, AND PRESIDENT NORTHROP GRUMMAN CORPORATION clearly, in the national APRIL 17, 2014 security environment, who would say that today uring his appearance at the Economic D Club, Mr. Bush, head of the fourth the threat profile to our largest defense contractor in the United States, country and to our allies described for Club members his concerns about current efforts to cut defense is less than it was just spending as a result of the end of the Iraq war and the wind-down of the war in Afghanistan. “… I think it’s important for our national security capability a few years ago, and yet we to be capable of supporting the President at all times in everything that we’re are struggling to deal with a deficit doing, and I am very worried that the vector that we’re on, from a budgetary perspective, is one that will undermine the President’s ability over the long- environment. … The entirety of term — whoever is President at any particular point in time — to really do what the budget cutting that’s occurred needs to be done,” he said. Other topics he discussed included cybersecurity has been on the back of the as a critical challenge confronting the United States and projections for future growth of the defense industry. discretionary budget, which is a minority of the total spending … in the United States. … Our industry … really believe[s] that the nation needs to have an alignment between strategy and investment, and that we’re not aligned yet today.”
SIGNATURE EVENTS | ANNUAL REPORT 2013–2014 15 AROUND the WORLD SPEECH EXCERPTS · SIGNATURE EVENTS
WES BUSH “… our industry is becoming more of a global security industry. There is a lot of partnering that is going on between companies based in the U.S. CHAIRMAN, CHIEF EXECUTIVE OFFICER, AND PRESIDENT and companies based in our allied nations. We are working to expand NORTHROP GRUMMAN our footprint internationally. And I think, very appropriately, many of the CORPORATION internationally based defense enterprises are working to expand their footprint APRIL 17, 2014 here. So I think of our industry as a global security industry, not just a domestic security industry.”
“… there’s great opportunity [in the developing DR. JIM YONG KIM THE HONORABLE world] … There are PRESIDENT JACOB J. LEW so many win-win-win THE WORLD BANK GROUP SECRETARY OF THE TREASURY opportunities. For DECEMBER 10, 2013 SEPTEMBER 17, 2013 example, in Burkina Faso, a country that pays 74 cents a kilowatt hour — that’s “China is fascinating. China went about seven times what we pay Pepco here — … and through a long period of yet, they’ve been growing at 6 to 7% a year over the last double-digit growth and five years, even during the economic crisis. What they there’s going to be a decline need is long-term capital. They need access to capital so to a more sustainable rate of that they can [develop] … the solar micro and mini grids growth. They’ve got to make some that will provide them energy. An investment in energy tough decisions internally in order in Burkina Faso could make you a very good return, to make sure that they level off at a lower dramatically the cost of energy for Burkina Faso, level of growth that works for China’s and actually spur their economic growth into the future. economy and China’s social stability.” There are investments like that in Liberia, in Nigeria, all over the world, and we’re trying to be the dealmaker.”
16 THE ECONOMIC CLUB OF WASHINGTON, D.C. | THE PREMIER FORUM FOR LEADERS SPEECH EXCERPTS | ANNUAL REPORT 2013–2014 17 BUSINESS & FINANCE SPEECH EXCERPTS · SIGNATURE EVENTS
“. . . we’re using the power ELLEN KULLMAN of integrated science CHAIR OF THE BOARD to build our strengths AND CHIEF EXECUTIVE OFFICER in three areas. . . . The DUPONT first is in agriculture OCTOBER 10, 2013 and nutrition. We’re already a major global player in agriculture and our strategy is to extend that leadership across high-value science-driven segments in ag and the food value chain. The second is in bio-based industrials. Our strategy here is to develop world-leading industrial biotechnology capabilities to help transform new materials and new businesses that are bio-based. And the third area is in advanced materials. We’ve been a leader in materials science for many years and our strategy here is to strengthen and to grow our position in highly differentiated performance materials. The key to success in these strategic areas will be our ability to create innovative solutions that respond to local needs. And this is occurring everywhere around the world — where science meets demand.”
18 THE ECONOMIC CLUB OF WASHINGTON, D.C. | THE PREMIER FORUM FOR LEADERS “The most important thing about the Facebook IPO is not JAMES P. GORMAN the IPO; it’s the Facebook part. This is a great American CHAIRMAN AND CHIEF success story and this is the kind of thing that has made this EXECUTIVE OFFICER country extraordinary. The level of innovation, of creativity, and then MORGAN STANLEY the financial support to bring what was an idea in a dorm room to SEPTEMBER 18, 2013 be an $80 billion company with billions of people following it and logging on every day, as I’m sure all of you are, it’s just extraordinary. So the IPO I regard as kind of an event in this extraordinary company. It was disappointing to me that during the whole IPO process there wasn’t more of a celebration of what that management team had done and what they had created in terms of vibrancy for the economy and the competitive instinct for everybody else in the Valley to come up with other ideas and be the next Facebook. The actual IPO … was a mess. The market opening was a mess. It was something that was completely unprecedented, the hype going into it. … I said publicly [at the time] … that I felt a little patience was called for; give it a year and then let’s judge whether this really was what everybody had said it was. It took 15 months, … so we were off by a little bit, but it’s trading up 15% and it remains a great American success story.”
“When you’re a business, and you’re evaluating multi-billion dollar capital commitments that span multiple years, sitting in a position where you don’t know if the government’s going to default on its debt or if you’re going to have essential services stopped is not a very pleasant place to be when you’re trying to make those decisions. While this may seem like a radical idea to some, the BRT (Business Round Table) believes that it makes a lot of sense for the largest institution in the history of the planet, the federal U.S. government, to operate on a budget — a budget that’s been approved by both Houses of Congress and the Administration. When we talk about stability, that’s what we’re looking for.” RANDALL L. STEPHENSON CHAIRMAN, BUSINESS ROUNDTABLE; CHAIRMAN AND CHIEF EXECUTIVE OFFICER, AT&T INC. JUNE 17, 2014
SPEECH EXCERPTS | ANNUAL REPORT 2013–2014 19 CONGRESSIONAL GRIDLOCK SPEECH EXCERPTS · SIGNATURE EVENTS
“I just really hope and pray that our political community can come to a middle ground. It’s not like one side is going to wake up one morning and say, you know what? The other guys were right all this time. That’s not going to happen. Therefore, there are two other outcomes. They come to a middle ground, or they do nothing. And the longer we do nothing, the more it just capitalizes interest and hurts future generations of Americans who don’t deserve this; they don’t deserve this great burden. I don’t understand why folks can’t be rational and accept in any significant debate, there has to be some give and take. I thought the Simpson-Bowles Commission laid out … a very plausible set of doable things, which would have taken a little bit from both sides. Unfortunately, it didn’t go through.” “You cannot let 50 to 100 Members of one body introduce the idea that the United States cannot JAMES P. GORMAN pay its bills. You can’t even entertain that as a notion. CHAIRMAN AND CHIEF EXECUTIVE OFFICER Future Presidents, Democrat or Republican, cannot be in the MORGAN STANLEY position where they’re compelled to accept unacceptable SEPTEMBER 18, 2013 policy year after year because there’s a faction that thinks default is an option. Congress just needs to act.” THE HONORABLE JACOB J. LEW SECRETARY OF THE TREASURY SEPTEMBER 17, 2013
20 THE ECONOMIC CLUB OF WASHINGTON, D.C. | THE PREMIER FORUM FOR LEADERS “… we’re very involved in cybersecurity. It’s one of the cornerstone technologies in our company. It’s something that we’d been involved in long before the term ‘cybersecurity’ became a popular term. … [I] am very concerned about this particular area, in several dimensions. First, it is an area where, when you look around the globe, the status of the threat profile is pretty advanced. … We have to be very vigilant about this, and I’m pleased to see that again in this year’s President’s budget proposal to Congress there is a large investment on the national security side for cyber defense and cyber protection. My biggest concern, though … is [that] we really aren’t yet to a place where we’re thinking about the broader society impacts of cyber and business stepping RANDALL L. STEPHENSON “… the ability to work up to really deal with that level of issue CHAIRMAN, BUSINESS ROUNDTABLE; on core issues where and that level of threat. … One of the CHAIRMAN AND CHIEF EXECUTIVE OFFICER, AT&T INC. there is general things that I think is in front of JUNE 17, 2014 agreement is the us as a country is to get over this part that frustrates hurdle on legislation so that we me. If you think about these areas — tax reform — if I were to go sit can do the things we need to do to down in Senator Wyden’s [D-OR, Chairman of the Senate Finance be more effective in securing the Committee] office this afternoon, walk across and go over to Dave cyber infrastructure of the country.” Camp’s [R-MI, Chairman of the House Ways and Means Committee] WES BUSH office later in the afternoon, I could walk out of that meeting and think, we’re going to get a deal done tomorrow because there is just CHAIRMAN, CHIEF EXECUTIVE OFFICER, AND PRESIDENT general agreement on the big issues, what needs to be done — get NORTHROP GRUMMAN CORPORATION rid of the preferences and the special deductions and the APRIL 17, 2014 loopholes, get rid of all of that, and invest it into getting the tax rate down to a competitive level, so you stop seeing companies move offshore and then so forth. … It comes to starting to pass legislation, and you can’t get past square one. That’s part of the frustration.”
REPRESENTATIVE “This idea that you’re going to have a small group of people DAVE CAMP (R-MI) that impose something on the rest of the Congress is not CHAIRMAN going to work. I think one of the important things to do … is to U.S. HOUSE OF REPRESENTATIVES really involve Members. … you build a bill from the ground up. You WAYS AND MEANS COMMITTEE have people involved. And more importantly, you have interested JULY 18, 2013 parties, stakeholders, who actually are a part of this process.”
SPEECH EXCERPTS | ANNUAL REPORT 2013–2014 21 ECONOMIC ISSUES SPEECH EXCERPTS · SIGNATURE EVENTS
“… when considering the question of the debt and the right level of the debt and deficits, you need “… we will soon be unable to put it in the context — the to finance the government broader context of what’s happening THE HONORABLE if Congress fails to raise in the economy and the context of JACOB J. LEW the debt ceiling. Raising what also has already happened. One SECRETARY OF THE TREASURY the debt limit is Congress’s of the most important measures to SEPTEMBER 17, 2013 responsibility because focus on is a declining deficit-to-GDP Congress, and Congress ratio — ours goes from over 3% down alone, is empowered to to 1.6 in the current budget window of set the maximum amount the government can borrow to 10 years — and debt to GDP, because it meet its financial obligations. … the debt limit has nothing is a measure of the size of the economy. to do with new spending. It has to do with spending that We go from about 74 down to 69%.” Congress has already approved and bills that have already been incurred. Failing to raise the debt limit would not THE HONORABLE SYLVIA make these bills disappear. … Make no mistake: If Congress MATHEWS BURWELL does not act and the U.S. suddenly cannot pay its bills, the DIRECTOR repercussions could be serious. The impact on families and OFFICE OF MANAGEMENT AND BUDGET businesses could be significant. Investors losing confidence MARCH 11, 2014 in the full faith and credit of the United States could cause damage to our economy. Failure to raise the debt limit, or even an extended debate on the merits of doing so like we experienced in 2011, is a self-inflicted wound that can do harm to our economy right at a moment when the recovery is strengthening. No credible economist or business leader thinks that defaulting on the full faith and credit of the United States is good for job creation or economic growth. They understand that Congress choosing not to pay the government’s bills is unacceptable …”
22 THE ECONOMIC CLUB OF WASHINGTON, D.C. | THE PREMIER FORUM FOR LEADERS “I’m much more bullish than most people on the U.S. If you had to make a risk-return tradeoff of investing somewhere in the world, I’d invest in the U.S. right now. And I don’t think you’ve been able to say that for 30 or 40 years. There are still emerging markets that are growing faster — China is growing at 6% or 7% — but I think on a risk-return basis, you’d have to look at the U.S. The reasons [why] are we have great immigration; we have continued great mobility; we have a clean, healthy banking system; we have corporate balance sheets that are clean; we have consumers who have lowered their personal debt; we have 401(k) plans up at 12% last year, probably that much this year. Every dollar that’s going to the housing market in almost every part of this country is a dollar of equity to the homeowner. These are great things. And there is no irrational exuberance in the market. So I think the U.S. is in really strong fundamental shape. Whether that JAMES P. GORMAN translates into 2, 2½, 3, 3½% [growth], — I’m not an economist, CHAIRMAN AND CHIEF EXECUTIVE OFFICER I don’t know. I’m just bullish on the U.S., and I think we should MORGAN STANLEY celebrate a little bit the fact that this country is coming back.” SEPTEMBER 18, 2013
“Since 2009, our economy has been expanding. Private employers have added 7 1/2 million jobs over the past 42 months; businesses have added more than 2 million jobs over the last year. Manufacturing is expanding while the housing market continues to improve, posting gains in sales, prices, and residential construction. Because of the policies that we’ve put in place, our deficit has fallen faster than at any point since the demobilization after World War II, and it should continue to decline relative to GDP over the 10-year budget forecast. Because of the resiliency of our people, our businesses, and our economy, we’re in a much stronger position today than many imagined just a few years ago. But we’re not yet where we want to be. Too many Americans cannot find work. Growth is not fast enough. And the very definition of what it means to be middle class is being undercut by trends in our economy that must be addressed.” THE HONORABLE JACOB J. LEW SECRETARY OF THE TREASURY SEPTEMBER 17, 2013
SPEECH EXCERPTS | ANNUAL REPORT 2013–2014 23 EDUCATION SPEECH EXCERPTS · SIGNATURE EVENTS
“The biggest challenge I see over the long term is talent. Our enterprise runs on the brilliance of the people who work in it, both in terms of folks in our company and in terms of folks in the Defense Department and the other elements of the national security enterprises, and it is a tough battle for talent out there today. I think there is sometimes a misperception that because the “I’m a big believer that economy has been a little bit tough for a few science is becoming a years, that it’s easy to hire people that you bigger part of all of our need. When it comes to getting the best, lives, not a smaller part. they have a lot of opportunities, particularly And we’re not doing when it comes to getting the best out of our job as a country in American universities, which I think continue educating our children to to be among the very best educational be able to live in a world enterprises on the globe. … We’re not where they need to make graduating, as a nation, enough STEM- ELLEN KULLMAN these decisions. They qualified graduates to support the demands that we have today. … we’ve CHAIR OF THE BOARD AND need to do it from a base CHIEF EXECUTIVE OFFICER of knowledge. I think got to get more through our pipeline. … the DUPONT what’s being done opportunity we have as a country to continue OCTOBER 10, 2013 around improving to stay ahead relies fundamentally on our the curriculum in ability to keep higher education — we need STEM, in science-based areas, is critical to our to work on K-through-12 as well — we’ve got future. … my passion lies in science education. It’s in to keep higher education at the forefront.” creating more engineers. It’s creating more scientists. I WES BUSH spend a lot of time working in Change the Equation, CHAIRMAN, CHIEF EXECUTIVE which is a bunch of CEOs from the Business Roundtable OFFICER, AND PRESIDENT working together to see how our efforts can help create NORTHROP GRUMMAN CORPORATION a stronger scientific future in our educational system.” APRIL 17, 2014
24 THE ECONOMIC CLUB OF WASHINGTON, D.C. | THE PREMIER FORUM FOR LEADERS IMMIGRATION REFORM SPEECH EXCERPTS · SIGNATURE EVENTS
RANDALL L. “[Immigration reform] has “Comprehensive immigration STEPHENSON become an emotional issue reform is a top priority of the CHAIRMAN, BUSINESS ROUNDTABLE; around the country and it’s Administration. We were quite CHAIRMAN AND CHIEF a hard one. I wish it were heartened to see it coming out of the EXECUTIVE OFFICER, AT&T INC. JUNE 17, 2014 one that would just simply Senate with strong bipartisan support, go away, but it’s not going and we are hoping that we can find that to go away. We’re going to critical mass in the House to do the same have to deal with this. Interestingly enough, in spite of what you there. That’s good for the economy.” see in recent elections … 70% of the American public — both Democrat and Republican — support immigration reform. We THE HONORABLE have 11 million undocumented immigrants in this country right VALERIE B. JARRETT SENIOR ADVISOR TO PRESIDENT BARACK now, and obviously any conversation about immigration has to OBAMA AND ASSISTANT TO THE begin with enforcing the border. That’s critical. But then the next PRESIDENT FOR PUBLIC ENGAGEMENT AND INTERGOVERNMENTAL AFFAIRS logical question is, what do you do with the 11 million people? The JULY 23, 2013 fact of the matter is, we aren’t sending them home. Not only is it impossible to send them home, but I believe it flies in the very face of what we stand for as a country, what we have always stood for. We welcome people here who work hard, who pay taxes and contribute to our prosperity. We have a higher education system that is still the envy of the world. And that system is educating more foreign students each year. We have these really strict limits on H-1B visas that are ensuring that these people receiving these world-class American educations are going to work in countries that are competing head-to-head against us. I just question how that makes any sense for any of us. Immigrants and their children have founded more than 40% of the companies in the Fortune 500. And they have founded 60% of the top 25 tech companies. Immigration has always been a source of strength for us. If we want to remain a leader in innovation and growth in this country, we think this is an area that has to be addressed and needs to be addressed in short order.”
SPEECH EXCERPTS | ANNUAL REPORT 2013–2014 25 The TECHNOLOGY REVOLUTION SPEECH EXCERPTS · SIGNATURE EVENTS
TAKESHI “We will continue to offer many types of hybrids, more than any other UCHIYAMADA manufacturer. One variation is the plug-in hybrid. It reduces CO2 to the same extent than an all-electric vehicle does, but the big difference is that CHAIRMAN OF THE BOARD TOYOTA MOTOR CORPORATION a plug-in can be driven on its gasoline-charged engine even if it runs out SEPTEMBER 30, 2013 of electricity … That gives a driver much more confidence that he or she will not run out of juice somewhere along the highway. The United States has many hybrids on the roads, but today I wish to call on the other industries to sell 5 million of these vehicles in the United States by the end of 2016 on a cumulative basis. I want our industry to work closely together to achieve this goal of 5 million hybrids in America.” “In 2007, we had no smartphone customers, and today we have over 70 million smartphone customers. We ignited what we “… we have made big progress in developing a think is a global revolution, and it’s a revolution hydrogen fuel-cell vehicle. Toyota will be able that has really changed how commerce and to offer that in a sedan around 2015. A fuel- business is done. Try to imagine any of you doing cell vehicle has zero tailpipe emissions, just like your jobs or even interacting with your families an electric vehicle, but it does not have issues without having one of these devices on you.” of driving range and charging time that electric vehicles have. RANDALL L. STEPHENSON I personally TAKESHI CHAIRMAN, BUSINESS ROUNDTABLE; expect a lot CHAIRMAN AND CHIEF EXECUTIVE OFFICER, AT&T INC. UCHIYAMADA from this JUNE 17, 2014 CHAIRMAN OF THE BOARD hydrogen fuel- TOYOTA MOTOR CORPORATION cell technology.” SEPTEMBER 30, 2013
26 THE ECONOMIC CLUB OF WASHINGTON, D.C. | THE PREMIER FORUM FOR LEADERS “I see [national security as] having two fundamental underpinnings. First WES BUSH and foremost, we have the best-trained service men and women around CHAIRMAN, CHIEF the world. That is the core of the underpinning of our national security EXECUTIVE OFFICER, AND PRESIDENT strategy. But secondly, we equip those men and women with the very best NORTHROP GRUMMAN technology. And our strategy fundamentally relies on technological superiority. CORPORATION So I look at what we’re doing with unmanned and some of the other things APRIL 17, 2014 that are going on in the technology arena really as a way of supporting our service men and women. … There needs to be constantly the right mix, the right balance, of human talent and technology for us to really execute our strategy, a strategy that served us well.” “… mobile data is no longer what’s going to drive this industry, and what’s going to drive your industries. It’s mobile video. … So we’re buying DirecTV. DirecTV comes with a lot of assets and great things. First of RANDALL L. all, they have 20 million STEPHENSON video customers. And CHAIRMAN, BUSINESS ROUNDTABLE; that’s a great place to start CHAIRMAN AND CHIEF EXECUTIVE OFFICER, AT&T INC. if you’re going to build a JUNE 17, 2014 mobile video business.”
SPEECH EXCERPTS | ANNUAL REPORT 2013–2014 27 WES BUSH “In our company, we have about 65,000 employees, and a CHAIRMAN, CHIEF little more than half of them are degreed scientists, engineers, EXECUTIVE OFFICER, mathematicians. So this is a very technologically sophisticated AND PRESIDENT NORTHROP GRUMMAN enterprise. And the lifeblood of an enterprise such as this is CORPORATION that technology flow … APRIL 17, 2014 we are constantly innovating what’s ARNE M. “… automated check-in next, and we’re also constantly careful SORENSON will be as prominent to protect what’s next, because if we’re PRESIDENT AND in the hotel space CHIEF EXECUTIVE OFFICER as it is in the airline going to have technological superiority, MARRIOTT we’re not just going to open the cupboard INTERNATIONAL, INC. space already. It’s and let everybody see what’s there.” MARCH 20, 2014 been slow to get there. We’re now doing it in all of the Marriott-branded hotels in the United States, about 350 hotels. So if you’re a Marriott “It’s all about choice and control. … Rewards member and you want to sign up for the everywhere, in all of our lives, that’s what program, you can essentially walk in and they’ll we’re getting. That’s what we love about the give you your room key and, boom, you’re gone. iPhone or our Android, it’s not that it’s whiz- Now, we’re not far enough yet because of the bang and it looks beautiful; it does. It’s that it technology to let you open the door with your makes my life easier, it makes me more efficient. phone, which may be coming, although there are I can get a lot done without having to deal with some risks with that. Unless you get it perfectly a lot of people. … we are very, very focused right, you may open the wrong door and find and investing very heavily [in technology]. … somebody already in your room. We obviously the world of the future is going to be — and it’s want to make sure that that doesn’t happen.” not far off — like you can do in other parts of your life — where on your iPhone or whatever you carry, you CHRISTOPHER can interact with us … from the first time you think J. NASSETTA about booking a room to checking out … to giving us PRESIDENT AND feedback. [The interaction] will be done seamlessly and CHIEF EXECUTIVE OFFICER HILTON WORLDWIDE without having to interact directly with anybody unless MARCH 20, 2014 you choose to do it. … it’s going to give you the ability to be much more efficient and much more functional.”
28 THE ECONOMIC CLUB OF WASHINGTON, D.C. | THE PREMIER FORUM FOR LEADERS “… The idea is how do we get the policy right? It’s not this endgame of is there revenue, is there not revenue, but it’s how can we TAX REFORM develop the policy along the way. SPEECH EXCERPTS · SIGNATURE EVENTS I think in that area, … it isn’t as partisan as you might think …” “… there is nothing that would have a bigger and more REPRESENTATIVE immediate effect on investment and hiring than business tax DAVE CAMP (R-MI) reform. We all know these numbers, but the U.S. is still the highest OECD CHAIRMAN [Organization for Economic Cooperation and Development] country in U.S. HOUSE OF REPRESENTATIVES WAYS AND MEANS COMMITTEE terms of its tax rates. And these capital markets today are liquid. Capital JULY 18, 2013 flows very quickly and very easily to the highest returns. When the United States taxes profits at a level more than anybody else in the world, we shouldn’t be surprised when those investments are finding those lower-cost alternatives. So how do we address that? We think it’s really important that “We should certainly have tax we start with getting rid of all the loopholes, the special deductions and the reform. The President has exemptions, and use that to drive these tax rates down to competitive levels.” made it very clear that he thinks RANDALL L. STEPHENSON we need tax reform, both CHAIRMAN, BUSINESS ROUNDTABLE; individual and corporate. We need to make it simpler. On the CHAIRMAN AND CHIEF EXECUTIVE OFFICER, AT&T INC. corporate side we should be broadening the base, closing some JUNE 17, 2014 loopholes, lowering the rate. The United States does have a very high rate, but many companies don’t pay that high rate because of these loopholes. We want global companies to be able to be competitive in that global marketplace, and one way to do that is to make sure that they’re not disadvantaged when it comes THE HONORABLE to taxes. But I think we have to look at it in the broader context VALERIE B. JARRETT of our overall budget. That’s why it’s important that it be SENIOR ADVISOR TO PRESIDENT BARACK OBAMA AND ASSISTANT TO THE tax neutral. We can’t really afford to subsidize the PRESIDENT FOR PUBLIC ENGAGEMENT corporate community at the time when the taxpayers AND INTERGOVERNMENTAL AFFAIRS are still shouldering such a substantial burden.” JULY 23, 2013
SPEECH EXCERPTS | ANNUAL REPORT 2013–2014 29 PROGRAMS
Member-hosted Dinners
Economic Club members enjoyed two rounds of Member-hosted Dinners this past season and a first-ever Member-hosted golf outing that was held as part of the spring round of dinners. Almost 150 Club members attended these private functions, held primarily in member hosts’ homes, in November 2013 and May 2014.
Hosts for the dinners were Jordan Goldstein, Managing Director, Gensler; Dr. Patricia McGuire, President, Trinity Washington University; Carol Melton, Executive Vice President, Global Public Policy, Time Warner Inc.; Alan Meltzer, Founder and CEO, The Meltzer Group; Heather Podesta, Heather Podesta + Partners; Dave Pollin, Co-Founder and President, The Buccini/Pollin Group; Courtney Banks Spaeth, CEO, NSAWW; Eberhard von Lohneysen, Founder and Chairman, 10EQS; Matthew Voorhees, Co-Founder and CEO, Anybill Financial Services, and Wendy White, Co-Managing Partner, Washington, D.C. Office, Morris, Manning & Martin, LLP. Joe Brodecki, Principal, Bernstein Global Wealth Management, was the host of the golf outing.
30 THE ECONOMIC CLUB OF WASHINGTON, D.C. | THE PREMIER FORUM FOR LEADERS Executive Conversations
Economic Club members also had the opportunity to gain insights into other fields of business during seven Executive Conversations held during the 2013–2014 season. Limited to small groups of Club members, Executive Conversations generally are held over breakfast or lunch at the Club offices or hosted by other Club members in one of their organization’s conference rooms. Topics selected for Executive Conversations primarily focus on emerging industry trends or issues of particular interest to businesses based in the metropolitan Washington, D.C., region. Among the topics discussed during this past season were economic issues, future trends in health care and the news media, and the national political outlook.
Executive Conversation hosts were Charlie Cook, Editor and Publisher of The Cook Political Report; Hilary Fordwich, President, Strelmark LLC, in her capacity as Host of “Government Contracting Weekly”; Kim Horn, Regional President, Kaiser Permanente Mid-Atlantic States; Brian Kelly, Editor and Chief Content Officer,U.S. News & World Report; Dr. Kurt Newman, President and CEO of Children’s National Medical Center, and Rob Nichols, President and CEO, Financial Services Forum.
ANNUAL REPORT 2013–2014 31 Special Events
Several special events were held in the 2013–2014 season, A second orientation session, also hosted by Ms. Melton, starting with an orientation session for new Economic Club was held in December 2013. Board members in September. Nominating Committee Co-Chairs Carol Melton, Executive Vice President, Global Public New members were welcomed to the Economic Club at a breakfast Policy, Time Warner, Inc., and David Pollin, Co-Founder and event held March 27, 2014, at the Willard Hotel. President David President, The Buccini/Pollin Group, hosted the event. Among M. Rubenstein and other Board members provided attendees the topics discussed were the Board’s plans to focus on such with an overview of the Club’s mission, programs, and services. objectives as advancing the strategic plan, recommending President Rubenstein concluded the event with an entertaining potential new members, and recruiting top echelon speakers. account of the history of the Washington Monument.
32 THE ECONOMIC CLUB OF WASHINGTON, D.C. | THE PREMIER FORUM FOR LEADERS Global Initiative
The Washington, D.C., metropolitan region has grown substantially in stature as an international business center in recent decades. The area now ranks 13th among the top 20 on the Global Financial Centres Index, a measure of the competitiveness of financial centers around the world, outpacing such economic powerhouses as Toronto, Chicago, Shenzen, and Shanghai. The only U.S. cities that ranked above D.C. were New York, Boston, and San Francisco.
Still, awareness of the region as a dynamic locale for international commerce lags behind the reality. The need to close the gap between present day circumstances and perception is one reason that the The Global Initiative began adding an international flavor to the Economic Club launched a Global Initiative in FY 2014. The goal is to Economic Club’s Executive Conversation program with the April expand interaction between political leaders and dignitaries, as well 2014 appearance of Cherie Blair, founder of the international law as business titans, from other nations with the political, diplomatic, firm Omnia Strategy and wife of former British Prime Minister and opinion-leading business community in Washington, D.C., and Tony Blair. About 50 Economic Club members attended the event the surrounding area with an emphasis on economic development. during which Mrs. Blair discussed the importance and profitability of good corporate social responsibility in international commerce. A special Global Initiative Task Force, led by Eric Spiegel, President and CEO, Siemens USA, is being formed to guide this effort. The For the 2014–2015 season, the Global Initiative Task Force plans plan is to weave the Global Initiative into the Economic Club’s to organize at least one or two Signature Events featuring an existing Signature Events and Executive Conversations programs. international leader from another country. In addition, the task force intends to reach out to selected ambassadors to help them The highly successful September 30, 2013, event featuring Toyota better understand why the Economic Club is an outstanding Chairman Takeshi Uchiyamada served as a pilot for this initiative. forum for governmental and business leaders from their At this event, simultaneous translation was employed for the countries. The ambassadors also will be encouraged to either first time at an Economic Club function. The event also attracted host or be a speaker for future Executive Conversations. substantial global media coverage. At least 10 foreign-based media outlets covered Mr. Uchiyamada’s appearance as well as another 10 U.S.-based media outlets with international distribution.
The December appearance of Dr. Jim Yong Kim, President of The World Bank Group, also presented an opportunity to focus on increasing international media coverage of the Economic Club. Stories about Dr. Kim’s remarks were published by three global news outlets — Bloomberg, ThomsonReuters, and China’s Xinhua News Agency — and picked up by at least 79 different media outlets all over the world, including a publication in Kenya and print media in Canada.
ANNUAL REPORT 2013–2014 33 EDUCATION INITIATIVES
The David M. Rubenstein/Economic Club of Washington, D.C. Scholarship Program
Forty-five graduating seniors of D.C. a senior in high school, I can’t believe nearly $2 million in scholarships to public and public charter schools were how much I’ve changed and how much almost 250 graduating seniors. each presented with two-year $10,000 of the world was opened up to me by scholarships during a special event held these experiences. I’m grateful to Mr. The value of the scholarship program June 18, 2014, to celebrate the recipients of Rubenstein and the Economic Club for is enhanced by leadership development this year’s David M. Rubenstein/Economic helping provide me with this opportunity.” and mentoring programs supported Club of Washington, D.C. Scholarships. The event was sponsored by Jeff Wood, by Economic Club members. Every Market President, Bank of America. summer, Club members host day-long Kaya Henderson, Chancellor of DC Business Leadership Development Public Schools, was the featured guest at The David M. Rubenstein/Economic Seminars crafted to introduce students the scholarship presentation ceremony. Club of Washington, D.C. Scholarship to the world of business. Hosts for the Another highlight was remarks by Program is one of the few large-scale 2014 seminars were Barry Direnfeld, Belinda Cook, a 2010 graduate from H.D. scholarship initiatives dedicated exclusively Of Counsel, Bingham McCutchen LLP; Woodson HS who also was a recipient to students graduating from D.C. public Debra Lee, Chairman and CEO, BET of a David M. Rubenstein/Economic schools. Established in 2009 by David Networks; Stu Solomon, Managing Club of Washington, D.C. Scholarship. M. Rubenstein, Co-Founder and Co-Chief Director Metro Washington, Accenture, Ms. Cook currently is attending Bennett Executive Officer of The Carlyle Group, and Richard Woods, Senior Vice College in Greensboro, N.C., and expects and President of the Economic Club, the President of Corporate Affairs, Capital to graduate in December 2014. In program has steadily increased in size One. Transportation for the students to her remarks to the 2014 scholarship and scope since its inception. With the and from each seminar was provided recipients, Ms. Cook said, “When I look 2014 scholarships, President Rubenstein by Kristina Bouweiri, President back at myself a short four years ago as and the Economic Club have awarded and CEO of Reston Limousine.
34 THE ECONOMIC CLUB OF WASHINGTON, D.C. | THE PREMIER FORUM FOR LEADERS ANNUAL REPORT 2013–2014 35 Scholars to Leaders Mentor Program
A Scholars to Leaders Mentor Program season to explore ways to enhance the that augments the scholarship program scope and effectiveness of the leadership was launched at an initial meeting of development component of the volunteer mentors in May 2014. This Economic Club’s Education Initiatives, initiative provides scholarship recipients particularly in support of the recipients with mentoring support throughout of the David M. Rubenstein/Economic their college years. It is designed as a Club of Washington D.C. Scholarships. group mentor model which matches Margaret Dunning, Managing Partner, Economic Club professionals with Widmeyer Communications, a Finn the students to provide guidance Partners Company, served as chair and leadership tools to help ensure of the Task Force. Other members successful college completion. A total were Mary Brady, Executive Director of 40 volunteers, 23 Economic Club of the Economic Club; Katherine members and 17 other individuals Brittain Bradley, President, CityBridge from Economic Club member Foundation; M. Charito Kruvant, organizations, are serving as mentors President and CEO, Creative Associates to this year’s scholarship winners. International, Inc.; Bradley Flickinger, Senior Managing Director, CBRE; The launch event was followed in June by an orientation session for mentors Elizabeth L. Lewis, Partner, Cooley and a “Meet and Greet” during which LLP, and Robert N. Yerman, Managing the mentors and scholarship recipients Director, AlixPartners LLP. The were introduced to each other. The event task force members also have been was hosted by Foley & Lardner LLP. instrumental in the development and During the “Meet and Greet” session, launch of the mentoring program the mentors and students divided with the assistance of Donna Power into five groups and selected both Stowe, an education expert who has mentor and student leaders for each been providing advice and counsel group. The leaders are responsible for to the Education Committee. coordinating each mentoring group’s This leadership development program activities. Mentoring sessions began in is on the cusp of a trend in the business the summer of 2014 and will continue community to increase its engagement all four years the student attends college. in improving education at all levels in This mentoring program emerged from the United States. This involvement is recommendations made by a Leadership essential to keeping the U.S. competitive Development Task Force, a special in the global economy and ensuring subgroup of the Education Committee, increased economic opportunity for that was appointed in the 2013–2014 all people living in this country.
36 THE ECONOMIC CLUB OF WASHINGTON, D.C. | THE PREMIER FORUM FOR LEADERS Philip M. Dearborn Fellowship and the Vernon E. Jordan, Jr. Fellowships
Since 1993, the Economic Club of Club president Vernon E. Jordan, Jr., were Complete Picture of Taxpayer Responses Washington has awarded annually a Jacob Mortenson and Alison Weingarden. to Marginal Tax Rate Changes”. Ms. $10,000 doctoral fellowship named Both are students at Georgetown University. Weingarden’s thesis focuses on “The in honor of Philip M. Dearborn, a Mr. Mortenson’s thesis is titled “A More Causes and Consequences of Mass Layoffs”. leading national authority on urban finance, intergovernmental finance, and regional economic development who was particularly well regarded for his analyses of the financial condition of Washington, D.C., and the Washington metropolitan area. Two more fellowships of $10,000 each have been presented annually in honor of Vernon E. Jordan, Jr., the Economic Club’s immediate past President, since 2009.
The winners of the 2014 Philip M. Dearborn and Vernon E. Jordan, Jr., fellowship awards were announced by Dr. Jeffrey Eisenach, Senior Vice President of NERA Economic Consulting and Vice President of Education of the Economic Club, at the Club’s June 17 Signature Event. The Philip M. Dearborn award was presented to Alyx Mark, a graduate student at George Washington University whose thesis is entitled “Beyond Remedy: Does Civil Legal Assistance Matter for Democratic Governance?”. Recipients of the two fellowships awarded in honor of past
ANNUAL REPORT 2013–2014 37 BOARD NEWS
commemorative gift was presented A by the Board of Directors at the June 2014 annual meeting to three retiring officers in appreciation for their service to the Economic Club. The retiring officers are Vice President Deborah I. Dingell, President, D2 Strategies, who will be leaving the Board at the end of 2014; Vice President – Audit Maritza Gomez Montiel, former Vice Chairman and Deputy Chief Executive Officer, Deloitte LLP, and Resource Development Committee Chair Greg Farmer, former Vice President Government Relations, Qualcomm Inc. The one-time grants are a follow-up to contribution, bringing the total amount New officers elected at that meeting are the $500,000 in community grants of the grants to $400,000. The nonprofit Carol Melton, Executive Vice President, that were presented to another 10 area organizations that each received a Global Public Policy, Time Warner Inc., nonprofit organizations in June 2012 grant of $40,000 were AppleTree Early who will serve as Vice President; Gary as part of the Economic Club’s 25th Learning Public Charter School, City Tabach, Managing Partner, Greater anniversary celebration. The Board agreed Year, College Summit — National Capital Washington Area, Deloitte & Touche LLP, that because the anniversary gala was a Region, District of Columbia College who will be Vice President – Audit, and The very successful event, that success should Access Program, Don Bosco Cristo Rey Honorable Dave McCurdy, President, the be shared with the greater Washington High School, Girl Scout Council of the American Gas Foundation, who will chair community by committing to a final Nation’s Capital, Higher Achievement the Resource Development Committee. round of grants to a second group of 10 DC Metro, Sasha Bruce Youthwork, community services organizations. Inc.; Spanish Education Development In other special action taken during the Center, and Trinity Washington 2013–2014 season, the Board decided last The Economic Club contributed $200,000 University. The grants were awarded at fall to present a second round of grants to fund this new round of grants. President a special presentation held during the to 10 community service organizations. David M. Rubenstein matched that September 18, 2013, Signature Event.
38 THE ECONOMIC CLUB OF WASHINGTON, D.C. | THE PREMIER FORUM FOR LEADERS 2013 –2014 SIGNATURE EVENT SPEAKERS
JUNE 17, 2014 MARCH 11, 2014 SEPTEMBER 17, 2013
RANDALL L. THE HONORABLE SYLVIA THE HONORABLE STEPHENSON MATHEWS BURWELL JACOB LEW CHAIRMAN DIRECTOR SECRETARY BUSINESS ROUNDTABLE OFFICE OF MANAGEMENT AND BUDGET U.S. DEPARTMENT OF THE TREASURY
CHAIRMAN AND CHIEF EXECUTIVE OFFICER DECEMBER 10, 2013 JULY 23, 2013 AT&T INC. DR. JIM YONG KIM THE HONORABLE APRIL 17, 2014 PRESIDENT VALERIE B. JARRETT THE WORLD BANK GROUP SENIOR ADVISOR TO PRESIDENT BARACK WES BUSH OBAMA AND ASSISTANT TO THE PRESIDENT FOR PUBLIC ENGAGEMENT CHAIRMAN, CHIEF EXECUTIVE OCTOBER 10, 2013 AND INTERGOVERNMENTAL AFFAIRS OFFICER, AND PRESIDENT NORTHROP GRUMMAN CORPORATION ELLEN KULLMAN JULY 18, 2013 CHAIR OF THE BOARD AND MARCH 20, 2014 CHIEF EXECUTIVE OFFICER DUPONT SENATOR CHRISTOPHER MAX BAUCUS (D-MT) CHAIRMAN J. NASSETTA SEPTEMBER 30, 2013 SENATE FINANCE COMMITTEE PRESIDENT AND CHIEF EXECUTIVE OFFICER TAKESHI UCHIYAMADA HILTON WORLDWIDE CHAIRMAN OF THE BOARD REPRESENTATIVE TOYOTA MOTOR CORPORATION DAVE CAMP (R-MI) ARNE M. SORENSON CHAIRMAN PRESIDENT AND CHIEF HOUSE WAYS AND MEANS COMMITTEE EXECUTIVE OFFICER SEPTEMBER 18, 2013 MARRIOTT INTERNATIONAL, INC. JAMES P. GORMAN CHAIRMAN AND CHIEF EXECUTIVE OFFICER MORGAN STANLEY
ANNUAL REPORT 2013–2014 39 ACKNOWLEDGEMENTS 27th SEASON: JULY 2013 – JUNE 2014
In appreciation of The Economic Club of Washington, D.C. Sponsors: CORPORATE PARTNERS CORPORATE CIRCLE Accenture Akin Gump Strauss Hauer and Feld LLP The Carlyle Group Bank of America Deloitte & Touche LLP Bingham McCutchen LLP PEPCO Holdings, Inc. Ernst & Young LLP The PNC Financial Services Group PwC Schneider Electric Winston and Strawn LLP
PREMIER SUPPORTERS SIGNATURE EVENT SPONSORS
Amazon Goldman Sachs Alliance of Automobile DuPont Morgan, Lewis & Manufacturers Bockius LLP Baker Tilly Virchow Krause, LLP Jones Lang LaSalle Embassy of Japan AIADA Morgan Stanley BET Networks Mercator XXI, LLC ExxonMobil AT&T Inc. Corporation The National Boeing Microsoft Association of The Buccini/Pollin FedEx Corporation Booz Allen Hamilton Inc. Navigant Economics Group, Inc. Manufacturers Pillsbury Winthrop Shaw Goldman Sachs The Buccini/Pollin Group The Business Navigant Economics Pittman, LLP Hilton Worldwide Burson-Marsteller Roundtable Northrop Grumman RMA Chauffeured International Franchise CityBridge Foundation Corporation Clark Enterprises, Inc. Transportation Association Clark Construction PhRMA Dentons US LLP Saul Ewing LLP International Paper Group PwC Focus Investment Bank Time Warner Inc. King & Spalding The Coca-Cola Reed Smith Fort Lincoln New Town Corporation U.S. News & World Report King Street Wireless Company TOYOTA GEICO Washingtonian Magazine Crowell & Moring LLP KTA U.S. News & World George Washington University Xerox CTIA-The Wireless Leo A. Daly Report ® Association Marriott International, VanNess Feldman LLP Danaher Group Inc. Vornado/Charles Dentons Mercator XXI, LLC E. Smith Edelman MicroStrategy Xerox
40 THE ECONOMIC CLUB OF WASHINGTON, D.C. | THE PREMIER FORUM FOR LEADERS ECONOMIC CLUB STAFF MARY BRADY, EXECUTIVE DIRECTOR TYLER FLOOD, EVENTS AND ENGAGEMENT ASSOCIATE, SPECIAL PROGRAMS JUDI IRASTORZA, SPEAKER AND MEDIA RELATIONS JEFFREY GERMAK, REGISTRATION COORDINATOR MELISSA KITCHELL, ACCOUNTANT LINDA LARSON, SCHOLARSHIP COORDINATOR DAVID LAWSON, OPERATIONS AND MARKETING MANAGER REBECCA LINDNER, MEMBERSHIP SERVICES COORDINATOR DONNA POWER STOWE, EDUCATION INITIATIVES CONSULTANT DEVON REIMER, SENIOR MANAGER, EVENT AND MEETING SERVICES BARBARA REINIKE, EXECUTIVE CONSULTANT WILLIAM SIEMER, ADMINISTRATIVE ASSOCIATE CAROLE TRIMBLE, STRATEGIC CONSULTANT AND EDITORIAL SERVICES
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RESEARCHER AND WRITER: CAROLE TRIMBLE
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