A Long History of Giving

An Interview with Sanford Weill

EDITORS’ NOTE Sanford Weill Weill remains Chairman Emeritus of You must have many opportunities to graduated from Cornell University Citigroup today; Chairman of Weill get involved in various projects. How chal- in 1955 and began his career as a Cornell Medical College (since 1996); lenging is it to decide where to focus your runner for Bear Stearns before be- Chairman of Carnegie Hall (since efforts? coming a broker. In 1960, Weill and 1991); Founder and Chairman of I focus on what I think is important and I three partners started a small bro- the National Academy Foundation always believe in working with the people who kerage, Carter, Berlind, Potoma & (since 1980); and Director of the fol- are the busiest, because those are always the Weill. Over the next 20 years, Weill lowing boards: Koç Holding, Qatar ones who can do more effectively. built it into the fi nancial powerhouse Foundation International, Sidra I don’t look at philanthropy as just giving Shearson and sold it to American Specialty Teaching Hospital in Qatar, money to sooth one’s conscience. I have seen Express in 1981. Weill became Lang Lang International Music plenty of money given out with no attention President of American Express, Foundation, and the Gerald R. Ford paid to staying on top of what was happening from which he resigned in 1985. In Sanford Weill Presidential Foundation. Sanford and and no effort being made to get the same kind 1986, he traveled to Minneapolis to his wife of 55 years, Joan, are recipi- of return that you would expect from an invest- persuade Control Data to spin off its subsidiary, ents of the 2009 Carnegie Medal of Philanthropy. ment in a company. Commercial Credit, in an IPO. Control Data so I’ve concentrated on three institutions sold 82 percent of the company to the public You have a very distinguished philanthropic that have done very well through this economic and Weill took over as CEO. Besides Commercial record. How was the desire to give back in- downturn: the national academy Foundation; Credit’s lending operation, Weill had acquired stilled in you? Carnegie Hall; and the Weill Cornell medical its subsidiary, Gulf Insurance. By 1988, Weill by my wife. she graduated brooklyn College, where we’re building a big research had acquired Primerica Corp. along with its College with a degree in education and was a center via a campaign that is targeted to raise holdings, the brokerage Smith Barney, and the teacher in the new York City public schools. $1.3 billion. We’re about three and a half years A.L. Williams insurance company, which Weill she always cared a lot about social issues, so into that campaign and have raised about $1.05 renamed Primerica Financial Services. Over the she started volunteering early on. billion so far. next two years, Weill’s Primerica Corp. absorbed my fi rst real involvement requiring a lot of How did you get involved in the medi- the consumer lending operations of Barclays my time was in approaching the new York City cal college? American/Financial, and acquired receiv- board of education to start a dialog about a part- I’m a graduate of Cornell so I always ables and branches from Landmark Financial nership between the public and private sectors thought about how to be involved in the school Services. In 1992, Weill bought 27 percent of in teaching subjects that would relate to actual in some form. Cornell’s medical school in new Travelers Insurance. The following year, he re- job opportunities of the 21st century, not those York seemed like an easy way because of the gained control of Shearson. With Shearson un- of the 19th century as were being taught. That proximity. so in 1982, I went on the board, and der its belt, Weill’s Primerica purchased the is when we came up with the idea of starting an I became Chairman in 1996. remaining shares of Travelers. Weill merged academy of fi nance with the agreement of the about 14 years ago, we were lucky enough Shearson with Smith Barney. Travelers Group, chancellor and the board of education. We sup- to hire antonio Gotto as dean. He will complete as the resulting parent company was called, in- ported the teachers by providing externships in his third fi ve-year term at the end of 2011, and cluded brokerage, term insurance, consumer our businesses in the summer, as well by hav- under his leadership, the institution has grown fi nance, property-casualty insurance, life in- ing people in business help write the courses to dramatically. In 14 years, we have raised $2.5 surance, money management, and investment ensure they were relevant. Part of the program billion, expanded our research, built a new banking operations. In 1996, Weill acquired the also involves providing summer internships for outpatient clinical building and a new research property and casualty operations of Aetna. The young people in fi nancial, hospitality and tour- building, and developed a new education pro- insurance companies were reorganized into ism, information technology, and engineering gram. We have also expanded globally and separate life, term, and property-casualty oper- companies so they can see that there are a lot of are the fi rst and only medical school to give a ations. In September 1997, Travelers acquired opportunities beyond entry-level jobs, but that u.s. m.d. degree outside the united states – in Salomon, Inc. Weill merged Salomon with Smith they all require education. Qatar. We were thrilled when our fi rst graduat- Barney to create the second largest securities fi rm This program is now 30 years old ing class of students was accepted in great hos- in the world. In April 1998, Weill announced and teaches more than 53,000 students in pitals around the country for their residencies. Travelers Group would merge with Citicorp 500 schools in 41 states and the district of building a school in an arab country in to create Citigroup, Inc. In 1999, Citigroup be- Columbia. We’re thinking about starting an the middle east was a very important undertak- came the largest fi nancial services company in academy in health care too. over 90 percent of ing. We’re looking to bridge different cultures the world. At fi rst, Sanford Weill served as Co- our kids graduate from high school and over to make the world a better place and, perhaps, Chairman and Co-CEO with John Reed, but in 80 percent of them go onto college. based on by doing so, we’ll eventually help create peace 2000, Weill became the sole Chairman and CEO a recent study by mdrC, our kids earn 17 per- of Citigroup. Weill retired as CEO in 2003 and cent more than non-career academy students Weill Cornell Medical Research Building – groundbreaking on relinquished his Chairmanship role in 2006. upon graduation. May 26th (upper right) volume 34, number 2 Leaders 35 in the middle east rather than sitting back and because we offer that experience, we are the next couple of decades, we have to create a not doing anything until there is peace. His getting fi rst-class residents. We also have a part- way for those people to see they have a future Highness sheikh Hamad in Khalifa al Thani, nership with methodist Hospital in Houston in this world. We have to educate them and give The emir of Qatar, and Her Highness sheikha where they just opened a brand new research them an opportunity. I am very disappointed mozah bint nasser al missned – Chairperson building, and we provide the educational com- when I see how a country like Turkey, which of Qatar Foundation – have been outstanding ponent for them. one of their concentrations will is a moderate muslim country, is not welcomed partners and true visionaries. be on infectious diseases. We’ll have an opportu- by the eu. It’s one of the countries that is doing You have also invested in Tanzania. nity to work with them and maybe have some of phenomenally well. We have 1.5 billion muslims our progress has accelerated over the past their residents go to areas like Tanzania or Haiti. in this world – we better learn how to get along. six years of working on the development of a When we see budget cuts in educa- There is debate about the U.S. stymie- medical school there. We are now graduating tion, many talk about cutting the arts. How ing entrepreneurs with regulation and los- more than 100 students a year. There is a tre- critical is it for young people today to learn ing its edge in innovation. How critical is it mendous shortage of medical education and about the arts and are you concerned that to retain that edge? doctors in Tanzania, especially in the area of we’re losing that at the early stage? It’s very important we don’t lose that edge, childbirth and early childhood diseases where arts education has been cut substantially but the american people understand that. the incidents of death are very high. in high school and grade schools, and it’s going President obama is very smart, but I was We also have had a clinic in Haiti for 30 to be cut even more. That is part of the culture disappointed with the way he related to the busi- years doing research on HIv and have con- and fabric of our society, so I’m very concerned ness community. He is doing much better now, tributed to cutting the incidence of HIv in that about it. and I am encouraged with the leadership he por- country in half. more recently, with the earth- beyond the outreach we have going to the trayed with the recent tax bill extension and key quake, we were able to help with all kinds of high schools in new York City, we’ve created senior staff appointments at the White House. medical issues. With what we’re doing in Haiti, The academy at Carnegie Hall. Through this The democrats and republicans need to brazil, and Tanzania, we have an important program we, in conjunction with Julliard and the understand that they were elected to do the position in infectious diseases. We recently re- new York City department of education, offer people’s business and not their own business. ceived a grant from the Gates Foundation to fellowships to graduates of music institutions The direction should be down the middle, continue the research we’re doing there. where, in return for our providing continuing which is where most of the american people This is a challenging time for funding. education and opportunities to perform, they are, and both these parties have to work to- Did the economic crisis have an effect on agree to spend time teaching in the school sys- ward the middle of the road approach be- your work? tem. Through this program, we’re trying to cre- cause that is what will keep america going We were obviously affected, but you have ate an interest in teaching. as a leader. to push ahead and make things happen. I’m Carnegie Hall has also worked with the We live in a global world, and goods and proud of the fact that both in the medical school state department in developing distance learn- services should go to the lowest cost producer and at Carnegie Hall, we have two major con- ing with schools in new York, south africa, of quality products. struction jobs taking place at a point in time Turkey, and alaska. a lot of the arts organiza- We should have more engineers and tech- where we’re able to pay less for materials and tions in the middle east come to see how we nologists, and we should have a more effi cient labor than we could have a few years before. manage Carnegie Hall so they can take the ideas delivery of health care. one is a $650-million research build- back to their countries. There are lots of areas where the ing for the medical school and the other is the music is a universal language. It’s a great u.s. should work to promote the fact that $200-million revamp of the two towers around way to relate and bring cultures together. american financial institutions should be the Carnegie Hall. Lang Lang is an incredible Chinese piano leaders in growing and helping the world The major institutions that I’m Chairman of player. When he was 17, he agreed to do a free prosper in the future in all of these emerging were all profi table during this period of time. I piano recital at Carnegie Hall where I was hav- markets rather than looking to split them up wish I could have said the same thing about my ing a dinner for some of the larger donors. and cripple them. former company. He set up his own foundation to fi nd ex- Was it tough to transition away from I’ve always looked at change as something ceptional talent, give them scholarships, and business as you retired? that creates an opportunity. mentor them so their careers can move forward The transition turned out to be diffi cult and Are you concerned with where the and so young people will continue to pass on lengthy because I saw things happening that I medical profession is going, in terms of music that was created hundreds of years ago didn’t agree with. not getting the right talent entering medical but still has infl uence today. In China, there are I never thought a company that was as school? fi ve million kids taking piano lessons because strong as Citigroup, with over $100 billion We had more applications to medical of Lang Lang. of equity and $20 billion of profi ts, could ever school than we’ve ever had. The quality of the When you were building your compa- end up like it did. It hurt a lot of the people incoming class is the highest it has ever been. nies, the world was less connected. Is tak- who worked with the company, and a lot of so even though we have this problem with a ing a more global stance and view today a those lives were dramatically and permanently litigious society and the cost of insurance, peo- critical part of what you do? changed, including my own. ple still care, and when somebody enters an It’s a very important part of my thinking. I volunteered many times to do differ- academic medical center, they’re thinking more There has been a lot of criticism about what ent things, but saw that my advice was not about how they can make a difference in the the fi nancial industry has done and some is wanted. I felt funny about the fact that I had quality of life for society than how much money justifi ed. but there are also a lot of good things a contract where I could not compete with they will make. the fi nancial industry has done. The capitalist anything the company did for the rest of my In our partnership with new York Pres- entrepreneurial model of the u.s. has been cop- life and on the fl ip side, I had a lot of benefi ts byterian Hospital, residents get a chance to ied by countries that were communist. China is that came from the company. so I spoke with spend a few months in Tanzania. When they one of the fastest growing capitalist countries the Chairman about ripping up that contract come back, they better understand why they in the world, as is russia, with capital markets, and giving back all of my benefi ts except for chose medicine as a career and the opportunity stock exchanges, and the ability for companies health care. they have to help people. They have now seen to raise debt; they have small companies that after that, I had more meetings with some a place where they don’t have mrI machines are growing. already a billion people have had of the people there who listened to some of my and CT scans, and don’t get blood tests back in the chance to come from abject poverty to the advice. The company is doing better and has a a timely manner, and they see the old medicine middle class in the emerging markets. terrifi c position in a lot of the emerging markets, where you have to understand what is happen- but there are over two billion people that which they have because they’ve been in those ing inside one’s body without all the technologi- are still living in abject poverty. With how much countries for over 100 years; you can’t make up cal aids. the world is going to grow in population over the lag by being in a place for just 10 years.• 36 Leaders volume 34, number 2