These 50 NOTABLE WOMEN EXECS OVER 50 jumped hurdles to get where they are. PAGE 13
JOE CAHILL: Coronavirus has weakened Gogo’s governance. PAGE 4 CHICAGOBUSINESS.COM | APRIL 6, 2020 | $3.50
FORUM: INFRASTRUCTURE MISSING PIECES Economic development in Chicago is a tale of two cities, and the South and West sides struggle with the worst of times PAGE 27
FIND THE COMPLETE SERIES ONLINE STEPHEN J. SERIO J. STEPHEN Big insurer pushes Virus poses mortal envelope on exec pay threat to Sears Blues brass pockets double-digit raises while cutting sta Battered chain has few defenses against retail collapse
BY STEPHANIE GOLDBERG CEO in July. Her total compen- Sears on April 3 announced sation surged 120 percent to $31 BY DALTON BARKER it would close stores at least Executive pay keeps climbing at million—about $12 million of Paula Steiner, who stepped down as CEO in A weakened Sears is facing until April 30, and furloughed Blue Cross of Illinois’ parent com- which was severance pay. July, received total compensation last year of what looks like its toughest test a majority of its employees. pany, even as the health insurance Board member David Lesar, who $31 million, including severance pay. yet: retail apocalypse. In addition, it enters the crisis giant lays o workers and took over as interim CEO, Traditional department stores with distinct vulnerabilities. looks for a new strategy. EXECUTIVE PAY: pocketed $6.2 million; rising uncertainty for the en- like Sears are su ering un- e Ho man Estates-based e 10 highest-paid Boards will walk Maurice Smith, who was tire health care industry, and precedented sales declines as company still counts on brick- employees at Health Care a tightrope amid named president, got $3.6 HCSC in particular. e nation’s coronavirus lockdowns keep and-mortar stores for the vast Service Corp. got a com- outbreak. PAGE 3 million; and board Chair- sixth-largest health insurer cut “a consumers at home, except for majority of sales at a time when bined $70 million last man Milton Carroll got a few dozen” sta ers late last year— essential trips to buy groceries. even more shopping is mov- year, up 58 percent from 2018. 429 percent boost to $4.9 million. followed by an additional 400 in Rivals Macy’s, Kohl’s and J.C. ing online. It relies heavily on e biggest winner was Paula e massive raises come amid Penney have shuttered stores as Steiner, who stepped down as increasing cost pressures and See HCSC on Page 40 customer tra c dries up. See SEARS on Page 36
NEWSPAPER l VOL. 43, NO. 14 l COPYRIGHT 2020 CRAIN COMMUNICATIONS INC. l ALL RIGHTS RESERVED 2 APRIL 6, 2020 • CRAIN’S CHICAGO BUSINESS How did we get here? Soon we’ll need to nd out.
You might call it the latest act Not enough progress has been I want to know. To use the old now playing at the theater of made, Pritzker declared, leaving Chicago political expression, the absurd—otherwise known some doubt as to whether China who wears the jacket? And when as the Washington response to or the Trump administration this is over, America will demand GREG HINZ the COVID-19 pandemic now has been the least helpful. But to know, too. ON POLITICS raging in Chicago and the rest of he’s still trying, using the kind of Our national leader is point- America. personal connections that only a ing to Barack Obama and the ere, at his daily press brief- rich guy like Pritzker has. governors, saying they should ing, was Gov. J.B Pritzker, talking So it goes in a city and a state have done more to prepare. And By Feb. 25, according to Wired peting with other states and the about his e orts to secure more hunkered down for the indeter- China, as if anyone in their right magazine, the demand for federal government to buy the masks, gowns and other person- minate future. Call it a metaphor mind would trust them. Let’s masks was so great that Amazon material that even now remains al protective equipment from for a surreal situation in which nd out. Let’s appoint a non- warned its vendors against price in short supply. Yet, the evening China, the very place where the the city’s convention center is partisan, high-level commission gouging. before I wrote this, Trump said being converted into one to discover who screwed up—if Yet, according to the Bulwark, that states facing a crush ought huge hospital ward, rst only to prevent another screwup a conservative publication, “at to “work it out themselves.” And I DON’T GIVE A PROVERBIAL DAMN responders are falling, later. Let’s have them look at ev- the beginning of March, Trump he said it right after invoking ABOUT THE POLITICS. TOO MANY school likely is out until erything, from Obama to Donald promised a capacity of 4 million his powers under a defense law the fall and the local Trump. tests. Mike Pence promised that to order a Minnesota company OF US ARE SICK OR WORRIED SICK. economy is poised on the But while we wait, Pritzker’s we’d reach 5 million by March to produce more safety masks edge of a depression. Yes, experience is instructive. 13. A White House o cial prom- for the American market. at, pandemic began but also the depression. Consider, on Jan. 28, two for- ised 27 million by month’s end. too, is the sort of action Pritzker place where most PPE happens How did it get to this? How mer Trump administration o - When we reached March 31, urged weeks ago. to be produced. And he talked did the most prosperous and ad- cials warned in an op-ed piece in the U.S. had nally reached the I don’t give a proverbial damn about how he’s counting on a vanced country in the world fall the Wall Street Journal that what 1 million test mark, far short of about the politics. Too many of home-state boost from North victim to the type of disease that was happening in China with what is required.” us are sick or worried sick. I, and Chicago-based Abbott Labs to medical experts have warned coronavirus was a dire threat to at’s what Pritzker has been I suspect you, care about the get early delivery of new testing of for years—we got a taste of it the U.S., and that measures like complaining about every day for results as Chicago and Illinois kits and equipment crucial to with SARS—and which raged for broader screening and other weeks now, the real-life game of shudder in place. Why are we in track and eventually control the two full months in China before steps to prepare immediately musical chairs in which his team this place—and how do we get spread of the virus here. our national “leaders” did much? here in America were “critical.” of acquisition specialists is com- out of it? We need answers. Inside the push for Pritzker’s ‘fair tax’ Gov. J.B. Pritzker is planning time of two sta ers. nizing. But Lewis concedes that to spend untold millions to sup- I’ve detected some worry neighborhood canvassing may port his graduated income tax among Pritzker types that this not be the same as it was before proposal this year via his Vote other group could go o -script the COVID-19 pandemic. e RICH MILLER Yes For Fairness ballot initiative and weaken the overall message. same goes for holding local committee. But Vote Yes for Fair Tax informational meetings all over ON SPRINGFIELD But another group has formed spokesman Jake Lewis says he the state, as the group has been to help with the e ort. e Vote wasn’t worried about muddying planning to do. Yes for Fair Tax committee has the message. “ e folks who are Lewis, who is also the spokes- by the pandemic. “I don’t agree that this crisis reported raising almost $600,000 involved in Vote Yes for Fair Tax man for the Chicago Federation “I think it’s absurd,” he says. means we should keep the state’s in cash and in-kind contribu- have been working on this issue of Labor, also pushed back hard “Look, the bottom 20 percent in unfair tax system,” Lewis says. tions to date. for years and years,” he says. against some groups that have this state pays twice as much of A few years ago, a ballot ini- Many of the people involved, been calling for the Fair Tax to be their income in state and local Crain’s contributor Rich Miller tiative committee with almost including Bauman at the Shriver removed from the ballot because taxes as the top 1 percent, and publishes Capitol Fax and Capi- $600,000 in the bank several Center, have long been working of the economic damage done that is patently unfair.” tolFax.com. months ahead of a vote would be to pass a progressive income tax a sign of strength. In these times, through the Responsible Bud- with a billionaire governor who get Coalition. “ e more folks succeeded a near-billionaire working on this,” Lewis says, “the governor, it looks almost small. more e ective we’re going to be.” But the Vote Yes for Fair Tax To prevail at the ballot box, the committee won’t be running Fair Tax constitutional amend- expensive TV ads, says its chair- ment will need 60 percent of the vote or a majority of all votes cast in the election. Because a I’VE DETECTED SOME WORRY big chunk of voters tend to skip THAT THIS GROUP COULD GO ballot initiatives, Pritzker will undoubtedly need a bunch of OFF SCRIPT. votes from independents and Re- publicans. e groups involved FOR CHICAGO BUSINESSES man, John Bauman of the Shriv- with Vote Yes for Fair Tax are all er Center on Poverty Law. “ is left-leaning. Could that hurt the is more of the sort of sweat-equi- e ort? ty, grassroots, community-based “You can’t take anybody for Our specialty groups know your industry inside and out, and we’re here to develop solutions ground game” approach, he says. granted,” Lewis explains, includ- that complement your expertise and provide support where you need it most. e organization’s largest ing “some of the folks you may contributor to date (at $250,000) think would naturally turn out.” is the National Education Associ- Proponents need to make sure ation, which has thousands of that those folks get an “extra members here. e Illinois Fed- couple of touches” before voting eration of Teachers has kicked begins. in $100,000. AFSCME Illinois Lewis didn’t mention it, but Council 31, with tens of thou- lots of Republicans and indepen- sands of members, has contrib- dents in this state are also public uted $50,000 in cash so far and employees. So perhaps some CHICAGO’S BANK FOR BUSINESS® donated the time of two sta ers. of their unions could convince SEIU Healthcare, which also has them to vote for an initiative that wintrust.com tens of thousands of members all polling has shown has wide- here, contributed $50,000 in spread support. cash and $10,000 for access to Vote Yes for Fair Tax plans to Banking products provided by Wintrust Financial Corp. banks. Voter File data, and donated the focus most on grassroots orga- Captin if necessary
CRAIN’S CHICAGO BUSINESS • APRIL 6, 2020 3
THE LATEST ATTACK ON PREMIUM TRAVEL Revenue in the airline industry will rebound after a few years. Business-class travel won’t, an analyst says, dealing a blow to United and other big carriers. BY JOHN PLETZ AIRLINES FACE A LONG, SLOW CLIMB to regain altitude lost to the coronavirus. It could take three years for overall revenue to return to pre-outbreak levels, but business-class travel, the lifeblood of United Airlines and the other traditional full-service carriers, may not completely rebound. “While we believe that corporate travel will return ahead of leisure travel, we also do not believe it will fully recover,” Helane Becker, an ana- lyst at Cowen, said in a recent note to clients. “In fact, after 9/11 and after the 2008-2009 great recession, business travel did not recover either the level or the fare structure.”
See AIRLINES on Page 41 GETTY IMAGES
◗stock BOSS performance PAYDAY Corporate boards face Pay packages for CEOs of some of Chicago’s How outbreak will top corporations reflect the sunny economic days of last year, while 2020 is a COVID tightrope walk rude awakening for shareholders. upend office market When does adjusting compensation targets after STOCK PERFORMANCE Forced work-from-home and how much of it they need. With 2019 executive compensation And if remote work temporarily an ‘act of God’ lapse into setting the bar too low? experiment gives tenants proves to be more viable—and MOTOROLA SOLUTIONS especially more productive— MOTOROLA SOLUTIONS Greg Brown, CEO, $23.6 million BY STEVE DANIELS concluding that the virus threat- insight into their needs than some expected, it could Greg Brown, CEO, ening the lives and livelihoods of 2019 40.1% drastically reshape how o ces 2019 compensation: $23.6 million It’s April 2020, and the econo- Americans couldn’t be foreseen? -7.5% 2020 BY DANNY ECKER are designed and threaten a 2019 stock performance: + 40.1% my is in tatters. But in the annual Directors will be tempted to downtown o ce market that 2020: - 7.5% company proxy statements just adjust the metrics already set for ABBVIE Companies looking for a until recently has been teeming now rolling in like virtual time those long-term incentive pro- Richard Gonzalez, CEO, $21.6 million break on their rent while the with demand. ABBVIE: Richard Gonzalez, CEO, $21.6 machines, it’s still 2019: Good grams, which typically run over -4.0% 2019 coronavirus wreaks havoc on the “ is has de nitely forced million economic vibes show no signs of three years of company perfor- -15.2% 2020 economy are giving their land- companies that hadn’t pre- 2019 stock performance: - 4.0% waning, and CEOs are being rich- mance. Shareholder advocates lords headaches. But the chang- viously employed any sort of 2020: - 15.2% ly rewarded. will be watching, though, and al- MONDELEZ es those tenants make long after work-from-home policy to take JOE CAHILL: Virus Despite to- ready are warning boards about Dirk van de Put, CEO, $18.1 million the pandemic subsides could be a hard look at it,” says CBRE Ex- MONDELEZ: Dirk van de Put, CEO,: $18.1 weakens Gogo’s day’s econom- going too far to safeguard the for- 2019 37.6% much more painful. ecutive Vice President Kyle Ka- million governance. PAGE 4 ic nightmare, tunes of their CEOs. -8.5% 2020 Businesses suddenly thrust min, who has represented big 2019 stock performance: + 37.6% few if any local As it is, it’s jarring to read into operating with most or tech tenants including Google 2020: - 8.5% companies so far have reduced now about how much corporate EXELON all of their employees work- and Glassdoor in leasing large their CEOs’ generous incentive chieftains are raking in, what Chris Crane, CEO, $15.4 million ing from home are honing Chicago o ces. “ ere’s going EXELON: Chris Crane, CEO, $15.4 million pay for work done in 2019, based with 10 million Americans ling new skills to run virtually. e to be incredible investment (to) 2019 1.1% 2019 stock performance: + 1.1% on a scan of recently released for unemployment in just the forced experiment is giving simply prepare for future epi- 2020: - 23.9% proxy statements. past two weeks. -23.9% 2020 companies lots of insight into demics or interruptions to the
at raises the stakes for what Locally, here are a few such ILLINOIS TOOL WORKS how their workers work and way in which we typically work.” ILLINOIS TOOL WORKS: Scott Santi, CEO, those payouts will look like a year lings. Scott Santi, CEO, $15.4 million what tools they need to do it e work-from-home trend $15.4 million from now. Will corporate boards Northern Trust CEO Michael from anywhere. had been picking up speed 2019 41.8% 2019 stock performance: + 41.8% allow executives to feel some of O’Grady received $9.5 million It’s an exercise that’s raising before the pandemic, though 2020: - 21.2% the pain a icting sharehold- in cash, stock and other bene ts -21.2% 2020 new questions for many corpo- it still accounts for a relatively ers’ portfolios? Or will they hold Source: Company filings rate decision-makers about the their teams largely harmless, See COMP on Page 36 value of traditional o ce space See OFFICE MARKET on Page 41 4 APRIL 6, 2020 • CRAIN’S CHICAGO BUSINESS THE INNOVATORS JOE CAHILL ON BUSINESS Virus weakens Gogo’s governance Walking the high road is easier when the exchange period begins during good times. Shortcuts can be traded in for a smaller beckon when times get tough. number of lower-priced options. As the coronavirus eviscerates Gogo’s proxy says 6.1 million the economy, individuals and options were eligible for exchange, companies will be tempted to let based on the Feb. 28 closing price. standards slip. Fear and uncertain- If all were turned in, 3.2 million ty can undermine commitment lower-priced options would be to principles like strong corporate issued. Because Gogo stock has governance as sales evaporate, since slipped to about $2, even share prices plunge and exec- more options now appear to be utives’ stock options sink deep exchangeable. underwater. Gogo hasn’t disclosed enough With stocks down 25 percent details to calculate the dollar value since mid-February and likely of the exchange to executives as headed lower, many companies a whole or to any individual. But will see their shares slip below there’s clearly substantial value the strike prices of options issued in swapping millions of worthless to top brass, making the options options for a smaller number of worthless, for now, anyway. at replacements with substantially could resurrect a discredited prac- lower strike prices. Dropping the tice: replacing submerged options performance-based vesting condi-
with new ones priced at current tions also has value. WINTERS TODD market values. When stocks plum- CEO Oakleigh orne is among From left: Dan Williams, Joe Wascow and Sajid Patel meted during the nancial crisis, the biggest potential bene cia- option repricing surged as compa- ries. e proxy says orne, who nies rushed to cushion execs. took o ce in 2018, had 873,500 Repricing belies corporate man- exchangeable options. John Got a product design dilemma? tras about linking pay to perfor- Wade, head of Gogo’s commercial mance and aligning the interests aviation unit, had 601,880 and of executives and shareholders. CFO Barry Rowan 374,000. ose This local firm has an answer. “Repricing is never a good thing. numbers likely increased as Gogo Investors don’t get to reprice. Why stock kept falling. e option exchange re- Optimal, an Arlington Heights-based engineering design rm, improves on GOGO LOST MONEY FOR THE quires shareholder approval, century-old traditions and also works on internet-of-things devices which sounds good until you LAST EIGHT STRAIGHT YEARS. notice that Gogo directors BY H. LEE MURPHY Patel and his partners noticed services including Walmart’s and o cers own 40 percent of tech companies downsizing grocery division are showing should you?” says Charles Elson, outstanding stock. orne alone In the complicated world of their engineering staffs. “It was a lot of interest, too,” says Joe director of the John L. Weinberg owns 30 percent. I suspect they’ll technology, the creation of a new then that we shared the dream DeLuca, Knox’s vice president Center for Corporate Governance vote for the plan. product can require input from of having our own business and of engineering. “These devic- at the University of Delaware. Gogo defends the exchange by myriad directions, from electri- replacing the expertise that was es were really complicated to Governance advocates waged a arguing that underwater options cal and mechanical engineering being lost as companies were design, but Optimal had the successful campaign to stamp out don’t help retain and motivate to software programming and er- shrinking,” Patel says. cross-functional capabilities to the practice over the past decade. executives. “We believe that the gonomic mapping and aesthetic pull it off.” Repricing proposals appeared on Replacement Options will be styling. For its growing roster of THE INTERNET OF THINGS ERA The Void, a company based in just nine corporate proxy state- signi cantly more e ective in big clients, Optimal Design in Ar- The business was started Pleasant Grove, Utah, is build- ments last year, down from 124 in retaining and incentivizing eligible lington Heights has all the bases with an investment of $6,000 ing out a chain of virtual reality 2009, according to proxy adviser participants than the existing un- covered. from each of the founders and playrooms in malls around the Institutional Shareholder Services. derwater options,” the proxy says. Optimal has emerged as a has not taken on any outside country; one is scheduled to But keeping the pledge was no e replacement options mean leading engineering design capital. A staff of 65, most of come to Old Orchard in Skokie sweat during a long bull market executives can reap huge rewards firm, regularly winning con- them engineers, is housed in this year (at least it was before that lifted share values well above if Gogo shares rise a dollar or two tracts in competition against a 30,000-square-foot space in the pandemic hit). The chain option strike prices, enriching from their current rock-bottom rivals from both coasts. A few Arlington Heights that includes employs headsets, battery executives. Falling shares now level. Shareholders who have held years ago it showed Singer a small factory, plus a modest backpacks and “blaster” guns to threaten corporate resolve. Gogo stock for a few years will how to build a better sewing design studio in the West Loop. put customers into participant One local company already need a far greater rebound to see machine and USG in Chicago Revenue jumped more than 25 characters in games ranging has given in. Directors of Gogo any return on their investment. how to install drywall more effi- percent last year approved a plan to give executives Gogo shares were sliding long ciently. With each, Optimal was to $14 million. holding out-of-the-money options before COVID-19 sent aviation-re- tinkering with century-old tra- Optimal recent- OPTIMAL HAS EMERGED AS A LEADING new ones pegged to the compa- lated stocks into a tailspin this ditions. More recently, the firm ly has concentrat- ny’s beaten-down share price. month. e stock sank more than has emerged as a key player in ed work on devices ENGINEERING DESIGN FIRM, REGULARLY Gogo is also dropping perfor- 80 percent between late 2013 and the advent of 5G cellular tech- made for the new WINNING CONTRACTS IN COMPETITION mance-based vesting conditions year-end 2019, and it’s not hard to nology in building phones and internet-of-things on restricted stock awards and see why. Gogo lost money for the transmission networks for Mo- era. It has worked AGAINST RIVALS FROM BOTH COASTS. options, allowing executives to last eight straight years. torola Mobility and others. with a Chicago collect simply by sticking around. Executives are responsible for “We take a multiprong ap- client called CareBand in devis- from “Avengers” to “Star Wars.” Gogo, which provides Wi-Fi ser- poor corporate performance, and proach, offering clients com- ing wearable tracking devices Customers pay $35, or about a vices to commercial airlines, had the resulting impact on a com- plete solutions,” says CEO Sajid for patients su ering from de- dollar a minute, to play. issued 7.6 million stock options as pany’s stock. Repricing options Patel, who co-founded Optimal mentia in institutional settings. “Optimal essentially designed of Feb. 28, according to the com- spares them the consequences, in 2003 with Dan Williams, chief It devised a mouth guard for the hardware for our virtual re- pany’s proxy statement. Some 99.6 undermining the rationale for product officer, and Joe Was- athletes that senses everything ality games,” says James Jenson, percent were underwater at the equity-based compensation. cow, chief marketing officer. All from heart rate to hydration. For who co-founded Void in 2015. $3.61 closing price of Gogo stock Options reward executives for are in their late 40s; Patel is a Phoenix-based Knox, it helped “We looked at several other de- on that date, the proxy says. Under a rising stock price, reecting a Purdue University mechanical design an electronic key system sign firms initially who didn’t the “option exchange” program, belief that their e orts brought engineering graduate who lat- to give emergency personnel want to tackle the hard prob- all outstanding options with strike about the increase. If so, they er worked at Motorola and U.S. quick access to locked commer- lems we were confronted with. prices equal to or greater than 150 should also be accountable for Robotics (alongside Williams) cial buildings. Optimal had the expertise, par- percent of the stock market price stock price declines. in Skokie. Coming out of the “Fire departments are our ticularly in working with wire- dot-com bubble crash in 2001, target market, but now delivery less systems, that we needed.” Georgina Adan, Jahmal Cole Lauren Trylovich Lt. David Chmelar and FF/ Patty Gonzalez and Community Impact Hero Emergency Medical PM Chad Tinsley Maricela Wesby Assistance Hero Firefighter Heroes Blood Services Heroes
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Northern Trust branch closures
440 North Wells Street, Suite 100N, Chicago, IL 60654 [email protected] | ChicagoLuxuryBeds.com | 312-527-5337 focused here trust, now through the Oakbrook The permanent shuttering Terrace location.” of the bank’s Wheaton Northern has closed more branches in the Chicago market location in January leaves than any other area. Since 2017, ve of the 10 locations it has just six throughout the area shuttered have been in its head- quarters market, according to BY STEVE DANIELS Federal Deposit Insurance Corp. records. Two months before doing e bank has more locations business virtually became our in two other states—Florida and national reality, Northern Trust’s California—than it does in Illi- services in the west suburbs were nois. It has the same number in bordering on entirely virtual. Texas even though the bank had Chicago’s largest locally just $1.4 billion in Texas deposits headquartered bank, which ca- versus $23.4 billion in Illinois as ters to the a uent, in January of June 30, 2019, the most recent permanently closed its Whea- FDIC data available. Judging by ton branch, leaving just one in the bank’s actions, Chicago-area DuPage County. Northern’s last customers appear to prefer on- remaining branch in the county line to brick and mortar more so is in Oakbrook Terrace. than those in other parts of the roughout the Chicago area, country. Northern Trust now has just six Operating full-service branch- NOMINATE NOW! locations for customers to visit, es is expensive, and Northern including its downtown head- has emphasized cost controls in You or someone you know could be quarters. at number was 19 a recent years. It’s unclear, though, in the next Crain’s 40 Under 40 class decade ago. e city’s pre-emi- why closures in the Chicago nent bank for the mon- ied is clearly banking ChicagoBusiness.com/40snoms on that group’s comfort NORTHERN HAD 19 LOCATIONS IN with and preference for technology, as well as THE CHICAGO AREA A DECADE AGO. the willingness to travel distances when nancial needs market are outstripping other dictate face-to-face interaction. parts of the country. In an email, Northern spokes- Trust fees in Northern’s cen- man Doug Holt says customers tral region, which is dominated are moving away from branches. by Chicago, rose 2 percent last “As clients increasingly prefer year, to $619 million. Growth online and mobile banking, we rates in the western and eastern continually evaluate our o ce regions were about twice that. network and invest in technolo- But fees in the central region gy to ensure we are meeting their still account for 45 percent of needs,” he says. “Our clients in fees in the bank’s wealth man- Wheaton continue to experience agement group, not counting the high level of service they al- its global family office practice ways have, from the same North- focused on the wealthiest of the ern Trust teams they know and wealthy. CRAIN’S CHICAGO BUSINESS • APRIL 6, 2020 7 Ex-Jenner & Block chair, other partners to open rival office with more than $3 million in prof- Je Smisek and two other United Wall Street rm Willkie Farr & Gallagher will start out with six lawyers, it per equity partner. Jenner was o cials. e airline paid a $2.4 including Craig Martin, and plans more in its Chicago o ce debut 54th, with $1.4 million. Among million ne. Willkie Farr’s clients have been Asked about going from the top BY STEVEN R. STRAHLER Farr Chair omas Cerabino says ents and minister more broadly to Major League Baseball; former of a rm with 500-plus lawyers Martin and his team will provide ones they have. He says the rm Commissioner Bowie Kuhn was a to an o ce of six, Martin says, Less than a month after he a foothold here to build out litiga- expects to bene t from “unprec- partner of the rm. “I would say this is a huge op- stepped down as chairman of Jen- tion, investigations and intellec- edented legal issues arising from Martin, a former Crain’s 40 Un- portunity and a step up. I would ner & Block, Craig Martin is leaving tual property practices and, later, the current (COVID-19) crisis.” der 40, has been a major revenue suspect by the end of the day it the law rm with ve colleagues to add other groups. Jenner in early March named generator for Jenner, representing would be more than six people.” open a Chicago o ce for New York- Willkie Farr’s decision to pro- Washington, D.C.-based partner Aon, Northern Trust and other Legal recruiter Kay Hoppe says, based Willkie Farr & Gallagher. ceed with a Chicago o ce at 300 omas Perrelli to succeed Martin corporate heavyweights. He coun- “He’s just a very instinctive busi- Martin, 56, says the move N. LaSalle St. “even at this mo- as chairman, its rst outside the seled United Airlines’ board amid ness counselor and generator.” would enhance his ability to serve ment of uncertainty,” as Cerabino Chicago o ce. a controversy over the carrier add- Other Jenner partners moving clients that include the Crowns, puts it, continues a trend of out- Willkie Farr is more pro table ing a ight for the personal ben- to Willkie Farr are Amanda Amert, among other “wealthy and icon- of-town rms hiring big names than Jenner, ranking 17th in 2018 e t of the company’s chairman, Matt Basil, Sara Horton, Barbara ic families I represent.” Willkie to open outposts here to gain cli- on the American Lawyer’s list, leading to the 2015 exit of CEO Grayson and Matthew omas. Baird Capital raises $215M I’m trained to venture fund solve It’s the biggest among several Chicago venture rms BY JOHN PLETZ that have reloaded. Others are moving toward the nish Baird Capital, one of Chicago’s problems largest venture-capital rms, has in all facets of the line as fundraising gets tougher. raised a new $215 million fund. It’s Baird’s fth and largest ven- health care industry. ture fund, following a $185 million fund that was raised in 2014. e fund, like its private-equity sibling, is part of Milwaukee-based Robert W. Baird, a wealth management But I’d rather help you avoid problems altogether. and investment banking rm. My experience as a prosecutor, trial lawyer Baird Capital is the second ven- and health care regulator can help you navigate ture-capital rm to close a fund of A complex and changing landscape, $200 million recently, following Jump Capital. To safely get where you want to go, Baird typically makes invest- avoid going where you shouldn’t, ments in the $12 million to $15 mil- And quickly get back on track after a misstep. lion range in tech and health care Compliance isn’t optional. companies. Chicago investments Government investigations include Apervita, Arrive (formerly ParkWhiz), Hireology, NowSecure can be brutal if mismanaged. (formerly ViaForensics), Signal and But in the law, as in health care, SitterCity. e new fund has done there are risks you can avoid four new deals, none in Chicago. And problems you can solve “We were oversubscribed, so we’re excited,” says Benedict Roc- Through prevention, early detection chio, a Baird Capital partner. “Our and swift, skillful intervention. strategy remains the same. Baird is one of several Chicago I’m MARK J. SILBERMAN. venture rms to close new funds I’m on your team. recently. Others include Hyde Park Venture Partners, which raised a $100 million third fund, and MATH MY BENESCH MY TEAM Venture Partners, which raised a $46 million second fund. OCA Ventures is raising a $125 Partner and Chair, White Collar, Government Investigations & million fourth fund, and Chicago > Ventures is raising a $75 million Regulatory Compliance Practice Group; Vice Chair, Health Care third fund, according to securities & Life Sciences Practice Group lings. Origin Ventures said in Feb- > Concentrates on managing internal and external health care ruary it’s raising a fth fund, target- investigations, False Claims Act cases, white collar criminal ed at $100 million. defense, all forms of health care litigation, and all aspects of the Baird and others who are sitting Illinois Certificate of Need program. on fresh capital are potentially in an advantageous spot. As valuations > Advises clients to manage and avoid allegations of health care come down with the coronavirus fraud and criminal conduct. crash of public markets, these inves- > Provides counsel and litigation services for physicians, facilities tors get more for their dollars. And and pharmacies engaged with any federal agency. startups formed in recessions, such as Instagram and WhatsApp, often > 312.212.4952 | [email protected] have been big winners for investors. For those raising new capital, however, things were getting tough- er even before the coronavirus cri- sis. According to researcher Pitch- Book, the peak in fundraising was www.beneschlaw.com 2018 at $58 billion. e number of new U.S. funds closed last year fell 14 percent to a six-year low of 259. 8 APRIL 6, 2020 • CRAIN’S CHICAGO BUSINESS How high-rise living has transformed Chicago’s skyline The skyline gained the equivalent of 20 Willis Towers in the last decade as developers w MEASURING UP put up apartment buildings as fast as they could. The decade before, when condos Developers stamped out dozens of apartment high-rises in Chicago from 2010 through were the rage, was the only one going back to 1970 that delivered more height. 2019, but they added more vertical feet to the city’s skyline in the prior decade. Tallest building BY ALBY GALLUN with residential making up 52 per- Pritzker’s “stay home” order, work Decade Total height (feet) Total height (floors) completed in decade cent, according to the council’s data, on the city’s tall buildings continues 1970s 24,858 2,220 Willis Tower (1974) e great Chicago apartment which encompasses projects at least unabated. at includes One Chi- boom reshaped the city’s skyline 100 meters, or 328 feet, tall. cago Square, a 76-story residential 1980s 26,526 2,224 The Franklin (1989) with dozens of fancy new high-rises. But of the 123 tall buildings com- tower under construction in River 1990s 14,633 1,187 Two Prudential Plaza (1990) But it didn’t reach the heights of the pleted in the rst two decades of North. Twelve tall buildings total- condo craze the decade before. the 21st century, o ce developers’ ing more than 8,000 vertical feet are 2000s 34,047 2,965 Trump International Hotel e skyline gained nearly 28,000 share of the pie shrunk to just 11 under construction right now in the & Tower (2009) vertical feet—the equivalent of 20 percent. Residential projects ac- city, and all but two are residential, 2010s 27,888 2,424 Nema Chicago (2019) Willis Towers—from 2010 through counted for 78 percent of all tall according to the council. 2020s* 8,111 672 Vista Tower (2020) 2019, as developers built apart- buildings completed from 2000 e total for the current decade ment towers as fast as they could, through 2019. Recent additions in- will depend heavily on what hap- according to the Council on Tall clude One Bennett Park, a 67-sto- pens to the economy and lending As high-rise urban living has become more popular, residential development has Buildings & Urban Habitat. ey ry apartment-and-condo tower in markets. A deep and prolonged accounted for an overwhelming majority of tall-building construction in Chicago since lled out a forest of high-rises Streeterville, and Nema Chicago, an recession would depress demand the turn of the century. that has been growing since 1885, 81-story apartment building in the for all kinds of real estate. Debt and Office Residential when what was considered the South Loop. equity nancing for new high-rises world’s rst skyscraper, the Home “It’s more about people being would dry up, too. 1970s 42% 51% Insurance Building, opened at Ad- interested in the (urban) lifestyle ough construction nancing 1980s 55% 34% ams and LaSalle streets. and being connected,” says Dan- will be unavailable for the next 60 ough last decade was busy, an iel Safarik, editor-in-chief of the to 90 days, it should come back after 1990s 43% 36% analysis of data from the council CTBUH. “ ere’s a lot of high-rise that, says Jim Letchinger, One Chi- 2000s 15% 77% shows that the prior 10 years, when residential popping up in areas cago’s developer. 2010s 7% 79% condominiums were the rage, actu- where we wouldn’t have seen it 10 “We had already slowed down on ally delivered more vertical growth to 15 years ago.” new developments, but this will re- *Figures for 2020 include only buildings under construction at time of publication. to Chicago. From 2000 through ally slow it down in the near term,” Source: Council on Tall Buildings & Urban Habitat 2009, the skyline gained more than CONTAGION’S EFFECT? says Letchinger, founder and CEO of 34,000 feet—more than 6 miles— e big question is what the next Chicago-based JDL Development, weakest 10-year period for high-rise ize in super-tall construction, have if you stacked all 66 tall buildings 10 to 15 years will bring. Will urban which scored its nancing for One construction of the last 50. been more busy with big commis- completed during that period on life and the business of high-rise Chicago last year. Construction didn’t slow much sions in places like China. top of each other. It was the busiest construction go back to normal after High-rise construction appears during and after the brief recession With 126 buildings over 150 me- decade for high-rise construction in the coronavirus pandemic passes? to lag recessions because of the two of 2001. Developers spent the next ters tall, Chicago ranks a distant sec- the city since at least 1970, accord- Or will the virus set big cities like years or more it typically takes to de- several years putting up one condo ond in North America behind New ing to the Chicago nonpro t, which Chicago on a di erent course? velop a tall building. Construction tower after another, and dozens of York, which has 284, according to tracks skyscrapers around the world. It’s way too early to tell, but some often continues even in the depths downtown projects were already the CTBUH. And the council proj- e 50 years of construction data trendspotters are already debating of a downturn because developers underway when the Great Reces- ects that Chicago will soon drop to also underscore the broader shift whether the contagion could di- usually have their nancing in place. sion hit in late 2007. Amid one of the third after Toronto, which is in the underway in Chicago and other U.S. minish the appeal of high-density Once they’ve started, they don’t worst real estate downturns of the midst of a construction frenzy. cities since the turn of the century, urban living as people try to min- have any incentive to stop. postwar era, developers completed Chicago’s recent apartment boom as downtown high-rise living has imize contact with others. at Amid the severe downturn in 13 high-rises in Chicago in 2009 and also has delivered few memorable become en vogue. ough devel- could slow the construction of res- commercial real estate in the early another 13 in 2010, the two biggest buildings with bold, innovative de- opers keep building o ce towers idential high-rises. Others predict 1990s, tall building development years for high-rise development in signs, Safarik says. Most have been a downtown, these days most of the that a further acceleration in the ground to a halt. As a result, devel- the city since at least 1970. variation of the glass box. action is in residential, whether it’s work-from-home trend will reduce opers didn’t complete a single big Once home to the world’s tall- “ e march of the bland and un- condos or apartments. demand for space in big down- project in Chicago between 1993 est building, Chicago is no longer inspiring continues,” Safarik says. “If O ce projects accounted for town o ce towers. and 1997, according to the coun- a global hot spot when it comes to you want to see interesting apart- 48 percent of the 106 tall buildings With construction considered an cil. ey delivered just three more tall-building construction. Archi- ment buildings or towers, I don’t completed in the 1970s and 1980s, essential business under Gov. J.B. buildings in the city that decade, the tects, especially those that special- think Chicago is your place.” Curbside closings are a thing now in real estate In the rst week of the new normal, title companies, agents and attorneys had to devise ways to complete home sales while trying to prevent the spread of COVID-19
BY DENNIS RODKIN pened was we got a phone call.” minimum of six people present, In Gov. J.B. Pritzker’s stay-home but Proper Title and others found Buyers who put a midcentury- order, real estate is an essential that could be reduced to three modern home under contract business that can continue op- or four: the buyer or buyers, the in late January couldn’t foresee erating, but just as essential is buyer’s attorney and one closing that by the time they closed two the need to prevent the spread of o cer, all operating at a social dis- months later, there would no more COVID-19 while conducting busi- tance from one another. business as usual thanks to the ness. In the rst week of the new coronavirus. normal, title companies, real es- THE NEED FOR INK e day of the closing late last tate agents and attorneys had to Buyers still have to show up be- month, they sat in their car out- devise ways to do so. cause some documents need a side a Skokie title o ce to sign the “We had to get creative . . . and “wet signature,” Kwak says. But they paperwork and hand it over to a gure out how to do everything were asked not to come inside. CHICAGO HOMESERVICES HATHAWAY BERKSHIRE title o cer, who took it inside for di erently,” says Kathy Kwak, vice “ e buyers can stay in their The buyers who closed on their $560,000 purchase of this mid-1950s house in Riverwoods sat in their processing. president of title and escrow oper- car and talk to me on their cell- car outside a closing company’s Skokie o ce to do the paperwork at a safe social distance. Normally, “we’d be there to ations for Chicago-based Proper phones,” says Paul Garver, a real congratulate them, give them Title. Curbside closings quickly estate attorney at Hinsdale rm the attorney could come in to deal go down by one, Garver says. Buy- a photo album of the house or became the new standard not only Hawbecker & Garver. At his clos- with it. ers who sign a power of attorney something like that,” says Honore for her rm but for others in Chi- ings last week, Garver says, he still “I took all the precautions about can skip the closing. at takes Frumentino, the Berkshire Hatha- cago and elsewhere. had to go inside to handle certain distance,” Garver says, and “in my about a week, so most buyers with way HomeServices Chicago agent Before March 23, Proper Title details, but everyone maintained car I have a sanitizing kit that I use closings scheduled for the rst who represented the sellers in the had about 20 closings scheduled a healthy distance, with the clos- after I come out.” week after the stay-home order, in $560,000 sale. “ is time, the only per day, Kwak says, and none can- ing o cer putting paperwork on In coming weeks, the required e ect as of March 21, didn’t have way we knew the closing had hap- celed. e typical closing has a a table, then leaving the room so number of people at a closing will time to do it, he says.
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YOUR VIEW Continued
existing unpaid tickets. e governor could use his emergency authority to clarify that the administration of such nes is a non- essential governmental function subject EDITORIAL to his executive order to stay at home. e state should also implement a forgiveness program for tollway, parking or red-light camera violations for anyone who can demonstrate signi cant economic harm Calculating the incalculable from COVID-19 and makes below Illinois’ median household income. Compassion- Putting a dollar value on human life is a Everyone would have a separate lane, the ate policy solutions are important when tricky and even somewhat disturbing ex- lane would have airbags on both sides of people are losing jobs and income. Strug- ercise. After all, would you trade the life of it, and it would be impossible for you to gling families shouldn’t be forced to worry your child, your grandmother or your best injure yourself or anyone else. We choose about raising money for a parking ticket. friend for any amount of money? not to do that because it would cost too After the state takes nancial pressure To the average person, the fundamental much money. e value of a statistical life o residents during the quarantine, lead- worth of a human being is, of course, ines- tries to nd where people are just indier- ers must stimulate a strong recovery in the timable. Fortunately or unfortunately, de- ent between more money and a change in pending on your point of view, economists a probability of death.” are anything but average, and two of them People like our governor and Chicago’s at the University of Chicago have gone mayor probably aren’t making such formal about running some calculations that help calculations as they manage the city and to cast our current work-from-home sacri- state’s response to the crisis, but the moves President KC Crain ce into sharper perspective. As we all x- they are making so far suggest a gut-level Group publisher Mary Kramer ate on the damage that this near-lockdown understanding of what must happen to Publisher/executive editor Jim Kirk on normal business activity is doing to our reduce the loss of life and speed the day Associate publisher Kate Van Etten economy, it’s useful to have numbers that when we can all resume our normal exis- * * * help us understand the other side of the tences. ey’re putting in place loan and Editor Ann Dwyer COVID-19 ledger. grant programs that will hopefully ease the Creative director Thomas J. Linden A new working paper from Michael near-term pain experienced by business Assistant managing editor Jan Parr Greenstone and Vishan Nigam of the owners and their workforces. Even the U.S. Assistant managing editor/digital Ann R. Weiler Becker Friedman Institute for Economics Treasury, hardly a bastion of socialist eco- Deputy digital editor Todd J. Behme nds that three to four months of moder- nomics, is moving to oer payroll support: Digital design editor Jason McGregor ate social distancing starting in late March e Paycheck Protection Program aims to Art director Karen Freese Zane Copy chief Danielle Narcissé would save 1.7 million U.S. lives—a mix of NEWSCOM provide small businesses with funds to pay avoided infections and sick people who up to eight weeks of payroll costs including Columnist/contributing editor Joe Cahill die because of a lack of ICU capacity—by “LOOK, SOCIAL DISTANCING HAS A VERY REAL ECONOMIC COST, bene ts. Funds can also be used to pay in- Political columnist Greg Hinz Oct. 1. ose moderate measures include terest on mortgages, rent and utilities. Senior reporters Steve Daniels much of what Illinoisans have been doing WHICH WE’RE ALL EXPERIENCING. . . .BUT THE BENEFITS ARE We don’t want to paint too rosy a picture. Alby Gallun since Gov. J.B. Pritzker issued his stay-at- POTENTIALLY ENORMOUS.” ere is real pain out there, and some—in- Lynne Marek home order on March 20, in accordance deed many—businesses won’t survive this John Pletz with guidelines recommended by the Michael Greenstone, Becker Friedman Institute for Economics extended period of disruption. e best we Reporters Dalton Barker Centers for Disease Control & Prevention: can do as a city, a state, a region and a nation Danny Ecker a seven-day voluntary isolation for anyone the mortality rate anticipated in a widely roughly equal to current median house- is to nd ways to buer the worst eects of Stephanie Goldberg showing symptoms, a 14-day voluntary reported and chilling Imperial College of hold income of $60,000.” the crisis, especially for those who are least A.D. Quig quarantine for their household and signi - London study that projected 2.2 million To reach that number, the U of C duo prepared to withstand it on their own, while Dennis Rodkin cantly reduced social contact for anyone Americans would die if the virus were al- leveraged a calculation commonly used we take the steps necessary to atten the Steven R. Strahler 70 and older. lowed to spread unmitigated. ose 1.1 mil- by economists and policymakers: VSL, or curve of the outbreak and get back to some- Sarah Zimmerman ese are the very steps that of course lion lives saved, according to Greenstone the value of a statistical life. As Greenstone thing like normal life. Copy editor Scott Williams are rocking entire industries, from major and Nigam’s projections, will produce eco- explained to Crain’s political reporter A.D. As Greenstone put it to Crain’s, “Look, Contributing photographer John R. Boehm airlines to mom-and-pop restaurants. But nomic bene ts worth $8 trillion, when ac- Quig in an April 2 Q&A on ChicagoBusi- social distancing has a very real economic Researcher Kasey Hariman Nigam and Greenstone’s modeling, which counting for the age of those saved. ness.com, “We’re always making trade- cost, which we’re all experiencing. . . .But * * * took on greater urgency when the Trump “ ese bene ts are over one-third of os between exposure to risk and money. the bene ts are potentially enormous.” Director of digital strategy Frank Sennett administration brie y irted with an “ev- U.S. GDP and larger than the entire annual Government certainly does that on our And they shouldn’t be forgotten as we en- Director of custom media Sarah Chow erybody back to work by Easter” mindset— federal budget,” the authors found. “Dis- behalf all the time. We could drive road ter yet another week of living and working Associate director, Jaimee Holway suggests these same steps will slice in half tributed among U.S. households, they are fatalities down to zero if we wanted to. in our new reality. events and marketing * * * Production manager David Adair Account executives Christine Bowman YOUR VIEW Aileen Elliott Claudia Hippel Christine Rozmanich Even as coronavirus shakes U.S., Illinois leaders can create stability Bridget Sevcik Laura Warren Elected ocials should limit fear with a beds and facilities to deal with the crisis. state could cover the lost local revenue Courtney Rush strong plan to ensure businesses can keep Lawmakers should also expand scope-of- with emergency borrowing, which could Amy Skarnulis their workers, regain their footing and practice laws so highly trained medical total a little over $6 billion per the state People on the Move manager Debora Stein quickly help stabilize the economy. professionals, such as physician assistants, constitution. is would let Illinois provide Sales assistant Lauren Jackson e ground is still shifting beneath our can ease burdens on the health care system. tax relief where it is most needed without Project manager Joanna Metzger feet, and the full eects of COVID-19 on Additionally, Illinois should enter the inter- harming local government nances. Event planner Katie Robinson our country’s physical and scal health state Nurse Licensure Compact so nurses e state should also follow Chicago’s Event manager Tenille Johnson have yet to be determined, but if state lead- can practice across state lines. Digital designer Christine Balch ers act now they can limit the COVID-19 Relief to people and business- Crain Communications Inc. pandemic’s economic fallout. es? Stop collecting money and STOP COLLECTING MONEY AND FINES FROM Keith E. Crain Mary Kay Crain is crisis will play out in two acts: the Orphe Divounguy is Adam Schuster is nes from closed businesses Chairman Vice chairman CLOSED BUSINESSES AND IDLED WORKERS. KC Crain Chris Crain emergency and the recovery. chief economist at director of budget and idled workers. President Senior executive vice president Illinoisans need solutions tailored to the Illinois Policy and tax research at e Illinois General Assem- Lexie Crain Armstrong Robert Recchia these phases. First must be policies pro- Institute. the Illinois Policy bly should pass emergency legislation de- lead and delay or cancel nes, fees and Secretary Chief nancial o cer viding relief during the pandemic, fol- Institute. laying collection of one-half of this year’s late penalties for non-safety violations. Veebha Mehta Chief Marketing O cer lowed by policies encouraging recovery business property taxes for local govern- is would include temporarily halting all * * * G.D. Crain Jr. Mrs. G.D. Crain Jr. once the crisis is contained. ical care. Suspending and then repealing ments to prevent businesses from going new tickets, booting, towing for parking Founder Chairman Emergency economic solutions start by Illinois’ certi cate-of-need laws will ensure under. In Cook County, the second pay- violations, suspending the red-light cam- (1885-1973) (1911-1996) loosening regulatory restrictions on med- hospitals have enough exibility to add ment should be delayed until Oct. 1. e era program and halting new penalties on For subscription information and delivery concerns please email [email protected] or call 877-812-1590 (in the U.S. and Canada) or 313-446-0450 (all other locations). Write us: Crain’s welcomes responses from readers. Letters should be as brief as possible and may be edited. Send letters Sound o : Send a column for the Opinion page to editor@ to Crain’s Chicago Business, 150 N. Michigan Ave., Chicago, IL 60601, or email us at [email protected]. Please chicagobusiness.com. Please include a phone number for veri cation include your full name, the city from which you’re writing and a phone number for fact-checking purposes. purposes, and limit submissions to 425 words or fewer. CRAIN’S CHICAGO BUSINESS • APRIL 6, 2020 11
YOUR VIEW Continued
existing unpaid tickets. e governor could private sector. rious option. In the rst year alone, modest e COVID-19 economic shutdown and use his emergency authority to clarify that Acting now is essential. It took six quar- reforms could save $2.4 billion—dollars ongoing oil price war mean both revenue the administration of such nes is a non- ters for the Illinois economy to contract 5.3 that will be desperately needed. streams will come up signi cantly short. essential governmental function subject percent during the Great Recession; the Other recovery measures include elim- Reprioritizing projects using cost bene t EDITORIAL to his executive order to stay at home. e U.S. economy dropped 4 percent. J.P. Mor- inating tax uncertainty for small business data, similar to Virginia’s Smart Scale, will state should also implement a forgiveness gan is predicting the U.S. economy could by clearing the threat of a progressive in- ensure state residents get the most from program for tollway, parking or red-light contract by 25 percent in the second quar- come tax. By next fall, most small business- infrastructure spending. Pork projects camera violations for anyone who can ter of 2020 alone. If true, Illinois will likely es should be recovering, but the threat of and waste—including pickleball courts, demonstrate signi cant economic harm su er more this time, too. a tax hike in November would undermine dog parks and renovations to a privately Calculating the incalculable from COVID-19 and makes below Illinois’ A severe downturn similar to the Great recovery and imperil long-term growth. owned, broken-down Chicago theater— median household income. Compassion- Recession could slide the state’s pension Next, Illinois should pause new capital should be on the chopping block. Everyone would have a separate lane, the ate policy solutions are important when funds into insolvency. e rst state-run spending and objectively reprioritize proj- Ninety percent of Americans are scared lane would have airbags on both sides of people are losing jobs and income. Strug- pension fund could run dry by 2039. State ects. Last year’s $45 billion “Rebuild Illi- about the economy post-COVID-19, ac- it, and it would be impossible for you to gling families shouldn’t be forced to worry lawmakers must prioritize spending on re- nois” infrastructure plan relies on doubling cording to new polling from Morning Con- injure yourself or anyone else. We choose about raising money for a parking ticket. lief e orts. But shorting the pension funds the motor fuel tax to fund transportation sult. Illinois leaders should limit fear with a not to do that because it would cost too After the state takes nancial pressure would jeopardize worker retirements and projects along with a signi cant gambling strong plan to ensure businesses can keep much money. e value of a statistical life o residents during the quarantine, lead- could trigger a downgrade to junk status. expansion to pay for vertical infrastructure their workers, regain their footing and tries to nd where people are just indi er- ers must stimulate a strong recovery in the at leaves pension reform as the only se- projects, including hospital improvements. quickly help stabilize the economy. ent between more money and a change in a probability of death.” People like our governor and Chicago’s mayor probably aren’t making such formal calculations as they manage the city and state’s response to the crisis, but the moves President KC Crain they are making so far suggest a gut-level Group publisher Mary Kramer understanding of what must happen to Publisher/executive editor Jim Kirk reduce the loss of life and speed the day Associate publisher Kate Van Etten when we can all resume our normal exis- * * * Make Yourself... tences. ey’re putting in place loan and Editor Ann Dwyer grant programs that will hopefully ease the Creative director Thomas J. Linden near-term pain experienced by business Assistant managing editor Jan Parr owners and their workforces. Even the U.S. Assistant managing editor/digital Ann R. Weiler Treasury, hardly a bastion of socialist eco- Deputy digital editor Todd J. Behme nomics, is moving to o er payroll support: Digital design editor Jason McGregor e Paycheck Protection Program aims to Art director Karen Freese Zane ADAPTABLE. provide small businesses with funds to pay Copy chief Danielle Narcissé up to eight weeks of payroll costs including Columnist/contributing editor Joe Cahill bene ts. Funds can also be used to pay in- Political columnist Greg Hinz terest on mortgages, rent and utilities. Senior reporters Steve Daniels We don’t want to paint too rosy a picture. Alby Gallun ere is real pain out there, and some—in- Lynne Marek deed many—businesses won’t survive this John Pletz extended period of disruption. e best we Reporters Dalton Barker can do as a city, a state, a region and a nation Danny Ecker is to nd ways to bu er the worst e ects of Stephanie Goldberg the crisis, especially for those who are least A.D. Quig prepared to withstand it on their own, while Dennis Rodkin we take the steps necessary to atten the Steven R. Strahler curve of the outbreak and get back to some- Sarah Zimmerman thing like normal life. Copy editor Scott Williams As Greenstone put it to Crain’s, “Look, Contributing photographer John R. Boehm social distancing has a very real economic Researcher Kasey Hariman cost, which we’re all experiencing. . . .But * * * the bene ts are potentially enormous.” Director of digital strategy Frank Sennett And they shouldn’t be forgotten as we en- Director of custom media Sarah Chow ter yet another week of living and working Associate director, Jaimee Holway in our new reality. events and marketing * * * Production manager David Adair Account executives Christine Bowman YOUR VIEW Aileen Elliott Claudia Hippel Christine Rozmanich Even as coronavirus shakes U.S., Illinois leaders can create stability Bridget Sevcik Laura Warren state could cover the lost local revenue Courtney Rush with emergency borrowing, which could Amy Skarnulis total a little over $6 billion per the state People on the Move manager Debora Stein constitution. is would let Illinois provide Sales assistant Lauren Jackson tax relief where it is most needed without Project manager Joanna Metzger harming local government nances. Event planner Katie Robinson e state should also follow Chicago’s Event manager Tenille Johnson Digital designer Christine Balch SAFETY IS ALWAYS Crain Communications Inc. STOP COLLECTING MONEY AND FINES FROM Keith E. Crain Mary Kay Crain Chairman Vice chairman OUR FIRST PRIORITY. CLOSED BUSINESSES AND IDLED WORKERS. KC Crain Chris Crain Clayco has always been a leader for President Senior executive vice president Lexie Crain Armstrong Robert Recchia jobsite safety. Taking every precaution, lead and delay or cancel nes, fees and Secretary Chief nancial o cer late penalties for non-safety violations. * * * we will continue to be a safe place to G.D. Crain Jr. Mrs. G.D. Crain Jr. is would include temporarily halting all Founder Chairman work and do business. new tickets, booting, towing for parking (1885-1973) (1911-1996) violations, suspending the red-light cam- For subscription information and delivery concerns era program and halting new penalties on please email [email protected] or call 877-812-1590 (in the U.S. and Canada) or 313-446-0450 (all other locations).
Sound o : Send a column for the Opinion page to editor@ claycorp.com chicagobusiness.com. Please include a phone number for veri cation purposes, and limit submissions to 425 words or fewer. When you strive for better, people notice.
We at Gallagher are excited to announce that our own Global Chief Human Resources O cer, Susan Pietrucha, has just been honored by Crain’s Chicago Business as one of the 2020 Notable Woman Executives Over 50. Susan has been a big part of our ongoing initiative to build a better workplace, so we can’t think of a more deserving recipient. Congratulations, Susan!
Each year, Crain’s Chicago Business, a Chicago-focused business journal, recognizes the accomplishments of CEOs, Presidents, and female executives from a wide range of industries.
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20cb0150.pdf RunDate 4/6/20 FULL PAGE Color: 4/C CRAIN’S CHICAGO BUSINESS • APRIL 6, 2020 13
WOMEN EXECUTIVES OVER 50 These 50 Notable Women Executives officials and managers. Over 50 have jumped hurdles to reach But they see the big picture and are the highest levels of business, medi- bringing their sisters along by lead- cine, higher education and nonprofits. ing diversity and inclusion efforts, A number defied the odds in rising to supporting women’s resource groups, influential positions in male-dominat- pushing for more family-friendly ed fields such as banking and financial policies and mentoring younger col- services, law and manufacturing. leagues. That should provide encour- Women, of course, still face formida- agement to already influential millen- ble obstacles. They represent only 11 nial women who have the opportunity percent of top earners at S&P 500 com- to dramatically reshape the workplace panies, according to a January study by in the years ahead. Catalyst. And they make up just over a quarter of executive and senior-level By Judith Crown
METHODOLOGY: The honorees did not pay to be included. Their profiles were drawn from the nomination materials submitted. This list is not comprehensive. It includes only individuals for whom nominations were submitted and accepted after a review by editors. To qualify for the list, an honoree must currently be in a C-suite or equivalent role, have turned 50 by the publication date and be based in the Chicago area.
SARAH ALTER JENNIFER ALTER ANITA BLANCHARD AMY BLUMENTHAL BARBARA BOIGEGRAIN President and CEO WARDEN Associate dean of graduate Managing partner General secretary and CEO Network of Executive Women Chief operating officer and medical education Gould & Ratner Wespath Benefits & Investments executive vice president University of Chicago Sarah Alter leads the Network As a managing partner, Amy Barbara Boigegrain oversees Baird & Warner of Executive Women, or NEW, a As associate dean, Dr. Anita Blumenthal shares responsibility duciary services and adminis- nonpro t that o ers leadership As chief operating o cer at Blanchard supervises resi- for supervising the law rm’s trative operations for Wespath development and networking Baird & Warner, Jennifer Alter dents and fellows working and business operations, including Bene ts & Investments, the for members as Warden works training at the administra- largest report- well as diversi- with the University of tion, nance, ing faith-based ty and inclu- brokerage’s Chicago, about marketing and pension fund sion strategies residential 970 employ- technology. in the U.S., for corporate sales, mortgage ees. She is a She previously with $25 bil- partners. In and title divi- professor of chaired the lion in assets the past 18 sions to ensure obstetrics and rm’s real under man- months, Alter they have the gynecology estate practice. agement. e has hired pro- marketing and and has been Blumenthal fund serves fessionals from technology practicing for has more than more than Coca-Cola, Cboe and T-Mo- resources needed to operate 26 years; Blanchard delivered 30 years of experience in real 100,000 active and retired clergy bile and board members from e ectively. Alter Warden joined Michelle and Barack Obama’s estate law, including o ce, re- and lay employees of the United Google, Visa and Deloitte. NEW Baird & Warner in 1995 and daughters, Sasha and Malia. tail, hotel, industrial and luxury Methodist Church. Boigegrain works with corporate spon- was responsible for launching Blanchard focused her career residential properties, and often has been CEO for 25 years and sors to enhance their diversity the company’s home services, on residency education, serving handles nancing, acquisitions led a vefold growth in assets. and inclusion programs and e-business and title operations. as program director in obstet- and sales, development, and Last year, Wespath launched advance women in those orga- She created and oversees the rics and gynecology from 2004 land use. She has represent- an investment organization nizations. Before joining NEW Baird & Warner Good Will Net- to 2017. In that role, she men- ed a Krispy Kreme franchisee to serve Methodist-related in June 2017, Alter was chief work, the company’s charitable tored more than 100 female seeking south suburban retail institutional investors, which marketing o cer at General initiative, which has donated residents and fellows who prac- locations and a family o ce realized $167 million in AUM Growth Properties, where she nearly $3 million to nonpro ts. tice throughout the country. As exploring restaurant investments net inows in its rst year. developed marketing strategies Alter Warden has a background vice president of the American in the Midwest and Southeast. Boigegrain also has emphasized for 200 shopping malls and their in communications, public re- Board of Obstetrics & Gynecol- Blumenthal helps lead Gould sustainability, with nearly $2 top retailers. As vice president lations and journalism and was ogy, Blanchard helped create & Ratner’s attorney mentoring billion committed to companies at Discover Financial Services, principal of her own marketing a new parental leave policy program as well as a resource positioned for the transition to she led product strategy for communications rm. She is for OB-GYN residents around group that connects the rm’s a low-carbon economy. She has credit card features, bene ts president of the Internation- the country. She is on the Art female attorneys and clients. promoted women, who make and services. Last year, she was al Women’s Forum Chicago Institute of Chicago board of She’s immediate past president up 40 percent of Wespath’s appointed to the Illinois Lottery chapter and is a member of the trustees. of CREW Chicago, part of a senior leadership team and 33 Control Board by Gov. J.B. Northwestern University Council national network of women in percent of managing directors Pritzker. of 100. commercial real estate. and directors.
BOOMERS’ LEGACY The senior population is projected to become less non-Hispanic white, and its members will work longer.
52 million 77 percent 24 percent 29 percent Connect face-to-face with Americans were 65 or older in 2018. By of the 65-and-older population in 2018 of men 65 and older and 16 percent of of people 65 and older had a bachelor’s Crain’s 2020 notable 2060, that number is expected to nearly was non-Hispanic white. That is projected women in that age group were still in degree or higher in 2018. That’s up from double to 95 million, and the age group’s to drop to 55 percent by 2060. the labor force in 2018. By 2026, those 5 percent in 1965. executives. Contact Sarah share of the total population will rise to numbers are expected to increase to 26 Chow at [email protected] 23 percent from 16 percent. percent and 18 percent, respectively. to learn how.
Source: Population Reference Bureau 14 APRIL 6, 2020 • CRAIN’S CHICAGO BUSINESS
NOTABLE 2020 WOMEN EXECUTIVES OVER 50 CAROLE L. BROWN BARBRA BUKOVAC MARY CAVALLARO SARAH CHODERA JENNIFER CONVERY ELIZABETH COOK Chief change and risk officer Vice chairman, Mid-Central Region Deputy executive director Chief marketing officer Group president, North America Director PNC Financial Services Group PwC Chicago Teachers’ Pension Fund Mesirow Financial Griffith Foods CME Group At PNC, Carole L. Brown leads Barbra Bukovac leads PwC’s As deputy executive director, At Mesirow Financial, Sarah Jennifer Convery is responsible Elizabeth Cook has been a mem- risk management, compliance regional assurance, tax and ad- Mary Cavallaro provides lead- Chodera oversees marketing for almost 1,400 employees in ber of CME Group for nearly 40 and change management initia- visory services and is a member ership and strategic direction development and innovation, the North American operations years and has been on the board tives for the Asset Management of the rm’s extended leader- to noninvestment departments, including brand and digital pro- of Alsip-based Gri th Foods, a of directors since 2015. She is on Group as well ship team that including grams, as well family-owned the audit and as Corporate includes 130 member ser- as business company that compensation & Institutional partners. With vices, bene ts, line marketing. develops and committees. Banking. She more than 25 accounting Since joining sells season- Cook began joined PNC years at PwC, and nance, the nancial ings, coatings her career as last year in the Bukovac serves procurement, services rm and sauces in a runner and newly creat- clients across information in October, she 30 countries. went on to ed position. a variety of technology, hu- has optimized As a member trade Swiss Previously, she industries as a man resources, the structure of the global franc futures was CFO for senior rela- communica- and workow executive team, and options. the city of Chicago, where she tionship partner and global lead tions and o ce services. She of the marketing team, gained she establishes strategic direction In 2001, she switched to the in- implemented reforms to restore tax partner. Before her promo- serves as primary adviser to the consensus on updated branding and develops business-building terest rate arena with a focus on stability, including a plan to fund tion in 2017, Bukovac was the executive director. e pension and set goals for digital transfor- initiatives. In the past 18 months, eurodollar and equity options. operating and capital needs and U.S. tax sectors leader and a fund has more than $11 billion in mation. Before joining Mesirow, Convery oversaw a 30 percent During her CME career, Cook a new structure for nancing member of the core tax lead- diversi ed assets and pays nearly she founded Ampersand Asset increase in health and nutri- served on 40 leadership com- debt. She also helped negotiate ership team. She also served $1.5 billion annually in bene ts Consulting to assist asset and tion products. e company’s mittees, including as co-chair of lease agreements for the $8.5 as the national tax leader for to members and bene ciaries. It wealth managers with integrated commercial teams completed arbitration and co-chair of oor billion O’Hare terminal modern- retail and consumer products serves more than 28,500 pen- marketing. Earlier she was se- a training program in health conduct. Cook is owner and ization project. Before joining clients. Bukovac has mentored sioners. Cavallaro introduced ini- nior managing director and head and nutrition. Convery led the president of Lucky Star, a real es- the Emanuel administration, female colleagues and spon- tiatives to streamline operations, of retail marketing at Nuveen, creation of Gri th Women Lead- tate company managing invest- Brown was managing director sored a number of women improve data management and where she was a voting member ers, a leadership development ment properties and developing at Barclays Capital, where she to the PwC partnership. She modernize services for members of the rm’s advisory services program with more than 200 single- and multifamily residen- headed the rm’s Midwest and speaks frequently on diversi- and contributing employers. She product committee and served members active in 10 countries. tial buildings. Additionally, she Southeast municipal practices. ty and inclusion at client and joined the pension fund in 2009 on the product, marketing and Before joining Gri th Foods, is on the boards of Women in She was chairman of the Chica- executive meetings. Bukovac is as health insurance manager. As distribution task force. Before Convery held sales and leader- Listed Derivatives and Associat- go Transit Authority board and a board trustee of the Hadley chief bene ts o cer, she restruc- that, Chodera spent 14 years as ship positions at General Mills ed Colleges of Illinois. served on the state’s Budgeting Institute for the Blind & Visually tured plan o erings and initiated vice president at Goldman Sachs and Johnson & Johnson. She is for Results Commission. Impaired. a competitive procurement pro- Asset Management, where she on the board of the Alzheimer’s cess that reduced program costs built the rm’s retail and institu- Association Illinois chapter. by 20 percent. Cavallaro was tional marketing platforms. named to her current position in 2017.
MY BENESCH MY TEAM
OUR TEAM PROUDLY INCLUDES Benesch is proud to recognize the CHICAGO’S VERY BEST 2020 Crain’s Notable Women Over 50, When you run a business, your success is closely tied to us strong by offering expertise, guidance, knowledge, and your people. And, we’ve been lucky enough to call some of dedication in everything they do. Congratulations, Lynn including our partner the very best part of the Wintrust family. Our employees and Christy, for your recognition as two of Crain’s 2020 are passionate, talented, and driven professionals. Notable Women Executives Over 50. Your contributions Margo Wolf O’Donnell. Leaders like Lynn Van Cleave and Christy Horn help keep are invaluable to making us the company we are.
Congratulations on being named among Crain’s 2020 Notable Women Executives Over 50
wintrust.com LYNN VAN CLEAVE CHRISTY HORN Executive Vice President Executive Vice President 71 South Wacker Drive, Suite 1600 of Customer Experience of Bank Operations Banking products provided by Wintrust Financial Corp. banks. Chicago, IL 60606 T 312.212.4949 www.beneschlaw.com CRAIN’S CHICAGO BUSINESS • APRIL 6, 2020 15
ELIZABETH COOK MARSHA CRUZAN WENDY DAVIDSON Director Regional market president President LONGEVITY’S CHALLENGES CME Group U.S. Bank Kellogg Away From Home North Elizabeth Cook has been a mem- As Chicago-based regional America More older adults are divorced, and women face a greater likelihood of living ber of CME Group for nearly 40 president for U.S. Bank, Marsha Wendy Davidson leads the $1.1 alone as they age. years and has been on the board Cruzan leads a team of more billion Kellogg unit that includes of directors since 2015. She is on than 40 bankers and portfolio convenience stores, vending, the audit and managers food service 78.6 years compensation in Illinois, and specialty was the average U.S. life expectancy in 2017, up from 68 years in 1950 in large part committees. Wisconsin, businesses. due to the reduction in mortality at older ages. The gender gap in life expectancy is Cook began Michigan and A member narrowing, too. In 1990, a seven-year gap in life expectancy existed between men her career as northern In- of the global and women. By 2017, this gap had narrowed to five years (76.1 years versus 81.1 a runner and diana. Cruzan leadership years). went on to led the signing team, she has trade Swiss of more than helped shape franc futures a dozen new the portfolio and options. clients in 2019 as part of the 9 percent In 2001, she switched to the in- and was the supervising prin- management team engaged was the poverty rate for Americans 65 and older. That’s a sharp drop from nearly terest rate arena with a focus on cipal for commercial bankers in the Keebler divestiture and 30 percent in 1966. Among adults 65 and older, 17 percent of Latinos and eurodollar and equity options. with securities licenses. Between acquisition of RXBar. David- 19 percent of African Americans lived in poverty in 2017—more than twice the rate During her CME career, Cook early 2012 and November 2019, son launched the rst Kellogg among older non-Hispanic whites (7 percent). served on 40 leadership com- she increased loans by more direct-to-consumer business, mittees, including as co-chair of than 300 percent and doubled BearNakedCustom.com, in part- arbitration and co-chair of oor preprovision income. Before nership with IBM Chef Watson. conduct. Cook is owner and joining Minneapolis-based U.S. Before joining Kellogg in 2013, 14 percent president of Lucky Star, a real es- Bank in 2012, Cruzan spent 32 Davidson was vice president of women 65 and older were divorced in 2018, up from 3 percent in 1980. For tate company managing invest- years at J.P. Morgan and prede- and general manager for avor men, the rate went from 4 percent in 1980 to 11 percent in 2018. More than ment properties and developing cessor institutions, with roles solutions for the U.S. and Latin one-fourth (26 percent) of women 65 to 74 lived alone in 2018. This share jumped single- and multifamily residen- in corporate banking, wealth America at McCormick. Earlier, to 39 percent among women 75 to 84 and to 55 percent among women 85 and tial buildings. Additionally, she management and loan syndica- she was a senior vice president older. is on the boards of Women in tion in the debt capital market and general manager at Tyson Listed Derivatives and Associat- group of the investment bank. Foods. Davidson is a member of ed Colleges of Illinois. Cruzan serves on Chicago-area the Kellogg women’s resource boards including the Field Mu- group and mentors colleagues. 50 percent is the anticipated increase in the number of Americans 65 and older requiring seum, Lyric Opera of Chicago, She is on the board of First Hori- Goodman eatre and Lincoln zon National in Memphis, Tenn. nursing home care, to about 1.9 million in 2030 from 1.2 million in 2017. Park Zoo. Source: Population Reference Bureau
OUR TEAM PROUDLY INCLUDES CHICAGO’S VERY BEST
When you run a business, your success is closely tied to us strong by offering expertise, guidance, knowledge, and your people. And, we’ve been lucky enough to call some of dedication in everything they do. Congratulations, Lynn the very best part of the Wintrust family. Our employees and Christy, for your recognition as two of Crain’s 2020 are passionate, talented, and driven professionals. Notable Women Executives Over 50. Your contributions Leaders like Lynn Van Cleave and Christy Horn help keep are invaluable to making us the company we are.
Congratulations on being named among Crain’s 2020 Notable Women Executives Over 50
wintrust.com LYNN VAN CLEAVE CHRISTY HORN Executive Vice President Executive Vice President of Customer Experience of Bank Operations Banking products provided by Wintrust Financial Corp. banks. 16 APRIL 6, 2020 • CRAIN’S CHICAGO BUSINESS
NOTABLE 2020 WOMEN EXECUTIVES OVER 50 BEVIN DESMOND SIDNEY DILLARD EMILIA DIMENCO MELISSA DUNCAN MARCI EISENSTEIN REBECCA EISNER Head of talent and culture Partner and head of corporate President and CEO Legal head, Global Seeds and Managing partner Partner and member of the global Morningstar investment banking Women’s Business Development North America Schiff Hardin management committee As head of talent and culture, Loop Capital Markets Center Syngenta International e rst female managing partner Mayer Brown Bevin Desmond oversees the Sidney Dillard leads Loop Emilia DiMenco heads the At Syngenta International, at Schi Hardin, Marci Eisenstein Rebecca Eisner is a member of experience of more than 6,000 Capital’s investment bank- Women’s Business Development Melissa Duncan serves as chief oversees 435 lawyers and employ- Mayer Brown’s global manage- employees in 27 countries. Her ing division, including bond Center, a nonpro t that supports legal counsel for the company’s ees across seven U.S. o ces. In ment committee and a co-leader teams focus underwriting, women’s busi- global seeds partnership with of the rm’s on talent initial public ness owner- business the executive technology acquisition, and secondary ship. DiMenco and general committee, transactions management o erings, share oversees a counsel for Eisenstein has practice. Eisner and develop- buybacks, sta of 40 and North Ameri- in the past has more than ment, rewards private institu- has expanded can operations. 18 months 25 years of and other tional capital services to Basel, Switzer- launched initia- experience functions. raising, and Aurora, the land-based tives to improve in matters Desmond mergers and south suburbs, Syngenta was the lives of attor- involving also leads the acquisitions Little Village, formed in 2000 neys and sta . digital trans- development of centers in India advisory. Dillard is on the rm’s Milwaukee, Kansas City, Minne- by the merger of Novartis Agri- is includes a rmwide wellness formation, ntech, arti cial and China to support Morn- management committee and apolis and St. Louis. DiMenco business and Zeneca Agrochem- program and a diversi cation intelligence and cloud platforms, ingstar’s growing businesses. fairness opinion and valuation joined WBDC in 2010 and was icals. It has $13.5 billion in sales drive. Her e orts have boosted data privacy and security, and She helped initiate progressive committee. Her team grew year- named to the top post in 2013, and employs 28,000 people in women, who represent 25 percent other issues. She rejoined Mayer HR programs such as the rm’s over-year revenue in corporate a transition from co-founders 90 countries. Duncan leads a of equity partners. Within months Brown in 1996 after a two-year sabbatical policy, which allows banking by 28 percent. Last year, Hedy Ratner and Carol Dougal. team of 60 legal professionals. of becoming managing partner, stint in the legal department at employees to take six weeks o Loop Capital Markets was a joint Under DiMenco’s leadership, She joined Syngenta in 2018 Eisenstein navigated the law rm Equifax. Eisner helped establish every four years. Last year, Des- bookrunner on its rst initial WBDC has served 90,000 wom- after a nearly 20-year career at through a crisis precipitated by Mayer Brown’s business and mond led the launch of Morn- public o ering and underwrote en, created and implemented Monsanto, where she began as the departure of 20 partners. technology sourcing group, ingstar’s Returnship Program, over 300 securities o erings 13,500 innovative entrepre- assistant general counsel for She recruited lateral partners o ering clients expertise in which provides an interactive, representing $250 billion. Dillard neurial training workshops and litigation. She held a variety of and executed a growth strategy digital transformation, data, “internship-like” opportunity has been at Loop Capital Mar- labs, and secured $98.5 million legal positions, including six that enabled the rm to remain outsourcing and software. She for experienced professionals kets more than 17 years. Earlier, in nancing for women-owned years as global issues manage- independent. Eisenstein has been leads a Mayer Brown initiative to looking to re-enter the workforce she was a senior vice presi- businesses. WBDC certi es more ment, external a airs lead. Most with Schi Hardin for 41 years accelerate the vetting and adop- after a professional break of dent and division manager at than 2,000 women business recently, she was legal integra- and specializes in class-action tion of new technologies and two or more years. e program Northern Trust, responsible for enterprises annually. Before tion planning lead. Duncan has litigation. She is co-leader of the processes. In 2018, Eisner led bene ts women who left the commercial banking, treasury joining WBDC, DiMenco had a made a point of recruiting and rm’s insurance and class-action the Chicago Bar Foundation’s workforce to raise families; part management, retirement plan 30-year career at BMO Harris, mentoring women in the tradi- practice group. Investing in Justice fundraiser, of its aim is to help close the custody and investment services where she was an executive vice tionally male-dominated eld. which supports pro bono and industry’s gender gap. for large corporations. Dillard is president. She serves on the legal aid organizations. She is chair of the Muntu Dance e- state of Illinois Business Enter- on the board of Metropolitan atre of Chicago. prise Council. Family Services.
A HEALTHIER YOU. A HEALTHIER COMMUNITY.
NextLevel Health is a managed care health plan for Cook County residents with Medicaid and for Cook County residents in the Managed Long-Term Services and Throughout Sonia Menon’s distinguished career, Neal Gerber Supports (MLTSS) program (Medicare and Medicaid). Eisenberg’s chief operating officer has advocated for the NextLevel Health assists in managing and coordinating advancement of women, challenged assumptions related to diversity and inclusion, and worked tirelessly to enhance and your care with a deeper understanding of you, your advance the principles of corporate social responsibility. community, and your health, one-on-one, right in your own community. NextLevel Health best serves their We thank Sonia Menon for leading from the front, mentoring us to pursue excellence in everything we do and championing community by increasing access to health care, building innovation in the legal community. strong partnerships in the neighborhoods they serve and by understanding important local issues. Congratulations, Sonia, on your well-deserved achievement of being named a member of Crain’s Notable Women Executives Over 50. Today we celebrate you and your contributions to our firm, to women, and to advancing the CONGRATULATION TO practice of law. LEADING BY CONGRATULATIONSDR. CHERYL R. WHITAKER TO DR. CHERYLCOMMITMENT R. WHITAKER
We are proud of Dr. Whitaker for her success in making her vision a reality for thousands of patients and dozens of employers and www.nge.com organizations. CRAIN’S CHICAGO BUSINESS • APRIL 6, 2020 17
REBECCA EISNER LAURA ELLIS ANU GEORGE Partner and member of the global President of residential sales and Chief quality and transformation WOMEN IN LEADERSHIP management committee executive vice president officer Mayer Brown Baird & Warner Morningstar At S&P 500 companies, women are less represented at the higher management ranks, including executive and senior-level officials, board members and CEOs. Rebecca Eisner is a member of At Baird & Warner, Laura Ellis Anu George leads the global Mayer Brown’s global manage- oversees residential sales oper- transformation team charged 45% ment committee and a co-leader ations and is on the executive with helping Morningstar be- 44.7% of the rm’s committee. come digitized technology In the past 18 and nimble 40 transactions months, Ellis and with practice. Eisner managed the improving has more than launch of a the investor 35 36.9% 25 years of service that en- experience. experience ables consum- She’s helped in matters ers to access transform the 30 involving real-time data critical func- digital trans- on the number tion of data formation, ntech, arti cial of potential buyers searching for collection into a digitized, 25 26.5% intelligence and cloud platforms, a home like theirs. Earlier, Ellis customer-centric function by data privacy and security, and built Baird & Warner’s manage- adopting arti cial intelligence other issues. She rejoined Mayer ment development program, and machine learning and 20 21.2% Brown in 1996 after a two-year which teaches leadership and applying agile and lean method- stint in the legal department at business skills to sales associates ologies. Prior to her current role, Equifax. Eisner helped establish while preparing them for man- George was chief quality o cer 15 Mayer Brown’s business and agement positions. Ellis joined at Morningstar. Before joining technology sourcing group, Baird & Warner in 1998 as a sales the investment research compa- o ering clients expertise in manager in Bolingbrook and ny in 2010, George held roles at 10 11% digital transformation, data, moved to the corporate o ce GE and GE Capital in business outsourcing and software. She in 2006. In recent years, she’s development, operations and leads a Mayer Brown initiative to helped promote several women quality. At Morningstar, George 5 accelerate the vetting and adop- to vice president and senior vice is executive sponsor of Morn- 5% tion of new technologies and president roles at the brokerage. ingstar’s Women’s Initiative as processes. In 2018, Eisner led Ellis was appointed to the Illinois well as the rm’s India a nity 0 the Chicago Bar Foundation’s Real Estate Administration & group, where she focuses on Total First-/ Executive/ Board Top CEOs Investing in Justice fundraiser, Disciplinary Board in 2018. helping women of Indian origin. employees midlevel senior-level members earners which supports pro bono and She is on the advisory board of officials and officials and legal aid organizations. She is the Illinois Technology Associa- managers managers on the board of Metropolitan tion’s Women In uence Chicago Source: Catalyst Family Services. initiative.
A HEALTHIER YOU. A HEALTHIER COMMUNITY.
NextLevel Health is a managed care health plan for Cook County residents with Medicaid and for Cook County residents in the Managed Long-Term Services and Supports (MLTSS) program (Medicare and Medicaid). NextLevel Health assists in managing and coordinating your care with a deeper understanding of you, your community, and your health, one-on-one, right in your own community. NextLevel Health best serves their community by increasing access to health care, building strong partnerships in the neighborhoods they serve and by understanding important local issues.
COLEADINGNGRATULATIO NBY TO CONGRATULATIONSDR. CHERYL R. WHITAKER TO DR. CHERYLCOMMITMENT R. WHITAKER
We are proud of Dr. Whitaker for her success in making her vision a reality for thousands of patients and dozens of employers and organizations. 18 APRIL 6, 2020 • CRAIN’S CHICAGO BUSINESS
NOTABLE 2020 WOMEN EXECUTIVES OVER 50 LINDA GINZEL DIANE GLASS PEGGY GRICUS TERESA HARMON CHRISTY HORN SUZZETTE JASKOWIAK Clinical professor of managerial Chief operations officer Vice president of patient care Chicago office managing partner Executive vice president, bank Divisional vice president, pharmacy, psychology Berkshire Hathaway HomeServices services and chief nursing officer Sidley Austin operations health care, customer engagement and store technology University of Chicago Booth Chicago Silver Cross Hospital At Sidley Austin, Teresa Harmon Wintrust School of Business Diane Glass expanded her role As chief nursing o cer, Peggy leads 500 lawyers and 1,300 total Christy Horn leads bank op- Walgreens At Chicago Booth, Linda Ginzel last year as part of a reorganiza- Gricus oversees 860 registered team members. A partner in erations at Rosemont-based At Walgreens, Suzzette Jaskowiak specializes in negotiation skills, tion that put leadership in the nurses at the New Lenox hos- the global nance practice, she Wintrust. In the past 18 months, supports technology for 10,000 managerial hands of a trio. pital. Gricus represents banks, corporations Horn co-led U.S. pharma- psychology As chief oper- helped the hos- and clearing an engineering cies, the IT and executive ations o cer, pital achieve organizations and robotics eld services development. she leads the state approval in complex automation team and call She also teach- rm’s 25 o ces to construct a lending, secu- initiative for center technol- es courses in and 1,500 neonatal inten- ritization and repetitive tasks ogies. Her team leadership and agents, sta sive care unit repo transac- that require implemented what she calls and a liated so that high- tions, collat- data to be machine learn- leadership service compa- risk mothers, eral and risk transferred or ing to develop capital, the nies Prosperity newborns and management, duplicated ac- strategies to courage, wisdom and capacity Home Mortgage, HomeServices families can remain together ntech and insolvency. Since curately. She established an of- notify patients of their prescrip- to decide when to manage and Insurance and Fort Dearborn after birth. She also implement- becoming Chicago managing ce to increase transparency and tions. Jaskowiak also worked to when to lead. Her workbook for Title. She oversees business ed a program to provide nurses partner last year, Harmon has support better decision-making move call center and specialty students, “Choosing Leader- development, IT and agent with career and educational launched initiatives focused on and execution among project pharmacy technologies to the ship,” provides tools for students development. Created with the advancement opportunities. e expanding Sidley’s presence management professionals who cloud. In the past three years, to develop their leadership 2014 merger that combined program graduated 10 recipients in Chicago, social impact, and manage, monitor and assess Jaskowiak initiated a business skills. Ginzel is a co-founder of Prudential Rublo Properties last year, and applications for the diversity and inclusion. Harmon the status of projects across the resource group for women in Kids in Danger, a nonpro t that with Koenig & Strey, the broker- 2020 program have more than co-founded a law reform study bank network. Also launched: technology, and the group has advocates for improved product age changed its name last year, tripled. Gricus initiated a shared committee last year to shape an initiative to ensure proactive expanded to be more inclusive. safety standards and recall pro- dropping the longtime Chicago governance model to improve how nance and commercial identi cation of risks and corre- Jaskowiak joined Walgreens in cedures. e organization strives real estate monikers of Rublo nurses’ work environment and law apply to blockchain, token- sponding controls. Horn joined 2013 as director of pharmacy to protect the provisions of the and Koenig. Earlier, Glass imple- satisfaction, decreasing reg- ized assets and virtual currency Wintrust in 2017 after a 30-year execution management and was Consumer Product Safety Act mented a training program for istered nurse vacancy by 45 platforms. She led $3.5 billion in career at BMO Harris; she most named to her current position in of 2008, which set standards for the local company that was ex- percent. She adjusted wages to nancings for clients. Harmon recently was senior vice presi- 2018. Earlier, she was managing juvenile products, bans lead and panded nationally. She created address internal equitability and is vice president of the Amer- dent for retail lending, focused director at consultancy Daugh- other harmful substances, and a program to identify candidates increased evening- and night- ican Law Institute, a national on originating mortgages and erty Business Solutions. She mandates independent testing. for larger roles, many of whom shift pay to remain competitive law reform organization, and consumer loans. Horn serves on works with organizations such as It also teams with university and were women. And she served on in the market. Gricus joined the is a member of the permanent the board of the Wintrust wom- Girls on the Run, Girls in Science high school engineering and a leadership task force to design hospital in 1997 and has been in editorial board for the Uniform en’s leadership committee and and ChickTech to encourage STEM programs to incorporate a national brokerage technology her current position since 2004. Commercial Code. helps recruit, develop and retain girls and young women to pur- design safety into the engineer- platform. talented women. sue STEM careers. ing curriculum.
CONGRATULATIONS CONGRATULATIONS CATHY LYNCH AMY BLUMENTHAL CRAIN’S 2020 NOTABLE And all of the HONOREES named WOMEN EXECUTIVES CRAIN’S 2020 Notable women executives over 50 Managing Partner of Gould & Ratner Immediate Past President of CREW Chicago Acquisitions • Brokerage • Construction • Development • Finance • Investments • Property Management We are honored to recognize Amy as a business leader in Chicago and applaud her dedication to the advancement Director, Erie Family of women in real estate, the legal profession and Health Foundation The Inland Real Estate Group of Companies, Inc., one of the nation’s largest commercial real estate and finance groups with over $80 billion in commercial real estate transactions, is comprised of a our community. group of independent legal entities some of which may be aliates, share some common ownership or have been sponsored and managed by subsidiaries of Inland Real Estate Investment Corporation.
Visit inlandgroup.com Complex World. Practical Solutions.® www.gouldratner.com Member of LawExchange International CRAIN’S CHICAGO BUSINESS • APRIL 6, 2020 19
SUZZETTE JASKOWIAK R. PATRICIA KELLY IRINA Divisional vice president, pharmacy, President, TCF Commercial Banking KONSTANTINOVSKY STILL WORKING health care, customer engagement TCF Bank Chief human resources officer, Nearly 40 percent of people 55 and over were in the labor force as of February 2017. and store technology In the past year, R. Patricia Kelly executive vice president LABOR FORCE PARTICIPATION RATE Walgreens managed the integration of the Horizon Therapeutics 16 to 24 25 to 54 55 and over At Walgreens, Suzzette Jaskowiak TCF and Chemical Bank com- 100% supports technology for 10,000 mercial banking operations after Irina Konstantinovsky manages a U.S. pharma- the merger of 30-person team 81.7% cies, the IT the nancial at the Lake For- 80 eld services institutions. est pharmaceu- team and call Kelly manages tical rm. Most 55.8% center technol- more than 100 recently, Kon- 60 ogies. Her team professionals stantinovsky implemented in the Chica- overhauled machine learn- go area and employee ben- 40 ing to develop more than 200 e ts, o ering strategies to professionals competitive 39.9% notify patients of their prescrip- overall. e merger doubled medical, dental and vision in- 20 Dec. Feb. Nov. Dec. Jan. Feb. tions. Jaskowiak also worked to the size of the TCF Commercial surance and adding educational 2007 2016 2016 2016 2017 2017 move call center and specialty Bank to nearly $9 billion in out- scholarships and reimbursements pharmacy technologies to the standing loans. e organization for employees and their children. cloud. In the past three years, increased revenue and income e company extended paid pa- EMPLOYMENT RATE Jaskowiak initiated a business by retaining legacy customers rental leave and o ers assistance 20 and over 55 and over resource group for women in and adding new clients. Kelly for adoptions. And she added an 80% technology, and the group has joined TCF in 2015, overseeing employee engagement survey. expanded to be more inclusive. management of middle-market Konstantinovsky oversaw the 70 Jaskowiak joined Walgreens in lending, commercial real estate, launch of an inclusion leadership 62.1% 2013 as director of pharmacy capital funding and treasury council made up of executive and execution management and was management. Before joining midlevel leadership and support- 60 named to her current position in TCF, Kelly was managing direc- ed the chartering of an inclusion 2018. Earlier, she was managing tor at Chicago Corp. Earlier, she network to enhance workplace 50 director at consultancy Daugh- held positions at GRG Group, culture. Before joining Horizon in 38.6% erty Business Solutions. She Citizens Financial Group and La- 2017, Konstantinovsky was vice 40 works with organizations such as Salle Bank. She is on the boards president, global talent, at Baxter. Girls on the Run, Girls in Science of Community Investment Corp. Earlier, she was senior partner and and ChickTech to encourage and Common Bond. director at Willis Towers Watson. 30 Dec. Feb. Feb. Feb. Feb. Feb. Feb. Feb. Feb. Feb. girls and young women to pur- She is board vice chair for the 2007 2009 2010 2011 2012 2013 2014 2015 2016 2017 sue STEM careers. Human Resources Management Sources: U.S. Department of Labor, Bureau of Labor Association of Chicago.
CONGRATULATIONS AMY BLUMENTHAL And all of the HONOREES named
CRAIN’S 2020 Notable women executives over 50 Managing Partner of Gould & Ratner Immediate Past President of We are honored to recognize Amy as a business leader in CREW Chicago Chicago and applaud her dedication to the advancement Director, Erie Family of women in real estate, the legal profession and Health Foundation our community.
Complex World. Practical Solutions.® www.gouldratner.com Member of LawExchange International 20 APRIL 6, 2020 • CRAIN’S CHICAGO BUSINESS
NOTABLE 2020 WOMEN EXECUTIVES OVER 50 SUSAN KOZAK JACQUELINE LAVIGNE President EILEEN LACARIO Senior vice president, chief mar- MNJ Technologies Chief marketing officer, vice keting officer, chief strategy officer president Q&A: ‘Women have to push the Susan Kozak founded MNJ Pepper Construction Technologies Direct with her Broadway In Chicago At Pepper Construction, Jacque- husband, Paul Kozak, in January Eileen LaCario manages Broad- envelope harder to be recognized’ line Lavigne is responsible for 2002. In the past two years the way In Chicago, overseeing sales marketing and business devel- company has and marketing, Eileen LaCario fell in love with musicals at an leveling of roles for women personally and opment as expanded from social media early age after her mother took her to see “Hello professionally. well as content its base busi- and PR for the Dolly.” She went on to play the Dolly charac- development ness of reselling commercial ter at Morton West High School in Berwyn. Setbacks? and commu- desktop com- touring op- LaCario started her professional career at 17 at we still haven’t been successful in electing nications. As puters, note- eration. She’s as props mistress at the Candlelight Dinner a woman president and, in a larger business chief strategy books, printers, a founding Playhouse and Forum eatre in Summit. And context, the boardroom is still largely male. o cer, Lavigne servers, storage member of she found her calling as a founding executive, is involved devices and the theatrical chief marketing o cer and vice president of Has the business side of entertainment been in targeting, software to institution, Broadway In Chicago, best known for attract- relatively more open to diversity? tracking and o ering IT services such as net- which attracts close to 2 million ing pre-Broadway productions such as “ e Our Broadway In Chicago executive manage- achieving market position. work connectivity. Last year, MNJ attendees every year and has Producers” and “Kinky Boots” as well as long- ment team is comprised of seven women out Lavigne represents Pepper at launched a demo lab where cus- worked on 350 productions. run engagements such as “Wicked,” “ e Book of nine positions. I have the joy of working with industry events and works with tomers can determine how seven LaCario has secured the best of of Mormon” and, most recently, “Hamilton.” many more female producers on Broadway operations leaders to develop of- of the leading SD-WAN (soft- Broadway as rst stop of a na- LaCario recently re ected on the progress of and in the Chicago theater community. How- ferings to di erentiate the com- ware-de ned wide area network) tional tour and helped make the women in the workplace. ever, women have to push the envelope harder pany and drive growth. Before vendors fare under di erent Tony-winning smash “Hamilton” to be recognized. joining Pepper in 2013, Lavigne scenarios. e company gener- a 3½-year run. She’s also assisted CRAIN’S: What was the status of women served as chief marketing o cer ates annual revenue of more than in landing New York-bound in the workplace when you started your What needs to be done? at Nelson, an interior design and $160 million and has posted 20 world premieres such as “ e career? To continue mentorship among women. architecture rm. Earlier she percent year-over-year growth. It Producers,” “Kinky Boots,” “Billy LACARIO: ere were very few management was group vice president and has a sta of 115 based in Bu alo Elliot” and “ e Addams Family.” roles for women, and when women did rise How do you see millennials changing the director of marketing at HOK, a Grove, downtown Chicago and in LaCario assisted in moving “Six,” to management positions, salaries were not workplace? global architecture rm. Lavigne other states. Before starting MNJ, Chicago Shakespeare’s musical equal. at pushed us to be pro cient in more ey are motivating the world to look at things has promoted diversity in the Kozak was director of operations about the revenge-seeking six than one area and highlight our multitasking di erently. ey are challenging the norms male-dominated construc- at AB Distributing in Arlington wives of Henry VIII, to the Broad- skills, which made us more valuable. that were my stopping points. ey don’t see tion eld, and women hold 30 Heights, a distributor of technol- way Playhouse. And she helped the same ceiling that I and other women saw. percent of salaried positions at ogy and o ce products. TimeLine eater, where she is What have been the biggest changes and Millennials don’t even consider “is this an ap- Pepper, including in the critical board president, secure the rights improvements? propriate path for a woman?” when choosing areas of construction tech- to the Tony-winning “Oslo.” e strength of women’s voices and the their way, and I applaud that. nology and sustainability. She often speaks to female college students about careers.
CongraPeggtulay! tions
Silver Cross Hospital proudly applauds Peggy Gricus Vice President of Patient Care & Chief Nursing Officer for being named one of Crain’s Notable Women Executives over 50. Thank you for all you do for our patients, our caregivers and our hospital.
1900 Silver Cross Blvd. • New Lenox • silvercross.org CRAIN’S CHICAGO BUSINESS • APRIL 6, 2020 21
JACQUELINE LAVIGNE CATHERINE LYNCH Senior vice president, chief mar- Chief financial officer CLIMBING THE LADDER keting officer, chief strategy officer Inland Real Estate Investment Pepper Construction Survey respondents differ on when it’s better for women in politics or business to have children. But most say Catherine Lynch is on the board there are too few women in top executive positions and that gender discrimination is a problem. At Pepper Construction, Jacque- of parent Inland Group in Oak line Lavigne is responsible for Brook and is the rst woman marketing and business devel- to be a director. She oversees PERCENTAGE SAYING IT IS BETTER FOR A WOMAN WHO WANTS TO REACH HIGH POLITICAL OFFICE OR A TOP EXECUTIVE opment as reporting, bud- POSITION IN BUSINESS TO . . . well as content geting, acqui- development sition nance Have children before entering Wait until she’s well- and commu- structuring and politics/early in her career established in her career Not have children nications. As strategic plan- High political office 51% 26% 19% chief strategy ning. Lynch o cer, Lavigne co-led an ini- Top executive position 23% 41% 34% is involved tiative to enter in targeting, a $100 million tracking and revolving credit Note: Share of respondents who didn’t offer an answer is not shown. Survey of U.S. adults conducted June 19-July 2, 2018. achieving market position. facility for Inland Real Estate Lavigne represents Pepper at Investment. In addition, she was industry events and works with instrumental in amending and PERCENTAGE SAYING THERE ARE TOO FEW WOMEN IN PERCENTAGE SAYING GENDER DISCRIMINATION IS A MAJOR operations leaders to develop of- increasing the credit facility for TOP EXECUTIVE POSITONS IN THE U.S. TODAY REASON WHY MORE WOMEN AREN’T IN TOP POSITIONS ferings to di erentiate the com- Inland Real Estate Income Trust pany and drive growth. Before to $350 million from $110 mil- All adults 59% All adults 54% joining Pepper in 2013, Lavigne lion. She joined Inland in 1989 served as chief marketing o cer as a public fund partnership Men 48% Men 44% at Nelson, an interior design and accountant and has held a series 70% 62% architecture rm. Earlier she of leadership positions. She was Women Women was group vice president and named a director in 2012. Earlier, Republicans 38% Republicans 30% director of marketing at HOK, a she worked in public accounting global architecture rm. Lavigne at KPMG. Lynch was a founding Democrats 77% Democrats 73% has promoted diversity in the member of Inland’s women’s male-dominated construc- network, a structured program tion eld, and women hold 30 that o ers educational opportu- percent of salaried positions at nities and career advice. Pepper, including in the critical 5.1 percent areas of construction tech- of CEOs in the S&P Composite 1500 are women. And 11.5 percent of other top executives, such as CFOs, are women. nology and sustainability. She often speaks to female college Source: Pew Research Center students about careers.
CongraPeggtulay! tions
Silver Cross Hospital proudly applauds Peggy Gricus Vice President of Patient Care & Chief Nursing Officer for being named one of Crain’s Notable Women Executives over 50. Thank you for all you do for our patients, our caregivers and our hospital.
1900 Silver Cross Blvd. • New Lenox • silvercross.org 22 APRIL 6, 2020 • CRAIN’S CHICAGO BUSINESS
NOTABLE 2020 WOMEN EXECUTIVES OVER 50 LAURIE MCGRAW SONIA MENON SHELLY O’BRIEN MARGO WOLF O’DONNELL SUSAN PIETRUCHA CLAUDIA SARAN Senior vice president of health Chief operating officer Chief legal officer, general counsel Partner Global chief human resources Chief culture officer solutions Neal Gerber Eisenberg and corporate secretary Benesch officer KPMG American Medical Association As chief operating o cer, Sonia Envestnet Margo Wolf O’Donnell is co- Gallagher Since assuming the chief At the AMA, Laurie McGraw is Menon oversees information Shelly O’Brien helped build the chair of Benesch’s labor and em- Susan Pietrucha leads human culture o cer role in February responsible for data programs technology, human resources, legal and compliance system ployment group, where she leads resources at the global insurance 2019, Claudia Saran has driv- used across the health care marketing and facilities. Menon at Envestnet, which provides a team of employment lawyers. brokerage and risk-manage- en planning, execution and industry in the organized wealth-man- With 25 years ment company measurement U.S. and glob- the redesign agement of experience, based in Roll- of KPMG’s cul- ally. McGraw of the law software to O’Donnell liti- ing Meadows. ture e orts. In expanded the rm’s space, nancial gates disputes In the past the past year, reach of Cur- resulting in a advisers and and counsels 18 months, she refreshed rent Procedural more e cient institutions. clients on best Pietrucha’s KPMG’s global Terminology and reduced e rm’s practices for team imple- values to pre- code, which is footprint. She technolo- employment mented a serve long-held used for phy- led the shift to gy is used agreements, cloud-based beliefs while sician reim- a digital vir- by 100,000 training and HR informa- expressing bursement, to include medical tual working environment and advisers and 4,700 companies. investigations. She also defends tion system for payroll, talent them in a more powerful and innovations such as telehealth, enhanced employee exibility O’Brien helped guide the organi- claims involving restrictive management and other func- relatable way. Saran serves arti cial intelligence and digital by implementing a remote-work zation after the October death of covenants, trade secrets and tions. Pietrucha has led the on KPMG’s U.S. management health services. She has also policy. She is the driving force founder and CEO Jud Bergman allegations of discrimination, integration of 450 acquisitions committee and reports to the led in assisting governments behind the rm’s wellness initia- and the naming of Bill Crager harassment, wage-and-hour vi- as Gallagher has grown from U.S. chairman and CEO. She has abroad that want to adopt the tive. Menon joined Neal Gerber as interim CEO. O’Brien’s team olations and breach of contract. 8,000 people in ve countries 30 years of experience working code. In 2019, four governments in 2001 as director of profession- oversaw Envestnet’s $500 million Clients include Alliant Credit in 2007 to 33,500 people in 150 with organizations on culture requested licenses—a record al recruitment and development acquisition of MoneyGuide cre- Union, Corner Bakery, Banner countries. She’s also stewarded transformation. Saran previous- for the AMA. Before joining the and served as chief talent o cer ator PIEtech in 2019, as well as Real Estate and Insurance Auto the company’s culture, “the ly worked at Arthur Andersen, AMA in 2016, McGraw worked before taking on the COO role the company’s 2018 entry into a Auctions. O’Donnell founded Gallagher Way,” which promotes BearingPoint and Archstone at Allscripts, where she held in 2014. She was instrumental in strategic relationship with Black- and leads B-Sharp, Benesch’s ethics and service. In the quest Consulting. She joined KPMG a variety of senior leadership the founding of the rm’s wom- Rock. As the rst lawyer hired professional development group for better diversity, 68 percent of in 2009, leading the U.S. people positions, including chief client en’s network and diversity and by Envestnet, in 2002, O’Brien for female in-house attorneys. all promotions and 60 percent of and change practice. In this o cer, president of strategic inclusion committees, and she built the legal and compliance Before joining Benesch in new hires last year were women. role, Saran worked with clients accounts and president of spurred family-friendly policies operation from scratch. She was January 2018, O’Donnell was In 2018 in honor of the compa- grappling with change triggered enterprise solutions. McGraw is such as expanded parental leave. part of the team that took the shareholder, chair of the diver- ny’s 90th anniversary, Gallagher by regulatory pressures, advanc- executive sponsor of the AMA Menon has spoken at confer- company public in 2010. Before sity committee and founder of employees contributed more es in technology, mergers and women’s employee resource ences on law rm economics, joining Envestnet, O’Brien was the women’s initiative at Vedder than 112,000 hours of volun- acquisitions, or changes in lead- group and mentors women at diversity, the #MeToo movement general counsel at ING (U.S) Price. She is co-chair of the na- teer community service. Before ership and strategy. She is on the the association and through and other topics. Securities, Futures & Options. tional board of the Coalition of joining Gallagher 13 years ago, Lyric Opera of Chicago board. women’s business groups. Women’s Initiatives in Law. Pietrucha was vice president of human resources at GE Capital.
PNC proudly congratulates Congratulations, Carole Brown for her selection as a Crain’s Claudia Saran Chicago Business Notable Woman Executive over 50. KPMG’s Chief Culture Officer, for being named one of Crain’s 2020 — Notable Women Executives over 50. Carole Brown You inspire us as a leader, CHIEF RISK & CHANGE OFFICER PNC Financial Services Group championing our culture vision and helping KPMG bring our values to life for our people and our clients.
Learn more about our culture and Today, we celebrate your dedication, your hard work values at kpmg.com. and your achievements. Thank you for making a difference.
© 2020 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. 081746 ©2020 The PNC Financial Services Group, Inc. All rights reserved. CORPSPON PDF 0320-0117 CRAIN’S CHICAGO BUSINESS • APRIL 6, 2020 23
CLAUDIA SARAN JENNIFER Chief culture officer SCHLOTT ROUZAN LEVELS OF INCOME KPMG Managing director, professional de- Earnings analyzed by gender and ethnicity Since assuming the chief velopment, BMO Commercial Bank culture o cer role in February BMO Harris MEAN INCOME LEVEL IN ILLINOIS, 50 64 YEAR OLDS 2019, Claudia Saran has driv- Women Men. Graphed by income quintile: lowest on left; second through fourth in middle; and highest on right. en planning, execution and At BMO Commercial Bank, measurement Jennifer Schlott- 200,000 $188,617 of KPMG’s cul- Rouzan is ture e orts. In responsible for $172,957 $171,025 the past year, professional she refreshed development KPMG’s global covering 2,800 $153,934 $152,126 values to pre- employees in $149,565 $146,464 $141,742 serve long-held the U.S. and 150,000 $137,581 beliefs while Canada. Talent expressing acquisition, them in a more powerful and talent management, learning and $120,422 relatable way. Saran serves development, as well as diver- on KPMG’s U.S. management sity and inclusion are the core committee and reports to the components of her mandate. U.S. chairman and CEO. She has Schlott-Rouzan joined Harris 100,000 30 years of experience working Bank in 2004 as a sales team with organizations on culture relationship manager and rose to transformation. Saran previous- team lead. In 2008-09 she took on ly worked at Arthur Andersen, a multifaceted role that includ- BearingPoint and Archstone ed training and development, Consulting. She joined KPMG strategy and sponsorships. Four $44,973 $38,990 $35,719 $42,681 in 2009, leading the U.S. people years ago, she focused her work 50,000 $37,929 and change practice. In this on professional development for $37,317 $35,163 $35,735 $36,186 role, Saran worked with clients the commercial bank and in No- $30,289 grappling with change triggered vember was named a managing by regulatory pressures, advanc- director with expanded respon- es in technology, mergers and sibilities. Schlott-Rouzan serves $2,845 $3,434 $3,551 $2,647 $3,045 acquisitions, or changes in lead- as a mentor at BMO Harris and $2,443 $3,792 $1,601 $2,024 $2,536 ership and strategy. She is on the through Chicago Innovation’s 0 Lyric Opera of Chicago board. Women’s Mentoring Co-op. She White Black Asian Hispanic All races has been an investor and adviser Source: AARP in several startups.
PNC proudly congratulates Carole Brown for her selection as a Crain’s Chicago Business Notable Woman Executive over 50. — Carole Brown CHIEF RISK & CHANGE OFFICER PNC Financial Services Group
Today, we celebrate your dedication, your hard work and your achievements. Thank you for making a difference.
©2020 The PNC Financial Services Group, Inc. All rights reserved. CORPSPON PDF 0320-0117 24 APRIL 6, 2020 • CRAIN’S CHICAGO BUSINESS
NOTABLE 2020 WOMEN EXECUTIVES OVER 50 MARSHA SERLIN CYNTHIA SHEARN JENNIFER SHERMAN JOANNE SMITH ELISSA TENNY LYNN VAN CLEAVE CEO Managing partner, Chicago President and CEO President and CEO President Executive vice president, customer United Scrap Metal Fragomen, Del Rey, Bernsen & Federal Signal Shirley Ryan AbilityLab School of the Art Institute of experience Marsha Serlin is a pioneer as Loewy Under Jennifer Sherman’s lead- Dr. Joanne Smith has led the Chicago Wintrust a female entrepreneur in the As managing partner in Frago- ership, the 119-year-old manu- transformation of the Rehabili- At the School of the Art Institute Lynn Van Cleave serves as the male-dominated metal recycling men’s Chicago o ce, Cynthia facturer has posted gains in reve- tation Institute of Chicago into of Chicago, Elissa Tenny has liaison between Wintrust and industry. She started Cicero- Shearn leads a team of 140 nue, EBITDA and earnings per Shirley Ryan AbilityLab. In the broadened accessibility for high business units to promote a cul- based United attorneys and share. e Oak 2019 scal year, school stu- ture of service Scrap Metal professionals Brook compa- Smith led the dents. One pro- and focus on in 1978 with at the rm ny, which has rehabilitation gram will bring customer expe- $200 and a specializing in revenue of $1.2 hospital to downstate high rience. She also rental truck, immigration billion and a grow inpatient schoolers to oversees retail supporting law. Shearn workforce of admissions SAIC for col- operations at her two young provides coun- 3,300, produc- by 6 percent, lege preparato- Lake Forest children by sel to multina- es light bars, on top of 20 ry classes this Bank & Trust, gathering scrap tional clients, sirens, beacons percent growth summer. e a Wintrust from alleys and helping them and other the year before. school awards bank with manufacturers. Serlin added develop and maintain successful signaling systems. Sherman took e organization served 55,000 $10 million in scholarships to nine branches and $3.4 billion acreage to serve customers in immigration and mobility compli- charge in 2016 after a period patients from around the world. Illinois students annually and in deposits. Van Cleave opened manufacturing, utilities and ance programs. Shearn assumed of nancial turmoil. Under She stewarded a research port- $4 million for students in SAIC’s Wintrust’s rst out-of-region telecommunications. e rm the managing partner role in her leadership, Federal Signal folio of more than $100 million, Chicago Public Schools bridge branch in Naples, Fla. She today has annual sales of nearly August and is the rst woman to completed acquisitions, guid- hiring three world-leading ex- program. SAIC awards $15,000 also assisted in the opening of $300 million and a workforce hold that position in the 35 years ed divestitures and launched perts in spinal-cord injury, Par- annually in seed funding to en- Wintrust’s Contact Center, a of 450. In the past seven years, Fragomen has operated a Chicago products. e company also kinson’s disease and wearable trepreneur alumni. And it o ers customer service hub with 50 United Scrap opened locations o ce. In her short tenure, she has expanded into new global mar- robotics. Smith also expanded free public courses and events employees. Van Cleave started in Philadelphia; Richmond, restructured and streamlined the kets and enhanced marketing the hospital’s reach through a at its Homan Square campus. In at Lake Forest Bank & Trust as a Va.; Charlotte, N.C.; St. Louis; o ce’s operations. Shearn speaks e orts. Sherman joined Federal partnership in Abu Dhabi’s Spe- the past 18 months, Tenny led a teller during college. She created and Indianapolis. Her son Brad on immigration-related topics Signal in 1994 as a sta attorney cialized Rehabilitation Hospital. drive to go carbon neutral. She the Ambassador of Customer joined the business in 1989 and during conferences, including the and was promoted to general Smith joined RIC as a practic- joined SAIC in 2010 as provost Experience program, where each is president. Serlin champions Council for Global Immigration counsel in 2004. She has recruit- ing physician in 1992 and was and senior vice president of aca- bank charter has a team to sup- diversity, and 20 percent of her and the American Immigration ed women to executive positions appointed president and CEO in demic a airs and became presi- port culture. Van Cleave is on the female team members are in Lawyers Association. Before and supported the appointment 2006. She led the transformation dent in 2016. She is vice chair of Wintrust operating committee, leadership roles. She serves on joining Fragomen in 1997, Shearn of female directors. Recently, she with the 2017 opening of the the Association of Independent the Wintrust community impact the boards of Lyric Opera of focused on international and was elected a trustee of the Field $550 million, 1.2 million-square- Colleges of Art & Design’s execu- committee and the Lake Forest Chicago and the Illinois Manu- human rights law in positions at Museum. foot hospital in Streeterville. tive committee. Bank & Trust executive manage- facturers’ Association. the Interparliamentary Union and ment team. the United Nations’ International Labor Organization in Geneva, Switzerland.
THE FOREFRONT OF LEADERSHIP
The University of Chicago Medicine congratulates Anita Blanchard, MD, for being recognized among the Notable Women in Healthcare by Crain’s Chicago Business. Dr. Blanchard has devoted her career to excellent patient care, quality community-based health and educating the next generation of outstanding healthcare providers. We are grateful for her leadership and commitment to providing exceptional care to all of the communities we serve.
Anita Blanchard, MD Professor of Obstetrics and Gynecology Associate Dean, Graduate Medical Education
UChicagoMedicine.org CRAIN’S CHICAGO BUSINESS • APRIL 6, 2020 25
LYNN VAN CLEAVE JILL WEINBERG CHERYL WHITAKER Executive vice president, customer Midwest director, Midwest Office Chair and CEO AT THE TOP experience U.S. Holocaust Memorial Museum NextLevel Health Partners The share of female CEOs at Fortune 500 companies has dipped, but the share Wintrust Jill Weinberg is a proli c fund- Dr. Cheryl Whitaker recently of women on those companies’ boards has risen steadily. Lynn Van Cleave serves as the raiser for the U.S. Holocaust Me- spearheaded the agreement liaison between Wintrust and morial Museum in Washington, for California insurer Molina SHARE OF FORTUNE 500 CEOS WHO ARE WOMEN business units to promote a cul- D.C. She leads a sta of 10 whose Healthcare to acquire NextLevel ture of service members han- Health Part- 8% and focus on dle fundrais- ners for about 7 customer expe- ing, including $50 million. rience. She also planned NextLevel is 6 oversees retail giving and a Medicaid 5 operations at endowments. managed care Lake Forest e Midwest organization 4 4.8% Bank & Trust, o ce covers 19 with a sta of 3 a Wintrust states, reaching 160 employ- bank with as far west as ees serving 2 nine branches and $3.4 billion Idaho and as far south as Okla- 50,000 members. Whitaker 1 in deposits. Van Cleave opened homa. Last year, the o ce raised co-founded NextLevel Health Wintrust’s rst out-of-region $5 million at its October lun- in 2014 after observing that 0 ’95 ’18 branch in Naples, Fla. She cheon, which annually attracts government-funded health care also assisted in the opening of about 2,000. Since its dedication programs often failed to reach SHARE OF FORTUNE 500 BOARD MEMBERS WHO ARE WOMEN Wintrust’s Contact Center, a in 1993, the museum has hosted their intended bene ciaries in customer service hub with 50 40 million visitors, including 99 Cook County’s underserved pop- 25% employees. Van Cleave started heads of state and more than ulation, many of whom didn’t at Lake Forest Bank & Trust as a 10 million school-age children. know assistance was available. teller during college. She created e website, an online authority Before launching NextLevel she 20 the Ambassador of Customer on the Holocaust, is available in was chief medical o cer of a Experience program, where each 16 languages. Weinberg speaks publicly traded health informa- bank charter has a team to sup- regularly to local Holocaust sur- tion technology company. In 15 22.2% port culture. Van Cleave is on the vivors and their children in the 2011, Gov. Pat Quinn appointed Wintrust operating committee, quest to preserve their stories. her inaugural chair of the Illinois the Wintrust community impact Health Information Exchange 10 committee and the Lake Forest Authority. Before that, Whitaker Bank & Trust executive manage- was a senior program o cer ment team. at Chicago Community Trust. 5 Whitaker also was a faculty ’95 ’18 member at Rush University Source: Pew Research Center Medical Center. 26 APRIL 6, 2020 • CRAIN’S CHICAGO BUSINESS
NOTABLE 2020 WOMEN EXECUTIVES OVER 50 ANGELA WILLIAMS WENDY WOODWARD President and CEO Chief information and campus AT WORK Easterseals services officer Angela Williams drives strategy Wheaton College Women are staying in the labor force into their 60s, 70s and beyond. at Easterseals, a nonpro t that At Wheaton College, Wendy WOMEN IN THE WORKFORCE, 2019 serves 1.5 million people annu- Woodward oversees the use of ally: children and adults with technology as well as campus 8 disabilities as services such as well as caregiv- housing, food 7 7.3 million ers, veterans and mail. She and seniors. manages a $35 6 Williams led million budget 5 5.5 million the organiza- and a sta of tion’s 100th 185. Wood- 4 anniversary ward recently celebration in secured funding 3 2019, elevating for a classroom 2.7 million brand awareness in the quest refresh. She’s worked with faculty 2 for support and engagement to explore new teaching methods with philanthropists, corpora- that include virtual reality in the 1 1.2 million tions, foundations and media. humanities, a virtual computer 897,000 0 Additionally, Williams initiated lab and the use of technology for 55-59 60-64 65-69 70-74 75+ a networkwide strategic plan as remote students. She also estab- the nonpro t began its second lished a data security program to century of service this year. Be- reduce risk and protect campus fore joining Easterseals in 2018, assets. Woodward joined Whea- 76.0 million Williams was executive vice ton College as its inaugural CIO women 16 and older were in the labor force in 2018, representing 46.9 percent of the total labor force. president, general counsel and and was instrumental in building chief administration o cer of an IT organization to support 57.1% the YMCA of the USA. Williams new online graduate programs of women participate in the labor force, compared to 69.1 percent of men. Women’s labor force participation rate peaked in 1999 at 60.0 began her career as an o cer in that the college is launching. She percent. It is projected to be 55.4 percent in 2024 and 51.9 percent in 2060. Men’s labor force participation rate has decreased since the the U.S. Air Force, serving as an was named to her current posi- 1940s. It is projected to be 66.1 percent in 2024 and 62.3 percent in 2060. assistant sta judge advocate. In tion in 2018. Woodward spent 15 2006, she was interfaith liaison years at Northwestern University, 58% for the Bush-Clinton Katrina most recently as director of tech- of the workers in the most at-risk occupations to lose their jobs to automation are women. Latinas are the most likely to suffer, with 1 in 3 Fund. nology support services. working in a high-risk field.
Sources: AARP, Catalyst
LAST WEEK TO NOMINATE
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INCENTIVES: Boeing’s tax incentive deal to move to Chicago was a questionable trendsetter. PAGE 28 VIRUS IMPACT: Developers say big deals are still on track, but experts aren’t so sure. PAGE 29
ECONOMIC DEVELOPMENT
Looking north over the corner of 79th and Halsted streets in Auburn Gresham
MISSING PIECES Economic development in Chicago is a tale of two cities, and the South and West sides struggle with the worst of times BY DANNY ECKER STEPHEN J. SERIO J. STEPHEN
MELVIN THOMPSON HAD FINALLY PULLED OFF A deal ty-corner from the library had abruptly shut. overall economy was humming and credit to x one of the biggest eyesores in his South “You take a giant step forward and then two plentiful. e sudden national economic Side neighborhood when he heard the news. steps back,” ompson says. “Some things collapse tied to the coronavirus pandemic It was a summer day in 2016, less than six we can control, some things we can’t.” is almost sure to make even modest turn- months after the Washington Heights com- Welcome to the slow-moving world of arounds in places like Washington Heights munity organizer helped win a $9.5 million economic development on Chicago’s South an even steeper challenge. commitment from the Chicago Public Li- and West sides. Former Mayor Rahm Emanuel’s play- brary to renovate the neighborhood’s dilap- National retailers abandoning commer- book for changing the status quo stemmed MORE FORUM ONLINE idated Carter G. Woodson regional location. cial corridors is only a small piece of the from a strong downtown, growing the city’s After more than a decade of sca olding complex web of problems plaguing omp- tax base with hopes of redirecting some of See Crain’s in-depth stories, interactives lining the western facade of the building son and many like him in the city’s most the nancial spoils to the city’s neediest and guest columns on Economic at the southeast corner of 95th and Halst- distressed neighborhoods. neighborhoods. Development and these previous topics: ed streets—not a harbinger of construction While downtown Chicago has gotten at was the underlying theory of Eman- Racial Gaps Water but a safety measure to protect pedestri- wealthier and more crowded over the past uel’s Neighborhood Opportunity Fund pro- Taxes Gun Violence ans from crumbling bricks—the symbol of decade, predominantly African American gram, which allows developers downtown Jobs & Wages Housing neighborhood disinvestment would soon communities like Washington Heights have to add more density to proposed building Cannabis Pensions be revamped, and that hopefully would stir lost population and jobs. e city has closed projects if they pay into a fund for South and Education more good things nearby. dozens of public schools. Retailers don’t West Side small-business grants. It’s also why at’s when ompson, executive direc- stick around. Crippling disinvestment over Emanuel’s administration pushed through ChicagoBusiness.com/CrainsForum tor of nonpro t Endeleo Institute, a devel- decades has kept even some of the most so- $2.4 billion in potential tax subsidies last year opment arm of the neighborhood’s Trinity cially conscious community developers on for the developers behind Lincoln Yards and United Church of Christ, got a call from a fel- the sidelines. low parishioner. A Walgreens pharmacy kit- And that’s been during times when the See MISSING PIECES on Page 32
SPONSORS 28 APRIL 6, 2020 • CRAIN’S CHICAGO BUSINESS
Was Boeing’s Can big development plans survive the virus? It’s full speed ahead, Chicago deal worth some developers say. the taxpayer cost? Experts aren’t so sure. BY GREG HINZ or refrain from picking up stakes Even for developers used to A 2001 incentives package and shifting jobs elsewhere. Under dealing in billions of dollars kick-started a corporate the state’s largest incentive plan, spread over a decade or longer, the Economic Development for a the COVID-19 crisis has raised gold rush for taxpayer help Growing Economy Tax Credit Pro- questions of market viability and gram, or EDGE, Illinois has pledged nancial practicality unlike any BY ALEJANDRA CANCINO more than $2 billion in tax credits that arguably have been seen to corporations since its creation in since World War II and the Great To lure Boeing to move its cor- 1999. e majority of those com- Depression. porate headquarters from Seattle panies, however, have historically Maybe that’s why you get di er- to Chicago nearly two decades failed to create or retain jobs prom- ent and sometimes conicting an- ago, the city and state showered ised to capture subsidies. swers when you ask those pushing the aerospace giant with tax in- In the wake of the 2007-09 Great enormous projects in and near
centives that have cost taxpayers Recession, then-Democratic Gov. BLOOMBERG downtown Chicago what happens more than $60 million and are still Pat Quinn shifted the focus of the Boeing moved its headquarters from Seattle to Chicago nearly two decades ago. next. partially ongoing. EDGE from job creation to job re- ey want to proceed and say Boeing’s end of the deal was a tention and cut deals that gave Some in Spring eld worry Mor- for public services such as expand- the state of Illinois,” he says. they are doing so, mostly. One promise to relocate 500 high-paying, companies wiggle room to lay o gan’s approach could back re, ed roads, more teachers and po- By 2003, not long after the in- even says all the turmoil will work top-level jobs to Chicago, a pledge hundreds of workers and still re- with several lawmakers wonder- lice,” he wrote. “Such public service centives deal commenced, Boeing to his advantage. records show was watered down in ceive incentives. Quinn’s Republi- ing aloud at that February hearing needs consume over 90 percent of consolidated its corporate jet eet But no one knows for sure, and the ne print and rid- can successor, Bruce whether states that didn’t agree to a any increased tax revenue.” in Gary. e move included planes a sense of unease quickly emerg- dled with loopholes Rauner, later shifted cease- re would gain an advantage. Chicago and Illinois o cials put and jobs that had been housed at es. As real estate services rm that raise questions the program’s focus “Politically, would there be any un- forth a very di erent calculation Midway International Airport. Cushman & Wake eld summa- about whether it was back to job creation. dercutting of this by other states to back in 2001 in advocating for in- It is di cult to determine how rized days ago, while it would be being met. A compa- As public money say, ‘See, they are not even interest- centives for Boeing. e public of- many of the jobs Boeing reported “premature” to reach any nal ny spokesman says increasingly is com- ed’?” asked Rep. Michael Zalewski, cials argued back then that by re- to the state and city were actually conclusions yet, “if the virus has a Boeing is in compli- mitted to underwrite a Democrat from Riverside. locating its headquarters—though based at the rm’s Chicago head- sustained and material impact on ance with state and private enterprise Last year, the governors of Kansas not its job-rich aerospace manu- quarters. Fine print in the city’s por- the broader economy, it will have local incentives requirements. through an alphabet soup of tax and Missouri signed an agreement facturing facilities, which would tion of the incentive deal allowed feed-through impacts on property News reports say the $2 trillion credit and subsidy programs, a cho- to end just such a border war, which remain largely in the Seattle area— Boeing to count jobs above 450 as well.” coronavirus stimulus package rus of critics has also grown louder they said had cost their states ank- Boeing would bring 500 top-level from a “Boeing a liate,” suggest- Indeed. signed by President Donald Trump questioning the value. ing the Missouri River hundreds of jobs to Chicago, and that would in- ing fewer of the positions Boeing “When we started this huge includes billions of dollars in loan In his Democratic presidential millions of dollars but had not cre- duce a multiplier e ect that would had promised to bring here were project, we knew there would be guarantees for Boeing, in nancial campaign, U.S. Sen. Bernie Sanders ated a net increase in jobs. add ve times more jobs locally. top-level and high-paying. Pedraza cycles to work through,” says Curt peril before the pandemic because of Vermont has decried such subsi- “You have these crazy situations Bottom line, the argument went, says the “a liate” meant a Boeing Bailey, president of Related Mid- of the grounding of faulty 737 Max dies as “corporate socialism.” where companies can move very without the nancial incentives Il- subsidiary. west, developer of the 78 proj- aircraft. By that and other incentive He’s not the only politician calling short distances across the state line linois would lose the Boeing head- Another wrinkle in the city’s por- ect on former railroad land that measures, the price of the 2001 Boe- for an end to the incentives war. and get greeted as new job creators quarters to other suitors and forgo a tion of the deal allowed Boeing to stretches from Roosevelt Road ing deal might seem puny. Earlier this year, two Illinois law- in the new state, even though they potential jackpot that would come drop the headcount to just 360 at its south to Chinatown. “We remain Chicago has earmarked more makers introduced legislation to didn’t create any new jobs and with hosting a company that was Chicago headquarters and still qual- extremely con dent in the (ulti- than $2 billion in economic incen- allow Illinois to enter into multi- they didn’t hire anybody—they just generating more than $50 billion a ify for an annual reimbursement on mate) success of our project.” tives to jump-start huge privately state agreements to swear o entic- changed their employees’ com- year in revenue at the time. real estate taxes at a prorated rate, Yet, speaking from his home owned mixed-use developments ing each other’s stock of corporate muting routes in the morning,” Within a year of the deal, how- though it is unclear if that ever hap- o ce, even Bailey concedes that on the North Side and in the South headquarters, manufacturing fa- says Greg LeRoy, executive direc- ever, Boeing acknowledged to the pened. e reimbursement has av- he’s asked himself whether an Loop. A few years ago, the city and cilities, o ce space and real estate tor of Good Jobs First, a Washing- Chicago Tribune that all 500 of the eraged about $1.5 million a year. At illness that has particularly im- state jumped into the nationwide developments with tax incentives ton-based nonpro t that researches jobs it promised would not be relo- the state level, Boeing’s EDGE deal, pacted dense urban areas around competition to lure a second Ama- or grants. business incentives. “So that’s what cations from Seattle and elsewhere. which expired in 2016, was worth a the globe will discourage people zon corporate headquarters, dan- e bill is aimed “at the tax dollars we call interstate job fraud.” Its revised math included 150 peo- multiyear total of $34.9 million. e from living and working in cities, gling $2 billion in an unsuccessful we use to recruit, and really frankly, Central to the problem, LeRoy ple moved here from Seattle and state only required Boeing to bring at least for the time being. bid that saw one municipal suitor poach businesses from other states,” says, is the “divide-and-conquer elsewhere and 250 hired locally. e 400 jobs and had a loose de nition Downtown megaprojects were o ering more than $7 billion. Also a Rep. Bob Morgan, a Democrat from strategy” that companies have used total was 100 jobs short of the num- of what that meant, allowing the a hallmark of former Mayor Rahm few years ago, Wisconsin cut a mul- Deer eld and the bill’s sponsor, said to pit states against each other. ber touted by o cials. company to count contractors. Emanuel’s tenure and, despite tibillion-dollar tax deal for Taiwan- at a House committee hearing in Research from Tim Bartik, a In fact, state records show the Neither the state nor the city have some pressure from the political ese electronics giant Foxconn. February. “Other states do it to us, senior economist at the Michi- company also fell short of that 500- audited the company’s gures. left, his successor, Lori Lightfoot, we do it to them. It is a prison- gan-based W.E. Upjohn Institute job mark in at least 2003, 2004, 2006 Chicagoans might long have for- has thrown no new obstacles in “It is a prisoner’s dilemma.” er’s dilemma.” for Employment Research, shows and 2007. City and state records re- gotten about the deal crafted nearly their way. ose big projects of- A similar bill languished in incentives inuence less than 25 lied on self-reporting of headcounts 20 years ago, but they are still paying fered the possibility to put a little Rep. Bob Morgan, D-Deer eld the Legislature last year, and percent of relocation or expansion from Boeing, which reported dif- for it and are committed to doing so more zip into the fastest-growing Morgan acknowledges in an decisions. Put another way, many ferent numbers to City Hall and through 2021. segment of the regional economy: Even so, the comparatively mod- interview it was too early to predict businesses that get tax breaks for ex- Spring eld. rough 2018, records show, downtown Chicago and the peo- est Boeing incentives laid down whether the new one would gain pansions or relocations are good at Boeing spokesman Peter Pedraza Boeing had received $25.5 million in ple who work and increasingly a marker for megadeals to come more traction. However, he notes blu ng public o cials into helping writes in an email that the city and city real estate tax subsidies, payouts live there. that opened the public purse in the similar proposals are now pending pay for something the companies the state used di erent criteria for that continued annually through But there always has been a name of economic development. in the legislatures of 13 other states. intended to do regardless. which “employees” the company thick and thin, through budget question of whether all those proj- Since then, states and cities have A spokesman for Gov. J.B. Pritzker In his 2019 book, “Making Sense could count toward its job numbers. shortfalls and layo s, through a ects will make it at the same time. engaged in an escalating bidding says the governor has yet to take a of Incentives: Taming Business In- He declines to break down employ- crushing recession and now into the e list includes the 78, Lincoln war for jobs and bragging rights, position on the bill, though a long- centives to Promote Prosperity,” ment numbers by location but says likely economic upheaval tied to a Yards along the North Branch of with the promise of future econom- range development plan he has re- Bartik argues incentives do not pay the company counted employees global pandemic. the Chicago River, a remake of the ic riches as bait. leased anticipates an overhaul of tax for themselves, despite frequent physically located in Gary, where former Michael Reese Hospital In Illinois alone, the state has ap- incentive programs to target more claims to the contrary from public Boeing maintained an “ancillary Alejandra Cancino is site, and the still only partially un- proved hundreds of incentive deals startups, small businesses and un- o cials. “Job growth yields popula- transportation facility.” an investigative reporter for the veiled One Central project on air for companies to either move here derserved populations. tion growth that increases the need “ ese jobs are not counted by Better Government Association rights just west of Soldier Field. Now the coronavirus and the JIM KIRK PUBLISHER • ANN DWYER EDITOR • BOB SECTER FORUM EDITOR • THOMAS J. LINDEN CREATIVE DIRECTOR • JASON McGREGOR DIGITAL DESIGN DIRECTOR • KAREN FREESE ZANE ART DIRECTOR • DANIELLE NARCISSÉ COPY CHIEF economy have thrown them one CRAIN’S CHICAGO BUSINESS • APRIL 6, 2020 29
Can big development plans survive the virus? It’s full speed ahead, some developers say. Experts aren’t so sure.
BY GREG HINZ Even for developers used to dealing in billions of dollars spread over a decade or longer, the COVID-19 crisis has raised questions of market viability and nancial practicality unlike any that arguably have been seen since World War II and the Great Depression. Maybe that’s why you get dier- ent and sometimes con icting an- swers when you ask those pushing enormous projects in and near
BLOOMBERG downtown Chicago what happens Boeing moved its headquarters from Seattle to Chicago nearly two decades ago. next. ey want to proceed and say the state of Illinois,” he says. they are doing so, mostly. One By 2003, not long after the in- even says all the turmoil will work centives deal commenced, Boeing to his advantage. consolidated its corporate jet eet But no one knows for sure, and in Gary. e move included planes a sense of unease quickly emerg- and jobs that had been housed at es. As real estate services rm Midway International Airport. Cushman & Wake eld summa- It is di cult to determine how rized days ago, while it would be many of the jobs Boeing reported “premature” to reach any nal to the state and city were actually conclusions yet, “if the virus has a based at the rm’s Chicago head- sustained and material impact on quarters. Fine print in the city’s por- the broader economy, it will have
tion of the incentive deal allowed feed-through impacts on property SERIO J. STEPHEN Boeing to count jobs above 450 as well.” The future site of the 78 development from a “Boeing a liate,” suggest- Indeed. ing fewer of the positions Boeing “When we started this huge whopper of a curve. So what are “Like everyone else, we have which have obvious applications Reese is located in a part of the had promised to bring here were project, we knew there would be the developers saying? been working from home for the right now. Combined with exper- city where Mayor Lori Lightfoot top-level and high-paying. Pedraza cycles to work through,” says Curt Bailey, despite his wondering, past few weeks under less than tise in hospital management and badly wants to spark new devel- says the “a liate” meant a Boeing Bailey, president of Related Mid- has reason to be optimistic. Gov. ideal conditions. We have not yet training, its facilities here should opment. subsidiary. west, developer of the 78 proj- J.B. Pritzker’s recent decision encountered any major delays,” require 75,000 to 100,000 square On the other hand, the man for Another wrinkle in the city’s por- ect on former railroad land that to release $240 million for the he says. “In the meantime, we will feet of space. whom Priebus once worked, Pres- tion of the deal allowed Boeing to stretches from Roosevelt Road University of Illinois’ proposed continue to do everything we can e “no comment” comes from ident Donald Trump, has begun drop the headcount to just 360 at its south to Chinatown. “We remain Discovery Partners Institute on to keep our development at Lin- the spokesman for One Central, talking about including a big in- Chicago headquarters and still qual- extremely con dent in the (ulti- donated property from the 78 is coln Yards on track to put thou- the proposed $20 billion mixed- frastructure component in what is ify for an annual reimbursement on mate) success of our project.” “an incredible engine” to attract sands of Chicagoans to work as use complex and transit center likely to be yet another economic real estate taxes at a prorated rate, Yet, speaking from his home private users to the o ce space, soon as possible.” that’s roughly between Soldier stimulus bill to deal with fallout though it is unclear if that ever hap- o ce, even Bailey concedes that apartment towers and other ele- Another developer, Scott Good- Field and the Reese property. from the pandemic. pened. e reimbursement has av- he’s asked himself whether an ments of the envisioned $7 billion man, a principal in Fairpoint De- e developer behind One Cen- Clearly, though, the big back- eraged about $1.5 million a year. At illness that has particularly im- complex. velopment, is positively peppy. tral, Bob Dunn, has some political drop to all that’s going on is un- the state level, Boeing’s EDGE deal, pacted dense urban areas around Related Midwest and the uni- Fairmont and partners recently clout and made some progress certainty. which expired in 2016, was worth a the globe will discourage people versity are still working o a let- announced a tentative deal with last year when lobbyist Reince “ ere are very large uncertain- multiyear total of $34.9 million. e from living and working in cities, ter of intent rather than a formal the largest hospital in Israel to Priebus, a former White House ties around the transmission of state only required Boeing to bring at least for the time being. contract. But Bailey says he still anchor an up to $7 billion, 15 mil- chief of sta, helped him win this virus, the likely eectiveness 400 jobs and had a loose de nition Downtown megaprojects were expects ground-breaking “within lion-square-foot health-science more time to get a crucial federal of dierent policies and the extent of what that meant, allowing the a hallmark of former Mayor Rahm 12 months,” and he points out that innovation center on the site of loan for the project. Beyond that, to which the population sponta- company to count contractors. Emanuel’s tenure and, despite regular talks continue between his the former Michael Reese Hospi- some insiders in Pritzker’s ad- neously adopts risk reducing be- Neither the state nor the city have some pressure from the political rm and the university even in the tal west of McCormick Place along ministration have shown marked haviors,” a recent epidemiological audited the company’s gures. left, his successor, Lori Lightfoot, face of the coronavirus crisis. Bai- 31st Street. interest in the plan, having helped modeling study by the Imperial Chicagoans might long have for- has thrown no new obstacles in ley also stresses that construction With COVID-19 ravaging Amer- clear the way for gotten about the deal crafted nearly their way. ose big projects of- related to the project is proceed- ica and the world, “what could be a potential mul- 20 years ago, but they are still paying fered the possibility to put a little ing on an extension of Wells Street more timely than having a healthy tibillion-dollar Rather than slowing down, the onset for it and are committed to doing so more zip into the fastest-growing south to Wentworth Avenue. community of the future?” Good- state investment through 2021. segment of the regional economy: Ultimately, he predicts, people man says. Rather than slowing in it. of the virus has sped things up. rough 2018, records show, downtown Chicago and the peo- will want to ock back to central down the project, the onset of the But the virus Boeing had received $25.5 million in ple who work and increasingly cities for the same reason they al- virus has sped things up, he says, appears to have slowed Dunn’s College of London concluded. city real estate tax subsidies, payouts live there. ways have—creative synergy and with developers now hoping to timetable to go public with a “ is means it is di cult to be that continued annually through But there always has been a e ciency. get nal city zoning by mid-fall pitch on why City Hall ought to de nitive about the likely initial thick and thin, through budget question of whether all those proj- Sterling Bay CEO Andy Gloor rather than the end of the year greenlight the project. Beyond duration of measures which will shortfalls and layos, through a ects will make it at the same time. argues in a guest piece in this Fo- and to break ground on construc- that, there is real question wheth- be required, except that it will be crushing recession and now into the e list includes the 78, Lincoln rum issue that Chicago will need tion next spring. er both the city and state have several months.” likely economic upheaval tied to a Yards along the North Branch of good jobs more than ever when One of his associates, Kaleido- much bigger nancial sh to fry e bottom line, as Forbes put global pandemic. the Chicago River, a remake of the the virus passes. In other words, it scope Health Venture Principal right now. at’s crucial because it: “ is is clearly a serious threat former Michael Reese Hospital will need his rm’s Lincoln Yards Bob Chib, helped put together the Dunn’s public nancing compo- to commerce, pro ts, jobs, and, Alejandra Cancino is site, and the still only partially un- project. deal with Israel’s Sheba Medical nent has yet to be resolved, while ultimately, real estate. e dura- an investigative reporter for the veiled One Central project on air But asked exactly where things Center. He says it has specialized the 78 and Lincoln Yards already tion of the downturn will be the Better Government Association rights just west of Soldier Field. stand, he replies in a statement in developing techniques such as have lined up commitments for key determinant of how long and Now the coronavirus and the that he’s trying hard to keep ev- video monitoring of patients and potentially more than $2 billion in in what ways the real estate mar- JIM KIRK PUBLISHER • ANN DWYER EDITOR • BOB SECTER FORUM EDITOR • THOMAS J. LINDEN CREATIVE DIRECTOR • JASON McGREGOR DIGITAL DESIGN DIRECTOR • KAREN FREESE ZANE ART DIRECTOR • DANIELLE NARCISSÉ COPY CHIEF economy have thrown them one erything on track. vaccine development, both of city tax-increment nancing, and kets suer.” 30 APRIL 6, 2020 • CRAIN’S CHICAGO BUSINESS
MAKING NO BIG PLANS PULLMAN BUCKS THE TREND
Map of industries from the 1909 Plan of Chicago by Daniel Burnham Chicago’s planning and Edward H. Bennett Reversing a historic neighborhood’s decline hen the pundits and the public wrote off the once-thriving Pullman Wcommunity as another victim of a vision? Myopic. changing global economy, Chicago Neigh- borhood Initiatives began imagining the positive impact that could flow from leverag- hicago still celebrates urban design ing the neglected attributes and assets of the pioneer Daniel Burnham’s long-ago community to catalyze new developments. Ccall to “make no little plans,” but it has Armed with the understanding that been more than a half-century since the city’s e ective community development requires last broad attempt to put those words into a comprehensive approach to meeting action. residents’ needs, CNI began its work by e Comprehensive Plan of Chicago, 1966, convening an extensive community planning spelled a citywide vision for development, process in 2008. After addressing housing, land use, health care, facilitating nearly 80 industry, jobs, parks and schools, and it community meetings launched 16 development area plans over the Jon B. DeVries, Leslie S. Pollock, involving myriad block next few years that led to new investments founding director an urban scholar clubs, organizations in the central area, transit lines, community of the Marshall at the College of and residents, the colleges, riverfronts, industrial corridors and Bennett Institute Urban Planning & community told CNI neighborhoods. of Real Estate at Public A airs at the what they needed: But now, in a di erent era, we face the Roosevelt Univer- University of Illinois job creation, access to challenge of “black ight,” with wide swaths sity, is co-author of at Chicago, is a healthy food, a ord- of the city experiencing disinvestment, un- “Planning Chicago,” co-founder of Chica- able housing, and rec- employment, population loss, aging infra- a history of plan- go-based Camiros, David Doig, a reation and tourism. structure and violence. ning e orts that an urban planning former superinten- While these prior- In her rst year in oce, Mayor Lori Light- shaped contempo- and zoning consult- dent of the Chicago ities were not unique foot has begun to address these challenges by rary Chicago. ing rm. Park District, is to most disinvested reorganizing the city Department of Planning president of the and under-resourced & Development, hiring additional planners, needs of communities, recommend the sys- nonpro t Chicago communities on announcing new neighborhood initiatives on tems and infrastructure to address them, and Neighborhood Chicago’s South and the city’s South and West sides, curbing alder- guide a coordinated and multiyear program Initiatives. West sides, the ques- manic prerogative on zoning and spending, of investments to address those needs. Our tion was how best and appointing multiple new members to the neighborhood crisis demands that this be a to successfully develop and integrate new Chicago Plan Commission. plan that re ects the voices of all Chicagoans housing, increase employment opportuni-
However, the time has arrived to take the to prioritize needs, build consensus and set ALAMY ties and create recreational amenities. next step. To alter the trajectory of a Chicago shared and City Council-adopted goals for Understanding the essential role jobs that has become two cities, one thriving and the city’s future. move to long-term care facilities. 2012 Chicago Cultural Plan brought together play in spurring community renewal, CNI the other spiraling down, it is time to revive Planning is often a misunderstood con- It has also been actively recruiting and a range of voices to craft a citywide plan for rst turned its attention to attracting new the spirit of Burnham with a new compre- cept. Since the early-20th-century days of assisting immigrants and refugees, result- growth of the arts. businesses to generate employment. But hensive plan to address major challenges Burnham, we tend to think of planning as ing in population growth of 100,000-plus To move these and other initiatives for- how to showcase a community ravaged across the landscape. Political and civic lead- monumental projects like creating the public residents per year. As a result, the population ward, Chicago needs to coordinate its e orts by population loss and disinvestment in ers should immediately launch a citywide lakefront or constructing Millennium Park. of Toronto proper now stands at 2.7 mil- and undertake a comprehensive planning order to attract new businesses? We began comprehensive planning e ort with the goal Or we equate planning with land-use regula- lion, surpassing that of onetime immigrant e ort covering all sectors—not unlike the by accentuating Pullman’s strengths and of adopting a long-term plan by 2023 that tion and local zoning. magnet Chicago, where galloping growth in 1966 plan. focusing on the potential that others had would provide a vision for a decade of growth But planning should be understood as residents from abroad has stalled in the wake e basic goals of our 2033 initiative are neglected—starting with an unparalleled leading to 2033, the 200th anniversary of something much more expansive. It is the of restrictive U.S. immigration policies. not hard to envision: strong neighborhoods, location: Pullman was a nexus where Chicago’s founding. practice of making informed choices about Development initiatives in Chicago, rather an expanding job base, a 21st-century in- the nation’s rails, roads and waterways We must build a community where people, the future—including citizen input, popu- than being sweeping, have too often been dustrial policy, transportation investments, connect. In terms of logistics and access to especially our youth, sense that there is a lation and economic projections, and best dictated by myopia. sustainable energy and environmental prac- positive future for them in an improving and practices—to create and maintain places Citywide coordination is hampered by a tices, recreational parks and trails, education growing Chicago. where people want to live, work and play. patchwork of more than 140 tax-increment initiatives at all levels, accessible health care is “Chicago 2033” plan can identify Once a world leader in city planning, nancing districts that limit tax subsidies and a strong central area that continues as JOBS AND REVENUE A PRIORITY investments for major infrastructure and civic Chicago is now one of the few major cities for development to narrow geographic the economic engine of the region. systems—transportation, education, health, in the U.S. and Canada without a long-term zones. e city’s 50 aldermen often also ex Perhaps most important, the creation and public safety, recreation and housing. is comprehensive plan. A New York City plan prerogatives to steer funds to their own wards implementation of a new, comprehensive framework can also provide programs and put in motion under former Mayor Michael rather than pool them to bene t the city more plan would set us on the path to becoming e path forward to economic recovery Bloomberg sets a goal of 1 million broadly. one city, not two, united in pursuit of the new residents; Denver’s 2040 plan Major new developments are approved, health, safety and welfare of all citizens. ver the last few weeks, as Planning is the practice of making is creating new job and population deals are made and surrounding areas are Yes, all of this takes money and time. But our nation has responded informed choices about the future. centers along light-rail lines—a impacted with scant reference to current or we often spend money and time on unco- Oto the coronavirus out- strategy Minneapolis and St. Paul future community needs, goals and infra- ordinated projects that may or may not help break, there have been moments also have underway. structure. Major transit and other infrastruc- us reach a desired future. Our businesses, of shock and panic; moments of actions that are speci c to neighborhoods Zoning reforms are also in the works in ture investments spanning multiple wards institutions and residents will feel secure hope and inspiration; and mo- but linked to a citywide vision. And it can set multiple cities—Minneapolis recently abol- and requiring large investments are post- in making commitments in a city that has a ments of poignant perspective. population, job and investment growth goals ished single-family zoning to stimulate more poned or considered unattainable. vision and plan. Businesses thrive when they For all of us, this crisis has pro- to rally and measure progress. a ordable housing. ere are multiple city Multifaceted issues require community can depend upon consistent public decisions vided clarity on what really mat- e business community, foundations and plans Chicago could now draw on in creating support and focused resources—and all and policies, and the same is true for neigh- ters in life—the health and safety universities can provide personnel, nancial its own blueprint: Portland 2035, Philadel- major city problems, including shootings borhoods. A citywide plan that is embraced of our loved ones, the support of and intellectual support to a city-led e ort. phia 2035, Boston 2030, Plan D.C., Forward and depopulation, are multifaceted. We have by city ocials and has strong public support our neighbors and the resilience During that e ort, the city could rebuild its Dallas, Imagine Austin, Seattle 2035 and paid attention in some neighborhoods. One provides such consistency. of our communities. planning capacity with sta and resources OurLA in Los Angeles. exemplary initiative in Chicago is the New Planning is not a straitjacket. It is a guide For me, it has also become clear that would rearm planning as a deci- Toronto is perhaps the North American city Communities Program of the Local Initiatives and vision for the city’s future—continually that this is our opportunity as a sion-making practice and guide for the city most comparable to Chicago, and in Decem- Support Corp. that built partnerships and implemented, updated and consulted. It is city—and as a community—to departments, mayor, Chicago Plan Commis- ber 2019 it approved a 10-year housing plan “Quality of Life” plans in 16 neighborhoods. what strong organizations—and healthy cit- stop politicizing and demonizing sion and City Council. to create over 40,000 new a ordable rental Another example is the 2009 Central Area ies—do. Where is Chicago’s guide for its 21st pathways to growth and instead A plan is a plan, not action, but it is the rst homes, prevent 10,000 evictions for low-in- Action Plan, which recommended major century? When will we collectively announce start revitalizing Chicago to make step to getting everyone on the same path come households, improve housing a ord- transit investments to expand in underserved Chicago’s future vision? In the past we have it a better, more nancially stable forward. Chicago’s new plan must rise above ability for 40,000 households and help more areas and to add capacity for future oce produced such visions. We need to do so home for ourselves and future generations. showcase projects to identify the long-term than 10,000 seniors remain in their homes or and employment growth. More recently, the again today. How do we do that? We put “ e City at CRAIN’S CHICAGO BUSINESS • APRIL 6, 2020 31
PULLMAN BUCKS THE TREND Reversing a historic neighborhood’s decline
hen the pundits and the public Park Service and state of Illinois to trans- wrote off the once-thriving Pullman form Pullman’s historic clock tower build- Wcommunity as another victim of a ing into a visitors center and its 12-acre changing global economy, Chicago Neigh- campus into a living museum. CNI devel- borhood Initiatives began imagining the oped the rst food hall on the Far South positive impact that could flow from leverag- Side with local entrepreneurs, o ering ing the neglected attributes and assets of the residents the rst sit-down casual dining community to catalyze new developments. option in the community. It will serve the Armed with the understanding that more than 300,000 visitors expected at the e ective community development requires monument site annually. a comprehensive approach to meeting CNI has also worked with PullmanArts residents’ needs, CNI began its work by and Artspace, restoring two historic apart- convening an extensive community planning ment buildings and constructing a new one process in 2008. After to create 38 live/work apartments for art- facilitating nearly 80 ists. And last fall, Gotham Greens doubled community meetings down on Pullman by opening a second involving myriad block greenhouse near its rooftop location. Also, clubs, organizations in partnership with Ryan Cos., we put the and residents, the nishing touches on a new warehouse that community told CNI is the area’s rst opportunity zone invest- what they needed: ment and in January began developing the job creation, access to 150,000-square-foot Amazon distribution
healthy food, a ord- GETTY IMAGES center. When these two facilities open this able housing, and rec- The Pullman Factory Site is designated as a national monument. fall, they will employ hundreds. David Doig, a reation and tourism. All told, CNI created 1,500 jobs from more former superinten- While these prior- transportation, Pullman started with a big man Park, a mixed-use site anchored by than $350 million of investments for new dent of the Chicago ities were not unique advantage. It also had large tracts of contig- Walmart on the site of a former steel mill. businesses, housing, retail and recreation, Park District, is to most disinvested uous, available land, which were ideal for In addition to jobs and surrounding retail, while crime and population loss both de- president of the and under-resourced manufacturing and distribution facilities. the new development brought Method creased. Pullman has become the new center nonpro t Chicago communities on And despite the deterioration of Pullman’s Products, a manufacturer of environmen- of green industry, transit logistics and dis- Neighborhood Chicago’s South and original single-family homes and brick tally friendly cleaning products, and Go- tribution in Chicago. What’s not happened Initiatives. West sides, the ques- townhouses, the architectural legacy that tham Greens’ rooftop commercial green- in Pullman, however, is the displacement of tion was how best the London Times once called “the most house, the largest in the world. lower- and middle-income residents. at’s to successfully develop and integrate new perfect town in the world” was still intact. Whole Foods opened a Midwest distri- because the focus of our e orts since the rst housing, increase employment opportuni- So, in the midst of the hard-hit far South bution center that serves more than 70 of community meeting has been to serve the
ALAMY ties and create recreational amenities. Side, CNI highlighted the promise of “as- its locations across the country and parts of area’s residents. For example, when Walmart Understanding the essential role jobs set-based” community development—the Canada. CNI helped secure $8.4 million in was looking to locate in Chicago eight years 2012 Chicago Cultural Plan brought together play in spurring community renewal, CNI idea that focusing on the unique strengths of tax-increment nancing assistance to pay ago, Ald. Beale and the Pullman community a range of voices to craft a citywide plan for rst turned its attention to attracting new a particular place is just as important as tar- for development to lure Whole Foods from negotiated the rst-ever community bene ts growth of the arts. businesses to generate employment. But geting its problems. We also were fortunate Indiana with a new building twice the size package, including higher wages and hiring To move these and other initiatives for- how to showcase a community ravaged that the embedded physical assets Pullman of its former facility. locally, with the mega-retailer. ward, Chicago needs to coordinate its e orts by population loss and disinvestment in had to o er came with strong local leader- We’ve also built the region’s largest year- e revitalization of Pullman shows that, and undertake a comprehensive planning order to attract new businesses? We began ship from Ald. Anthony Beale, 9th, and City round, indoor recreation and education from asset-based development and strong e ort covering all sectors—not unlike the by accentuating Pullman’s strengths and Hall, along with a can-do attitude from U.S. complex, the Pullman Community Center, community partnerships, it’s possible to 1966 plan. focusing on the potential that others had Bank and our many community partners. with 80 percent of the funding from private create a tale of one uni ed city, in which e basic goals of our 2033 initiative are neglected—starting with an unparalleled CNI, along with its community part- entities. In the initial year of operation, prosperity and social well-being are shared not hard to envision: strong neighborhoods, location: Pullman was a nexus where ners, has renovated hundreds of homes, more than 120,000 people participated in equitably. It’s one that can be a model for an expanding job base, a 21st-century in- the nation’s rails, roads and waterways launched a micro nance loan program for its programs and activities. community renewal in neighborhoods dustrial policy, transportation investments, connect. In terms of logistics and access to small businesses and developed Pull- And we’re working with the National across the country. sustainable energy and environmental prac- tices, recreational parks and trails, education initiatives at all levels, accessible health care and a strong central area that continues as JOBS AND REVENUE A PRIORITY the economic engine of the region. Perhaps most important, the creation and implementation of a new, comprehensive plan would set us on the path to becoming e path forward to economic recovery one city, not two, united in pursuit of the health, safety and welfare of all citizens. ver the last few weeks, as Works” back to work as soon as residents to work. Today, we stand ready Yes, all of this takes money and time. But our nation has responded we safely can. to create jobs for tens of thousands of local we often spend money and time on unco- to the coronavirus out- We tap into industries—like workers across all our active and upcoming
O MARTINEZ MANUEL ordinated projects that may or may not help break, there have been moments construction and development— developments in the city. us reach a desired future. Our businesses, of shock and panic; moments of that are best positioned to quickly ese projects can employ over 50,000 lo- Construction along the Chicago River in 2018 institutions and residents will feel secure hope and inspiration; and mo- inject billions of dollars of revenue, cal construction workers over their lifetimes, in making commitments in a city that has a ments of poignant perspective. tens of thousands of jobs and des- with thousands being put to work immedi- ble changes to come, we look to the leaders of vision and plan. Businesses thrive when they For all of us, this crisis has pro- perately needed infrastructure im- ately on various shovel-ready developments. our great city and state to put the politicking can depend upon consistent public decisions vided clarity on what really mat- provements into our city. While we Once complete, these developments will of real estate development in the past and and policies, and the same is true for neigh- ters in life—the health and safety applaud our legislators and elected create over 30,000 new jobs in professional to move Chicago forward by harnessing this borhoods. A citywide plan that is embraced of our loved ones, the support of Andy Gloor is CEO o cials for pursuing the additional services, hospitality, retail and transporta- industry’s power to create an immediate and by city o cials and has strong public support our neighbors and the resilience of Sterling Bay, the income streams represented by tion, as well as thousands of a ordable hous- signi cant positive impact on the local econ- provides such consistency. of our communities. Chicago-based casinos and legalized marijuana, ing units and billions of dollars in annual omy, to act on building up our great city and Planning is not a straitjacket. It is a guide For me, it has also become clear developer behind the only real way out of the city’s economic output for the city. the hardworking people who call it home with and vision for the city’s future—continually that this is our opportunity as a the Lincoln Yards $34 billion debt burden (before the ese jobs and this revenue have always a renewed commitment to growth. implemented, updated and consulted. It is city—and as a community—to project and many COVID-19 crisis) is growth. been important, but they are about to It is my hope that when this crisis is what strong organizations—and healthy cit- stop politicizing and demonizing other of the city’s Now is the time for Chicago to become critical. It is how Chicago recov- behind us, we will all be able to look back ies—do. Where is Chicago’s guide for its 21st pathways to growth and instead marquee develop- grow thoughtfully anywhere and ers from this crisis. We must not let petty in perspective and realize that this moment century? When will we collectively announce start revitalizing Chicago to make ments. everywhere, no holds barred. squabbles over individual efdoms or the made us stronger, more united and more Chicago’s future vision? In the past we have it a better, more nancially stable Sterling Bay and its portfolio sticky red tape of bureaucracy keep our city focused than ever on what truly connects us produced such visions. We need to do so home for ourselves and future generations. of companies have over three decades of from getting back on its feet. as Chicagoans—our collective investment again today. How do we do that? We put “ e City at experience in putting thousands of Chicago As we navigate our way through the inevita- in the success of this great city. 32 APRIL 6, 2020 • CRAIN’S CHICAGO BUSINESS
GAGDC used some of its own MISSING PIECES Continued from Page 27 equity and worked out a nancing agreement with the seller to pay the 78, sprawling megaprojects that pacity of residents in Washington $600,000 in late 2016 for a full city could one day become thriving cor- Heights at $410 million annually, block along 79th between Green porate campuses with thousands of about half of which is spent out- and Peoria streets. Its centerpiece new jobs for all Chicagoans—albeit side the neighborhood. is a 60,000-square-foot vacant in a uent parts of town. “ at’s why it’s imperative that former furniture warehouse that His successor at City Hall, Lori we have things that are on this Nelson’s group wants to redevel- Lightfoot, has taken a di erent ap- corridor that hold this community op into a community center and proach to ridding Chicago of its tale together,” ompson says. health and wellness hub. of two cities reputation by targeting ings like a place for the 10,000 Nelson has commitments to a greater share of city resources congregants of Trinity (the church lease about 70 percent of the for underserved neighborhoods. former President Barack Obama four-story building from a low-in- Her new planning commission- once attended) to sit down for a come health clinic, a workforce er, Detroit import Maurice Cox, is bite to eat or a cup of co ee. training rm, an educational tu- spearheading Lightfoot’s $750 mil- With nancial backing from the toring company and several small lion Invest South/West program to church and a little arm-twisting oce users. at is normally more spur economic development in 10 to win approval from the Endeleo than enough for a developer to se- blighted commercial corridors. board of directors, ompson’s cure land construction nancing. But much of the groundwork group—whose name is Swahili After more than three years of to revive trash-laden vacant lots, for progress and growth—last year searching for capital, he has two boarded-up storefronts and other acquired a vacant brick building banks on board, $500,000 from the symbols of blight is still being done across the street from Lowden for state capital bill and a handful of by individuals like ompson on under $50,000. ompson then investors through the federal New the front lines of neighborhood parlayed that into a $250,000 grant Markets Tax Credit program back- development. ese are entre- from the city’s Neighborhood Op- ing the roughly $13 million proj- preneurs, community organizers portunity Fund to redevelop it into BOEHM R. JOHN BY PHOTOS ect at 839 W. 79th St. And yet he’s and nonpro t organizations high a co ee shop. Plans also call for a Melvin Thompson, executive director of the Endeleo Institute still about $3 million short of what on vision and altruism but low on laundromat to supplement the six he needs to get the project o the resources. Instead of billion-dollar communal washer-dryers that are ground. megaprojects, they are trying to available at the 127-unit Lowden Investors “set the bar really high transform one street, one proper- Homes project. for communities like ours,” says Nel- ty, one business at a time and hop- He’s trying to create a narrative son, 56, who has lived in the neigh- ing to create a ripple e ect. to get foundations, private investors borhood for more than 30 years. To succeed, those grassroots ef- and grant-makers to follow his lead, “ ere are some that have forts often require political, nan- but it has proved dicult. One un- jumped on board to say, ‘Yes, cial, philanthropic and economic usual problem he has encountered we’ll provide some funding if this breaks to fall in place and all at is name confusion. Prospective in- other nancier says yes, if the city the same time. e only certainty, vestors look at much of the South commits TIF funds, if this, then community investors say, is that and West sides as one large area of that.’ . . . ey’re giving us this sto- progress won’t happen quickly. decay and may not know one neigh- ry of, well, show us more. Well, “ e neighborhoods we work in borhood from another, he says. heck, it’s almost 75 percent pre- didn’t get this way in ve years or Some mistake Washington Heights leased, you’ve got strong commu- 10 years. It’s been 40 years of dis- for Washington Park, where the me- nity support here—what more do investment,” says Chicago Neigh- dian household income is just more you need for us to show?” borhood Initiatives President Da- than half that of his neighborhood. Nelson has a big money oppor- vid Doig, a former superintendent Washington Heights is far more tunity in the months ahead as one of the Chicago Park District. His stable than its shuttered commer- Erika Allen, co-founder of the Urban Growers Collective, and Carlos Nelson, chief executive of the Greater Auburn Gresham Development Corp. of six nalists for the $10 million nonpro t community develop- cial buildings suggest, ompson Chicago Prize that the Pritzker ment rm has invested in Engle- says. Nearly 7 of every 10 occupied at’s why he’s held meetings Chicago’s South Side, he says. e Bank of America branch and Save- Traubert Foundation will award wood and spent the past decade residences in Washington Heights every two weeks since October point is to create high-density ar- A-Lot discount supermarket have this summer to a local neighbor- retooling historic areas of the Pull- are owner occupied, while the with a group representing 16 city eas of activity rather than one-o all closed over the past few months. hood economic development man neighborhood with new in- comparable number across the departments and agencies to make projects that don’t have a broader “All of that at a time when com- plan. He is bidding in partner- dustrial and retail properties. city as a whole is 45 percent, ac- sure they are on the same page. narrative behind them to pitch to munity developers and local inves- ship with Erika Allen, co-found- “It’s unrealistic to expect they’re cording to CMAP. e Department of Cultural Af- nancial backers. tors are here to bring vitality,” says er of Chicago nonpro t Urban going to be transformed in ve or “We don’t come with our pock- fairs & Special Events, for example, “If you can do that, create a Carlos Nelson, chief executive of Growers Collective, who wants to 10 years,” Doig adds. “It’s going to ets out like we’ve got nothing. plans to host a series of concerts place of targeted investment that the Greater Auburn Gresham De- take a couple decades to see long- We’ve got something to show,” across the city as part of its “Year of is three to ve blocks long, it will velopment Corp., or GAGDC. “ e term, sustainable development says ompson, 58. “Now we just Chicago Music” initiative. Now it expand out from there. If you take equity gap is real.” that ultimately moves the needle.” want to build that capital stack.” is teaming with the Department of that same investment and stretch His community group is focused Even more important than Planning & Development to stage it over a mile, you won’t feel a on boosting Auburn Gresham’s THE VIEW FROM WASHINGTON HEIGHTS money is getting the city to help some in South and West Side areas thing,” Cox says. “Cities for far too once-vibrant commercial corridors at’s a crippling reality for peo- shape a strategy. ompson hailed Cox is hoping to showcase as de- long have kind of spread that pea- that today are rife with rundown ple like ompson, who can spend a recently completed $280 million velopment opportunities. nut butter so thinly that you didn’t buildings and vacant lots. Many several years trying to breathe vi- renovation of the 95th Street CTA at kind of collaboration is cru- have the lift, you didn’t have the have been poorly maintained since brancy into a single commercial station as a transformative step. cial to creating a series of “micro- visibility that the private sector white ight of the 1950s and 1960s property. “But we didn’t have the land-use districts” in neighborhoods that needed in order to go there.” turned the neighborhood from a He took the reins at Trinity’s de- planning, we didn’t have any sus- could help private investors take hodgepodge of families of Euro- velopment arm in 2014 and has a tainable design, we didn’t have the a risk in a place they normally A HIGH BAR FOR INVESTMENT pean descent into one that today is small but salient goal: inject life streetscape to go with it, so it’s al- wouldn’t, Cox explains, adding: Sixteen blocks north of omp- almost exclusively African Ameri- into a stretch of 95th Street be- most like a siloed investment,” he “I think the city can be incredibly son’s project, another big transit can. Auburn Gresham had about tween the library and the CTA’s laments, pointing to trash, broken strategic by telling the private mar- plan is in the works in the Auburn 46,000 residents in 2017, according 95th Street Red Line station. sidewalks and other unwelcom- ket, ‘Go there. You see that half- Gresham neighborhood. Metra will to CMAP, about 10,000 fewer than Long-shuttered commercial ing features that greet riders when mile that is now going to receive soon start construction on a $20 two decades prior. buildings and vacant parcels lit- they step out of the station. a multimillion-dollar streetscape million station for its Rock Island Nelson’s project demonstrates tered with garbage dot the mile- City authorities that oversee investment? at’s a good bet. You District Line at 79th Street with the nancial headwinds facing long corridor. e World War II-era transit, sanitation and planning, for see that vacant land within the im- funding from a $45 billion capital disenfranchised neighborhoods. Frank O. Lowden Homes public example, “need to work together to pact area of that commercial dis- bill the state passed last year. Unlike development projects housing complex runs along most understand what each is doing so trict? ere’s going to be a housing In the more a uent Fulton downtown or on the city’s North of its northern edge, carrying with the economic development oppor- strategy to repopulate those neigh- Market District and along Cermak Side that typically require a rel- it a legacy of failed urban planning tunities can be realized,” he says. borhoods with in ll housing.’ ” Road near McCormick Place, new atively simple combination of that has discouraged new invest- Cox deployed a similar strategy train stations have been magnets equity and debt, nancing the re- ment for decades. THE NEWCOMER as Detroit’s planning chief from for developers and retailers. But development of a single property A 2016 study from the Chicago Cox, whom Lightfoot tapped last 2015 to 2019, helping lure private four blocks from the future Auburn in Auburn Gresham can involve Metropolitan Agency for Planning summer to lead the city’s neigh- investors into some areas that were Park station—close by the busiest a half-dozen parties or more—if estimated the retail spending ca- borhood renaissance, agrees. worse o than neighborhoods on CTA bus route in the city—a CVS, they can all get on the same page. Annamaria Leon, co-founder of Homan Grown CRAIN’S CHICAGO BUSINESS • APRIL 6, 2020 33
GAGDC used some of its own transform a 9-acre former city im- velopment experts say. equity and worked out a nancing pound lot on 83rd Street into a site at’s why Annamaria Leon agreement with the seller to pay for converting food waste into nat- used her own money to pay $15 Development has to be $600,000 in late 2016 for a full city ural gas and nutrient-rich soil that an hour to a half-dozen locals who block along 79th between Green would help grow organic produce. showed up in 39-degree weather and Peoria streets. Its centerpiece e plan is to make the site on a recent Friday to pick up gar- is a 60,000-square-foot vacant into a combination green land ll bage strewn about in overgrown, about places, people former furniture warehouse that and produce farm, with revenues city-owned land in North Lawn- You can see things happening BY DANNY ECKER Nelson’s group wants to redevel- coming largely coming from trash dale on the West Side. relatively quickly. op into a community center and collection fees as well as renew- “If we don’t do it, who will?” Rachel Weber is a professor and health and wellness hub. able energy, food and compost says the 53-year-old veteran land- director of graduate studies in the How has Chicago done over the Nelson has commitments to sales. She says she has 95 percent scape designer and co-founder of Urban Planning & Policy Depart- past couple of decades in nd- lease about 70 percent of the of the funding lined up for the $36 Homan Grown, a perennial plant ment at the University of Illinois ing and implementing e ective four-story building from a low-in- million project as well 30 letters of nursery slated to open this year at Chicago, where she conducts re- ways to reinvigorate some of come health clinic, a workforce intent from groups committed to along 16th Street between Spring- search in economic development, these neighborhoods? training rm, an educational tu- bring waste to the future facility. eld and Avers avenues. real estate and public nance. We see more and more polariza- toring company and several small Like Nelson, however, Allen has Leon and her business partner She previously served on former tion. We see a declining middle, o ce users. at is normally more found that’s still not enough. Her were among the rst Neighbor- Mayor Rahm and we see people doing better than enough for a developer to se- funding for the project—built over hood Opportunity Fund grant Emanuel’s task but also leaving. Particularly cure land construction nancing. roughly four years so far—is both winners in 2017. ey landed force to bring in some of the more physically After more than three years of complex and precarious. On top about $39,000 from the program transparency isolated locations, it’s still hard searching for capital, he has two of a series of equity investors and to build the nursery on a half-acre and account- to nd work even though the banks on board, $500,000 from the some grant funding from the U.S. vacant lot. e goal is to employ ability to the economy has improved. e state capital bill and a handful of Environmental Protection Agency, local residents and sell owers to city’s tax-incre- quality of the schools, the public investors through the federal New Allen has secured loans from four local businesses, landscapers and ment nancing resources are not there, there’s Markets Tax Credit program back- community development nancial residents to help beautify a North system and been little private interest in ing the roughly $13 million proj- institutions, or CDFIs, and several Lawndale community that has was also a many neighborhoods. You see a
PHOTOS BY JOHN R. BOEHM R. JOHN BY PHOTOS ect at 839 W. 79th St. And yet he’s New Markets Tax Credits investors. more than 1,500 empty parcels. member of the Urban Policy Ad- lot of physical redevelopments still about $3 million short of what Because her fundraising eort But she has spent more of the visory Committee for then-presi- spreading out from the central he needs to get the project o the has taken so long, it has jeopar- past 2½ years pruning red tape as dential candidate Barack Obama. business district. But there’s ground. dized some of the backers who are much as greenery. Weber spoke to Crain’s about the still questions remaining about Investors “set the bar really high using the tax credit. ey face dead- Zoning approval for the project challenges the city faces in trying the extent to which people who for communities like ours,” says Nel- lines to deploy capital in blighted took a year, followed by almost an- to spur economic growth in its lived in those neighborhoods son, 56, who has lived in the neigh- areas in order to get credits against other year to get permitting for wa- neediest communities. prior to this growth, whether borhood for more than 30 years. federal income taxes. at means ter and to build out a driveway as they were able to bene t from it “ ere are some that have her 95 percent commitment could well as getting a business license. CRAIN’S: What should the city or whether they just ended up jumped on board to say, ‘Yes, suddenly drop to 80 percent, de- “I don’t think the city does it on emphasize to facilitate mean- moving to places that are still we’ll provide some funding if this pending on the week. purpose to make it di cult,” Leon ingful economic development having a hard time. other nancier says yes, if the city Allen, 50, admits her project is “a says of the bureaucratic delays. “It’s on the South and West sides? commits TIF funds, if this, then little out of the box” for what some just sometimes the left hand doesn’t WEBER: Any municipality or You’ve said the phrase “food that.’ . . . ey’re giving us this sto- investors are willing to back. “But know what the right hand is doing.” any major city taking on the desert” in South and West Side ry of, well, show us more. Well, once you kind of get that tutorial She’s counting on the Lightfoot task of alleviating persistent and neighborhoods is mis-speci ed. heck, it’s almost 75 percent pre- and you look at all the revenue in- administration to change that as she concentrated poverty would need Why? leased, you’ve got strong commu- puts, what the challenges are, the looks to overcome issues of poverty to attack it on two fronts: the I see sort of an income desert, a nity support here—what more do independent market assessment and crime in North Lawndale, one place and the people. If you don’t wage desert. e public sector you need for us to show?” and all these pieces, it really just of the most violent neighborhoods address these two areas simulta- in some ways gets o the hook Nelson has a big money oppor- comes down to nancing a project in the city. A community garden up neously, they have the potential for not dealing with the issue of tunity in the months ahead as one that’s in a black community that the street from her site had its lawn to sort of undermine each other. people-based poverty if they can Erika Allen, co-founder of the Urban Growers Collective, and Carlos Nelson, chief executive of the Greater Auburn Gresham Development Corp. of six nalists for the $10 million hasn’t had a lot of this multimil- mowers stolen last summer. If you’re going to improve a place say, “Well, we brought a busi- Chicago Prize that the Pritzker lion-dollar investment.” Even some of her own neigh- through all kinds of targeted real ness to town, we attracted a new Bank of America branch and Save- Traubert Foundation will award bors have been skeptical of her estate investments, you risk dis- business where there wasn’t one A-Lot discount supermarket have this summer to a local neighbor- INVESTING IN PEOPLE strategy to spruce up vacant lots. placing residents who are there. before.” And oftentimes these all closed over the past few months. hood economic development Place-based projects like those “Oftentimes people think that retailers don’t attract other busi- “All of that at a time when com- plan. He is bidding in partner- are helpful but must be matched gardens bring in gentri cation,” Give me an example of investing nesses. ey remain something munity developers and local inves- ship with Erika Allen, co-found- by investments in neighborhood she says. “ at’s the narrative that in places versus people. of an oasis—to keep with the tors are here to bring vitality,” says er of Chicago nonpro t Urban residents themselves through job we’re trying to change. Beauty be- ere is a tendency to focus on desert metaphor. It’s an appeal- Carlos Nelson, chief executive of Growers Collective, who wants to training and hiring, economic de- longs to everybody.” places because that strategy ing strategy if you want to make the Greater Auburn Gresham De- can be highly visible. It involves something happen quickly. But velopment Corp., or GAGDC. “ e mostly real estate types of in terms of the ability to eect equity gap is real.” investments, investments in the long-lasting change and what I His community group is focused urban fabric, the built environ- would consider to be econom- on boosting Auburn Gresham’s ment of a place. (Tax-increment ic development, I don’t think once-vibrant commercial corridors nancing) is a great example of a those types of strategies are as that today are rife with rundown place-based economic develop- eective. buildings and vacant lots. Many ment strategy. A people-based What advice would you o er have been poorly maintained since strategy would be things like a the Lightfoot administration white ight of the 1950s and 1960s job training program focused about how to move the needle turned the neighborhood from a on people who live on the South for economic development in hodgepodge of families of Euro- and West sides that might allow underserved neighborhoods? pean descent into one that today is folks to move up career ladders almost exclusively African Ameri- within their economic sectors, ere has not been a whole lot can. Auburn Gresham had about to raise their wages, to increase of stock taken of what’s already 46,000 residents in 2017, according their education and their skills in these neighborhoods in terms to CMAP, about 10,000 fewer than so they’re able to be paid more. of businesses that are doing OK, two decades prior. public institutions and people Nelson’s project demonstrates Why do cities tend to gravitate who live there. I think there’s the nancial headwinds facing more toward place-based strat- still a lack of understanding disenfranchised neighborhoods. egies? about how distinct the dierent Unlike development projects at’s what the electoral cycle neighborhoods are and some downtown or on the city’s North requires. Cities like to take credit of the assets that already exist. Side that typically require a rel- for improvements. And you can And thinking of ways to help the atively simple combination of see “improvements” if you have people who are already there, equity and debt, nancing the re- a vacant parcel of land that has a the businesses that are already development of a single property new building on it. You can say, there. at’s often in ways that in Auburn Gresham can involve “I did that,” and you can be at are less visible, less radical, less a half-dozen parties or more—if BOEHM R. JOHN the ribbon cutting. I think we’re cataclysmic, but that can still set they can all get on the same page. Annamaria Leon, co-founder of Homan Grown generally impatient in this area. the stage for longer-term growth. 34 APRIL 6, 2020 • CRAIN’S CHICAGO BUSINESS
THRIVING MAIN STREET Community is key to growth and pride
he quality of life for any 56 years, I’ve seen all the riches of his workers. It was a place for the neigh- ulation, via small-business development. neighborhood is directly tied and beauty, hope and tragedy borhood to go and gather and enjoy life. Our research revealed that 85 percent of the Tto the success of its small of this corner of Chicago. For It’s easy to dismiss the impact a small total disposable income of Austin house- businesses. decades, Austin has been on chicken shop can have on the morale of a holds was spent in Oak Park, which has the Other metrics of community the wrong side of the economic community, but a thriving business on a retail infrastructure Austin lacks. well-being, such as good schools, disparity that has long plagued street corner is a physical, visual remind- ese programs and others like it are at- access to housing, public safety Chicago. We’ve seen the “white er that a community is alive. A shuttered tempting to bridge the “capital gap” that pre- and health are critically import- ight” of the early 1970s and storefront is a visual billboard of hopeless- vents so many businesses on the South and ant, of course. But a thriving the “industrial ight” of the ness to all who pass by. A storefront lit up West Side from ever getting o the ground. commercial sector is central to 1980s. We’ve endured more with activity is a billboard of encourage- But public-sector funding and initiatives how anyone de nes “livability,” Charmaine than our fair share of crime. But ment. like “Soul City Corridor” cannot succeed whether they consciously realize Rickette is presi- Austin is also a gorgeous amal- ere are great e orts underway to revital- until we provide budding entrepreneurs it or not. dent and CEO of gam of culture and churches ize neighborhoods across Chicago like Austin with the education and skill sets to success- Most people rightly think of the Uncle Remus Saucy and music and food. e that have faced decades of disenfranchise- fully start and run businesses. e world bene ts of shops, restaurants and Fried Chicken and character of Austin is deeply ment. Mayor Lori Lightfoot’s Invest South/ is a lot more complicated than when my “mom-and-pop” trade services in a past president of rooted in the American black West is an ambitious investment and com- father scraped some cash together and a community as primarily eco- the Austin African experience in all its wonderful munity-building program that has the poten- started his business in the early 1960s. nomic engines. at’s certainly American Business sense of history, creativity and tial to be transcendent. e city’s Neighbor- Today, there are enormous legal, regulatory true. Small businesses provide Networking brotherhood. hood Opportunity Fund, started by former and capital hurdles that can keep a would- jobs and allow residents to keep Association. I am also the daughter of Gus Mayor Rahm Emanuel, nances commercial be entrepreneur from taking the rst step. their spending close to home, and Mary Rickette. My parents and cultural projects in neighborhoods that at’s why we need to strengthen pro- creating a virtuous cycle where money is are living testimonials to both the struggles lack private investment, using revenue gener- grams across the city that help entrepre- invested and reinvested in the community. and rewards of black entrepreneurship. ated from downtown development. neurs from traditionally disenfranchised Small businesses create webs of nancial In 1944, at age 17, my father left Missis- rough my involvement in the Austin communities. Investing capital is import- interdependence that foster broad-based sippi to build a new life for himself in Chi- African American Business Development ant, but it must coincide with an invest- prosperity. cago. In those early years, he worked the Association, I’ve been involved in e orts to ment in business education. But I will suggest that we think about the most menial jobs for pennies per hour. But create a commercial thrive zone initiative I believe that if we can continue incu- power of small businesses even more broad- through hard work and tenacity, he built called the “Soul City Corridor” stretching bating a vibrant commercial sector within ly. A thriving “main street” is key to commu- Uncle Remus Chicken, which I’m proud to along Chicago Avenue, from Cicero Avenue the most economically hard-hit sections of nity pride as well. It makes our young people lead today as a second-generation steward. west to Austin Boulevard. Chicago, then we will have taken the most want to stay. It encourages outsiders to visit. From my earliest memory as a young girl, e zone is intended to serve as a cul- important step to xing the derivative issues It provides larger companies the con dence I saw the intrinsic power of his business. tural benchmark similar to Chinatown or of unemployment, public safety and the to come in and invest. Most obviously, it housed, clothed and fed Greektown, where residents and visitors other markers we traditionally use to assess I am the daughter of the West Side; spe- me and my 11 siblings. But it did so much may experience the music and food that is community well-being. It all starts with ci cally, the Austin neighborhood. In my more than that. It put money in the pockets unique to Austin’s African American pop- opportunity.
UPENDING DYNAMICS Tax incentives favor the haves he key to spreading prosper- keep them here. ity, justice and opportunity Our assets include our people, Tacross Chicago requires our stu and our transactions. turning the page on old neoliberal Our people are vastly un- market-based and clout-driven derused, and to maximize our economic development programs. people assets, we need to overhaul This was true long before corona- our public education system and virus fallout clouded the financial make sure that every child has picture for not just the city but the razor-sharp critical thinking skills, nation. is healthy and well nourished, can e rst program that needs to Tom Tresser is read above grade level, and is as bite the planning dust is tax-in- co-founder of creative as they can possibly be. crement nancing districts, Civic Lab, a watch- Our adult workers need to be safe, which the rich and powerful have dog that monitors healthy and able to move freely used to siphon billions of dollars the nancial about the region at low cost to be of property tax revenues from impact of TIFs on able to connect and collaborate BAY STERLING important public needs, such as Chicago. easily and frequently. Lincoln Yards schools, parks and libraries. Our stu (tangible and intan- Seven years of research and grassroots civic gible) includes all the land, buildings, public ny built a $100 million factory in the Hege- panded eet. Manufacture the electric buses engagement by the CivicLab shows that TIFs assets and cultural heritage—our collective wisch neighborhood on the Southeast Side here and give them to the CTA. And inscribe are corrupting, unfair and part of Chicago’s skills, knowledge, cultural competencies and with about 170 positions, mostly high-paying the names of all the workers who contributed racist public policy legacy. In April 2019, the relationships. I’m referring to public assets— union jobs. And they found the workers right to that bus on its exterior. City Council rushed to approve two super things we hold in common and pass on from here. Deploy the new vehicles to expand mass TIFs for the Lincoln Yards and 78 megade- one generation to another. A report in Railway Age from last April sug- transit routes and to link up places of high velopments totaling $2.3 billion. ese are Our transactions here refers to the sum gests a rail manufacturer could expect about unemployment with places that are hiring. in white, auent areas where no one lives total of public needs and purchases that our an 8.4 percent net pro t margin. Using that Cut the fares in half. currently. ese subsidies dwarf, by many city conducts every year to function. number, we can project that CRRC has ex- Use the excess capacity to build buses for magnitudes, any public money coming to We need to look at all three asset classes tracted over $109 million in pro ts. e wages other cities. black and working-class communities. TIF and make the choice to maximize, recycle stay here—which is great—but the pro ts get Apply this process to as many products and dollars collected in auent areas cannot nd and reuse as much as possible. shipped to China. services as is possible. If we do, we will em- their way to our disinvested neighborhoods. For example: Build electric buses for the Let’s build a plant for electric buses right ploy thousands and save billions. e recir- A more just, powerful and e ective princi- CTA. here in the heart of the city. culated monies will spawn further spending ple for grassroots economic development is e CTA has a $1.3 billion contract with Pick a poor and disinvested neighborhood. and cascade bene cially throughout our local this: If we use everything we have, we’ll have CRRC Sifang America, a subsidiary of Chi- Repurpose a local high school and a nearby economy. everything we need. We need to take advan- nese company CRRC Corp., to build 846 rail city college to prepare and train workers to do ink local for powerful economic devel- tage of all the assets we possess right here and cars, about $1.54 million per car. e compa- the needed jobs and run and manage the ex- opment that is just and long-lasting. CRAIN’S CHICAGO BUSINESS • APRIL 6, 2020 35
Advertising Section PEOPLE ON THE MOVE To place your listing, visit www.chicagobusiness.com/peoplemoves or call Debora Stein at 917.226.5470 / email [email protected]
ACCOUNTING ARCHITECTURE / DESIGN NON-PROFIT PROFESSIONAL SERVICES REAL ESTATE
ORBA, Chicago Wight & Company, Chicago 100 Club of Chicago, Chicago Aon, Chicago Jameson Sotheby’s International Realty, Chicago ORBA, one of Scott Steffes joins The 100 Club of Chicago Aon welcomes Chicago’s largest public Wight & Company as Board of Directors is Nancy Coletto as Sam Jenkins is a 16 accounting fi rms, project director, where thrilled to announce the Central Region year veteran of the welcomes Ryan Kertes he will lead design that Chief Operating Practice Leader for U.S. Chicago market and is and Ann McGrath. Ryan teams on complex, Offi cer Caitlyn Brennan Health Solutions. In a regular Chicago Top Kertes joins the Tax large-scale projects has been promoted to her new role, Nancy is Producer that has an Group as a Tax Manager. in the company’s Chief Executive Offi cer. responsible for driving extensive understanding He is adept at preparing Kertes private and public sectors. He will During her six-year tenure with the profi table growth, delivering of Chicago’s residential individual, partnership, also provide strategic leadership organization, Caitlyn has shown great innovative and effective solutions market - especially working with corporate, federal and in the higher education market. leadership through her innovation to clients, and increasing colleague developers in sourcing land, helping state income tax returns Steffes brings extensive experience and compassion with the scholarship engagement and retention across with the design aspects and selling on small to mid-size in award-winning regional and program and her connection with the region. Nancy brings more than the end product. Sam and his clients in a variety of international projects, as well as 100 Club families. Caitlyn looks 30 years of health and benefi ts team have facilitated hundreds of industries with a focus in technical expertise, from his time at forward to implementing new ideas experience. Most recently, Nancy transactions in multiple areas; from construction, real-estate architecture fi rms Skidmore, Owings to assist the families of fallen fi rst worked for Grand Rounds where she multi-unit investments, single family and manufacturing and & Merrill and Kohn Pedersen Fox. responders in Cook, Lake and partnered with employers to provide homes and condos both on the distribution. McGrath McHenry Counties. complex care navigation services to listing and buy side. Ann McGrath joins the their employees. Accounting Services Group. With more than 20 years of experience, Ann works with clients to reconcile bank NON-PROFIT REAL ESTATE TECHNOLOGY SERVICES accounts and prepare payroll and sales tax returns. She is highly profi cient UCAN, Chicago Golub & Company, Chicago IBM, Chicago in utilizing various accounting and bookkeeping software. Bert Allen, Vice Olivia Wirth joins Golub Katie McLuckie President and Executive & Company as a senior joins IBM’s Technical Coach at Robertson leasing associate on the Support Services, ENERGY Lowstuter, Inc., has been team responsible for Multi-Vendor Services named to the Governing leasing space within the team in supporting ARCHITECTURE / DESIGN Guidehouse, Chicago Board at UCAN, an fi rm’s growing portfolio businesses throughout innovative social services of downtown Chicago the Chicagoland area Stantec Architecture, Chicago Dan Hahn has joined agency that has been a sanctuary offi ce and medical offi ce properties. looking to optimize effi ciency in Guidehouse as a for youth who have suffered trauma. Wirth brings over six years of leasing managing their IT maintenance Al Migon is an architect partner to lead the Allen brings a unique combination and development experience with support. She will be utilizing her in Stantec Architecture’s Global Energy Providers of corporate human resources, HSA Commercial Real Estate. She is experience by working with the Chicago studio. He practice within the operations and entrepreneurial an Illinois licensed real estate broker, distribution, federal, and public offers clients 25 years of company’s Energy, experience from his 30-year career. a board member of the Association sectors. Katie has recently achieved experience in a variety of Sustainability, and A trusted advisor to CEOs and of Medical Facility Professionals, her Executive MBA from Notre project types including Infrastructure (ES&I) segment. In their leaders, he is a member of the a co-chair of CREW Chicago’s Dame - Mendoza College of higher education, this role, Hahn will lead a global Human Resources Management communications committee, and a Business, and we look forward to her residential, and government, as well team of industry and key account Association and UCAN’s Human member of YOBA Chicago. bringing continued success here at as residential and high-rise renovation professionals that collaborate with Resources Committee. IBM as a proud IBMer. experience. His involvement in the utilities and energy companies, construction documentation phase of providing a broad set of strategy Stantec’s projects brings an elevated and transformation solutions as level of consultant coordination, they navigate the energy transition. scheduling, cost estimating, and Previously with Accenture, Hahn contract documentation. brings 25 years of experience.
ARCHITECTURE / DESIGN
Stantec Architecture, Chicago
Marie Kruse is a versatile architect in Stantec Architecture’s Chicago Design Studio. FINANCIAL SERVICES With strong technical design and construction Byline Bank, Chicago management experience, she has supported several successful Byline Bank is pleased higher education projects. During her to welcome Brad tenure at Stantec, she has worked on Langenbach to our multiple projects varying in size and team as Senior Vice THANK YOU complexity. Marie has a demonstrated President, Commercial ability to solve problems in the fi eld Relationship Offi cer, and has developed a reputation Commercial Banking. for meeting client and team goals, With nearly 20 years of experience, schedules, and project budgets. Brad specializes in the fi nancing and treasury management needs of privately-held, family-owned o everyone at the frontlines of the pandemic, businesses. Brad comes to Byline ARCHITECTURE / DESIGN from Fifth Third and Citibank. from health care employees to food services, Stantec Architecture, Chicago Twords cannot begin to express our gratitude. Natalya Falk Lee is You selessly take care of others, putting their needs an architect in Stantec Architecture’s Chicago design studio, focusing ahead of your own. In times like these, your strength on mixed use multi- family residential projects and resiliency are an inspiration to all. with extensive amenity programs. Her projects have ranged from cost-constrained tenant fi t outs to Class A offi ces and museums. She consistently solves problems in the offi ce or in the fi eld. As her studio’s LEED study group leader, To order frames or plaques Natalya advocates for sustainable of profi les contact building practices and guides monthly Lauren Melesio at discussions to keep best practices at [email protected] or the forefront of design. 212-210-0707 36 APRIL 6, 2020 • CRAIN’S CHICAGO BUSINESS Sears’ reliance on stores, big-ticket appliance sales will hurt as shoppers stay home SEARS from Page 1 registered 5.2 million visitors over big-ticket appliances, which aren’t the same period. in high demand as consumers fear- e fallout from the coronavirus ing a deep recession retrench. Sears on traditional retail is expected to also has given up exclusive rights to be devastating. Coresight Research, popular brands such as Craftsman a New York-based market research and DieHard, which once drew rm, predicts 15,000 stores will shoppers to its stores. close this year, nearly double the Financially, Sears appears ill- 8,000 closings in 2019. Coresight equipped for a prolonged down- CEO Deborah Weinswig says that turn. e company lost money for number would likely rise the longer seven straight years before enter- Americans are stuck in their homes. ing bankruptcy in October 2018. “We are going to get unprec- ere’s been little sign of improve- edented store closures,” says ment since longtime Chairman Ed- Weinswig, adding that stores that die Lampert pulled 425 stores out primarily sell nonessential goods of Chapter 11 last year. Lampert’s will su er the most. hedge fund chipped in $250 million Department stores were strug- in November. gling even before COVID-19 ap- Investment bank Cowen esti- peared. Over the past decade, mates retailers have ve to seven shoppers have been buying more months of cash before they face and more general merchandise liquidation. Sears doesn’t disclose like clothes and electronics online. nancials, so its cash position isn’t Sales at department stores declined BLOOMBERG publicly available. However, it 5.5 percent to $135.1 billion last w SEARS’ WOES PERSIST raised $1 billion selling a logistics year, according to the U.S. Census business in March. It’s not clear Bureau’s retail data. The COVID-19 pandemic is forcing retailers to close and lose millions of sales. That’s bad news for struggling Sears. how long the money will last. Industry observers see dim pros- ONGOING TROUBLES pects for Sears. Sears’ troubles haven’t let up “ e COVID-19 crisis will ac- under Lampert’s new holding February 2019: August 2019: The retailer announces December 2019: It sells the April 3: The celerate their demise,” says retail company, Transform Holdco. In Sears emerges 26 store closures and 250 job cuts at DieHard battery brand to Advance company says consultant Steven Dennis, a former the past year, the company closed from bankruptcy its Hoffman Estates headquarters. Auto Parts for $200 million. all Sears stores Sears executive. “ ere is no way to more than half its stores and laid with 425 stores. will temporarily turn it around.” o around 500 headquarters work- close at least Dennis left the company in 2003 ers, citing a di cult retail environ- November 2019: Sears cuts 300 corporate jobs and closes March 2020: Sears through April 30 and says the same problems he ment. Now it has only 180 locations 96 stores. Lampert lends the company $250 million amid sells logistics company in response to saw 17 years ago are still evident. spread across a patchwork of com- closures, citing a difficult retail environment. to Costco for $1 billion. the coronavirus Issues like an inability to strength- munities. outbreak. en e-commerce sales or modern- During his nearly two-decade Source: Crain’s reporting ize stores continue to hinder turn- reign at Sears, Lampert earned a around e orts. reputation for skimping on invest- Sears’ website trails far behind ment in everything from stores to ers at the store. Before the virus he’s lucky to get 10 customers, and usually want just one item: a deep online retail leader Amazon. In marketing and e-commerce. e outbreak and statewide stay-at- daily sales range from $1,000 to freezer to stockpile food for the long February, about 2.5 billion people lack of investment is evident at a home order, Cutcher says, the store $1,500, he says. coronavirus lockdown. Recently, visited Amazon.com, according to Sears Hometown store in Morris. was averaging between $3,000 and “It hasn’t been nearly as busy as he’s had to send them elsewhere Comscore, a media analytics and Manager Steven Cutcher and one $6,000 in sales per day with around before the virus,” says Cutcher, add- because Sears can’t replenish his measurement company. Sears.com other employee are the only work- 40 to 50 customers visiting. Now ing that the few customers who visit depleted supply of freezers. Chicago companies must balance executive compensation in COVID-19 world
COMP from Page 3 goals and metrics they’d set for the bank’s long-term plan, according to are underwater right now consider- But, in today’s environment, that company in better times aren’t ap- its proxy. e key metric for deter- ing that Glenview-based ITW’s stock metric won’t account for the most last year. Illinois Tool Works CEO propriate for the fraught world in mining how much he gets is return price has fallen 27 percent since important factor a ecting Discov- Scott Santi took in $15.4 million. Ex- which we’re living now. on equity. Beginning in February, Feb. 21. In total, Santi has more than er—what its losses are going to be. elon CEO Chris Crane also got $15.4 at leaves a lot of space between the board added another factor to 310,000 underwater options, al- And those will be reected in the million. what’s an understandable adjust- the absolute-return threshold, al- though he would be able to exercise loan-loss reserves, which are sub- en there’s Motorola Solutions ment in light of the precipitous lowing the compensation commit- only a little over 35,000 of those right tracted directly from earnings on CEO Greg Brown, who received downturn and what’s an easy-to- tee to assess Northern’s return com- now anyway, according to the proxy. which the stock is ultimately judged. $23.6 million; AbbVie CEO Richard meet, after-the-fact target for exec- pared with a peer group of similarly Riverwoods-based Discover Fi- Discover’s stock has lost 64 per- Gonzalez, who was paid $21.6 mil- utivess to meet in order to get the sized banks, according to the proxy. nancial Services has been one of the cent of its value this year. A spokes- lion; and Mondelez CEO Dirk van de same lucrative pay packages they’ve at now counts toward 25 per- hardest-hit local stocks since the on- man says in an email that the com- Put, who got $18.1 million. been accustomed to during the lon- cent of the payout, a spokesman set of the crisis. One of the nation’s pany “is continuing to monitor the None of those companies adjust- gest economic expansion on record. says. e change was made before leading credit card companies, Dis- macroeconomic events that are cur- ed their CEOs’ 2019 pay, which is the coronavirus threat was under- cover is at risk of large loan losses, rently taking place and may consid- subject to shareholder approval in NO NOS stood, he adds. particularly as unemployment rises er adjustments to the compensation “say-on-pay” votes at virtual annual ere are some actions that ISS, Return on equity is calculated past even the levels seen in the Great program if the compensation com- meetings taking place soon, to ac- the most inuential proxy adviso- over three years; anything less than Recession, as it’s expected to. mittee of the board determines it is count for the current reality of brutal ry rm in the country, already says 8 percent potentially means no pay- CEO Roger Hochschild received appropriate.” He adds that the board stock sell-o s and deep recession. are no-nos. Repricing stock options out at all. Last year the bank posted $9.3 million in cash, stock and can take other metrics into consid- “Personally, I feel there’s a discon- that currently have strike prices well a 14.9 percent return, but 8 percent other bene ts last year, with $6.5 eration, like earnings per share. nect,” says Roy Saliba, head of com- above companies’ current stock may count as a strong performance million of that in the form of stock ere’s a middle ground, ISS’ pensation business for Institutional prices isn’t advised, but if compa- this year. awards tied to long-term perfor- Saliba says, between not punishing Shareholder Services, a Rockville, nies do that, ISS expects them to Northern Trust’s stock price is mance goals. Discover’s board is executives for events that are out of Md.-based proxy services rm. “Yes, seek explicit shareholder approval down 29 percent for the year so far. judging Hochschild primarily by a their control but also having them this reects last year’s performance. beforehand, Saliba says. Grants to In the case of ITW’s Santi, $12.4 metric it calls PBTR, which essen- share in the pain shareholders are But shareholders voting on the proxy executives to make up for lost com- million of the $15.4 million he was tially is pretax income not includ- experiencing. “Sometimes you get are looking at today’s world. ere’s pensation or paying “retention” paid last year came from the long- ing the lender’s reserve for loan paid, sometimes you don’t get paid,” an emotional aspect that would be grants are “red ags,” he says. term performance program. e losses. It was intended to incentiv- he says. hard to ignore.” More likely, perhaps, is that com- board ties long-term compensation ize Discover to pursue its strategy e lines aren’t completely bright, at makes what happens in 2020 pany boards will tweak preset nan- to three metrics: operating margin, for the past several years of achiev- he says. But if companies adjust important. Company boards can cial metrics that often determine the after-tax return on invested capital ing above-average loan growth to their goals to correspond to the mo- make the argument that their execu- payout level to CEOs under long- and earnings-per-share growth. All quali ed consumers, which nat- ment, executives shouldn’t be paid tives should be rewarded for last year term incentive plans. of those may well be a ected by this urally results in more reserves as the way many of them have been for and shouldn’t be a ected by what’s For example, nearly 70 percent of year’s recession. In addition, $5.7 loans grow and new borrowers the 2019. “You don’t want companies to happening now. ey also can make Northern Trust CEO O’Grady’s com- million of the stock awards he got company doesn’t know well yet are (change) the goals and not take any the case in many situations that the pensation in 2019 came from the were in the form of options. ose brought on. corresponding reduction” in payout. SPONSORED CONTENT
WHY TALENT STILL MATTERS ADDRESSING TODAY’S STAFFING CHALLENGES
Until recently, a long-running bull market, low unemployment and a sense of economic optimism challenged many industries to attract and retain top talent. Then came COVID-19. While the long-term impact is uncertain, three local executives involved with recruiting and hiring shared their current strategies and insights with Crain’s Content Studio.
What’s the most common Brand: We pay competitively for recruiting challenge facing experience and oer bonus plans your industry? that support a pay-for-performance philosophy. It also helps when we John Compernolle: Recognizing emphasize to candidates that we’re that we’re in extraordinary times now, a growing and nancially stable Bank of America is making every business; the fact that we’ve been accommodation to ensure the safety around 100 years serves as proof that of our employees while continuing our company is sustainable. at and to serve our customers and clients. the fact that we’re privately owned Prior to the COVID-19 outbreak, holds a great deal of appeal for many our biggest challenge was shi ing the candidates who are uneasy with the perception of banking to attract the quarterly uncertainties that come with new generation of workers. Banking a publicly-traded company. We also has historically been synonymous have robust, experience-rich intern LARRY BRAND JULIE BURKE JOHN COMPERNOLLE VP, Chief Human Resources Of cer with conservative, but that’s not programs. Younger candidates are Human Resources Manager SVP, Market Executive Elkay Manufacturing Co. Klein & Hoffman Inc. Bank of America today’s banking. With the digital impressed by our philanthropy and [email protected] [email protected] [email protected] revolution, we think of our company volunteering and admire how we help 630-574-4501 312-251-1936 312-992-6329 as a technology company—there are so to keep single-use plastics out of the many new opportunities for creative environment. We emphasize employee technology talent layered in with referrals, have put technology in place traditional nance expertise. e shi to enable employees to support passive U.S.-based workforce. Our Women’s support the career advancement of diverse candidates for as many roles is in uencing our culture, how we set sourcing via social media, and have Next Level leadership program high-potential talent. We also oer a as possible. We’ve had some notable up workspaces for better collaboration strengthened the rewards provided provides strategies and tactics to help Diverse Leader Sponsorship Program, success, having recently received a and even in some cases, how we dress. through our employee referral multicultural women progress their which pairs diverse rising talent with national award for the diversity of our programs. Elkay ad. careers,Crain’s andChicago our Women’s Business. Executive Attract & Retainsenior Special leader sponsors. Issue. March, 2020. board of directors—the last bastion Julie Burke: Our biggest challenge Development Program through of the glass ceiling in the broader is that we’re in a niche industry with Burke: We’ve revised our Columbia Business School allows Brand: We employ out-of-the- publicly-traded business community. a very limited talent pool, so we end compensation program to really put women to engage, develop, retain and box thinking to identify and attract Also, two of our female leaders were up pursuing the same candidates as the value on recruiting and retaining other architecture, engineering and top talent, promoting our stable, long- construction rms. e emphasis on term business. Candidates learn that STEM programs in our schools will we put a true value on the importance hopefully expand students’ interest in of collaboration, teamwork and pursuing STEM-related careers. family. Employees and their families are a part of our rm.
“WE PROMOTE THE VALUE OF HAVING FEMALES IN LEADERSHIP ROLES, INCLUDING A STRONG MENTORING PROGRAM THAT PARTNERS SENIOR ENGINEERS AND ARCHITECTS WITH NEWER ADDITIONS.” JULIE BURKE
Larry Brand: Competition is dicult when recruiting for Compernolle: e four tenets professional roles, but it’s doubly so of our employee retention strategy when seeking candidates for hourly include recognizing and rewarding manufacturing jobs. Many candidates performance, investing in diversity have multiple oers, which puts and inclusion, creating and providing Imagine working for a company that inspired this kind of feedback: pressure on us to make quick decisions opportunities for employees to as to whether a particular candidate is grow and develop, and supporting • I’m proud to work for Elkay. • I love my co workers. right for the job. Our recruiting team employees’ physical, emotional and • The company invests in my success. • I feel like part of a family. has had to hunt more aggressively than nancial wellness. ‐ • I do work that makes a difference. ever, putting a stronger emphasis on nding passive talent for speci c hard- How is your organization to- ll professional roles. All of this attracting women and Come to work for Elkay, and that’s how you’ll feel. may change, however, in the a ermath diverse applicants? Elkay is a thriving, values driven global company focused on doing the right things so we can be in business forever. We’re financially stable and family owned, with an enduring reputation for ethics, of the coronavirus. ‐ Compernolle: Women represent integrity, giving back, and providing an engaging, inclusive environment where careers flourish and grow. ‐ ‐ What strategies and methods more than half of Bank of America are you using to attract the employees, and people of color If you’re ready to join a company where everything you do makes best talent? represent more than 45% of our a difference and you go home proud at the end of each day, visit Elkay.com and talk to us about joining the Elkay family!
NEW_ 4_6_SECRETS_TALENT_ROUNDTABLE.indd 37 3/31/20 3:29 PM WHY TALENT STILL MATTERS ADDRESSING TODAY’S STAFFING CHALLENGES
recently recognized for helping candidate management system that successfully answering qualifying Brand: We use LinkedIn for o ce face time with the comfort and change the face of manufacturing, a allows them to view postings, schedule questions. Having the chatbot handle professional-level recruiting and convenience of work from home. traditionally male-dominated eld. interviews and interact with recruiters more administrative tasks frees up the Facebook for hourly job recruitment; both have proven very successful. What strategies are you Burke: We promote the value of “WE’RE UNIQUELY POSITIONED TO CONNECT using to increase employee having females in leadership roles, Burke: We use our social media retention? including a strong mentoring program OUR EMPLOYEES WITH WORLD CLASS platform to promote and highlight that partners senior engineers and our company’s culture, and to Brand: We’ve built formalized architects with newer additions. One FINANCIAL GUIDANCE, PLANNING, TOOLS di erentiate ourselves from our career paths for most of our of our female engineers was recognized AND SOLUTIONS. IT’S ONE OF THE THINGS competitors. It’s important to show professional functions, and leadership this year by a national group as the who we are and the type of impact tracks for emerging leaders. A new Outstanding Young Engineer of THAT HELPS SET US APART.” that our work has on the community. job shadowing program called the Year. Our female employees Elkay Bridges allows less seasoned participate in a group called Women JOHN COMPERNOLLE Do you offer any unusual employees to explore other areas in the Built Industry, and have created perks to employees to within the company where they a supportive community within this via their personal devices. We’re recruiter and HR generalist to work on help differentiate your might want to pursue a career. Job male-dominated eld. An important also hosting interactive webcasts for more meaningful parts of the process. organization from your rotation within the plants provides part of our recruiting e orts involves candidates to provide access to events is is a big win for the organization. competitors? a similar bene t, where employees partnering with universities and workshops with our business can increase their pay by mastering and developing great relationships leaders and recruiters, regardless of Burke: We utilize technology Burke: We provide free breakfasts the skills needed in di erent areas of within academia to identify the best candidates’ geographic location. to assist with the lifecycle of our on alternating Wednesdays, operations. is provides additional emerging talent. recruitment. Our applicant tracking contribute 90% of the membership protection against injury for the Brand: We use Workday Recruiting systems allow us to quantify and cost to the gym in our building, employee while helping the company What role does technology for our applicant tracking system qualify applicants, which is helpful provide wellness lunch and learns, manage attendance variances. play in your recruitment domestically, and will be deploying it for compliance purposes and paid parental leave, opportunities efforts, and what are some globally this year so all of our o ces organization. Our website and to volunteer in the community, Compernolle: Our retention best practices for using it? can more e ciently screen, process social media platforms highlight our recognition spot bonuses, an a er- strategy is based on four pillars. and communicate with talent. We’re company culture and our unique hours volleyball team and a “fun ese include recognizing and Compernolle: We’re digitizing rolling out a chatbot to draw more projects. Especially in the unique committee.” We also have summer rewarding performance; being a our processes, making our platforms quality candidates into the recruiting environment we’re currently faced hours, exible work hours and do diverse and inclusive workplace; and tools more accessible via mobile funnel. It allows us to communicate with, technology has allowed us what’s needed to enrich the lives of creating and providing opportunities and identifying opportunities to with and screen them through to safely interview talent without our employees. eir well-being and for employees to grow and develop; interact with candidates through their automation, have their questions about endangering employees or applicants. career development is our focus. and supporting employees’ physical, preferred channels. For example, our company answered electronically emotional and nancial wellness. We we’ve expanded our campus recruiting on a real-time basis, and have the How heavily is your Compernolle: Some of our more retain employees by understanding processes and tools, redesigned the candidates automatically scheduled organization relying on social unique programs include eldercare their needs and providing a portfolio campus website and developed a new on the recruiter’s calendar a er media for recruiting? bene ts, 16-week paid parental leave, of bene ts that are customized to the adoption and fertility reimbursement, employee’s stage of life. Additionally, back-up childcare, sabbaticals, we create a competitive advantage by access to nancial planning and legal empowering employees to understand services. Our Life Event Services and e ectively use their health care Working Together. Building Integrity. group helps employees through and retirement bene ts. critical events, such as natural disasters, res or acts of violence, Burke: We send out periodic domestic violence, gender transition employee engagement surveys to in the workplace, survivor support, really listen and understand the voice terminal illness, and transition related of our workforce. e feedback helps to military service. We encourage us set a strategy as to how to address physical wellness with health and create new opportunities for screening credits and our GetActive! growth, compensation, development program. As a nancial institution, and engagement. For example, this we’re uniquely positioned to connect year we’re creating a career path our employees with world-class for our team members, revising our nancial guidance, planning, tools training and development programs and solutions. It’s one of the things to further enrich and enhance our that helps set us apart. talent and focused on recognizing our incredible workforce. e most Brand: Perks that are somewhat important quality an employer of any unique in the business community size can do is to really listen to their include our bring your dog to work team and be uid in their approach. program; paid time to volunteer, vote and attend parent-teacher What programs have you conferences; on-premises tness put in place to build a more center; a er-hours sports teams; and inclusive environment? volunteer events to promote wellness and community engagement. We Burke: Our rm had a strategic At Klein & Hoffman, we work have modern outdoor Wi-Fi areas, planning session recently and sent out collaboratively to deliver value-driven cafés on every oor, huddle rooms an all-employee engagement survey structural engineering and architectural and casual play areas with ping pong, so that everyone could share ideas and give feedback on how to really restoration solutions. shueboard and skeeball where employees can meet and mingle. Our improve our experience and rm. 150 South Wacker Drive work from home policy was already What makes our rm truly special Whether restoring the façade of a historic Suite 1900 in the works when the COVID-19 is that our leadership is interested in building, replacing the windows of a Chicago, IL 60606 situation preempted our launch. Once ensuring all employees have a voice condominium, or removing columns to +1 (312) 251-1900 business life gets back to normal, we and are committed to transparency. open up a floor plan, Klein & Hoffman is kleinandhoffman.com plan to retain a modi ed work-from- counted on to deliver every time. home schedule that balances the Compernolle: We have women’s relationship-building value of live, in- leadership programs, mentoring
NEW_ 4_6_SECRETS_TALENT_ROUNDTABLE.indd 38 3/31/20 3:29 PM SPONSORED CONTENT
ABOUT THE PANELISTS
and mobility programs, and global over 100 years in business is LARRY BRAND is vice president and chief human diversity and inclusion councils. why people come to Elkay, and why resources of cer for Elkay Manufacturing Co., a Downers We also have programs focused they stay. Grove-based, 100-year-old family-owned company that on supporting individuals with produces, sources and delivers residential and commercial building products and disabilities and an industry-leading Compernolle: We foster services. He joined the company in 2016 with nearly 25 years of experience as a commitment to LGBT+ employees. an environment of trust and strategic business partner to CEOs, boards and senior leadership teams in public, We’re committed to service members, engagement, where all employees private, family-owned and private equity-funded businesses. He serves on the board of the employing thousands of veterans are empowered to bring their Human Resources Management Association of Chicago, and teaches at Lake Forest Graduate and military spouses. We also o er a whole selves to work. Remaining School of Management. He holds a bachelor’s degree and MBA from the University of Evansville. Diverse Leader Sponsorship Program exible and creative and listening to which pairs diverse rising talent with employee needs is critical to staying senior leader sponsors to increase competitive. Bank of America is the visibility and representation of committed to being a great place to diverse talent. We’ve been recognized work and was recently named one JULIE BURKE is human resources manager for for these programs with recent of the “100 Best Companies to Work Klein & Hoffman Inc., a Chicago-based rm that awards that include Fortune’s Best For” by both Fortune magazine and delivers architectural restoration and structural Workplaces for Diversity and Best the global research and consulting engineering solutions. She joined the rm in 2017 and oversees strategy for HR, Workplaces for Women, both in rm, Great Place to Work®. culture and the rm’s employment brand. She has nearly 20 years of progressive 2019. Also, in 2019, our Investing in leadership experience developing HR strategies within the architectural, Women Initiative earned a Catalyst Burke: Our culture has evolved engineering, manufacturing, and health care analytics industries. She holds a bachelor’s Award, which recognizes innovative over the last few years and is a degree in communications from Michigan State University and away from work, is a hospice organizational initiatives that address significant reason for our employee volunteer for JourneyCare. the recruitment, development and retention. We put our employees advancement of women. first and have policies for flexible work hours, paid parental leave, the Brand: We have formal women’s ability to work remotely if needed. leadership programs and millennial Our firm attends industry social JOHN COMPERNOLLE is a senior vice leadership programs to help these events together, goes camping and president and market executive of Illinois employee populations build the skiing. Our philosophy is that we Global Commercial Banking for Bank of skills they need to be successful enjoy working together, servicing America, where he oversees services for middle-market companies with revenues and establish stronger working our clients and spending time between $50 million and $2 billion. He has spent his entire career in banking, networks within the company. Our outside of the business. starting with Continental Bank in 1982. He holds a bachelor’s degree in economics monthly Welcome Wednesdays from the University of Michigan, and an MBA in nance from Loyola University Chicago’s Quinlan shine a light on new talent within In light of the coronavirus School of Business. He serves on the boards of the Chicago chapters of Junior Achievement as the company and give them a pandemic, what changes has well as Big Brothers-Big Sisters. chance to meet co-workers beyond your organization made to its their immediate team. We actively recruiting efforts? seek out the opinions of employees at di erent levels in their careers Burke: At this time, our entire when considering new policies, workforce is working from home. programs and perks, to make sure We’ve changed our interview that the added value and development process to video conferences. BE SEEN AS AN EXPERT IN A “WE BELIEVE THAT THE CULTURE WE’VE BUILT OVER 100 YEARS IN BUSINESS IS 2020 VIRTUAL WHY PEOPLE COME TO ELKAY, AND WHY THEY STAY. “ ROUNDTABLE LARRY BRAND
opportunities we’re o ering align We’re still moving forward with with our employees’ needs and our sustainable growth strategy Calling professionals to share insights desires. but are focused on the health and well-being of our applicants on the following topics: What role does your and employees. While this new n Crisis relief for Chicago businesses n Succession Planning organization’s culture play in format is an adjustment, it allows n Solar Energy in Illinois n Health Care Delivery retaining employees? us to communicate and interview n Wealth Management n Family Business regardless of location. Brand: Our culture is probably the most critical tool we have for Brand: At the moment, our entire retaining employees. We’re a values- professional sta is working from driven company with a warm, familial home. We’re continuing to recruit culture—the kind of place where to ll the key roles that absolutely people come to work and, in the need lling. We’ve moved to phone process, make life-long friends. One screenings, then video interviews for of our values is “our strength is in our professional-level positions. We’re people,” and so many of the policies, currently also looking at drug-testing programs and engagement activities protocols, not wanting to expose we o er are a means of recognizing new hires to any unnecessary risk our people for the outsized role factors. If the business closings and they play in our success. Year a er temporary layo s result in a more year, our employee engagement prolonged recession, our challenge Reserve your spot and be recognized as a thought-leader in Crain’s Chicago Business. survey results show that people are will be determining which positions Contact Sarah Chow at [email protected] or (312) 280-3172 to learn how. exceedingly proud of the company. remain essential for the company in We believe that the culture we’ve built a recovering market.
NEW_ 4_6_SECRETS_TALENT_ROUNDTABLE.indd 39 3/31/20 3:29 PM 40 APRIL 6, 2020 • CRAIN’S CHICAGO BUSINESS
æ`ÛiÀÌÃ}-iVÌ HCSC gives huge raises to top execs as it cuts staff CLASSIFIEDS HCSC from Page 1 w HEALTHY PAYCHECKS To place your listing, contact Claudia Hippel at 312-659-0076 January—and needs to step up or email [email protected] www.chicagobusiness.com/classi eds growth to compete with rivals. The 10 highest-paid leaders at Health Care Service Corp., which owns Blue Cross plans in . e pandemic’s nancial impact five states, got a combined $73 million last year. on insurers isn’t clear yet. With un- 10 HIGHEST PAID LEADERS, 2019 DIRECTOR COMPENSATION, 2019 AIRCRAFT CAREER OPPORTUNITY employment skyrocketing in the wake of anti-contagion measures Paula Steiner* $31.0 million Milton Carroll (chairman) FOR SALE: 2001 HAWKER 800XP WOLTERS KLUWER UNITED STATES, INC. that have essentially locked down Turn-key, professionally managed seeks ENTERPRISE SOFTWARE ENGINEER II Dr. Dianne B. Gasbarra the economy, HCSC could see Eric Feldstein* $7.5 million and Chicago based. Excellent In Riverwoods, IL to gather & analyze Gregory D. Wasson pedigree and great charter capability. data in support of proposed projects, enrollment in its employer-based David Lesar $6.2 million Contact Calvin: 630 444 1393 write functional & technical solution insurance plans drop. HCSC and Timothy L. Burke design plans & resolve issues during SAP some other large insurers have Milton Carroll $4.9 million Dennis J. Gannon implementation. Reqs domestic trvl to othr agreed to cover certain patients’ company o ces up to 30%. Apply at out-of-pocket costs for COVID-19 Steve Betts* $4.4 million Michelle L. Collins CAREER OPPORTUNITY www.jobpostingtoday.com REF #50251 treatments, a move that could cost Jeffrey Tikkanen $4.0 million Monte E. Ford American Imaging Management, Inc. seeks them money, unless they make it Elaine M. Mendoza BUSINESS INFORMATION ANALYST SENIOR HOME CHEF AVAILABLE NOW up in premium hikes. Andre Napoli $4.0 million in Chicago, IL to design, construct, “With COVID-19, any losses in- David J. Lesar and maintain Business Objects universes HOME CHEF HOUSE MGR AVAILABLE Colleen Foley Reitan** $3.7 million Thaddeus J. Malik and to write data warehouse and L C B G P C , UIC curred by these insurance com- ETL reporting requirements. Apply at BA. , . panies because they’re waiving Blair Todt $3.6 million Clyde Drexler W P / W L copays will directly come out of www.jobpostingtoday.com REF# 53075. R. A. Walker SHARI WONSOVER insurance premiums the next year, Maurice Smith $3.6 million [email protected] 847.529.6896 Total or negotiated prices with provid- Total $72.9 million CAREER OPPORTUNITY ers who are going to have to accept lower reimbursement rates,” says *Left company midyear; total includes severance pay. **Retired in 2018. Tempus Labs, Inc. seeks a LEGAL SERVICES Attila Hertelendy, a health care Source: Illinois Department of Insurance filing DATA SCIENTIST, APPLIED MACHINE expert and business professor at LEARNING in Chicago, IL. Apply @ Florida International University. more than nonexecutive board pectations, Canavan says, adding https://jobpostingtoday.com/ REF #80870 DADS’ RIGHTS! HCSC, which owns Blue Cross chairmen got at comparable that “bonuses probably got paid plans in Illinois, Montana, New publicly traded health insurers. out right before we were aware Mexico, Oklahoma and Texas, is Humana and Cigna, for example, of how big of a deal this would CAREER OPPORTUNITY navigating the pandemic without paid their chairmen $544,044 and be. Optically, it’s going to be awk- a permanent CEO. e turnover $575,352, respectively. ward, but it was for 2019 perfor- Wolters Kluwer United States, Inc. seeks Follow Our Victories ! ENTERPRISE SOFTWARE ENGINEER II, has been expensive. For example, Board compensation at HCSC mance.” in Riverwoods, IL. Work across the org w/ the company’s longtime board “is designed to attract and retain In fact, HCSC’s 2019 payouts Requirements, Solution Architects, QA & LOANS chairman pro ts when there’s a the most quali ed business lead- come at a time of great uncertain- Productn Support teams to deliver IT system transition at the top. Carroll, an ers with broad and diverse expe- ty for health insurance companies. design & dvlpmnt supporting various biz units. BRIDGE LOANS FOR PROPERTY INVESTORS energy industry executive, pock- rience to provide strategic coun- As hospitals and outpatient cen- Apply at www.jobpostingtoday.com, No credit requirements or minimum loan amount REF #32784. Quick closings, 13-15% int eted $4.9 million last year as part sel and guidance in the dynamic ters cancel elective surgeries due LET’S GET YOUR DEAL DONE. of a deal—the terms of which and rapidly evolving health care to COVID-19, insurers initially will 773-245-6265 were not disclosed—“to ensure industry,” ompson says. He have fewer medical claims to pay. a smooth transition” and provide notes that executive compensa- But insurers will soon get bills for CAREER OPPORTUNITY “proper support” to Lesar and tion is determined by the board, COVID-19 treatments. And claims Wolters Kluwer United States, Inc. seeks an PRIVATE JET FOR LEASE Smith, spokesman Greg omp- with guidance from outside ad- for deferred elective surgeries ENTERPRISE SOFTWARE ENGINEER III 2017 CHALLENGER 350 son says in an email. Carroll’s visers. could pour in later this year or early in Riverwoods, IL to create use cases & dsgn Based at Chicago Exec (PWK) available for dry compensation “re ects the addi- Some of the most common in 2021, depending on when such artfcts using UML/ERM dev accrdng to std lease. Well below charter rate, 75 hr. min. tional time, e ort, focus and in- performance metrics that health procedures resume. Later, enroll- Java Data modlng & dbs mgmt stds. Apply at Preferred crew available. No fees- www.jobpostingtoday.com REF# 51179. put during this time of transition.” insurance companies use to de- ment numbers could drop as em- DEAL DIRECT. 630 884 8177 ompson did not say how termine executive compensation ployers shed insured workers. many hours per week Carroll, are enrollment, who is also a director at oil ser- market share and vices company Halliburton, de- customer satis- AS COVID 19 SQUEEZES INSURERS’ PROFITS, votes to HCSC business. He’s not faction, says Judy PREMIUM INCREASES IN INDIVIDUAL AND OUR READERS ARE 125% the only high-level connection Canavan, leader MORE LIKELY TO linking HCSC and the Hous- of BDO’s com- EMPLOYER MARKETS NATIONWIDE COULD ton-based energy industry giant. pensation surveys INFLUENCE OFFICE Lesar previously served as exec- practice. Revenue BE 40 PERCENT OR HIGHER IN THE ABSENCE SPACE DECISIONS utive chair of Halliburton, and is also consid- Patricia Hemingway Hall, who ered, but com- OF FEDERAL ACTION. retired ve years ago as CEO of panies should be HCSC, joined Halliburton’s board mindful that growth could result Like its rivals, HCSC has agreed last year. from higher prices, she says. to waive some patients’ out-of- While an outgoing chief execu- ompson says metrics at pocket costs for COVID-19 treat- tive moving into a chairman role HCSC include “expanding access ments, as well as prior authori- or a board member stepping in as to coverage and e orts to help zations and COVID-19 tests, in interim CEO, like Lesar, often get control the rise in medical costs addition to expanding virtual pay bumps during transitional for our members,” in addition to health care coverage. It has also periods, sources say Carroll’s ar- market competitiveness and rele- launched a special enrollment rangement is unusual for an out- vant peer data. period for people who previously side director. declined group coverage through Since HCSC is not a public BIGGER PAYMENTS their employer. company, “there’s very little over- HCSC paid more for CEO ser- Still, as COVID-19 squeezes in- sight and very little transparen- vices last year than two larger surers’ pro ts, premium increas- cy,” Hertelendy says. “Nobody is health insurers. Altogether, Lesar es in individual and employer holding them accountable so, re- and Steiner were paid about $25 markets nationwide could be 40 alistically, they can do whatever million, not counting Steiner’s percent or higher in the absence they want.” severance pay. Anthem chief Gail of federal action, according to a Carroll collected $930,347 in Boudreaux, a former HCSC exec- March 24 report from California’s 2018, after getting nearly $5 mil- utive, got $15.5 million, while Hu- A ordable Care Act marketplace. lion in each of the two previous mana’s Bruce Broussard received Meanwhile, HCSC recently years as part of a deal to oversee $16.7 million. Anthem reported cut hundreds of sta ers—many the leadership transition when $104.2 billion in revenue last year of whom had senior manager Steiner succeeded Hall. Steiner, and Humana booked $64.9 bil- and director titles. In an internal Find your next corporate who spent more than three de- lion, compared with $38.6 billion memo announcing the January cades at Blue Cross & Blue Shield for HCSC. layo s, Smith said the company is companies, left after disagreeing Companies likely established focused on making changes that Connect with Claudia Hippel at with directors over long-term 2020 performance measures “ensure we have the structure and growth plans. around the time COVID-19 hit, resources to best serve our mem- Carroll’s compensation is far so they’ll want to revisit their ex- bers now and into the future.” CRAIN’S CHICAGO BUSINESS • APRIL 6, 2020 41 The forced experiment in working from home will disrupt the office market OFFICE MARKET from Page 3 vey said their company’s o ce footprint will shrink as a result of small portion of the population. increased work from home. A 2017 Federal Reserve analysis e bigger change for some could found that the share of the work- be making o ces less dense as force that primarily works from opposed to smaller. Typical down- home had nearly tripled since town o ces today include about 2000 to just over 3 percent. 175 square feet per employee, down at number—along with those from about 250 square feet a decade who choose to work from home, ago. Some rms have gone as low as or “telecommute,” more frequent- 125 square feet per person as open- ly—could grow substantially in the plan o ces have become in vogue months ahead as employees be- and allowed them to cram more come more comfortable with vid- people into less space. eoconferencing, instant messaging and other tools that allow them to ‘SQUEEZING A BALLOON’ collaborate with colleagues and O ce layouts may soon allot connect with clients. less room for private, individual In a mid-March survey of near- workstations and more for people ly 250 executives who oversee and to gather in large groups without advise real estate for major corpo- being shoulder to shoulder, says rations, 89 percent said expanded OKW Architects Chairman and use of remote working will last be- CEO Jon Talty, who likens the yond the current crisis, up from 72 change to “squeezing a balloon.” percent of respondents in a survey “Companies are going to need
just two weeks earlier, according to o ce space, but it’s going to be dif- PHOTO FILE CRAIN’S CoreNet Global, an Atlanta-based ferent o ce space,” he says. Typical downtown o ces today include about 175 square feet per employee, down from about 250 square feet a decade ago. corporate real estate association. Letting more people work from at means the downtown o ce home still presents new costs and world, says Bill Bennett, an ad- more exibility for users,” he says. approached landlords about rene- market—which just capped o its challenges for companies beyond junct lecturer at the Kellogg School Bennett admits the co-working gotiating their leases. best year since 2007—isn’t only making sure employees can e ec- of Management and founder of sector is in for a “rocky ride” over Even if a fraction of those staring down a possible recession tively work together. Internet con- shared o ce provider Novel Co- the next few months as the coro- co-working spaces shutter, it could that could decimate headcount for nectivity could vary widely among working. While companies have navirus-induced economic fallout open up lots of new o ce vacancy some tenants and entirely drown employees, and tech support recently spent heavily to build out continues. at’s also a concern downtown and potentially water others. It also could see a lot less elaborate o ces for many landlords as shared o ce down rents throughout the market. demand in a recovery. with recruitment providers have been one of the fast- Bennett foresees some landlords “For most companies, being in “WE’LL SEE OFFICE BUILDINGS MIGRATE TO in mind in a re- est-growing segments of o ce users that lose co-working tenants sim- the o ce or being remote is not LOOK MORE LIKE AN APARTMENT COMPLEX cently tight labor over the past decade. e amount of ply hiring real estate services rms an either/or—it can be a blend, market, more co-working space downtown has like CBRE or Jones Lang LaSalle and for most companies it is,” says DOES, WITH SHORTER TERM LEASES.” may shy away doubled over the past three years to run it themselves as a building CoreNet Global Senior Vice Pres- from long-term to almost 3.3 million square feet, amenity. And more companies ident Tim Venable. “ ere’s just Bill Bennett, Kellogg School of Management leases or pouring according to data from brokerage embracing remote work will ulti- going to be more remote working too much capi- Newmark Knight Frank. mately create more users for the in the future than there has been in could be far less e cient. Creating tal into their o ce environment if Locations operated by big co-working providers that survive, the past.” a company culture is more di cult fewer people are there on a regular co-working players like WeWork, he argues. Still, it’s unclear whether more when workers are disparate. basis, he says. Industrious and Convene could get “Some of the setup will change, remote work means companies But the perk of workplace exi- “We’ll see o ce buildings mi- crushed if many of their users fold the spacing will change” in will require less physical o ce bility stands to become even more grate to look more like an apart- or opt out of memberships amid co-working o ces, he says. “But space. Half of respondents to the valuable in recruiting and retain- ment complex does, with short- the economic shutdown. Several the fundamental value proposition most recent CoreNet Global sur- ing talent in a post-COVID-19 er-term leases, more of them, and co-working providers have already is stronger than ever.” Airline industry revenue will rebound in a few years. Not so for business-class travel.
AIRLINES from Page 3 to pre-2019 levels ever, but we also airlines are trying to gure out of the economy—restaurants, ho- ◗ don’t expect them to make those how to keep ying. ey are cut- tels, conventions, retail and en- AIR POCKETS at’s bad news for United and cabins smaller. We expect smaller ting 40 to 70 percent of their ights tertainment—threaten to throw Airlines are slow to recover from crises other carriers, such as Delta and premium economy cabins as they over the next two months as they millions out of work, even if only that disrupt travel, such as 9/11 and the American, which increasingly look to grow leisure.” cope with a downturn that’s shap- temporarily. And the cause of the 2008-09 recession. have focused on business travel- ing up to be worse than anything downturn, a pandemic, could take ers in recent years, adding more MORE FEES? the industry has seen before. longer for the public to shake than ANNUAL REVENUE FOR ALL U.S. lie- at seats on long ights, even Airlines have shown the ability ey’ve been o ered $25 billion the fear of terrorist attacks. “Peo- CARRIERS adding business-class cabins on to adapt their business models. in federal grants to maintain pay- ple could be more afraid than they small regional jets in an e ort to ey could look to more fees, as rolls through Sept. 30. But United’s were after 9/11,” says Bob Harrell, $250 billion 2009 get a greater cut of the lucrative they did after the 2008-09 reces- top executives, CEO Oscar Munoz founder of Harrell Associates. recession corporate travel pie. sion. Baggage fees alone have and President Scott Kirby, warned Kevin Mitchell, chairman of the 200 Business travelers pay three grown from $1.1 billion in 2008 to in a March 27 letter to employees, Business Travel Coalition, puts Sept. 11 times what average leisure trav- $4.9 billion in 2018, according to “We expect demand to remain it another way: “What is going attacks elers do, according to Harrell As- the Bureau of Transportation Sta- suppressed for months after that, to happen to Broadway? At what 150 sociates, a travel consulting rm tistics. North American airlines possibly into next year. . . .If the point are people going to want to $239.8 billion in New York. Refundable fares fa- get 6.4 percent of their revenue recovery is as slow as we fear, it get back into a crowded theater? 100 vored by business travelers, which from ancillary fees, compared means our airline and our work- at’s a proxy for boarding an air- ’00 ’02 ’04 ’06 ’08 ’10 ’12 ’14 ’16 ’18 averaged $562 at the low end in with 11.8 percent for European force will have to be smaller than plane.” Note: All numbers are for scheduled services. 2019, bring in six times more rev- carriers, according to IdeaWorks, it is today.” at leaves business travelers, Source: Bureau of Transportation Statistics enue per mile than the cheapest a consulting rm. ey didn’t say how much whose need to return to the skies coach tickets. “I think pushing hard on a la smaller. But in a note to clients, will be driven by economics and able using it.” Last year, business- and rst- carte fees in a post-pandemic Becker sized it up this way: “We technology—neither of which fa- He says travel has always come class yers accounted for just 3 world will be problematic. Gov- don’t anticipate a return to 2019 vor airlines. back stronger after technology percent of passengers but 27.5 ernment, as a newfound nancial tra c levels until 2023 or 2024. “ e majority of business trav- advances. But it might take longer percent of revenue, according to partner in the industry, will not Our preliminary 2021 forecast is el is by small businesses, who this time. the International Air Transport tolerate excesses such as big ex- for revenues to be 12 percent be- are extremely hurt by this crisis,” “Air travel is pegged to GDP,” he Association. ecutive pay, stock bonuses and low 2019 levels.” Mitchell says. “What’s di erent says. “ e gains by Zoom and oth- Becker said it’s unlikely the car- higher bag fees. More importantly, Traditionally airlines have re- today than after 9/11 or SARS or er products are going to be deep- riers will be ripping out any lie- at consumer spending will be fragile lied on leisure travel, which can be the (2008) nancial crisis is the er, and it’s going to take far longer seats. “We think the investment and travelers will justi ably expect sparked by discounting fares, to telecommunications technolo- for GDP to get to a point where we in lie- at seats will still pay o as deals,” says Jay Sorensen, president lead a recovery from a downturn. gy, such as videoconferencing, is see a lot of new businesses being business travel slowly returns,” she of IdeaWorks in Shorewood, Wis. But this time may be di erent. e so much better and cheaper, and formed and we see growth recover said. “We don’t expect it to go back For the moment, the major U.S. massive shutdowns of wide swaths people are much more comfort- in premium-business travel.” 42 APRIL 6, 2020 • CRAIN’S CHICAGO BUSINESS Virtually everything is virtual From work meetings to zoo outings, Chicagoans have been participating in life via screen BY STEVEN R. STRAHLER tent—”to give more productions their 851 W. Belmont Ave. venue to more of a lifespan. ere was move- write, produce and perform a show, Everything is virtual now. ment in that direction (before the livestreaming the whole process. Well, not everything, of course, current crisis). I hope this will add to “It has been interesting to chat but virtually everything: book clubs, that momentum.” with our livestream audience and plays, music performances, share- Virtual annual meetings, after get immediate questions and feed- holder meetings, cooking and t- gaining a foothold over the last back during rehearsal,” says Execu- ness classes, fundraisers, medical decade, are clearly in for a boost. tive Producer and co-founder Jenni- appointments, real estate showings, Boeing, ADM, AbbVie and ITW are fer Estlin, while conceding, “We’re commodity trading, religious ser- among local companies giving them intensely aware of the missing piece, vices and funerals. a try this year. the coming together of actors and Stay-at-home orders amid the Proxy service ISS says 7.7 percent audience. . . . e emptiness of no coronavirus crisis have made the of the Russell 3000 staged virtual reaction, no laughter, no give-and- Goodman Theatre is preparing to o er subscribers an online performance of “School Girls; Or, the home the last refuge for face-to- meetings during the year ended in take between cast and audience, African Mean Girls Play.” face—and in-your-face—contact. June 2019, and Broadridge Financial will render it an oddity rather than a Zoom Video Communications stock Solutions says they will double this communal experience.” to spokeswoman Denise Schneider. “ e language barrier has be- is up 40 percent since the beginning year to at least 700 among its 5,000 Paul Abella, music director of Col- Ed Klaris, who runs an oceless come a lot more challenging than of March and fourfold since Zoom’s publicly traded clients. lege of DuPage jazz station WDCB, law rm specializing in intellectual it was in face-to-face meetings,” he year-ago initial public o ering. Meanwhile, resistance to working says, “Since this is all so new to all of property, cautions livestreamers— says. He can’t rely on lip-reading, Video tools like Zoom’s and the from home has met its Waterloo. us, I don’t think anyone’s really g- including hosts of exercise classes and his counterparts, forgetting he’s internet itself are providing disaster “ ere was never anything that ured out the cool new next thing to and dinner parties—about use of virtually present, are prone to “ ip recovery for many enterprises and compelled me to take a hard look at do with it yet. What I do think is great music and other unlicensed materi- to Cantonese.” enabling new ways of doing busi- it,” says Shawn Collins, who heads a is how quickly people have been al. Rights holders will be less oblivi- e work-from-home die is nev- ness, but not without complications. 10-lawyer plainti s’ litigation rm troubleshooting in order to turn out ous or willing to look the other way. ertheless cast, says Elaine Quinn, Like other entertainment ven- in Naperville. Now, there is. “I am pretty great-looking and -sounding Working virtually isn’t always who wrote “ ere’s No Place Like ues, the Goodman eatre went going to use this as an opportunity performances in the span of a week simple, either. Working From Home: Get Orga- dark, suspending performances of to reimagine the rm”—including and a half.” Until the outbreak, HOK archi- nized, Stay Motivated, Get ings “School Girls; Or the African Mean consideration of more free services e Goodman’s rst foray into tect Mark Banholzer was spending Done!” after job losses during the Girls Play” with plans to put it online for indigent clients and causes. virtual performance started 18 a majority of his time in Hong Kong, Great Recession. “ ere’s been a for subscribers. But that requires Nonpro ts like the Brook eld Zoo months ago when under a grant it on a renovation and 2 million- slow creep for the last 10 years,” says more than ipping a switch. are trying to convert downtime into allowed free access to its 2016 pro- square-foot expansion of the Prince the Glenview resident and former Goodman Executive Director a marketing tool. e zoo produces duction of Roberto Bolano’s “2666.” of Wales Hospital. “Now, I’m trying pharmaceutical executive. Young- Roche Schulfer says that though a Facebook Live “Bring e Zoo To Fallout from the virus has spurred to run four-hour meetings over the er workers, especially, are “going to some playwrights are concerned You” each weekday at 11 a.m. viewing. Volume since the begin- phone lines” most nights from his have no trouble making this a per- about copyright infringement, ac- Members of the Annoyance ning of March has matched that of Oak Park house because of the time manent arrangement. ey’re half- tors are open to monetizing con- eatre & Bar sheltered in place at the previous 12 months, according di erence, he says. way there already.”
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ChicagoBusiness.com/CompanyMoves CRAIN’S CHICAGO BUSINESS • APRIL 6, 2020 43 Take a look inside a wild house now on the market Eccentric design ourishes, bold curves and an expanse of glass brick ll the two-story main living space of this house built in 1998 in Deer Park
BY DENNIS RODKIN space “is completely di erent,” says Paul Baciu, who with his A wild house full of curves wife, Ildiko Folkel, is selling the and colors came on the market house because of a job change last week in northwest suburban that is taking them to California. Deer Park. “It’s very, very modern.” Although built in 1998, the e house was a re-damaged 8,800-square-foot house on foreclosure when the couple Rainbow Road has many of the bought it for $475,000 in 2014. hallmarks of exuberant 1980s Baciu says the present state of houses, including walls of glass the main rooms is a mix of origi- bricks, quirky shapes that veer nal pieces that weren’t damaged, far from the rectilinear norm and such as the plexiglass wall on pops of color in eccentric places, the lower staircase, and post- re such as the egg-yolk yellow form re-creations, some “more color- at the base of the staircase. ful” than the originals. Priced at $1.55 million, the “We’re Romanian,” Baciu says.
ve-bedroom house on just un- “We like modern.” PHOTOS STUDIOS VHT der 3 acres is represented by John Morrison of @properties. Aside from its extravagantly unusual main rooms, Morri- son notes, the house has a new kitchen, radiant-heated oors, a whole-house automation system that controls lights and indoor climate, and an oversized swim- ming pool. e two-story main living space is where the design is most outrageous. In other rooms, in- cluding the kitchen, the lines are more traditionally rectilinear and there are few dramatic ourishes. e design of the main living A place with room for the (extended) family in Riverside A 1916 home with a stone facade and leaded glass windows comes with a two-bedroom coach house
BY DENNIS RODKIN one on the same lot would suit their plan to have three genera- Walking the streets that curve tions—Frank and Susie Altmayer, alongside the Des Plaines River in their daughter and her husband pretty, historical Riverside, Susie and their four kids—living close Altmayer and her adult daughter, together without piling into one Alena, were impressed with the house. e two younger gener- imposing stone facade and lead- ations would get the big house, ed glass windows of this house on and the grandparents would get Bloomingbank Road. the coach house, where they’d be Built in 1916, the fortress-like close enough to host the grand- house “doesn’t look like any- kids any time of day. thing else,” Altmayer says. “It’s at was in 2016. e elder Romanesque Revival, with Prai- Altmayers bought the proper- rie School in uences,” she says, ty, moved the younger gener- drawing on the love of historical ations into the four-bedroom,
architecture that she and her 4,200-square-foot house, and PHOTOGRAPHY BURBANO JOHNNY husband, Frank, have nourished renovated the coach house into while restoring a series of homes a comfortable 1,000-square-foot in Riverside since 1984. home for themselves. Complete Inside, the house has well-pre- with its own patio and family served historical nishes, includ- room, the coach house “was the ing richly paneled walls, a sun perfect place for our grandkids to porch wrapped in stone and glass, come see us,” Frank Altmayer says. and a vast third- oor recreation A job change took the young- room lined with wood paneling er Altmayers to Colorado, so the and a hefty replace. grandparents are selling the prop- Altmayer and her daughter were erty, two houses on about six- also impressed by a coach house tenths of an acre. ey put it on big enough to accommodate a the market April 2, priced at $1.2 two-bedroom apartment. million and represented by Rory One big house and one little Dominick of Keller & Williams.
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