Highest-Paid Execs Earned Their Keep

Home , Cass Motor Sales, Ziebart

20140519-NEWS--0001-NAT-CCI-CD_-- 5/16/20146:17PMPage1 ©Entire contentscopyright2014byCrainCommunicationsInc.Allrightsreserved as presidentofthe keep managingboth.” tention, it’dbeadisserviceto “They bothneedsomuchat- Detroit,” Blaskiewiczsaid. for boththeDDPandInvest is thisabigmomentintime and the startups, the ing twoinvestmentfundsfor velopment projects,includ- that providesfundingforde- Business LeadersforMichigan vest Detroit other jobaspresidentof to devotemoretimehis what I’mdoingnow.” be replacingDave.Ienjoy placement butsaid:“Iwillnot been rumoredasapossiblere- Group eponymous in placebytheendofJune. to focusonInvestDetroit Blaskiewicz toleaveDDP to e-records,Page11 Doctors plugawayatswitch some movingoftheirown Real estatemoversdo adds products,franchises Ziebart avoidsgettingrusty, drive newtransitagency Meet 3finalistswhowantto Blaskiewicz

NEWSPAPER www.crainsdetroit.com Vol.30,No.20 Page 3 Health Care This JustIn David Blaskiewicz “The realmotivationforme Blaskiewicz saidhewants Eric Larson in BloomfieldHills,has Detroit InnovateFund — TomHenderson , anaffiliateof , whorunsthe First StepFund Larson Realty nonprofit velopment nomic de- for theeco- placement have are- hopes to but he been set, date has nership Detroit Part- is leaving Downtown . No In- . Masco Corp. Timothy Wadhams Last year,Nova’srevenuetotaled$12million. in solarenergyduringtheGranholmadministration. revenue whenPresidentSunilAgrawalsawafuture Nova ConsultantsInc.had$3millioninannual State’s solar surgepowersNovaConsultants’growth cording toexpertsinexecutivecompensation. CEOs inmetroDetroitstoodout2013,ac- money. bosses intownhaveearnedtheir pany CEOs,thenthehighest-paid the marketsarekeygoalsforcom- shareholders andoutperforming I Company 12- month return T f bringinghigherstockpricesto companies in2013trackedthehighestROE via ThomsonReutersBaselinedata,thesefive on equity 08 37% 50.8% Highest-paid execsHighest-paid By allmajormetrics,theperformanceby According tofigurestrackedby return onequityofthecompaniestheyrun. hese fiveCEOsrosetothetopinananalysisof CRAIN’S DETROITBUSINESS B earned theirkeep Y compensation from 2012 Change in T OM H THE TOP-COMPENSATED CEOS:2013 ENDERSON Delphi Automotive Rodney O’Neal Company 12- month return on equity 49.8% compensation from 2012 Change in -9.9% Loomis Sayles OETCHASE ROBERT MAY 19–25,2014 Page 24 non-CEO executives Top compensated CEOs, Page23 Top compensated C Ford MotorCo. Alan Mulally Company 12- month return RAIN on equity 32.5% ’ S company hadtheengineeringexpertiseandin- came toDetroitviaCanadain1987,realizedhis ment services. ly onenvironmentalandconstructionmanage- $3 millioninannualrevenuethatfocusedmost- energy bill. nifer Granholmsignedthestate’snewrenewable business inOctober2008whenthen-Gov.Jen- sultants Inc. neering andenvironmentalcompany LISTS compensation But Agrawal,animmigrantfromIndiawho Nova hadbeenanengineeringcompanywith Sunil Agrawal,presidentofNovi-basedengi- from 2012 Change in 10.7% compensation. figures includebonuses,stockawardsandother a percentageofshareholderequity).Compensation performance (theamountofnetincomereturnedas Ⅲ fice of market strategistintheBloomfieldHillsof- earned theirs,”saidDavidSowerby,chief See Page25formoredatahighlights , Loomis Sayles&Co.LP. , sawamajoropportunitytogrowhis CRAIN’S DETROITBUSINESS Syntel Inc. Prashant Ranade Company 12- month return B on equity 31.9% holder value,thentheseCEOshave is abyproductofdeliveringshare- performance. Andifcompensation both innear-termandlong-term is todelivershareholdervalue, tives atpubliclytradedcompanies Y J “The primeobjectiveforexecu- AY compensation G from 2012 Change in 18.4% REENE 20 INTHEIR 20s 2014 CLASSOF CELEBRATE THE Register at crainsdetroit.com/events or(313)Register atcrainsdetroit.com/events 446-0300. See Execs,Page25 TriMas Corp. David Wathen Company 12- month return on equity 22% Nova Con- . compensation from 2012 Change in -7.0% won thebid. proposals, 10wereselectedforreviewandNova Township. Thirty-fivecompaniessubmitted Energy solarprojectfor60kilowattsinScio Michigan issuppliedthroughwindpower. energy. Some96percentofrenewableenergyin 10 percentoftheirretailsalesfromrenewable Co. bill thatrequiredutilities,including 2008, thestateapprovedrenewableenergy cusp ofexplodingbecausethenewlaw.In terest totakeonsolarprojectsthatwerethe “DTE Energygaveustheopportunityand In 2009,NovasubmittedanRFPforaDTE and Consumers EnergyCo. merce of the Rich Studley,presidentandCEO ing inthewrongdirection. sion approvedThursdayishead- business groupswhosaythever- wages to$10.10anhour. minimum andtipped lot measurethatseekstoraisethe crease containedinaproposedbal- way toblockamuchlargerin- bill becausedoingsowasseenasa ties futurewagehikestoinflation. ning Sept.1and the waybegin- creases along stepped in- And itincludes $3.50 anhour. from $2.65to mum wage tipped mini- up from$7.40,by2017.Itraisesthe the minimumwageto$9.20anhour, happy andthebill’sfateuncertain. wage, butinawaythatleftmanyun- substantial hiketotheminimum tisan fashionThursday,approvinga not enough Too much, wage hikebill: Reviews on “It goestoofar,fast,”said But theyarenowhearingfrom Most Republicansvotedforthe Senate Bill934wouldincrease The stateSenateworkedinbipar- . CAPITOL CORRESPONDENT Michigan ChamberofCom- B Y C JUNE 12 HRIS DETROIT •5–9P.M. THE GARDENTHEATER $2 acopy;$59year , togenerateatleast exist? that doesn’t bill amendalaw minimum wage Can anew M See Wage,Page28 See Nova,Page26 G KN CENTS AKING AUTZ Page 28 DTE Energy ® 20140519-NEWS--0002-NAT-CCI-CD_-- 5/16/2014 2:23 PM Page 1

Page 2 CRAIN’S DETROIT BUSINESS May 19, 2014

MICHIGAN BRIEFS Too much Cherry Fest? Officials Ⅲ The state is seeking a sub- poena against AmeriGas Partners scale back on use of city park Benton Harbor as golf paradise: A path for Detroit? LP after consumer complaints Because some people in Traverse tied to pricing, the Traverse City City thought 17 days worth of the Benton Harbor’s emergency manager is gone, its banking on investment in a targeted area to revive Record-Eagle reported. Attorney National Cherry Festival is just too fes- budget is balanced, and the city of 10,000 is prepar- the city. General Bill Schuette said more tive, festival officials will trim two ing for the Senior PGA Championship on May 22-25 at The Harbor Shores plan features houses priced up than 400 complaints about high days off the time they were sched- its $60 million public golf course. As Detroit wres- to $1 million on a golf course with a spectacular propane prices have been made uled to use a popular park along tles with its bankruptcy, Benton Harbor totters into view of Lake Michigan. Parts of the sprawling statewide. Grand Traverse Bay. stability after four years of under its own emer- course — its 18 holes take seven miles to walk — Ⅲ Billy Sims, the former Detroit The Traverse City Record-Eagle gency manager. were built on polluted factory sites. A dowdy beach Lions running back who now runs reported that the decision comes Benton Harbor now has a streamlined government was overhauled with $2 million from Harbor Shores a chain of barbecue restaurants, is after some city commissioners under the watch of a state-appointed advisory board. Community Redevelopment, the developer. in talks with Bay County and state said this summer’s festival is too With a half-billion-dollar private development — an- “People who golf have money,” said Jeffrey Noel, officials to establish a milk pow- long, too expensive for the city and chored by the Harbor Shores golf course — plus cash president of Harbor Shores and spokesman for der processing plant that would an unnecessary infringement on from its largest business, Whirlpool Corp., the city Whirlpool. “People who have money talk to other ship to Asia, The Bay City Times hopes to overcome its reputation for haplessness. people who have money, who you hope, over time, city parks over the Fourth of July. reported. Benton Harbor mirrors Detroit’s decline from will invest in Benton Harbor. A golf course is a way Ⅲ Albion-based Caster Concepts The festival still will run July 5-12. might to blight. As with Detroit’s riverfront and of telling the story.” has purchased Rockford, Ill.-based Last year, the Traverse City City Midtown districts, Benton Harbor’s boosters are — Bloomberg News Modern Suspension Systems and will Commission approved a limit on the relocate operations to Michigan. number of summer festivals in an The company did not disclose the area of the city called “Open The TV schedule will be re- enjoyed job growth of 9.7 percent steel, plans to spend $16.1 million to purchase amount. Space.” The decision followed de- leased after the release of the AHL over the past five years. Ranking expand into Indiana, MLive.com re- Ⅲ Missy Langdon of Fruitport bate about whether festivals were schedule in August. Most broad- factors were recent growth trends, ported. In a statement released to casts will be road games. midterm growth, long-term growth the media in Indiana, CEO David won Pure Michigan’s love letter occupying the area for too long contest for her poem titled “A during the busy tourist season. Michigan Entertainment Sports and a market’s momentum, using Samrick cited that state’s right-to- President Peter Schinkai said his data from the U.S. Bureau of Labor work law, simplified regulatory en- Michigander’s Ode to the Mitten.” It network hopes to appear on all ma- Statistics. Ranking first on the list: vironment and low tax rates in the starts: “My Great Lake State with Wixom-based network to air jor cable systems in Michigan, Boulder, Colo. decision. waters blue, to you belongs my love games of Red Wings’ GR affiliate Ohio and northern Indiana in the Ⅲ The Grand Rapids-Wyoming Ⅲ Jackson-based Consumers En- most true. Each season has beauty next three years. area ranked sixth in the U.S. for ergy will provide $100 a month for for us to behold, even in winter — so The Grand Rapids Griffins of the the largest percentage growth in its employees who live in that bitter and cold.” So savor this poem, American Hockey League signed a nonresidential construction from city’s downtown, MLive.com re- amid your gloom, now that Michi- three-year agreement with Wixom- MICH-CELLANEOUS 2011 to 2014, according to a report ported. Under the Jackson Anchor gan Briefs has run out of room. based Michigan Entertainment Sports Ⅲ The Grand Rapids-Wyoming from CareerBuilder and Economic Initiative, businesses promote liv- Find business news from to televise a minimum of 40 games market ranks third on Forbes mag- Modeling Specialists International. ing, buying and innovating down- around the state at crainsdetroit a season over the next three sea- azine’s list of the “Best Mid-size During that period, nonresidential town. Initiative officials often .com/crainsmichiganbusiness. sons, MLive.com reported. The Cities for Jobs,” up from eighth in construction jobs grew 18 percent. point to Midtown Detroit as an ex- Sign up for the Crain’s Michi- Griffins are the minor-league affili- 2013 and 10th in 2012. The market Ⅲ Cascade Township-based Mill ample of how this type of program gan Morning e-newsletter at ate of the Detroit Red Wings. had 410,200 jobs last year and has Steel Co., a supplier of flat-rolled can succeed. crainsdetroit.com/emailsignup.

at ComstockJune 24 Inn Conference Center

I-69 Automotive Suppliers Forum What can you do today to stay ahead of the curve?

Tuesday, June 24, 5:30-8:00 PM Comstock Inn Conference Center, 300 E. Main St., Owosso, MI

Nigel Francis, Glenn Stevens, ~Michigan’s Comprehensive Strategic Road Map to Promote, Retain and Grow MEDC MICHauto the Automotive Industry in Michigan Keynote presentation by Nigel Francis, Michigan Economic Development Corporation (MEDC)

~“Ahead of the Curve” Panel Discussion featuring Nigel Francis (MEDC), Glenn Stevens (MICHauto and Detroit Regional Chamber), John Adrich (Machine Tool & Gear), Tom Manganello (Warner Norcross & Judd) and Kurt Brauer (Warner Norcross & Judd)

~Q&A and Networking with I-69 automotive supply executives and automotive-focused John Aldrich, Tom Kurt Brauer, attorneys Machine Manganello. Warner Tool & Gear Warner Norcross Norcross & Judd & Judd

Who should attend? Presidents, CEOs, CFOs, Purchasing Directors, Sales Directors and other senior executives. Auto suppliers and other manufacturers welcome. Register Now! Space is limited. This is a complimentary event. Cocktails and hors d’oeuvers included. http://wnj.com/i69Auto2014 or contact Lori Tuttle Measure at [email protected] 616.752.2492

A BETTER PARTNERSHIP® WNJ.com Macomb County Southﬁeld Midland Lansing Grand Rapids Holland Muskegon Kalamazoo 20140519-NEWS--0003-NAT-CCI-CD_-- 5/16/2014 6:18 PM Page 1

May 19, 2014 CRAIN’S DETROIT BUSINESS Page 3 Transit chief hopefuls down to 3 Inside

counties that took more than 40 RTA board to vote on finalists Wednesday years to successfully create. The three finalists are: BY BILL SHEA Candidates to Ⅲ Albert Martin, former director head the new CRAIN’S DETROIT BUSINESS of the Detroit Department of Trans- Regional portation and the Southeast Michi- Transit gan Transportation Authority (the The next CEO of the fledgling Re- Authority, gional Transit Authority of Southeast from left: forerunner to the Suburban Mobility Michigan must navigate metro De- Albert Martin, Authority for Regional Transportation) troit and Lansing’s often in- Brian Marshall bus systems, and a former deputy scrutable political universe while and Michael commissioner of the Connecticut also captaining the effort to per- Ford. Department of Transportation. Garden Fresh burger: A suade voters in four counties to ap- Ⅲ Michael Ford, CEO of the Ann Ar- prove a new transit tax in 2016. bor Transportation Authority since 2009, center of attention, Page 5 Oh, and the new CEO also must The RTA’s nine-member board day from a batch of seven appli- and a transit consultant before that. persuade four transportation agen- is scheduled to vote Wednesday on cants. Ⅲ Brian Marshall, a transit con- cies that jealously guard their mon- the organization’s next top execu- Whoever is chosen will lead a sultant who resigned as CEO of the ey and autonomy to play nicely to- tive from a pool of three finalists transit agency for Wayne, Oak- Company index land, Macomb and Washtenaw See Transit, Page 29 gether. winnowed by a committee last Fri- These companies have significant mention in this week’s Crain’s Detroit Business: 7 Greens Detroit Salad ...... 21 AgriSight ...... 10 Auto One ...... 27 Avison Young ...... 30 As real estate Axis Advisors ...... 30 Bay Area Family Physicians ...... 11 Blue Cross Blue Shield of Michigan ...... 6, 12 Burtek Enterprises ...... 4 moves, so do New shine CBRE ...... 30 CHE Trinity Health ...... 14 Citizen Yoga ...... 21 Clean Energy Coalition ...... 26 Colliers International ...... 30 the brokers Consumers Energy ...... 1 Dorey-Reagan & Associates ...... 25 Y IRK INHO to bottom DTE Energy ...... 1 B K P CRAIN’S DETROIT BUSINESS Farbman Group ...... 30 FarmLogs ...... 10 Local commercial real estate Ford Motor ...... 26 sales and lease deals are getting Garden Fresh Gourmet ...... 5 signed more quickly as the market General Motors ...... 26 recovers. GloStream ...... 13 line Great Fresh Food ...... 5 Also getting signed: a handful of Hayman ...... 30 prominent real estate brokers and Henry Ford Health System ...... 12 executives to new roles in the in- Hi-Lex Controls ...... 6 dustry. Huron Capital Partners ...... 10 Some of the moves in recent Jones Lang LaSalle ...... 30 months are tied to new brokerage Kojaian Management ...... 3 brands entering the marketplace. Loomis Sayles ...... 25 Others are midcareer profession- Marcus & Millichap Real Estate Investment Services . 30 als looking for a new challenge. McLaren Health Plan...... 16 McNaughton-McKay Electric ...... 26 The latest example was the an- Medical Network One ...... 11, 13 nouncement last week that, after Michigan Chamber of Commerce ...... 1 29 years with Michigan Health Connect ...... 12 Bloomfield Michigan Orthopedic Services ...... 13 Hills-based Koja- Michigan Restaurant Association ...... 25 ian Management Michigan Suburbs Alliance ...... 29 Corp., David Newmark Grubb Knight Frank ...... 30 Haboian left the NoJo Kicks ...... 21 company and Nova Consultants ...... 1 JOHN SOBCZAK Patriot Solar Group ...... 26 joined South- Daniel Baker, president of Ziebart Corp., says the company has repositioned itself as the car industry has evolved. Physician Alliance ...... 11 field-based Redi- Priority Health ...... 16 co LLC as senior Punch Bowl Social ...... 21 vice president of Raise Michigan ...... 25 Haboian operations. Ziebart repairs sales with new products, franchises Redico ...... 3 Haboian said his move was sim- Regional Transit Authority of Southeast Michigan . . 3 ply for a career change. around 100 locations in 21 states since a Corpus Renaissance Ventures Capital Fund ...... 21 Small Business Association of Michigan ...... 25 “It was nothing more than a BY CHAD HALCOM Christi, Texas, franchise opened two years ago, is TPC Michigan ...... 17 change of pace, to try something CRAIN’S DETROIT BUSINESS on the grow again with a new franchise opening last Transportation Riders United ...... 29 different,” Haboian said. “I’m in week in Spokane, Wash., and a new location for a ew products, new franchising markets and a United Physicians ...... 12 my mid-50s, so if I didn’t make a current franchisee coming to Canandaigua, N.Y. University of Michigan Health System ...... 12 strong spring season could bring Ziebart Inter- change, I probably wouldn’t. It was Daniel Baker, president of the parent company’s Valentus Specialty Chemicals ...... 10 national Corp. to a record year of auto after- just time to move on.” N U.S. franchisor, Ziebart Corp., said the Z Shield vinyl Valley City Sign ...... 26 Haboian will oversee Redico’s market accessory business — much of it overseas. film fills a demand for clear coating to prevent rock Wayne State University ...... 25 building operations and manage- The Troy-based accessories, glass repair, rustproof- chips and other projectiles from damaging a car’s The Z ...... 21 ment for its portfolio; at Kojaian, ing, remote starter and protection coating install- paint. The Ziebart product follows up on a Scotch- Ziebart International ...... 3 he was responsible for leasing the ment company reports April sales were 13 percent gard paint protection film that Minnesota-based 3M company’s buildings as executive ahead of a year earlier, and the company is now in 32 Corp. rolled out several years ago, but Baker said Department index vice president of brokerage. countries after landing new master franchise agree- Ziebart went for some improvements in its version. BANKRUPTCIES ...... 4 Haboian will take over some of ments for Poland and Kazakhstan in the past year. “This is a similar idea, but we didn’t want to the duties of Jim Jonas, executive A new auto paint protection film, called Z Shield, change the appearance or the color of people’s cars BUSINESS DIARY ...... 18 vice president of operations and launched last fall after two years in development and when it’s applied. Customers can feel strongly CALENDAR ...... 20 leasing at Redico. Jonas will con- has reached about 30 service locations, as Ziebart about that,” he said. “So unless you’re about 4 feet CLASSIFIED ADS ...... 21 continues to train franchisees on the new product. Its U.S. footprint, which has held steady at KEITH CRAIN...... 8 See Brokers, Page 30 See Ziebart, Page 27 OPINION ...... 8 OTHER VOICES...... 8, 9 Take one tablet ... PEOPLE ...... 19 HIS WEEK Crain’s new Web-based news reader lets you scan news and T @ RUMBLINGS ...... 31 blogs on your iPad or notebook device. To learn more about the WWW.CRAINSDETROIT.COM app, click on the link on our home page at crainsdetroit.com WEEK ON THE WEB ...... 31 20140519-NEWS--0004-NAT-CCI-CD_-- 5/16/2014 6:18 PM Page 1

Page 4 CRAIN’S DETROIT BUSINESS May 19, 2014 Burtek looks to add Huntington grows presence customers with Votaw, begin hiring in state with 13 BoA branches TOM HENDERSON Huntington (Nasdaq: HBAN) BY CHAD HALCOM CRAIN’S DETROIT BUSINESS will buy about $500 million in de- CRAIN’S DETROIT BUSINESS posits. The deal is expected to close Columbus, Ohio-based Hunting- in the second half of 2014. No loans Burtek Enterprises Inc., the ton Bancshares Inc. (Nasdaq: are included in the purchase. Chesterfield Township-based de- HBAN) continues to build its The two BoA deals will add fense and aerospace contractor presence in Michigan, announc- about $1 billion in deposits for bought out of receivership by Wyn- ing last week it has bought 13 Huntington. nchurch Capital Partners LP two branches in the state from Char- Huntington’s expansion in lotte, N.C.-based Bank of America years ago, is looking for overlap- Michigan began in 2009 with the Corp. ping business with new affiliate acquisition of the deposits of This follows a deal announced Votaw Precision Technologies Inc. — Warren Bank and continued with in April for Huntington to buy 11 and could be hiring again soon. the 2012 acquisition of Dearborn- Burtek last week announced that BoA bank branches in Michigan. based Fidelity Bank. local platform company Burtek Hold- “With this announcement, Also in 2012, Huntington an- ings Inc., formed when Wynnchurch Huntington has committed with- nounced an exclusive partner- Capital bought the assets of Burtek in the past four years to increase ship to locate Huntington branch- Inc. out of receivership in 2012, has our Michigan branch network es within Michigan Meijer stores, also acquired Santa Fe Springs, by more than 120 new locations,” Calif.-based Votaw. Terms were not said Stephen Steinour, chair- with 40 open so far and more than disclosed. man, president and CEO of Hunt- 40 others planned by 2020. “This is part of a longer-term ington, in a news release. Overall, the acquisitions and strategy that bringing the two The newest purchase involves expansion will grow Hunting- companies together, we can offer 11 locations in the Monroe and ton’s workforce in Michigan the capabilities of both companies Flint markets and single locations from about 1,500 in 2011 to more to each other’s customers,” Burtek in Holland and Muskegon. Only than 2,000 by the end of this year. CEO Jeff Daniel told Crain’s. the Holland and Muskegon Huntington is also ranked as Wynnchurch, a Rosemont, Ill., branches and one Monroe branch the No. 1 small-business lender private equity firm with offices in overlap within two miles of Hunt- in the state by the U.S. Small Busi- Bloomfield Hills, acquired Burtek ington’s existing branch network. ness Administration. Inc.’s assets for $9 million after several months in receivership. Since then, Burtek has added at least 33 new customers on a strate- outsourced risk management gy of diversifying outside of defense into the aerospace and energy industries, Daniel said. New customers since 2012 have included Spirit Aerostructures, Sie- mens AG and Mitsubishi International Corp. The growth has allowed Burtek to maintain revenue and approximately 140 employees in Chesterfield as defense budgets shrank amid federal budget seques- tration, Daniel said. New customers could account for 30 percent WHAT PATH ARE YOU ON? of total revenue in 2014. “And that’s just organic growth, outside of any opportunities from the Votaw acquisition,” he said. “We have done that by diversifica- tion, and our backlog is now the largest it’s been in three years.” As a result, Daniel said, Burtek expects to start hiring again by the third or fourth quarter this year for skilled trades, machining, welding and other employees. Votaw does significant business in spaceflight hardware, he said, although several of its engineered product lines THE MILLER LAW FIRM “complement” Burtek. Changing the Odds in our Clients’ Favor “This combination brings together over 70 years of experience, customer focus and performance excellence,” Wynnchurch Manag- ing Partner Terry Theodore said in a statement. Burtek reported annual revenue of $45 million and 214 workers before a committee of banks led by Pitts- burgh-based PNC Bank NA with $13.9 Minimize Exposure. Reduce Expense. million of combined debt sought a The Sterling Insurance Risk-Path-Process® is a proven receiver in federal court. The Votaw acquisition closed April 30. multi-channel, enterprise level risk management strategy. To ﬁnd out how you can minimize your exposures while driving down your cost, contact a Sterling Certiﬁed Risk The Miller Law Firm is Recognized Architect to get you on the right path. as a Leader in Complex Business Litigation BANKRUPTCIES The following business filed for pro- 888.525.7575 | 586.323.5700 | sterlingagency.com tection in U.S. Bankruptcy Court in De- Q Automotive Supplier Counseling Q Commercial and business lawsuits troit May 9-16. Under Chapter 11, a Q Employment litigation Q Shareholder and partnership disputes company files for reorganization.

Referral fees honored on contingency fee cases Chapter 7 involves total liquidation. D&D Products LLC, 19 N. Hamilton St., 950 West University Drive, Suite 300 248-841-2200 millerlawpc.com Ypsilanti, voluntary Chapter 11. As- Rochester, Michigan 48307 sets and liabilities not available. Sterling Insurance Group is a Michigan based company. — Bridget Vis 20140519-NEWS--0005-NAT-CCI-CD_-- 5/16/2014 5:25 PM Page 1

May 19, 2014 CRAIN’S DETROIT BUSINESS Page 5 Garden Fresh to fork over $700K so it can stuff enough of new burgers

BY KIRK PINHO Polcyn, owner of Forest Grill in Birm- CRAIN’S DETROIT BUSINESS ingham, developed the burgers’ stuffing options, Zilko said. Most burgers can be made on a After a trip to Germany in 2012, grill in just a few minutes, but Jack Aronson and Zilko returned to the Aronson and Dave Zilko’s burger U.S. dreaming of developing a line of business strategy took about 2½ stuffed hamburgers inspired by years to reach serving temperature some of the high-pressure pasteuriz- for the masses. ing technology they saw overseas. Now their time and $6 million in- It was an expensive investment vestment appear to be paying off as COURTESY OF GARDEN FRESH FOOD for the two machines they bought, their Jack’s Special Grilled stuffed Dave Zilko on the new line of stuffed which sell for $1.96 million each. chicken burgers have hit the burgers: “I can honestly say I’ve never There are only about 100 in the shelves in Michigan and on the East gotten a more enthusiastic response.” world, and Great Fresh owns the Coast, and the 26-employee parent only two in Michigan, Zilko said. company, Clinton Township-based and distribution, and that alone is Great Fresh Food, fights to keep up a big plus,” Karp said. “But where “They perfectly form a meatball with the unexpected level of de- the rubber meets the road is con- and slam it into a patty,” Zilko said. mand. sumer use — and repeat — that Zilko said Great Fresh Foods To address that, Great Fresh builds a regular business.” hopes to have beef hamburgers, Food plans to invest $700,000 in The convenience factor comes both stuffed and unstuffed; stuffed new equipment for its 20,000- from all the ingredients being beef and stuffed chicken meatballs; square-foot building south of Hall stuffed inside, so consumers don’t and grilled chicken breasts on the Road between Groesbeck Highway have to purchase things like shelves in the next year. and North Gratiot Avenue. It also spinach, red pepper, bacon and oth- Things look bright for the prod- plans to add a second production er ingredients separately, Karp said. uct line, Karp said. shift “within a couple weeks” with Meijer stores carry packages of “I think there is a good chance 15-18 employees, Zilko said. two 4.5 ounce patties; Meijer or- that this will get some good trac- The equipment includes another dered up to six cases of six pack- tion,” Karp said. “They are good $400,000 burger- ages per store, according to Zilko. businesspeople, so they’ll know stuffing ma- Costco stores carry packages of how to do promotion to get the trial, chine and a eight 4.5-ounce patties; it ordered a and at the end of the day, consumer $300,000 packag- total of 86,000 patties, Zilko said. preference will determine what the ing machine, Aronson, founder of Garden real success of this will be.” said Zilko, vice Fresh, and his wife, Annette, are Kirk Pinho: (313) 446-0412, chairman of majority owners of Great Fresh [email protected]. Twitter: Aronson’s Fern- Food. Jack Aronson and chef Brian @kirkpinhoCDB dale-based Gar- den Fresh Zilko Gourmet, one of the nation’s leading salsa and tortilla chip pro- ducers. The company has 433 employees in Michigan and had $110 million in revenue in 2013. The packaging is currently done by hand. “Are we straining? Yeah, because the orders are so big,” Zilko said. “It’s a startup and we have some {HighŖlighted.} big, big accounts that have come in. Initial orders are bigger than we thought they would be. When you’re involved in a startup, you don’t have your work well perfected Sign up for a Plante Moran Webinar just yet.” The burgers started hitting the Our spring webinar series is designed to provide shelves last month in all 203 stores insights to keep you ahead of trends. These of Walker-based Meijer Inc. stores and in 56 Costco stores. They are CPE-approved* sessions cover critical business also carried in 188 BJ’s Wholesale topics from cyber security to international tax. Club on the East Coast. Zilko said he met last week with Shop Rite, which Double-booked? Don’t worry. Visit our archives has about 260 stores in New York, and enjoy the presentation at your convenience. New Jersey, Pennsylvania, Sign up for a Plante Moran webinar this spring Delaware and Connecticut, about adding the product to its shelves. and ﬁnd out why Plante Moran’s webinars offer “I’ve been showing these to people for really about a year and a half, and I can honestly say I’ve a higher return on experience. never gotten a more enthusiastic response,” he said. Zilko expects the burger line — which has stuffing options of spinach and three cheese; apple wood smoked bacon and cheddar; roasted red pepper and mozzarella; and pepper jack cheese — to generate $10 million to $15 million in revenue annually starting next year. Register at webinars.plantemoran.com That’s possible, said Gary Karp, executive vice president of Chica- * Plante Moran is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor go-based food market research of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have firm Technomic Inc. — if the burg- ﬁnal authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors ers appeal enough to consumers. may be submitted to the National Registry of CPE Sponsors through its website: www.learningmarket.org “If you’re in Meijer, if you’re in Costco, you’ve got good exposure 20140519-NEWS--0006-NAT-CCI-CD_-- 5/16/2014 5:25 PM Page 1

Page 6 CRAIN’S DETROIT BUSINESS May 19, 2014 BOSTON RED SOX Hidden-fees ruling against Blues VS DETROIT TIGERS opens door to lawsuits under stay

BY CHAD HALCOM FRIDAY CRAIN’S DETROIT BUSINESS U.S. District Judge Victoria Roberts had : It’s “game on” once more for 35 JUNE 6 • 7 08 PM self-insured businesses looking to found that Blue Cross used a deceptive recoup alleged hidden fees in past reimbursements to Blue Cross Blue practice to hide fees and surcharges that Shield of Michigan, now that a feder- SATURDAY al appeals court has upheld a were rolled into claims. $6 million-plus judgment for Hi-Lex Controls Inc. the other Varnum lawsuits. hide fees and surcharges that were JUNE 7 • 7:15 PM The Litchfield-based maker of “So in that case we were ready to rolled into claims billed under ad- window regulators with an auto- go to trial. But what remains to be ministrative services contracts motive design center in Rochester seen now is whether the Blues is with self-insured businesses and Hills obtained the judgment last willing to go to trial on a case local governments. SUNDAY July before U.S. District Judge Vic- where all the key questions have al- This included concealing four toria Roberts in Detroit, in the first ready been answered in the Hi-Lex fees in billing statements to Hi-Lex of many lawsuits through Grand case,” Rynders said. “We have not for employee benefit claims — a JUNE 8 • 1:08 PM Rapids-based Varnum LLP to go to had a chance to confer with Blue network access fee, a contribution trial. Cross counsel since the decision.” to the Blues’ contingency reserve, The other companies’ cases were SUNDAY KIDS DAY Administrative services con- a retiree coverage surcharge and put under a stay after Blue Cross tracts allow self-insured employers, an “other-than-group fee” that appealed the Hi-Lex decision, and it On-Field Photo DayDa retirement funds, unions and other helped subsidize its Medigap cov- was not immediately clear who was organizations to use Blue Cross’ erage plan for senior citizens. due next in court after the 6th U.S. The insurer has said previously Circuit Court of Appeals ruling last network and administrative ser- Joe Nathan Mini Fathead to vices to process insurance claims. that its Hi-Lex contract language week ended the stay. is identical to an agreement it Other self-insured employers to all kids I4 & under Partner Perrin Rynders at Var- maintained for self-insured Cal- sue Blue Cross between 2011 and num, who is handling the litiga- houn County. In that case it was last fall over fees in their contracts tion against Blue Cross in Detroit, able to get a 2011 judgment for include Detroit-based Wade Trim said one lawsuit from Kalamazoo- $1.14 million overturned by the based Burroughs Corp. and its em- Inc., Adrian Steel Co., Baker College and Magna International of America Michigan Court of Appeals. ployee benefit plan was about two “Blue Cross Blue Shield of Michi- weeks away from trial when the Inc., the Troy subsidiary of Ontario- gan is disappointed in the decision stay was imposed last summer. based Magna International Inc. in federal court, which runs con- That case is also before Judge Roberts found that Blue Cross trary to state court rulings over the Roberts, along with at least 10 of had used a deceptive practice to same contract language,” Blue Cross Director of Corporate Com- munications Helen Stojic said in a Ferdinand Samson, VP, Equipment Finance of Level One Bank and client Robert Brisley, statement last week. President of Polymer Process Development “We are reviewing the decision for appeal. The access fees under dispute enabled Hi-Lex to receive substantial discounts in hospital services, which resulted in mil- lions of dollars of savings in hospital costs for Hi-Lex.” The insurer had also received a $1.03 million judgment from 2011 in favor of Midland County re- Ferdinand “Ferd” Samson, VP, Equipment Finance of versed on appeal last year; the Level One Bank at Polymer Process Development, a Level One client state appeals court also sided with the Blues in claims on behalf of the Genesee County Road Commission, Equipment Financing the city of Saginaw, Cass County and Tuscola County. In the Hi-Lex case, Roberts had found the Blues were losing thou- Tailored for you, the entrepreneur. sands of customers in the early 1990s when proposing the various fees, until it adopted a practice in Finance up to 100% of equipment, plus soft costs. late 1993 of rolling them into the category of hospital charges and Flexible terms. Local decision making. not detailing them within the contracts. Call us Blue Cross could challenge the Hi-Lex decision either by seeking a rehearing before the three-judge panel that ruled last week, peti- Contact Greg Wernette tioning for the entire federal circuit bench in Cincinnati to hear it, Entrepreneur and Chief Lending Oﬀicer, 248-737-0300 or by asking the U.S. Supreme Court to take up the case. “I would suggest that (a Supreme Court hearing) is unlikely. The Supreme Court does like to hear cases that resolve … a difference of standards imposed by different appellate circuits,” Rynders said. “There is an issue here with different standards, under either (standard) we prevail, so I don’t 32991 Hamilton Court ∫ Farmington Hills, MI 48334 ∫ levelonebank.com think this case is ripe for that.” Chad Halcom: (313) 446-6796, Commercial Banking ∫ Retail Banking ∫ Mortgage Services All ﬁnancing subject to credit approval. [email protected]. Twitter: @chadhalcom 20140519-NEWS--0007-NAT-CCI-CD_-- 5/16/2014 2:23 PM Page 1

May 19, 2014 CRAIN’S DETROIT BUSINESS Page 7 Advice to GCs at Crain’s summit: Understand organization’s goals

How can in-house attorneys de- ethics at Masco Corp. — discussed took back. Instead of repossessing velop their own careers and navi- Keynote speaker their top 10 strategies for how the the vehicles, she said she began to Mary Ann Hynes: gate the C-suite? By taking the “Lawyers are audience of general counsels could look at a range of other options to time to truly understand an orga- usually risk-averse, become better business partners. keep people in their cars. nization’s goals. but leaders consider “Lawyers that understand a To learn about where Masco’s Attorneys at Crain’s General the risk and reward business and its strategy are more companies are headed, Yapchai and In-house Counsel Summit on of a decision.” effective in their roles,” said said she listens to earnings calls. May 13 offered these and other Michelle LeBeau, managing share- Kurnick said he invites his com- lessons from the trenches and the holder for the metro Detroit office pany’s general counsel to be a part boardrooms at the annual net- of Ogletree, Deakins, Nash, Smoak & of as many meetings as possible to working and educational event. Stewart PC, who moderated the learn and understand Penske’s Hosted at the Westin Book Cadil- panel. goals and objectives. lac Detroit, the summit drew about Knowing an industry, Williams Another challenge faced by gen- 300 people. said, takes researching the indus- eral counsels: Not being “Doctor Keynote speaker Mary Ann try’s key players, the culture of the No” due to their role of mitigating Hynes, senior counsel at the Den- industry and where it is headed. risk, LeBeau said. tons law firm in Chicago, reflected Reading trade publications is Yapachi said her job is to trans- on her career and her status as the one way Yapchai said she learns late what the law allows the compa- first woman to hold a general coun- AARON ECKELS about the industries that Masco’s ny to do to reach its goals, instead of sel title at a Fortune 500 company. diverse range of businesses are in. having executives ask if they can do “Don’t be confused; notoriety is or her post is to understand the the same ballpark as nationally. Kurnick said he recommends x, y or z and her repeating “no.” not the same as leadership,” Hynes needs of the company. She urged Also along the lines of leader- general counsels know the compet- However, Kurnick cautioned said. “Lawyers are usually risk- the room to attend C-suite strategy ship development was a panel dis- itive landscape of the industry and not to forget a general counsel’s averse, but leaders consider the risk meetings and ask questions. cussion for in-house counsel called how a company peer-ranks its job is to be a lawyer, and to never and reward of a decision.” “Are you holding yourself back?” “Learning to Speak Business.” competitors — as well as its rev- put the best legal recommenda- In 1979, Hynes was the first she asked. Knowing your company’s indus- enue drivers. tions aside when providing advice. woman to be general counsel at a Hynes’ talk comes at a pivotal try was the first strategy for how That tip led into the second Tuesday’s event was held in Fortune 500 company, CCH Inc., a moment for women in general general counsels can evolve into strategy for how general counsels partnership with the Michigan Riverwoods, Ill.-based provider of counsel roles. There are now 105 trusted business partners. can be better business partners: chapter of the Association of Corpo- information services and software women holding the post at Fortune The speakers — Robert Kurnick Understanding the business objec- rate Counsel and the State Bar of for tax, accounting, legal and busi- 500 companies, according to a Sep- Jr., president of Penske Corp./Penske tives and goal of the company for Michigan-Business Law Section In- ness professionals. She went on to tember survey by the Washington, Automotive Group Inc. and former which they work. House Counsel and in cooperation hold general counsel positions at D.C.-based Minority Corporate Coun- partner at law firm Honigman Miller Yapchai gave an example from with the Oakland County Bar Associ- companies in multiple industries. sel Association. That’s 21 percent of Schwartz and Cohn LLP; Vanessa her time at Ford Motor Credit Co., ation and the Society of Corporate She was the first female officer of all general counsels in the country. Williams, vice president, chief legal where she had to change the ad- Secretaries & Governance Profes- Sundstrand Corp., now UTC Aero- The pattern holds in Michigan. counsel and global privacy officer at vice she was giving for how to han- sionals. Title sponsor of the event space Systems. There are three women general IHS Automotive; and Kim Yapchai, as- dle people with cars in default af- was Ogletree, Deakins. Hynes said the best way a new counsels among the state’s 16 For- sistant general counsel and director ter she learned the company’s goal Reporting by Dustin Walsh, general counsel can lead from his tune 500 companies, or 18.7 percent, of group legal affairs and corporate was to lower the number of cars it Bridget Vis and Daniel Duggan.

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Page 8 CRAIN’S DETROIT BUSINESS May 19, 2014 OPINION OTHER VOICES Gilbert deserves View from ‘up north’: Placemaker title Detroit deserves a lift Michigan lawmakers some of the city’s prized to ignore these realities and turn oliticians with packed schedules often make a podium have an opportunity to artwork to fund the re- its back on this historic opportu- appearance at civic events, then quietly leave through make history in the com- structuring plan — a nity? P a side door. Not so last week when the Michigan Dis- ing days and significantly short-sighted move that In the other direction, we out- trict Council of the Urban Land Institute presented Dan accelerate the state’s eco- would strip away assets staters love Detroit when it comes nomic comeback by sup- from one of the city’s to the Tigers, Lions and Red Gilbert its annual Placemaker Award. The room at the Westin porting a proposal to help prized public treasures. Wings, so we should show that lev- Book Cadillac Detroit was brimming with VIPs. the city of Detroit emerge That’s akin to Traverse el of enthusiasm and support to Mayor Mike Duggan, who joined his predecessor, Dave from bankruptcy. City selling some of its wa- help this once-great city get back Bing, at Gilbert’s table, spoke before dinner — and stayed. But this plan — noth- terfront open space to fill on its feet. Duggan said he first met Gilbert when Gilbert was honored ing short of remarkable, a budget Like it or not, given the extraordinary Doug Luciani hole. How around the na- as Crain’s Newsmaker of the Year in 2007. Though Gilbert was support from private business, would that go over tion and the flirting with the downtown move then, it would be three years foundations, Detroit city pension- with local resi- Like it or not, globe, the for- before Quicken Loans moved. Duggan said Gilbert’s speech ers and others — will be an oppor- dents? around the nation tunes of Detroit was memorable in part because he closed by saying, “Who’s tunity lost of the highest propor- Then there’s the are tied to the fu- coming with me?” tions if our legislators can’t get “bad precedent” and the globe, the ture of Michi- past generations of party politics, argument: If we Since then? About 12,000 employees and a handful of other gan. While other dated stereotypes and possibly bail out Detroit, fortunes of Detroit parts of Michi- investors followed Gilbert’s lead. The ULI honored Gilbert for worse. what about all the gan have grown what he has done in four years: buying 50 downtown proper- Some of the arguments against other municipali- are tied to the future in stature and ties encompassing 8 million square feet, investing $1.3 billion state support for this restructur- ties that need mon- clout in the and making downtown a more vibrant, lively and attractive ing are so hollow they don’t even ey? That’s an ob- of Michigan. midst of De- pass Civics 101. “Why should out- stacle always place to be. troit’s troubles, state residents send their tax dol- trotted out to block Doug Luciani, Traverse City Area the Motor City — He joins past “placemaker” honorees who have had an im- lars to Southeast Michigan?” is solutions to deep Chamber of Commerce warts and all — pact on downtown: Edsel Ford II for creating Campus Martius one of them. and complex prob- is still most iden- Park through the Detroit 300 celebration and Peter Karmanos Well, simply, that’s how state lems. The federal government’s tified with the Wolverine State Jr. for creating the Compuware headquarters downtown. government operates. For decades, rescue of General Motors was un- across the U.S. and around the the more-populous southern parts precedented, but it saved thou- “There’s something special going on here,” Gilbert told the world. If economic and political of Michigan sent a disproportion- sands of Michigan jobs and pre- storm clouds continue to hover largely suburban crowd last week. “Beyond a blip … you can’t ate amount of tax dollars to north- vented the collapse of an American over Detroit, it will remain over- ern and out-state Michigan to fund business icon. The “bad prece- make these bets on a spreadsheet.” cast across most of Michigan. roads, bridges, schools, parks and dent” excuse is a crutch for those We’ve seen this before: successful businesspeople becoming In late April, Doug Rothwell of other state services. For example, who won’t work toward creative civic leaders. Roger Penske did it. Others before Gilbert have, Business Leaders for Michigan Southeast Michigan residents are remedies to extraordinary circum- visited Traverse City and assured too. But for the scope and speed with which his Detroit invest- proportionately contributing more stances. a group of northern Michigan’s ments are taking hold, Gilbert deserves the title: “Placemaker.” to the Pure Michigan campaign There are also historic and eco- business people that Detroit has than residents up here — while nomic aspects to this issue that our region reaps huge benefits shouldn’t be overlooked in our indeed turned the corner and that from this highly successful prisoner-of-the-moment mindset. real economic revival is happen- Wage bill good compromise ing. A new group of leaders is tourism strategy. You don’t hear The people of Detroit helped build charting a new course for the city, Michigan workers may get a pay boost, thanks to Republi- Southeast Michigan complaining northern Michigan’s tourism in- about that. dustry in the 1950s, ’60s and ’70s — and it’s time to bury decades of can lawmakers. No, that’s not a typo. When Kalkaska Public Schools and continue to fuel it today. mismanagement and mistrust. Republicans in the state Senate led the charge to boost the closed in the mid-1990s after the Southeast Michigan remains Polls show the residents of minimum wage to $9.20 an hour by 2017. If passed into law, the district ran out of cash, southern inextricably tied to much of Michigan support the Detroit re- measure potentially would short-circuit a petition drive that Michigan lawmakers could have northern Michigan’s manufactur- structuring plan and are ready to invest a relatively small portion of would drive the wage even higher — to $10.10 — as well as ap- looked the other way and said ing sector, as our small and mid- “Hey, not our problem!” Instead, sized operations crank out compo- state dollars toward this much ply to tip-based employees to boot. the Legislature went to work and nents for the auto industry. The larger bankruptcy exit strategy. That latter effect would cripple many restaurants and hos- came up with a better method to people of southern Michigan help The question for lawmakers pitality venues. The Senate measure is a good compromise. fund Michigan’s public schools. consume our region’s vast agri- standing in the way is simple: There’s a growing disconnect between the highest earners It’s a system that needs reviewing cultural output, their world-class What excuse will you reach for the next time there’s a tough problem at the top of the scale — just look at the Crain’s list of top-com- again, but the point is the state learning institutions educate our came together to work toward a so- graduates, and their cultural at- to solve? pensated execs on Page 23 — and the average worker. lution instead of pointing fingers tractions are enjoyed by folks Doug Luciani is president and The Senate proposal is a reasonable alternative to crip- and assigning blame. across the state and beyond. Is it CEO of the Traverse City Area pling an entire industry in Michigan. Some want Detroit to auction off really in our region’s best interest Chamber of Commerce.

KEITH CRAIN: Our military veterans deserve better care All you have to do is take a close erans a medical insur- not let our veterans taxpayers lots of money. ing health care delivery system. look at the U.S. Veterans Affairs ance card that would be have a choice between a I have always felt that the VA It has been an embarrassment health care system to realize you good anywhere in our VA hospital and the lo- system should be for very specific for the nation when the recent rev- don’t want government running health care delivery sys- cal hospital? ailments that are simply beyond elations were exposed about the in- any health care system, much less tem? They could use Considering how the scope of a normal medical sys- adequacy of our VA hospitals. How many of those veterans one for veterans of our armed any doctor or hospital. many billions of dollars tem. But it also seems rather re- could have been adequately treat- forces. For specific maladies we spend on our VA dundant to duplicate routine facil- ed in a local hospital without hav- It seems to me that there is a bet- veterans face that are hospital system, we ities that already exist. ing to wait for a VA system to fit ter solution than trying to fix our difficult for a general could let the civilian We have the best health care them in? busted veterans hospital system. hospital or doctor to medical system take system in the world. I am not con- Let’s try and alleviate the Most ailments that affect our vet- handle, we probably care of veterans and the vinced that we are offering our vet- crowding of our VA hospitals. erans are the kinds of medical is- need the VA. VA pay the bill. I bet it erans the same level of medical Let’s try and make government sues everyone faces. But rather than try to fix a sys- would be a lot more efficient for coverage they would have if they smaller but more efficient and do a Why don’t we just give our vet- tem that is definitely busted, why the veterans, and it would save the simply took advantage of our exist- better job serving our veterans. 20140519-NEWS--0009-NAT-CCI-CD_-- 5/15/2014 4:23 PM Page 1

May 19, 2014 CRAIN’S DETROIT BUSINESS Page 9 OTHER VOICES: Policies in Michigan must aid kids of color Should a child’s skin col- are far, far below the na- less likely to live in higher-income for children. These two steps will As the economy continues to or matter in 2014? Many tional average index for neighborhoods than African- no doubt help children of color. recover, it’s important to focus on well-intentioned people African-American kids. American kids anywhere in the Yet often, policymakers seem policies that will help those families would say, “No, kids are Only Mississippi and Wis- country. more intent on punishing low-in- trying to overcome enormous barri- kids, no matter what their consin were ranked lower. As jobs dried up and the auto income and impoverished families ers. Raising the minimum wage, color, heritage or back- Let’s be clear. The intent dustry suffered, beginning a decade than creating transportation sys- fully restoring the state’s Earned ground.” is not to measure the suc- ago, unemployment rose more dra- tems that connect the parents to Income Tax Credit and increasing They would be wrong. cess or failure of the chil- matically among African-Ameri- jobs, helping communities flour- child care subsidies for very low- In fact, as a new Annie E. dren. It measures the can workers than others. A study ish by restoring revenue sharing, income workers are all positive Casey Foundation report chances they have, the op- by the Economic Policy Institute and growing the workforce with steps that will help low-wage work- points out, the opportuni- Gilda Jacobs portunities, to succeed. It last year found Michigan’s African- needed investments in education ers support their families. ties and conditions for chil- measures our success or American unemployment rate was and access to higher education. In- We all have too much at stake to dren in Michigan vary dramatically failure as communities and as a the highest in the country. stead, they have concentrated on be color-blind to the “Race for Re- by race/ethnicity. “Race for Results: state to offer them. The governor and lawmakers ending support for struggling fam- sults” findings. Building a Path to Opportunity for It appears that the Great Reces- have taken positive steps to im- ilies with children, cutting federal Gilda Jacobs is president and All Children” creates an index, bro- sion took its toll more deeply in prove the quality of life in Michi- dollars for food aid, disinvesting CEO of the Michigan League for ken down by race/ethnicity, using communities where many chil- gan by expanding Medicaid for in education and ending child Public Policy, a state-level policy in- 12 milestones kids need to reach to dren of color live. In fact, African- uninsured adults and to make abuse/neglect prevention pro- stitute dedicated to economic oppor- become successful adults. It finds American kids in Michigan are preschool more widely available grams. tunity for all. that Asian/Pacific Islander and white children are more likely to reach those milestones than Hispan- ic/Latino, American Indian or African-American children, in that order. In Michigan, opportunities for white and African-American children — the two largest groups — are below their national peers, while the other racial/ethnic “ IS IT REALLY EASY groups compare favorably with their national peers. Why is this important? By 2018, children of color will be the majority in our country. By 2030, the ma- TO SAVE MONEY BY jority in the labor force will be people of color. By midcentury, no single racial group will be a majority. As the report notes: “The price of SAVING ENERGY?” letting any group fall behind, already unacceptably high, will get It’s never been easier to save your business money. Replace old incandescent exit signs higher.’’ In Michigan, one in three chil- with LEDs, and you can save up to 95% on energy costs. An energy management system dren is a child of color, and one in that turns lighting equipment off during downtime can save you a lot. And installing six in Michigan is African-Ameri- can. Opportunities for African- a programmable thermostat to automatically lower heating and raise air conditioning American children in Michigan temperatures during off hours will save you even more. Plus, you can tour our Interactive Business and Lighting Advisor tools for more ways to save. For additional cost-saving tips, go to dteenergy.com/biztips. Saving money has never been easier. TIME RUNNING OUT TO ENTER COOL PLACES TO WORK Crain’s biennial Cool Places to Work in Michigan awards return this year, and again Crain’s is working with Best Companies Group of Harrisburg, Pa. The competition has two parts: one questionnaire for employers, another for employees. The results will determine who qualifies for Cool Places designation. Best Companies supplies all participating companies with an employee feedback report based on employee responses to the 72- question survey. The report can help company executives identify strengths and weaknesses in their company culture and practices. To be considered for Cool Places to Work, companies must register at coolplacestoworkmi.com by May 23. Other important dates, samples of the surveys and other information are on the website. Once registered, companies will be invited to participate in the surveys. Businesses and nonprofits can apply. Applicants must have a minimum of 15 employees working in Michigan and have been in business at least one year, among other criteria. Start saving today, visit: Companies pay a fee based on company size to Best Companies dteenergy.com/savenow to cover survey costs. The cost ranges from $610 to $895 for online surveying, and $765 to $1,660 for paper surveying. 20140519-NEWS--0010-NAT-CCI-CD_-- 5/15/2014 4:44 PM Page 1

Page 10 May 19, 2014 Farm IT firm to replant in larger Ann Arbor space

BY DUSTIN WALSH CRAIN’S DETROIT BUSINESS

Farm data startup AgriSight Inc., better known as FarmLogs, is expanding into a larger space in Ann Arbor. The software firm, whose product provides agriculture data to Hindsight I farmers, signed a lease in the Ker- s Not a P rytown Market and Shops building erform at 410 N. Fourth Ave. The firm ance plans to move from its space at 201 Stra E. Liberty St. by July 1. teg AgriSight will take over the en- Building a high-performance business y tire second floor, with 5,812 square requires more than a rear-view mirror approach. feet of space, it said in a release. The move is to accommodate new employees. AgriSight plans to At Doeren Mayhew, we help businesses focus on the track ahead, hire more than 10 by the end of use forward-looking financial data to successfully bank the turns, and 2014, bringing its total to more spot the warning flags that it may be time to pump the brakes. than 20, the company said. The Kerrytown building “is an attractive location for us in the down- An internationally recognized, Top 100 U.S. firm, Doeren Mayhew town Ann Arbor area, and we are fuels our clients with insight into their businesses, oversight to excited to have a new home for our ensure best practices and foresight for what’s ahead. We invite you growing team that is building the data-driven future for farming,” to see how our crew can help you accelerate growth, maintain a Jesse Vollmar, CEO and co-founder, steady pace or cross the finish line a real winner. said in a statement. Insight. Oversight. Foresight.® AgriSight received funding from Andreessen Horowitz in Menlo Park, 248.244.3000 Calif., and Start Fund, set up by social doeren.com media investor Yuri Milner. It also raised $5 million in two rounds of investment, with Huron River Ventures in Ann Arbor, Hyde Park Venture Partners and Hyde Park Angels in Chicago and Drive Capital in Columbus, Ohio, participating. Vollmar, 25, was named a Crain’s 20 in their 20s award winner this month.

Huron Capital launches specialty chemicals company

Detroit-based Huron Capital Part- ners LLC has formed its newest platform company in partnership with Ray Chlodney, a veteran of the specialty coatings industry. The company is called Valentus Specialty Chemicals Inc. Huron plans to invest in regional coatings companies and roll them into Va- lentus. The company’s headquarters will depend on where upcoming acquisitions are located. In a news release, Huron said it plans “to build a company with technically advanced and environ- mentally friendly reactive coating solutions serving a variety of end markets and geographies.” The specialty-coatings market is estimated at $18 billion annually. The investment comes from Huron’s $500 million Huron Fund IV LP. Huron partner Jim Mahoney said Huron can spend up to $100 million in platform companies. Chlodney has spent more than 30 years in the specialty chemical industry and has held executive positions at PPG Industries, Lilly Industries, Bayer Corp. and Benjamin Moore Paints. — Tom Henderson 20140519-NEWS--0011,0012-NAT-CCI-CD_-- 5/15/2014 4:49 PM Page 1

May 19, 2014 CRAIN’S DETROIT BUSINESS Page 11

CHE TRINITY’S ACO ARCHITECT New leader Gilfillan brings background in health care model that stresses value over volume, Page 14

People Dennis Ramus, M.D., uses a tablet to enter patient Ⅲ Paul LaCasse, D.O., president and information as part of the CEO of Botsford Health Care, received electronic health records the 2014 American system at Bay Area Hospital Family Physicians in Association A healthy Chesterfield Township. Grassroots The seven-physician Champions Award practice went electronic for his leadership in back in 2006. creating community activity in support of Botsford Hospital’s mission to deliver high-quality health dose of care One recipient LaCasse was chosen from each of the 50 states. Ⅲ Valerie Parisi, M.D., dean of the Wayne State University School of Medicine, was elected the 35th chair of the American Board of data Medical Specialties board of directors at its April 24 meeting in Washington, D.C. She previously was the board’s chair- elect and has been Physicians face challenge to share Parisi a member of the ABMS board and executive committee since 2009. electronic health records, meet Ⅲ Prashant Mahajan, M.D., professor of pediatrics and emergency medicine at the Wayne State impending federal regulations University School of Medicine and division chief and research director of pediatrics and JOHN SOBCZAK emergency medicine at Children’s Hospital BY JAY GREENE meeting meaningful-use stage two criteria. of Michigan, was CRAIN’S DETROIT BUSINESS PERPETUATING PRACTICES FOR PROFIT The most significant difference between stage elected chairman- one and stage two is showing a practice can elect of the ennis Ramus, M.D., is ahead of the Troy-based gloStream evolves from IT firm to help communicate and share data with other physi- Mahajan American Academy curve when it comes to the use of small medical practices remain independent, Page 13 cians and hospitals not in the practice’s imme- of Pediatrics’ executive committee electronic health records. His seven- diate network. section on emergency medicine. His D physician Bay Area Family Physicians in face a 1 percent cut in Medicare reimburse- One of the 17 requirements also states that term begins in November and will run Chesterfield Township installed a NextGen through October 2016. ment. The payment cuts are cumulative for physicians must use computerized physician Ⅲ Healthcare EHR system in 2006. each year a physician is not certified, for up order entry systems, including e-prescribing, Morris Magnan, clinical nurse But even Ramus and his partners expect to specialist at the Barbara Ann Karmanos to a 5 percent deduction. on 30 percent of their patients. The initial Cancer Center and chairman of its struggle this year to meet a new federal rule In 2013, only 48 percent of office-based standard was 80 percent of patients. nursing evidence-based practice that requires, in part, sharing of electronic physicians in Michigan have installed a ba- “If meaningful-use one was algebra, research committee, received the records with specialists and hospitals that sic electronic health record system, com- (meaningful-use two) is calculus,” Ramus Nightingale Award for Nursing Excellence have different electronic record systems. pared with 25 percent in 2010, said MPRO, a said. “You have to coordinate with outside in education and research from the Thousands of Michigan physicians face sim- Farmington Hills-based quality improve- physicians, hospitals and communicate with Oakland University School of Nursing, ilar challenges to meet “meaningful-use” in- ment organization. Nationally, basic EHR specialists,” and there are problems with which honors highly skilled and caring centive program regulations. Meaningful use adoption also is about 48 percent, up from 17 that because most EHRs don’t communicate individuals who play vital roles in the is defined by a tiered system; providers that directly with each other, he added. health care delivery system. percent in 2008, said the federal Office of the use electronic records to improve quality and National Coordinator for Health IT. Under stage two requirements, providers Ⅲ Steven Kalkanis, M.D., a efficiency earn different levels of certification. also must meet criteria that include e-pre- neurosurgeon and medical director of “We were one of the first adopters of EHRs. the Center for Cancer Surgery at Henry For example, stage one systems are used in- We hired a Chrysler process engineer to help scribing, exchange of laboratory results and Ford Hospital, was appointed the ternally, stage two systems are shared with us convert what we did on paper to EHRs. We transmission of patient care summaries that hospital’s chairman of the department multiple other providers, and stage three sys- also hired an office manager (a former naval will assist in coordinating care between un- of neurosurgery and co-director of the tems show documented improvement in pa- officer) who knew about information tech- affiliated providers, facilities and different Neuroscience Institute. He previously tient outcomes. nology. It was fortunate because it is very EHR systems. was vice chairman for operations in the Physicians, hospitals and others must hard for the average physician to figure out,” Despite the growth of health information ex- department of neurosurgery, co-director meet all three stages to receive a total incen- said Ramus, chairman of The Physician Al- changes in Michigan, Ewa Matuszewski, CEO of the Hermelin Brain Tumor Center tive of $44,000 over five years from Medicare of Rochester-based Medical Network One PC, and co-director of the intra-operative liance, a 2,300-member physician organiza- and $63,750 for qualified Medicaid providers. said there still is a major gap in communica- MRI surgical program. tion closely affiliated with St. John Providence But many physicians have delayed pur- Health System in Warren. tion through EHRs. Mainly, it centers on the Ⅲ Basel Khatib, M.D., pediatrician at ability of non-hospital-employed physicians Oakwood Hospital-Dearborn and owner chasing EHR systems. Reasons include high Bay Area Family met meaningful-use of Dearborn-based Basel Khatib M.D., cost, technical complications, practice disrup- stage one criteria in 2011, Ramus said. Mean- and those not closely affiliated with hospitals PC, was named the Centers for tion and resistance to change office routines. ingful-use stage one criteria includes elec- to exchange EHR data with other providers Disease Control and Prevention’s Another complication to doctors, and oth- tronically capturing patient information in through health information exchanges. Childhood Immunization Champion for ers: Some systems aren’t fully compatible standardized format, tracking key clinical “Health systems can do that internally for Michigan, based on his efforts to with each other. conditions and using that information to dis- physicians, but we are not that far along in promote childhood immunization, which cuss care with patients. moving that information outside of those include meeting with families to closed systems,” she said. educate them about vaccines, writing E-record report card But Doug Dietzman, executive director of articles for local papers and offering Sharing outward vaccines free to families who cannot Starting Jan. 1, physicians who don’t meet afford to pay for them. the meaningful-use requirements by Dec. 31 This year, physicians will have first crack at See Records, Page 12 20140519-NEWS--0011,0012-NAT-CCI-CD_-- 5/15/2014 4:49 PM Page 2

Page 12 CRAIN’S DETROIT BUSINESS May 19, 2014 Health Care Records: Physicians face challenge ■ From Page 11 Grand Rapids-based Michigan Health ceived $38,000 per physician in fi- Connect, the largest of several KEY TERMS IN E-RECORDS nancial incentives from Medicare, health information exchanges in with another $6,000 expected for Meaningful use. In the electronic the state, said most independent health records business, this term meaningful-use two compliance, physicians should be able to use describes how well providers use for a total of $308,000, he said. Michigan Health to meet meaning- EHR technology to improve quality, “The payments were heavily ful-use stage two regulations. safety and efficiency. front-end loaded, which is good for “If an (EHR) vendor doesn’t help The three stages of meaningful the doctors,” he said. “We spent them meet meaningful-use two, we use. Stage one, stage two and stage $250,000 to $300,000 for the entire sys- can help them three certification is earned as EHR tem.” comply,” said Di- systems capture data and share But to maintain and staff its etzman. “Not a internally (stage one), share EHR, Bay Area spends about lot of physicians information with multiple providers $100,000 a year. (stage two), and prove positive patient are coming to us “We have many demands for outcomes due to EHR (stage three). yet because the data (from private payers and certification pe- ing levels of effectiveness in con- Medicare),” said Ramus, who also riod just started. necting with other systems. is a certified public accountant. Our services are “It would be much easier if there “The unfortunate thing is, so many set up to be able were five or six EHR vendors” sell- physicians are behind the curve.” to do that for However, Billi said, patient data Dietzman ing products, Williams said. them.” To help physicians and hospi- can now be exchanged through Current guidelines and require- tals with vendor-related problems UMHS, St. Joseph Mercy Health Sys- ments for EHRs cover the years in meeting meaningful-use rules, tem and participating medical from 2011 to 2021. the Centers for Medicare and Medic- groups and physicians. Dietzman said most Medicare- aid Services will grant providers a But exchanging patient data to certified EHRs with 2014 software one-year “hardship exception” if unaffiliated providers through updates should be equipped to their EHR vendor fails to help health information exchanges, meet stage two requirements. physicians meet the deadline. which are designed to allow for WE WERE BUILT FOR BUSINESS, This year, Michigan Health Con- R. David Allard, M.D., chief med- connections across EHR plat- nect agreed to merge with Great ical information officer with Henry forms, “is not there yet,” he said. JUST LIKE YOU. Lakes Health Information Exchange. Ford Health System, said Henry The two organizations would in- Ford’s implementation of Verona, Physician education clude more than 2,000 physician Wis.-based Epic Systems’ EHR is The GVSU Seidman College of Business full- or provider offices and 100 of the state’s nearing completion this year for its Mike Madden, CEO of The part-time M.B.A. is raising the bar. West Michigan’s approximately 117 hospitals. five hospitals, 1,000-physician med- Physician Alliance, said education Mike Williams, M.D., president of of physicians, mostly specialists, premier business school now has an equally premier ical group and 12 private practices. Bingham Farms-based United Physi- “Meaningful-use two is a diffi- is a main task of physician organi- building, enhancing downtown Grand Rapids’ cians PC, a 2,400-member physician cult set of criteria. We won’t meet zations because EHRs can highly organization, said the ability of disrupt normal work flow. growing skyline and economic climate. it until next year,” Allard said. physicians to interconnect with Like a school project, Allard said, “We know there is a significant hospitals and physicians on differ- completing your practice’s part of concern about meaningful-use ent EHR systems is a major barrier the project is only one piece of the two,” Madden said. to meet federal requirements. puzzle, he said. The other partici- One of the key projects for the “The market will demand that pants also must do their parts for Physician Alliance is tracking 35 physicians share information. That the project to be complete, he said. data elements from participating will drive the use of EHRs — more “The larger systems have more physicians to make sure the data than meaningful use,” Williams infrastructure and resources to set is valid and the systems are oper- said. up the (electronic) interfaces,” he ating efficiently. said. “It is more difficult for inde- The Physician Alliance also Obstacles pendent physicians to make the merges the claims data and disease connections.” registry data of physicians, moni- Despite four years of financial Because of the complexity and tors the performance of physi- incentives, Williams said, there is costs, Matuszewski said, many cians, and transmits the data to a wide gap between physicians physicians are still using patient Blue Cross Blue Shield of Michigan as who have simply installed EHRs disease registries instead of EHRs part of the physician group incen- and those who use them well. Then to track patients on their visits, tive program, which financially there are those who have not in- chronic diseases, medications used, rewards doctors for hitting quality stalled them at all. lab records and other medical facts. and cost saving targets. “We have some on both ends in Disease registries are collections The incentive program proves our physician organization,” said of medical data on individual pa- more than 40 initiatives by which Williams. “Some doctors just don’t tients within a practice. They can physician orga- see meaningful use, at this time, be used to set up tasks or to ensure nizations can really helping their patients. It is that medical staff members ask cer- earn bonus pay- FINANCIAL SOLUTIONS expensive, time-consuming and tain questions. ments. the payoff isn’t there yet.” Based on Blue UILT ON ENERATIONS OF RUST B G T Jack Billi, M.D., associate vice Cross’ PGIP pro- president for medical affairs at the Costly upgrades gram, United University of Michigan Health System in More than 80 percent of physi- Physicians has • Insurance Ann Arbor, said many independent cians said they use some form of 1,384 physicians physicians are putting off EHR in- electronic data sharing, which in- who participate. • Employee Benefits stallation because of office hassles. Of that amount, cludes an EHR or data registry, up Madden • Retirement Planning Physicians say “I will lower my from 42 percent in 2008, after finan- 301 of 416 prima- head and continue to do my paper cial incentives began to flow to ry care physicians, or 72 percent, record; I know incentive money out doctors and hospitals under the use an EHR and 584 of 968, or 60 per- there that I will leave on the table, 2009 stimulus bill, said the National cent, of specialists use one, he said. 535 Griswold Street, Suite 1600 • Detroit, MI 48226 • www.lovascogroup.com • 313.394.1700 but this is so big a transformation Ambulatory Medical Care Survey. Over the next several years, said John Vismara, United’s vice presi- A Member Firm of M Financial Group. that I can’t get my head around it,” “The barrier is as before — dent of information technology, Registered Representative with M Securities: said Billi, a board member of the cost,” Matuszewski said. “It is not Securities offered through M Holdings Securities, Inc., A Registered Broker/Dealer, Member FINRA/SIPC. Michigan State Medical Society who EHRs will be used more often to par- LoVasco Consulting Group is independently owned and operated. just buying an EHR (that can cost heads up its committee on quality, more than $40,000 per physician in ticipate in managed care contracts, efficiency and economics. upfront costs to install). It is pay- prove quality performance and com- Williams said United Physicians ing the annual maintenance fee, municate with other providers. has strived hard to help physi- training is huge and creating the “It will be less about meaningful cians interconnect with other templates for all the physicians is use and more about participating EEXECUTIVEXECUTIVE CCALENDARALENDAR EHRs to conduct population health very costly,” she said. in a network and staying in busi- management and share medical Ramus said the individual EHR ness,” Vismara said. Regional event dates, locations and contacts, all in one place. records for referral purposes. cost per physician was $30,000 to Jay Greene: (313) 446-0325, crainsdetroit.com/executivecalendar Williams said United’s 2,400 $50,000 for hardware, software and [email protected]. Twitter: physicians use 70 EHRs with vary- initial setup. Bay Area has re- @jaybgreene 20140519-NEWS--0013-NAT-CCI-CD_-- 5/15/2014 4:23 PM Page 1

May 19, 2014 CRAIN’S DETROIT BUSINESS Page 13 Health Care GloStream evolves to help medical practices remain independent

BY JAY GREENE EHRs — the actual services ren- ceived two payments under mean- CRAIN’S DETROIT BUSINESS dered — into practice management ingful-use financial incentives. billing systems. Our job is to help them grow Long said gloStream’s decision GloStream CEO Mike Sappington “You should be able to close the “ to assist physicians on the practice said talks with physicians during loop (to get the billing and coding their practices, simplify their management and billing side will the last eight years the Troy-based correct) before a patient leaves the help practices save money. software management company office,” she said. lives and help them remain “Some practices need expertise has been in business have made it Matuszewski said Medical Net- in running their businesses. With clear that many of his clients want work One tries to help its more independent. all the regulatory changes with to remain independent practition- than 800 physicians improve ” EHRs and ICD-10 (international ers. Mike Sappington, gloStream billing and collecting. The group classification of diseases), you To avoid having to sell their also provides doctors with access need to keep an eye on accounts re- practices to a hospital or merge to tools to help them with their dis- in patient care and using the data thopedic Services, said the 14- ceivables,” Long said. with a larger medical group, Sap- ease registry and patient informa- to shrink those gaps,” she said. physician practice has been using Jay Greene: (313) 446-0325, pington said, an increasing num- tion portals. Jim Long, practice administra- gloStream’s EHR the past six [email protected]. Twitter: ber of physicians are asking “We are trying to identify gaps tor with Flint-based Michigan Or- years. The group so far has re- @jaybgreene gloStream for help on the business side of managing their offices. “There is a lot of pressure on smaller practices on how they can stay independent with decreasing revenue and increasing regulations,” Sappington said. “They are asking for help. They don’t want to have to sell to a hospital system.” During the past 18 months, gloStream has transformed from a pure information technology and consulting firm — helping physicians install and use Medicare-certified electronic health records — to a performance management IS YOUR DENTAL company. Besides its gloStream EHR system, Sappington said, the company provides revenue cycle management to help practices maximize PLAN OVERDUE billing and collections, as well as a range of services that include work- flow analysis, practice optimization and meaningful-use consultation. FOR A CHECKUP? “We now have 40 practices and 120 physicians participating” in gloComplete, gloStream’s practice management service, Sappington Delta Dental is the most experienced dental benefits administrator in Michigan said. “Half of the groups are in Michigan.” and has been serving top employers in the state for decades. Sappington said practices are saving 10 percent to 30 percent in When you choose Delta Dental of Michigan, you receive: expenses. He declined to provide revenue for gloStream but said the company projects it will grow by 9 BETTER ACCESS TO DENTISTS 30 percent this year and hire another 15 to 20 account managers. Delta Dental offers TWO of the nation’s largest networks with four out of five dentists The company has 40 employees, participating nationwide. Your employees won’t have trouble staying in network. mostly account managers that support practices, and 65 software de- velopers based in India. 9 BETTER LOCAL SERVICE AND SUPPORT “Physicians are enjoying the cost Michigan-based account management is available to answer questions when they arise. savings, and practice managers enjoy the help,” Sappington said. Our world-class customer service is also based in Michigan—not overseas. “The groups are saving money, and it is more profitable for us.” One of the unusual aspects of 9 BETTER INNOVATION IN EVIDENCE-BASED PLAN DESIGNS gloStream’s new business model is For more than half a century, Delta Dental has used science to improve oral health care. that practices are not at financial risk by using its services, Sapping- We take decades of scientific data and put it directly to work for you resulting in quality, ton said. up-to-date dental care at an affordable price. Delta Dental is the expert in dental benefits. “We have a partnership model. Practices don’t have to lay out a lot of capital. We are at risk financial- 9 BETTER OVERALL VALUE ly,” Sappington said. “Our job is to Our large networks, processing policies and fee determinations provide large savings for help them grow their practices, simplify their lives and help them clients and members. We also educate members about the benefits of preventive dental remain independent.” care and choosing in-network dentists to further increase savings. Ewa Matuszewski, CEO of Rochester-based Medical Network Schedule your dental plan checkup today to make sure you’re getting the most One PC, said gloStream’s ap- out of your company’s dental plan. At Delta Dental, we do dental...better! proach is sound because EHRs should be “mar- ried with practice management systems.” Visit www.deltadentalmi.com/checkup Matuszewski Matuszewski to see how we can do dental better for you! said practices sometimes have difficulty in trans- lating medical information in 20140519-NEWS--0014,0015-NAT-CCI-CD_-- 5/15/2014 4:27 PM Page 1

Page 14 CRAIN’S DETROIT BUSINESS May 19, 2014 Health Care New CHE Trinity CEO set to test lessons learned in Medicare job

BY BETH KUTSCHER and satisfaction. as the clinically related services a CRAIN NEWS SERVICE After three years at the helm, patient needs for a specific diagnos- Gilfillan shifted to the provider tic condition, from the first symp- When Richard Gilfillan, M.D., un- side, taking the reins in October at tom until treatment is complete. expectedly left his post as director the newly merged CHE Trinity CHE Trinity has set a three-year of the Centers for Medicare & Medic- Health. That merger brought to- objective to achieve $300 million in aid Services Innovation Center last gether more than 80 hospitals from savings through merger cost effi- June, health care leaders feared the former Catholic Health East ciencies, with a goal of $80 million in that his departure would slow the and former Trinity Health in a the first year — a target it already shift to a health care model that em- deal that closed last May. has surpassed. “We’re well ahead of phasizes value over volume. The system had started laying that at this time,” Gilfillan said. But Gilfillan hopes that by mov- the groundwork for managing the The system’s changes in care de- ing as CEO of Livonia-based CHE health of enrolled populations be- livery are occurring as CHE Trini- Trinity Health, a fore Gilfillan’s arrival. But under ty engages in the tough job of inte- Catholic pro- his leadership, it is accelerating grating its two legacy systems, vider that is one those efforts in each of its markets. said Kevin Holloran, an analyst at of the nation’s CHE Trinity is aiming to rein- Standard & Poor’s who covers not- largest not-for- vent how it cares for its patients. for-profit health systems. That in- profit systems, Among Gilfillan’s goals is to have cludes melding cultures while he can use that a Medicare Shared Savings Pro- achieving economies of scale. model to reshape gram accountable care organiza- In October, S&P lowered the how U.S. health tion in each of the system’s mar- long-term and underlying rating on care is delivered. kets by Jan. 1. It currently has five the stronger Trinity Health bonds “When I left Gilfillan ACOs that have been approved while raising the rating for CMS, my goal and implemented, with 11 more ap- Catholic Health East debt so that was to be part of the health care de- plications in process for January. both organizations share the same livery system transformation that An ACO is a network of doctors credit rating. Moody’s Investors Ser- was going on,” Gilfillan said. “Pop- and hospitals that shares financial vice made a similar move. The rat- ulation health is something our and medical responsibility for pro- ings agencies will be watching to ministry has been interested in for viding coordinated care to patients see how the two former systems ex- 150 years. It was a natural fit.” through a primary care physician, ecute their megamerger and what Gilfillan is No. 1 on Modern in hopes of limiting unnecessary the new system’s projected capital Healthcare’s ranking of the 50 Most spending. expenditures look like as it carries Influential Physician Executives CHE Trinity also is extending out ambitious expansion plans. and Leaders. It’s the second time its population health program to Some observers were surprised he has topped the list. Modern cover its 87,000 employees in its that CHE Trinity didn’t select Healthcare is a sister publication self-insured health benefit plan someone from its inner circle to of Crain’s Detroit Business. and is building similar value- lead the system. William Conway, CEO of Henry based programs, including bun- “An organization the size of CHE Ford Medical Group and executive dled-payment models with private Trinity often has massive bench vice president and chief quality of- insurers, to serve other patients. strength, and it’s kind of unusual ficer of Henry Ford Health System in that they would go outside the orga- Detroit, was ranked No. 42. nization,” Holloran said. But the ap- As the Innovation Center’s first A hospital newcomer pointment of an outsider to the top leader, Gilfillan was instrumental Although he’s new to hospital post could be a sign that the board in ushering in new payment and operations, Gilfillan brings insur- wanted to create a new system that’s delivery models, such as Medicare ance expertise that could help CHE more than the sum of its parts. accountable care organizations Trinity expand its ACOs, launch “Perhaps that sends a message to Tablet Users: and bundled payments. He set the the health program for its 87,000 everyone that ‘we’re not CHE, we’re Have you seen what’s NEW at tone for new programs that coordi- employees and begin accepting not Trinity Health,’ ” Holloran said. nate care for enrolled patient popu- bundled payments. crainsdetroit.com? lations seeking to reduce costs Bundled payments are reimburse- while improving patient outcomes ment for “episodes of care,” defined Roots in family medicine Gilfillan earned his medical and undergraduate degrees at George- town University and started his career as a family physician at the Georgetown University Community Health Plan. He later moved to Mass- achusetts, where he helped found a With all the confusion surrounding community health center and family medicine practice. His first position on the insurance side was as healthcare, who knew providing it medical director for Medigroup Cen- tral HMO, a Blue Cross of New Jersey could be so simple? managed-care plan. Gilfillan was thinking about value-based models when he was in EXCHANGE SOLUTIONS™ medical school in the 1970s, talking about health maintenance organiza- INTRODUCING CAMBRIDGE EXCHANGE SOLUTIONS. CAMBRIDGE CONSULTING GROUP tions and the “triple aim” goals of better patient experience, improved There’s a new soluutioion to prooviddingg grorouup benenefiefit cooveraage, annd it’s very ssimple, really. population health and reduced costs. YoYou gigvee your emplmp oyoyeess a seet amoununt of mom ney to spend on benefits – it’sts like a “I went into health care because bennefits allolowanw ce – and thhey use that money to shohop for the ccombination of coveerage I was always interested in figuring that meetee s thheir indidividual neeedsds. Employoyeess are empoweered by more plan choicices. out how to get great health care to AAnd you’re able to get crucuciaial contrn ool over costss. people,” he said. Cambridge bbringngs benenefits, tecchnologyog and deciision suppup orort tools inn a simple, While Gilfillan is new to hospital conveniene t andd easy to implememennt package. Add it upu , and the aadvantages are cleaear. 248.743.4300 operations, he brings expertise that ccgexchangesolutions.com the system didn’t have before, said Rick O’Connell, executive vice president of CHE Trinity Health and ©2014 Cambridridgeriddgedggg Consulting GroGroup,oup,oup, LLC. All Rights ghtss Reserved.R See Next Page 20140519-NEWS--0014,0015-NAT-CCI-CD_-- 5/15/2014 4:27 PM Page 2

May 19, 2014 CRAIN’S DETROIT BUSINESS Page 15

Health Care Exceptional Leadership. From Previous Page Former CMS administrator Don the transformation to accountable Delivered. Berwick, M.D., said he recruited care should work. The challenge in- president of the Trinity Health divi- Gilfillan to the Innovation Center cludes having to work simultane- sion. Before the Baltimore-based because he respected the work he ously under both value-based pay- CMS, Gilfillan was CEO of Danville, did at Geisinger Health Plan. ment and fee-for-service, with Pa.-based Geisinger Health Plan and At the Innovation Center, “Dr. conflicting incentives. That may executive vice president of insur- Gilfillan had the job of establishing slow the shift to the new model. ance operations for Geisinger Health a brand new organization in a high- “I think there continues to be System. Earlier in his career, he was ly controversial political environ- senior vice president for national uncertainty around timing and di- ment,” said Berwick, currently run- rection,” Gilfillan said. network management at Coventry ning for the Democratic nomination Still, insurers and providers are Health Care and also held positions for Massachusetts governor. “... He moving rapidly to risk-bearing at Independence Blue Cross. was elegant and very resilient in payment models, and organiza- “We’re getting someone with a dealing with these potentially very tions that don’t adapt will be left whole new set of eyes,” O’Connell demanding influences.” Michigan’s Premier Retained behind, S&P’s Holloran said. said. “He came from the payer side, Gilfillan developed the ACO pro- so his ability to understand how gram and the bundled-payment Once the Affordable Care Act was Executive Search Firm payers think has been a gift in and initiatives. He also recruited the passed, he said, “it was a symbol of itself.” people to lead the different Innova- that the stars and the moon and sun tion Center programs. The office are actually aligned. As an industry, ‘The acceleration we need’ space he designed for the Innova- everyone knows we can do better.” tion Center was an open floor plan, Berwick said that bundled and Trinity Health had been setting with low partitions between work capitated payment models are LLC up clinically integrated networks areas to encourage interaction. challenging old habits for health International Executive Search in its markets before the merger. “Rick was always driven by a vi- care industry leaders and that Gil- Tel: +1.248.645.1551 • www.huntergroup.com It’s now building relationships sion he called ‘true north,’ where in- fillan is well-positioned to show with insurers, O’Connell said. Gil- centives for providers are aligned others the way forward. fillan’s arrival has “given us the with the outcomes we want to see — “We’re still in a very important acceleration we need to move for- higher-quality and lower-cost era of expedition,” Berwick said. Is your company a ward in that direction.” care,” said William Shrank, M.D., “It’s not an easy one. I think Dr. Some skeptics question the over- who was the Innovation Center’s di- Gilfillan represents the new model Cool Place to Work? all prospects for success of ACO- rector of research and rapid-cycle of clinical leadership and organi- type population health manage- evaluation and is now chief scientif- zational leadership for change.” CRAINSDETROIT.COM/NOMINATE ment, noting that the first years of ic officer and chief medical officer From Modern Healthcare to enter your company. HURRY, nominations close May 23. the Medicare ACO program have at CVS Caremark Corp. shown mixed results. “His clarity of purpose stimulat- They also point out that many ed the Innovation Center to launch hospitals and physician groups did a wide array of new payment mod- not do well financially in managing els. I think they all have Rick’s fin- enrolled patient groups under gerprints as we move away from HMO capitated (meaning the med- rewarding volume and toward re- ical provider is given a set fee per warding value in the delivery of patient regardless of the treatment health care.” You’re Invited required) payment in the 1990s and Nearly four years later, Gilfil- that those efforts triggered a back- lan’s key programs face growing Complimentary Physician Mock Trial Program lash over restricted access to care. pains. Many provider networks But Gilfillan said the Medicare that participated in the Medicare ACO programs and CHE Trinity’s Shared Savings and Pioneer ACO population health management ini- programs failed to achieve sav- From Deposition to Verdict: tiatives are different from those ear- ings. In the Pioneer program, nine lier efforts because of the greater of the 32 original participants How to Prepare and Defend Yourself in a emphasis on measuring and opti- dropped out after the first year. Of Medical Malpractice Action mizing the patient experience. the 23 remaining providers, only “I think everyone realized that nine saved money. we needed to start from the per- Gilfillan acknowledged that spective of the patient,” he said. providers want more clarity on how Saturday, May 31 Registration: 8 a.m. • Program: 8:30 a.m. to 1 p.m. See RSVP Information Below

CON Report 4.5 AMA PRA Category 1 CreditsTM Provided The following are selected filling Heights, Sterling Heights: Relo- ings for a certificate of need sub- cate 43 beds from Sanctuary at the mitted to the state April 15-May 12. Abbey into newly constructed space Letters of intent attached to the center; $5.2 million. Ⅲ Providence Hospital and Medical Ⅲ Romeo Nursing Center, Romeo: Center, Southfield: Add one cardiac Acquire all 35 beds at the nursing catheterization lab into space on the center by Trilogy Healthcare of hospital’s first floor; $5.7 million. Romeo LLC and replace all 35 at a Ⅲ University of Michigan Health new site in Romeo; $2.9 million. System, Ann Arbor: Replace one Decisions THE STRENGTH fixed MRI scanner in renovated Ⅲ Garden City Hospital, Garden ® space with a new MRI, patient City: Prime Healthcare Services to BEHIND OUR CLIENTS changing room and space for fu- acquire Garden City Hospital, its ture MRI expansion; $10 million. clinical services and 323 acute care Applications received hospital beds; $76 million. Condi- For decades, physicians and healthcare execs Ⅲ Vibra Hospital of Southeastern tionally approved. have trusted our attorneys to deliver the right result Michigan – DMC Campus, Detroit: Be- Ⅲ Regency at Royal Oak, Royal in the boardroom and in the courtroom. gin operation of a 28-bed, long-term, Oak: 15-year lease of a newly con- acute care hospital in the Rehabilita- structed 120-bed facility; $9 mil- Q Healthcare Law Q Licensure Actions tion Institute of Michigan through a lion. Disapproved. five-year lease; $6.4 million. Ⅲ Madison Surgery Center LLC, Q Medical Malpractice DefenseQ Appellate Law Ⅲ Marycrest Manor, Livonia: Add Madison Heights: Renovate and 43 nursing home beds from three open a freestanding outpatient fa- Heartland Health Care Centers near- cility with one operating room; $2.1 by to increase the number of beds million. Conditionally approved. COMPLIMENTARY REGISTRATION to 98; $9.2 million. Ⅲ Surgical Center of Southfield Email: [email protected] Ⅲ Regency at Canton, Canton LLC, Southfield: 10-year lease and Toll Free: 1.800.650.7787 Township: 10-year lease of space to renovations to open a new, free- accommodate the addition of a 28- standing surgical outpatient cen- Online: www.plunkettcooney.com bed wing to a 113-bed facility; $3.8 ter with one operating room; $1.9 million. million. Conditionally approved. Michigan • Ohio • Indiana • www.plunkettcooney.com Ⅲ Heartland Health Care Center-Ster- — Bridget Vis 20140519-NEWS--0016-NAT-CCI-CD_-- 5/15/2014 4:52 PM Page 1

Page 16 CRAIN’S DETROIT BUSINESS May 19, 2014 Health Care McLaren turns to federal exchange for small-biz health plans

BY JAY GREENE and meet demand for a point-of-ser- choice of hospitals and physicians od, the last one ending June 30, Kendall said CRAIN’S DETROIT BUSINESS vice benefit plan on the insurance — but typically brings higher out- 2015, Kendall said. McLaren’s new exchange, said CEO Kathy Kendall. of-pocket costs. Rewards plan of- McLaren Health Plan is phasing out “There is a lot more interest from A point-of-service plan combines About 10,000 people employed by employers in the exchange,” fers a narrow its small-business group commer- provider net- a traditional HMO benefit package businesses with two to 50 employ- Kendall said. “What many small em- cial point-of-service health plan in work that fur- with a limited provider network ees are covered in Flint-based ployers are doing is they are giving the open market to meet client de- ther lowers mand for a hybrid-type plan. and an out-of-network benefit op- McLaren’s commercial point-of- employees a stipend, a small costs. Some McLaren is eliminating the plan tion (such as a preferred provider service plan that will be phased amount of premium” to purchase 3,500 people over the next year to reduce losses organization) that offers greater out at the end of their policy peri- health insurance on the exchange. have enrolled this year, she Kendall said. “If you use a certain segment of physicians and hospitals, you have no copayment, no deductible, and there is no co-insurance,” said IS YOUR TEMPORARY Kendall, who said McLaren has PLATINUM STANDARD partnered with four-hospital Oak- wood Healthcare in Dearborn for its FRACTIONALCTIONAL AND MANAGEDMANAGED BBUSINESSUSINESS AAVIATIONVIATION PPROGRAMS.ROGR LABOR PROVIDER narrow network. SERVING ALL SOUTHEASTERN MICHIGAN. “You can also choose to use our (full) network of 33,000 physicians, CHARGING YOU hospitals and other providers and pay the normal deductible or co- pay,” Kendall said. Officials for Health Alliance Plan A FAIR RATE? and Priority Health say they are not changing their commercial point- of-service plan strategies. Scott Norman, Priority’s vice Get a free assessment at: president of sales and client services, said the Grand Rapids-based insurer is projecting increases in its www.parrymurphy.com/templabor.html point-of-service plans over the next several years because employers are looking for lower-cost options. “Because of the (Affordable Care Act), PPO plans are seeing large CORPORATEEAGLE.COM rate increases,” Norman said. “POS plans are popular, especially in Southeast Michigan, because employers believe it is a most cost- effective way to continue to deliver benefits to employees.” Norman said Priority has looked at offering a limited provider network as an option. “The challenge with narrow net- Business wisdom delivered works is that it is a ‘gotcha moment’ for members,” he said. “The perception is they are buying something they don’t understand.” That’s our promise to you. Norman said very few small- business clients have expressed interest in dropping their plans and At Rehmann, our tax professionals, auditors, moving to the public exchange. “Almost 70 percent of clients are wealth advisors and corporate investigators are extending their current plan,” dedicated to working together to provide the Norman said. “That has stunted the marketplace and private ex- comprehensive solutions you need. changes. ... The jury is still out about going to the exchange for Contact us today to learn more. small employers.” Kendall said another reason McLaren, which has about 144,000 members, eliminated its off-exchange POS plan is to cut losses. Phil Bahr, CPA, CGMA Over the past three years, McLaren Health Plan’s profit SE Regional Managing Principal dropped to a net loss of $172,000 last [email protected] | 248.458.7900 year from net income of $14.8 million in 2012 and $23.9 million in 2011, according to the Michigan Office of Financial and Insurance Services. Driving McLaren losses in 2013 was a $7.4 million hit on commer- Steven B. Maltzman, CPA, CGMA cial business. McLaren lost $3.3 SE Regional Managing Principal million in its new Medicare HMO plan but generated net income of [email protected] | 248.579.1100 $11 million on its Medicaid plan. Kendall said McLaren expects to improve efficiency this year after it installs a new claims computer system, which will enable mem- Detroit, Ann Arbor, Farmington Hills, Troy bers, employers and providers to review claims online, saving staff rehmann.com | 866.799.9580 time for other duties. Jay Greene: (313) 446-0325, [email protected]. Twitter: @jaybgreene 20140519-NEWS--0017-NAT-CCI-CD_-- 5/15/2014 4:52 PM Page 1

May 19, 2014 CRAIN’S DETROIT BUSINESS Page 17 TPC Michigan sold; new owner plans to invest $1M in Dearborn golf club

BY BILL SHEA CRAIN’S DETROIT BUSINESS

The TPC Michigan in Dearborn, which had been in receivership, has a new owner that said it will invest $1 million in the private golf club. Dallas-based ClubCorp Holdings Inc., the nation’s largest golf and business club owner and developer, bought the par-72, 6,966-yard, Jack Nicklaus-designed course, along with TPC Piper Glen in Char- lotte, N.C., in April for $6.8 million. ClubCorp said it paid $3 million of COURTESY OF MARCUS & MILLICHAP ClubCorp Holdings bought the TPC Michigan course in Dearborn from Heritage that for TPC Michigan. Golf Group. A court-appointed receiver has been overseeing operations. ClubCorp bought the Dearborn course from San Diego-based Her- $3.25 million, and Piper Glen was Southfield. Among its notable itage Golf Group LLC. listed for $4 million. The courses holdings is Firestone Country Club in Heritage Golf Group bought TPC sold as a portfolio on April 29. Akron, Ohio, ClubCorp’s largest Michigan in 2007 for an undisclosed TPC Michigan, which opened in revenue producer at $26 million sum from its original developer, 1990, operates as a Tournament last year, according to the compa- PGA Tour Golf Course Properties, but Players Club course under a li- ny’s 2013 annual report. reportedly ran into financial diffi- cense from the Ponte Vedra Beach, ClubCorp (NYSE: MYCC) had culties with it a few years later. Fla.-based PGA Tour. The TPC $61.1 million in operating income Heritage Golf Group failed in chain of public and private golf on $815 million in total revenue 2011 to restructure financing with courses is designed for major tour- last year. GE Capital, the primary lender on naments and large crowds. In other area golf course news, the TPC Michigan and TPC Piper TPC Michigan hosted the PGA National Golf & Resort Properties Glen acquisition, and the courses Tour’s Senior Players Champi- Group brokered the sale of the Mon- defaulted, Golfweek reported earli- onship from 1991 to 2006. roe Golf and Country Club by its mem- er this month. TPC Michigan and TPC Piper bers to Cary Campbell and his in- A court-appointed receiver was Glen are the eighth and ninth vestment group, East Lansing-based put in place to oversee operations courses bought in the past year by Northern Property Consulting Co. LLC. and facilitate a sale, the magazine ClubCorp, the company said. That A price was not disclosed, but said. expands its club holdings to 160 the deal included assumption of Tampa, Fla.-based National Golf & clubs in 25 states, the District of existing debt and a cash down pay- Resort Properties Group brokered Columbia, Mexico and China. ment. The sale closed last week. the sale with ClubCorp, GE Capital In Michigan, ClubCorp also Bill Shea: (313) 446-1626, and Heritage Golf Group. owns Oak Pointe Country Club in [email protected]. Twitter: TPC Michigan had been listed for Brighton and the Skyline Club in @bill_shea19

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Page 18 CRAIN’S DETROIT BUSINESS May 19, 2014

BUSINESS DIARY

ACQUISITIONS & MERGERS EXPANSIONS AccessPoint LLC, Novi, and Advance Domino’s Pizza Inc., Ann Arbor, is Employment, Lansing, merged to form opening its 11,000th store, in Brant- one human resources outsourcing, re- ford, Ontario. Website: dominos.com. cruiting and staffing firm. The corpo- Detroit Elevator Co., Ferndale, is ex- rate name will be AccessPoint. and panding its residential elevator busi- give your will be headquartered in Novi. The ness to address an increase in re- Advance Employment team will oper- quests. Website: detroitelevator.com. ate out of Lansing. Websites: access business the pointhr.com, advanceteam.com. NEW PRODUCTS Carhartt Inc., Dearborn, and New Hol- CONTRACTS land Brewing Co., Holland, Mich., announced the fall 2014 launch of Casadei Steel Inc., Sterling Heights, Carhartt Woodsman-Barrel-Aged Pale was awarded the structural steel and Ale, a brew crafted to celebrate miscellaneous-metals contract to con- Carhartt’s 125th anniversary and pay struct the Quicken Data Center for tribute to the people who wear the Bedrock Real Estate Services, Detroit, brand. Websites: carhartt.com, for the project’s general contractor, newhollandbrew.com. Turner Construction Co., Detroit. Web- site: casadeisteel.com. STARTUPS LISTENERS ARE 88% MORE LIKELY Meritor Inc., Troy, and Brakes India Hummingbird Spa LLC is opening at Ltd., Chennai, India, signed a licens- 1420 N. Rochester Road, Rochester to buy products from public radio sponsors than from ing and technology assistance agree- Hills. Telephone: (248) 759-5152. Web- ment for the manufacture and sale of site: hummingbirdspausa.com. companies that advertise on commercial radio. Meritor ELSA air disc brakes in In- The Detroit Arsenal of Democracy mu- dia. The agreement expands on an seum opened at 22960 Industrial Drive - Edison Media Research 2012 existing licensing agreement for B- West, St. Clair Shores. Telephone: frame hydraulic disc brakes, air (586) 776-1976. Website: detroitarse Learn how WDET can help you reach your target audience. drum and air disc brakes. Website: nalofdemocracy.org. meritor.com. wdet.org/sponsorship | Michael Perkins 313.577.5855 Bobby Detroit LLC, Detroit, a design, event and brand consulting firm, DIARY GUIDELINES signed an agreement with Eastern Market Corp., Detroit, to curate the ar- Email news releases for Business tisan vendor assortment at its new Diary to cdbdepartments@ Sunday Street Market. Website: crain.com or mail to Departments, An NPR affiliate A public service of detroiteasternmarket.com. Crain’s Detroit Business, 1155 Wayne State University Identity Marketing & Public Relations Gratiot Ave., Detroit, MI 48207- LLC, Bingham Farms, added to its 2997. Use any Business Diary client portfolio Atlas Oil Co., Taylor, item as a model for your release, and Carbon Media Group LLC, Bing- and look for the appropriate ham Farms, a producer of digital con- category. Without complete tent for outdoor enthusiasts. Website: information, your item will not run. identitypr.com.

Luncheon Underwriter Media Sponsor Calvin Klein Furniture 2014 Awards Crain’s Detroit Business Camp Tanuga Elder Automotive Group Video Underwriter EuroAmerica Design Business Leadership: Evolution Media Beth Gotthelf & Steven Miesowicz Jill & Lee Hurwitz Bronze Level Sponsors Ira Kaufman Chapel Shinola Eugene Applebaum/Arbor JP Morgan Chase Jacques Panis Awards Underwriter Investments Group Lawrence Technological University Hadas & Dennis Bernard Erica Peresman & David Jaffe President Penny & Harold Blumenstein Production Tool Supply Co. Butzel Long Pulse220 Rising Entrepreneur: Couzens Lansky Leah & Daniel Rosenbaum Dakkota Integrated Systems LLC Harriet & Norman Rotter General Motors Corporation Neil Sherman Max Surnow Globe Midwest/Adjuster’s Josette & Dr. Joel Silver International – Carl Gross Tama, Budaj & Raab PC CPAs Co-Founder Greenleaf Trust Denise & Michael Tobin Cooper Street Cookies Gold Level Sponsors Nancy & James Grosfeld The Ideal Group Inc. Supporting Sponsors Gilda & John Jacobs Alerus Retirement Solutions Employees of the Year: Midwest Health Plan Amherst Partners LLC MotorCity Casino Benzinga Gloria Harris Sue Ellen Eisenberg & Associates PC Best Block Company Lakeridge Village Thursday, Talmer Bank and Trust BIG – Burns Investment Tri-County Beverage Group Inc. Weston Rosiek Wayne Industries Barbara & Douglas Bloom Detroit Arsenal/JVS The Bottle Crew June 12, 2014 Copper Level Sponsors Brooks Financial Jeffrey Siegel 1-800-LAW-FIRM Burton-Katzman Batteries Plus Advance Packaging Technologies Development Co. Amerisource Industrial Supply Ellyn & Jon Davidson Nora & Guy Barron Suzi Dell & Jodi Neff Beztak Companies Randall Denha, Esq. 11:00 a.m. - 1:30 p.m. Silver Level Sponsors Broder Sachse Real Estate Services Judy Greenwald Broner Glove & Safety GTA Professional Staffing Clark Hill PLC Helene & Art Indianer The Henry, Dearborn Dr. Raymond A. Cleary Joelson, Rosenberg, Moss, Cohen, Detroit Jewish News Warren & Drasnin PLC www.ehimrx.com Dickinson Wright PLLC Just Baked For ticket & sponsorship information, Ferrous Processing and Trading Jeffrey Kaftan Goldman Sachs & Company Alan J. & Sue Kaufman please contact (248) 233-4213 or Lillian & Joseph Schwartz Grand Steel Products Inc. Linda & Dennis Kayes Charitable Fund Group Five Management Co. Linda & Dr. Bernard Kole [email protected] Honigman Miller Schwartz Law Offices of Jorin G. Rubin PC and Cohn LLP Level One Bank Jewish Federation of Metropolitan Beverly & Arthur Liss Detroit Cheryl Margolis Linda & Thomas Klein Merrill Lynch – Lisa London Law Offices of Kristen Gross PC Michigan Humane Society Maddin, Hauser, Roth & Motor City Technology Community 1st Lisa & Brian Meer Heller PC Muchmore Harrington Smalley & Development/G. Fisher Oakland University Associates Inc. Construction Nancy & Ronald Rechter OmniSource Corporation Strictly Business raises funds for people with disabilities, Title Connect LLC Pagac & Company PC unemployed workers, the frail elderly, and at-risk youth. Wayne State University School of Susie & Norm Pappas Business Administration Lakes Urgent Care Lori & Steven Weisberg L. Brooks Patterson PublicCity PR Dorie & Marvin Shwedel Honorary Chair & Keynote Speaker: Contributing Sponsors Simmons & Clark Jewelers Agree Realty Corporation Judy & Lewis Tann Ajax Paving Industries Inc. Telemus Capital Partners LLC Mark Fields Barris, Sott, Denn & Driker PLLC Douglas Thal BDO USA – Stephanie Rosenbaum David Victor Chief Operating Officer Berger Realty Group Inc. Fran Victor & Bill Harder Ford Motor Company Best Homes Title Agency Weber & Olcese PLC As of 5/8/14 20140519-NEWS--0019-NAT-CCI-CD_-- 5/15/2014 1:06 PM Page 1

May 19, 2014 CRAIN’S DETROIT BUSINESS Page 19

PEOPLE CONSULTING SERVICES IN THE SPOTLIGHT Volunteers of America Michigan, Southfield, has appointed Greg Fronizer CFO. He succeeds Joe St. Angelo, a contracted CFO who was with the organization for a year. Solotorow DiCicco Fronizer, 46, Chestnut Kathuria Laurie Solotorow to director of philan- most recently thropic services, Neithercut Philan- was vice president of Tom Chestnut to senior vice president, thropy Advisors LLC, from associate di- Fronizer global food division, NSF International THANK YOU TO OUR GENEROUS SPONSORS: rector of operations, the Baldwin finance and administration at Evangelical Inc., Ann Arbor, from vice president, JEROBOAM MAGNUM Center Inc., Pontiac. Also, Ronald Di- global food division. Also, Chandana to managing director, from vice Homes of Michigan, Ann Arbor. He Bodman PLC Saks Fifth Avenue Cicco Kathuria to senior vice president and president and senior relationship also has worked for Easter Seals GM Foundation The Suburban Collection chief information officer/lean pro- Great Lakes Wine & Spirits Thomas Sebold & Associates Inc. manager, Huntington National Bank, Michigan and Ann Arbor Spark. gram leader, from vice president and UHY Advisors, Inc. Birmingham. Fronizer earned a Bachelor of VALET SPONSOR chief information officer. Science in business administration Huntington Bank ENTERTAINING SPONSORS from Miami University, Oxford, RADIO PARTNER Comerica ENGINEERING DTE Energy Foundation News/Talk 760 WJR Jay Ruby to senior Ohio, and an MBA from the The Hungry Dudes consultant and University of South Florida, Tampa. PUBLICATION PARTNER Hylant consultant group PEOPLE GUIDELINES Crain Communications Inc. Korotkin Insurance Group leader, Soil and MAGAZINE PARTNER Jackie & Neil Sefferman John Capuano to Announcements are limited to The Susan M. & William D. Seklar Materials Engi- HOUR Detroit neers Inc., Ply- senior vice presi- management positions. Email them Trust dent and portfolio MAGNUM mouth Township, to [email protected] RECIPE SPONSORS manager, U.S. Celani Family Vineyards from president or mail notices to Departments, Allied Insurance Company Trust, Bank of eTitle Agency and consultant to Crain’s Detroit Business, 1155 AutoRep Sales Company America Private JP Morgan Chase & Co. the design and Gratiot Ave., Detroit, MI 48207- Frank Campanale MillerCoors construction com- Wealth Manage- Conveyor Handling 2997. Releases must contain the MP Tool & Engineering munity, Rubycon ment, Troy, from Alphonse S. Lucarelli person’s name, new title, company, NetJets Structural LLC, vice president and Lori Koenig & Stan Moore city in which the person will work, Plum Market Ruby Birmingham. investment spe- Mercer Cutlery RGA Model Management cialist, J.P. Mor- former title, former company (if not Rugiero Promise Foundation Ryder FINANCE gan, Birmingham. promoted from within) and former Capuano Magdalena Mar- city in which the person worked. James Schmitz to development officer, riott to assurance principal, Rehmann, Photos of at least 250 dpi are )RUPRUHLQIRUPDWLRQRUWRSXUFKDVHWLFNHWV Northwestern Mutual, Troy, from Troy, from assistant corporate con- welcome, but we cannot guarantee YLVLWZZZWKHJDUGHQSDUW\PLFKLJDQRUJ managing director, PNC Wealth Man- troller, Zions Bancorporation, Salt they will be used. agement, Troy. Lake City, Utah.

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Page 20 CRAIN’S DETROIT BUSINESS May 19, 2014

CALENDAR TUESDAY CRAIN’S HONORS HOSTS IG MAY 20 SME B M Autofacts Industry Outlook Seminar. 8 20 IN THEIR 20S MANUFACTURING CONVERGENCE a.m.-5 p.m. PricewaterhouseCoopers Join Crain’s Detroit Business 5-9 Join the Society of Manufacturing LLP. Gain insight into trends affect- p.m. June 12 at The Garden Engineers for its Big M ing the global automotive industry Theater, Detroit, for 20 in their 20s, Manufacturing Convergence, 7:30 from industry executives, Autofacts honoring 20 metro Detroiters in a.m.-10 p.m. June 9; 8:30 a.m.- automotive analysts and profession- their 20s whose creativity and 7:30 p.m. June 10, 8:30 a.m.-6 als in PwC’s automotive practice. entrepreneurial spirit is p.m. June 11 and 8:30 a.m.-2 With keynote speaker Glenn Stevens, contributing to a new energy in p.m. June 12 at Cobo Center, MICHauto and strategic development, Southeast Michigan. Detroit. Detroit Regional Chamber. Detroit Athletic Club, Detroit. Free. Contact: In addition to the presentation of Featuring manufacturing plant Meghan Bested, (313) 394-3209; email: awards and a strolling dinner, the tours, seminars, dinners and other [email protected]; website: evening will feature “Three Takes events, the conference will focus pwc.com. on the City from Past and Present on the entire manufacturing 20s,” moderated by Craig Fahle, process from design to production, host of “The Craig Fahle Show” on quality and sustainability, including WEDNESDAY WDET 101.9 FM; “Reshaping Local innovations that can impact the Politics,” presented by MAY 21 Bryan process. Barnhill, chief talent officer, city of Tickets for the full conference are Motorsports Marketing. 5-9 p.m. Mar- Detroit, 20s class of 2014; “What $575, half off for students; prices keting & Sales Executives of Detroit. Happens After the Media Declares for individual events range from With Bud Denker, senior vice presi- Your Restaurant Will Save Detroit,” $50 to $250. Phil Cooley, co-owner, Slows Bar dent of Penske Corp. and chairman of For ticket information, call BQ, class of 2007; and “How the Chevrolet Detroit Belle Isle Grand Christine Longroy, (313) 425- Prix, on Penske Corp.’s commitment Social Entrepreneurship Helps 3137; email the SME at to Detroit and the marketing aspects Detroit,” Veronika Scott, founder [email protected]; or visit of the Grand Prix. Management Edu- and CEO, The Empowerment Plan, bigmevent.com. cation Center, Troy. $45 MSED mem- class of 2013. bers, $65 others. Contact: Cheryl Dry, Tickets are $35 for 20s alumni, (248) 643-6590; email: meetings@ $45 for other guests, and $40 meeting-coordinators.com; website: each if purchased in groups of 10 THURSDAY msedetroit.org. or more. Preregistration closes at MAY 22 5 p.m. June 9. If space is The Power of Email Marketing. 8-10 available, walk-in registration will How to Leverage Mobile Technology to a.m. Better Business Bureau. With be $55. Grow Your Business. 6:30-8:30 p.m. South East Michigan Entrepreneurs Kim Schott, owner, Schott Cultural For ticket information, call Kacey Consulting, on how to use email mar- Association, New York Life. Learn Anderson at (313) 446-0300, how to use mobile technology to grow keting to attract and keep visitors on a email her at [email protected], website and social media sites. Free. a business. With Rodney Johnson, Better Business Bureau, Southfield. or visit crainsdetroit.com/events. founder and CEO, Luminous Mobile. Contact: Lisa Dilg, (248) 799-0326; Join the conversation with Southfield Town Center, Southfield. email: ldilg@easternmichiganbbb #cdb20s. $15. Contact: ZaLonya Allen, (248) 491- .org; website: bbb.org/detroit. 3146; email: administrator@semea .info; website: semea.info. UPCOMING EVENTS The Meaning and Long-term Impact of Philanthropy. 11:30 a.m.-1:30 p.m. June 5. Inforum. Fifty-second annual meeting. With keynote speaker Andrew Ple- pler, global corporate social responsibility and consumer policy executive, Bank of America; Craig Fahle, host, “The Craig Fahle Show,” WDET 101.9 Health Care Experience FM; Romy Gingras Kochan, founder and president, Gingras Global LLC; Don- na Murray-Brown, president and CEO, ® Michigan Nonprofit Association; Amy In Your Corner. Peterson, co-founder, Rebel Nell; Vivian Pickard, president, General Motors Foundation, and director, corporate relations, General Motors Co.; and Aman- ■ Experienced in regulatory enforcement, da Van Dusen, principal, Miller, Can- field, Paddock and Stone PLC. Detroit corporate compliance, contractual relations Marriott Renaissance Center, Detroit. and corporate governance. $40 Inforum members, $55 non- members, $700 table of 10, $25 students. ■ Appointed by Michigan Department of Contact: (877) 633-3500; website: Community Health to chair the Public inforummichigan.org.

Health Code Advisory Committee. The Road to Reinvention. 11:30 a.m.- In Your Corner. 1:30 p.m. June 5. Adcraft Club of De- ■ troit. With Josh Linkner, CEO, Detroit Venture Partners, discussing innovation, creativity and success. Program will look at the transformation under- way in Detroit. The Reserve, Birming- ham. $35 Adcraft members, $45 non- members, $25 student and junior members. Contact: Clarence Young, (313) 872-7850; email: cyoung@ad craft.org; website: www.adcraft.org.

2014 Michigan Environmental Compli- ance Conference. 8:15 a.m.-4:15 p.m. June 10. Michigan Department of En- vironmental Quality. More than 20 sessions designed to help businesses and environmental professionals comply with environmental requirements, including waste and waste- water management, air quality, First Tier Ranking in remediation and pollution preven- Health Care Law tion. Laurel Manor, Livonia. Cost: $130. Contact: Jennifer Acevedo, (517) Contact Larry Burns at [email protected] ■ Metro Detroit ■ Grand Rapids ■ Kalamazoo ■ Grand Haven ■ Lansing 284-6850; email: acevedoj@michigan .gov; website: michigan.gov/deqwork shops. 20140519-NEWS--0021-NAT-CCI-CD_-- 5/15/2014 4:53 PM Page 1

May 19, 2014 CRAIN’S DETROIT BUSINESS Page 21 Report: Renaissance Venture New tenants to bring yoga, salads, sneakers to The Z fund attracts out-of-state biz BY SHERRI WELCH CRAIN’S DETROIT BUSINESS BY TOM HENDERSON the first five years confirms every- ganization then called Detroit Re- CRAIN’S DETROIT BUSINESS thing we’ve hoped. naissance, now Business Leaders for Three new retailers will join “We were confident that once we Michigan. A co-founder of the Michigan Denver-based Punch Bowl Social The Renaissance Venture Capital in Bedrock Real Estate Services’ introduced venture capitalist firms Venture Capital Association in 2002, COURTESY OF BEDROCK REAL ESTATE SERVICES Fund has invested $22.4 million in around the country to what was go- Valenti thought it would make sense new 10-story parking garage in Three tenants are moving into the venture capital firms around the ing on in Michigan, they’d want to to get corporate members of Detroit Detroit’s central business dis- street-level space inside The Z, a U.S., with the caveat that they at invest here. And we were right.” Renaissance to invest in a for-profit trict. 10-story parking garage. least consider deals in Michigan. Renaissance has invested in 16 fund of funds and become early cus- They’ll bring designer sneak- It did a lot more than just consider: VC funds, 11 of them headquartered tomers for emerging technologies. ers, salads and a yoga studio to Madison Heights-based Moose- Those firms and their partners in out of state. Since getting funded, Investors included Detroit-based the retail space in the garage jaw Mountaineering, expect to deals have invested $472.5 million in four of those firms have opened up DTE Energy; Detroit-based Blue Cross known as The Z, given its zigzag open the Detroit studio this fall. 23 companies in the state, most early offices in Michigan and a fifth is ex- Blue Shield of Michigan; Walker-based from the corner of Broadway After these leases, only 8,000 stage and high-tech, according to a pected to do so soon, said Rizik. Meijer Inc.; Dearborn-based Ford Mo- and East Grand River Avanue of The Z’s 34,000 square feet of report to be released Monday. Of the money those 16 firms invest- tor Co.; Dearborn-based AAA Michigan; to the corner of Library Street retail and restaurant space will That means a return of about $21 ed in state companies, about $90 mil- Jackson-based CMS Energy; Colum- and Gratiot Avenue. remain vacant. Bedrock said in for every $1 invested by the Ann Ar- lion came from in-state firms and bus, Ohio-based Huntington Bank; The tenants are: a news release that it expects to bor-based fund, a fund-of-funds VC in- about $380 million from out-of-state Monroe-based La-Z-Boy Inc.; Rockford- Ⅲ NoJo Kicks, a retailer of lux- announce remaining tenants in vesting primarily in other VC firms. firms. Rizik said the investments based Wolverine Worldwide; Farming- ury and rare collectible sneak- the coming months. When Renaissance started rais- have led to more than 400 new jobs, ton Hills-based Atain Insurance Cos.; ers, tailored jeans and custom Opened in January, The Z ing money in 2008 — it has about with an annual wage of about $85,000. the Midland-based Herbert H. and hats, set to open June 23. features the work of 27 interna- $110 million in two funds — the goal Renaissance has also co-invested Grace A. Dow Foundation; the Battle Ⅲ 7 Greens Detroit Salad Co., a tional mural artists and 1,300 was to be able to show a 10-1 multi- with its VC partners in three direct Creek-based W.K. Kellogg Foundation; new “farm-to-fork” destination parking spots. The art is a col- ple on investments. investments in companies — Ann and the Detroit-based McGregor Fund owned by longtime Detroit chef laboration between Bedrock Renaissance has committed Arbor-based ArborMetrix Inc.; Ann of Wayne State University. and caterer Kelly Schaefer, and gallery Library Street Collec- about $80 million to its VC partners, Arbor-based Swift Biosciences Inc.; “The impact on Michigan is sig- which will offer make-your-own tive. with the money being drawn down and Fidelis SeniorCare Inc. of Schaum- nificantly higher than we project- salads with homemade sauces, As Crain’s reported in March, as needed, usually over a six- to burg, Ill., which has a Michigan sub- ed,” said Valenti. “The fund is prov- soups, granola and sweets. It is the Detroit location for food and eight-year period. So far, $22.4 mil- sidiary, SecureCare of Michigan. ing what we believed all along — set to open in August. entertainment venue Punch lion has been drawn down. Renaissance Venture was the that Michigan is a very attractive Ⅲ Citizen Yoga, a second loca- Bowl Social is its third behind “We had a belief that Michigan brainchild in 2007 of Sam Valenti III, state in which to invest and to start tion for founder Kacee Must, sites in Denver and Portland, should be a center for venture capi- the president and CEO of Valenti Capi- a business.” who opened the first studio in Ore. It’s to open in November. tal and innovation,” said Chris tal LLC and executive chairman of Tri- Tom Henderson: (313) 446-0337, Royal Oak in August 2013. She Sherri Welch: (313) 446-1694, Rizik, Renaissance’s president and Mas Corp., both in Bloomfield Hills. [email protected]. Twitter: and business partner Bryan [email protected]. Twitter: fund manager. “The experience of Valenti was on the board of the or- @tomhenderson2 Lively, vice president of retail at @sherriwelch M JOB FRONT ARKET REAL ESTATE PLACE POSITIONS AVAILABLE COMMERCIAL PROPERTIES INVESTMENT OPPORTUNITIES DIRECTOR - CORPORATE PARTNERSHIPS û û Palace Sports & Entertainment is seeking a Director, Corporate Partnerships to be a INVESTMENTS leading sponsorship negotiator for our four entities: The NBA Detroit Pistons, The Palace of Investor selling "seasoned" Mortgage Notes Auburn Hills, DTE Energy Music Theater and Meadow Brook Music Festival. We seek a (all or part) and possibly some rentals. high energy sales leader with 5+ years’ experience selling professional sports and Great Returns entertainment brand affinity. This sales position will require key B2B networking ability and ! VIP entertainment execution. 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May 19, 2014 CRAIN’S DETROIT BUSINESS Page 23

CRAIN'S LIST: TOP-COMPENSATED CEOS Ranked by fiscal 2013 compensation

Name Total compensation Salary Bonus Stock awards Nonequity incentive/ Other compensation Option awards Company's net income Rank Company 2013/2012 2013/2012 2013/2012 2013/2012 retirement 2013/2012 2013/2012 2013/2012 2013/2012 John Plant $24,466,286 $2,014,615 $0 $4,646,455 $12,765,300 $623,225 $4,416,691 $970,000,000 1. TRW Automotive Holdings Corp. $26,203,477 $1,974,230 $0 $4,797,674 $14,998,900 $607,094 $3,825,579 $1,008,000,000

Alan Mulally 23,204,534 2,000,000 1,960,000 10,912,488 3,920,000 662,050 3,749,996 7,155,000,000 2. Ford Motor Co. 20,955,806 2,000,000 1,325,000 6,824,998 2,625,000 680,809 7,499,999 5,664,000,000 ■ To retire July 1, 2014. COO Mark Fields to succeed.

Richard Dugas 13,928,859 1,200,000 0 4,500,011 8,200,000 28,848 0 2,620,116,000 3. PulteGroup Inc. 9,059,004 1,200,000 0 4,500,009 3,349,500 9,495 0 206,145,000

Rodney O'Neal 12,018,049 1,248,142 500,000 7,685,494 2,366,936 217,477 0 1,301,000,000 4. Delphi Automotive plc 13,341,273 1,211,100 0 9,190,800 2,594,339 345,034 0 1,160,000,000

Matthew Simoncini 10,802,368 1,245,208 0 6,859,832 2,415,000 282,328 0 431,400,000 5. Lear Corp. 10,140,574 1,182,500 0 6,329,938 2,420,063 208,073 0 1,282,800,000

Timothy Wadhams 9,638,334 1,000,000 0 2,459,946 2,460,000 319,748 3,398,640 272,000,000 6. Masco Corp. 7,033,907 1,000,000 0 2,040,072 2,040,000 142,315 1,811,520 (76,000,000) ■ Retired Feb. 14, 2014. Succeeded by Masco Group President Keith Allman. Patrick Doyle 9,548,617 870,694 0 2,585,580 2,321,826 379,491 3,391,026 143,000,000 7. Domino's Pizza Inc. 9,160,034 840,769 0 1,686,172 2,094,400 3,047,031 1,491,662 112,400,000

Gerard Anderson 9,147,821 1,218,269 0 5,470,600 2,324,708 134,244 0 668,000,000 8. DTE Energy Co. 9,683,833 1,200,000 0 4,469,640 3,886,683 127,510 0 610,000,000

Daniel Akerson 9,071,309 1,700,000 0 7,302,206 2,833 66,270 0 3,770,000,000 9. General Motors Co. 11,102,808 1,700,000 0 9,332,659 0 70,149 0 4,859,000,000 ■ Retired Jan. 15, 2014. Mary Barra succeeded. Joseph Welch 8,907,994 977,686 723,308 1,790,870 4,084,320 538,739 793,071 233,506,000 10. ITC Holdings Corp. 8,768,195 932,260 1,558,266 1,722,440 3,292,684 458,274 804,271 187,876,000

James Verrier 8,146,556 870,000 0 4,849,270 2,106,918 320,368 0 624,300,000 11. BorgWarner Inc. 3,195,780 520,159 0 1,534,080 954,614 186,927 0 500,900,000

David Dauch 6,330,397 1,033,333 0 1,750,002 3,430,673 116,389 0 94,500,000 12. American Axle & Manufacturing Holdings Inc. 4,235,175 873,333 21,500 979,013 2,293,634 67,695 0 367,700,000 ■ Succeeded Richard Dauch in September 2012.

Roger Penske 5,105,569 1,200,000 0 3,600,000 0 305,569 0 244,200,000 13. Penske Automotive Group Inc. 4,909,336 1,200,000 0 3,500,000 0 209,336 0 185,500,000

Robert Taubman 4,573,656 875,500 0 2,234,932 1,422,688 40,536 0 189,368,000 14. Taubman Centers Inc. 10,292,972 850,000 0 7,703,119 1,700,000 39,853 0 157,817,000

Timothy Leuliette 4,448,249 1,167,250 0 0 2,842,800 438,199 0 690,000,000 15. Visteon Corp. 17,046,075 450,000 1,000,000 14,989,157 495,413 111,505 0 100,000,000

Carl Camden 4,031,479 1,000,000 0 1,594,400 1,274,000 163,079 0 58,900,000 16. Kelly Services Inc. 3,298,293 992,500 0 968,250 1,148,300 189,243 0 50,100,000

David Wathen 3,801,400 710,500 165,000 2,227,600 546,400 151,900 0 80,070,000 17. TriMas Corp. 4,091,800 700,000 0 2,710,800 567,400 113,600 0 36,300,000

Douglas Stotlar 3,790,125 798,086 0 2,300,591 546,582 144,866 0 99,200,000 18. Con-way Inc. 4,602,735 773,087 0 2,293,016 1,425,000 111,632 0 104,546,000

Charles "Chip" McClure Jr. 3,248,583 704,419 0 770,015 948,451 825,698 0 (22,000,000) 19. Meritor Inc. 5,118,695 1,184,500 0 1,750,023 1,694,139 490,033 0 52,000,000 ■ Resigned in May 2013. Succeeded by Director and interim CEO Ivor Evans in August 2013.

Mark Malcolm 3,051,009 840,000 0 378,004 1,794,366 38,639 0 (20,275,000) 20. Tower International Inc. 3,441,966 840,000 0 377,999 1,304,940 37,026 882,001 18,032,000

Ivor Evans 2,790,377 517,667 0 1,292,666 967,391 12,653 0 (22,000,000) 21. Meritor Inc. 0 0 0 0 0 0 0 52,000,000 ■ Became CEO in August 2013.

Edward Christian 2,592,970 902,006 0 913,270 650,000 127,694 0 15,273,000 22. Saga Communications Inc. 1,567,348 873,727 0 0 575,000 118,621 0 17,925,000

Prashant Ranade 2,523,341 725,518 42,900 1,178,560 552,176 24,187 0 219,658,000 23. Syntel Inc. 2,131,662 553,412 42,366 922,400 491,693 121,791 0 185,543,000

Jeffrey Edwards 2,429,411 800,000 0 416,223 562,104 93,470 557,614 47,900,000 24. Cooper-Standard Holdings Inc. 4,229,102 153,846 170,492 0 0 6,723 3,898,041 102,800,000

Daniel Coker 2,413,706 530,400 550,000 573,000 355,000 38,746 366,560 33,820,000 25. Gentherm Inc. 1,639,078 510,000 470,000 285,750 317,000 56,328 0 24,321,000

Top compensation for CEOs at publicly held companies in Wayne, Oakland, Macomb, Washtenaw and Livingston counties for companies' fiscal 2013. Incentive plan/retirement column is total of nonequity incentive-plan compensation, nonqualified deferred compensation and change in pension value. NA = not available. LIST RESEARCHED BY CRAIN'S STAFF 20140519-NEWS--0024-NAT-CCI-CD_-- 5/15/2014 4:59 PM Page 1

Page 24 CRAIN’S DETROIT BUSINESS May 19, 2014

CRAIN'S LIST: TOP-COMPENSATED NON-CEO EXECUTIVES Ranked by fiscal 2013 compensation

Nonequity incentive/ Other Name Total compensation Salary Bonus Stock awards retirement compensation Option awards Rank Company 2013/2012 2013/2012 2013/2012 2013/2012 2013/2012 2013/2012 2013/2012 William Clay Ford Jr. $11,955,829 $2,000,000 $560,000 $5,092,491 $1,120,000 $1,433,341 $1,749,997 1. executive chairman and president $14,836,013 $2,000,000 $375,000 $3,184,990 $4,007,519 $1,768,505 $3,499,999 Ford Motor Co. and William and Lisa Ford Foundation Mark Fields 10,170,578 1,537,500 996,000 3,637,492 2,604,000 145,591 1,249,995 2. COO 8,854,065 1,385,833 1,301,250 1,000,994 3,939,170 126,823 1,099,995 Ford Motor Co. ■ To succeed Alan Mulally as CEO in July 2014.

Timothy Manganello 7,987,416 333,333 0 3,696,084 2,700,000 1,257,999 0 3. executive chairman 11,756,097 1,226,250 0 6,380,383 3,375,000 774,464 0 BorgWarner Inc. ■ Retired as CEO January 2012; remained executive chairman until retirement April 2013.

Kevin Clark 6,716,766 800,000 500,000 4,327,101 984,000 105,665 0 4. CFO and executive vice president 5,200,187 800,000 600,000 2,987,875 664,000 148,312 0 Delphi Automotive plc

Stephen Girsky 6,389,584 600,000 0 5,757,077 1,542 30,965 0 5. vice chairman, corporate strategy, business 5,446,304 600,000 0 4,811,291 435 34,578 0 development and global product planning General Motors Co. James Spencer 6,243,494 690,833 0 4,531,259 861,000 160,402 0 6. executive VP, operations; president, Delphi Latin 5,337,954 586,262 0 3,595,941 546,970 608,781 0 America Delphi Automotive plc Karl-Thomas Neumann 5,808,330 684,029 0 3,698,075 75,754 1,350,472 0 7. executive VP; president, Europe 0 0 0 0 0 0 0 General Motors Co.

Steven Lunn 5,277,091 923,854 0 2,069,708 1,906,568 376,961 0 8. executive VP and COO 5,454,594 922,755 0 1,439,280 1,904,762 40,120 1,147,677 TRW Automotive Holdings Corp. ■ Retired Feb. 28, 2014.

Daniel Ammann 5,261,881 750,000 0 4,481,562 1,844 28,475 0 9. president 4,789,665 750,000 0 4,007,056 799 31,810 0 General Motors Co.

Mary Barra 5,233,140 750,000 0 4,446,504 0 36,636 0 10. executive VP, global product development, 4,943,487 750,000 0 3,906,484 258,558 28,445 0 purchasing and supply chain ■ Became CEO January 2014. General Motors Co. Robert O'Shaughnessy 5,075,423 700,000 0 1,550,015 2,800,000 25,408 0 11. executive vice president and CFO 3,366,844 700,000 0 1,550,008 1,116,500 336 0 PulteGroup Inc.

Jeffrey J. Owens 5,004,552 619,258 0 3,238,308 779,962 367,024 0 12. executive VP and chief technology officer 4,638,611 528,600 0 3,010,321 974,351 125,339 0 Delphi Automotive plc

James Ellinghausen 4,958,258 525,000 0 1,400,001 2,100,000 933,257 0 13. executive VP, human resources 2,766,229 525,000 0 1,400,002 837,400 3,827 0 PulteGroup Inc.

Joseph Cantie 4,772,073 650,961 0 1,450,868 889,650 401,486 1,379,108 14. executive VP and CFO 4,650,675 636,923 0 1,499,276 930,100 388,882 1,195,494 TRW Automotive Holdings Corp.

Steve Meszaros 4,714,596 500,000 0 0 1,290,168 2,924,428 0 15. VP and president, electronics product group 6,200,065 484,325 0 3,038,351 706,037 1,799,383 171,969 Visteon Corp.

David Joseph II 4,602,357 336,111 75,000 3,122,004 580,000 489,242 0 16. senior VP, leasing 0 0 0 0 0 0 0 Taubman Centers Inc.

Joseph Hinrichs 4,409,949 853,750 126,800 1,745,994 963,200 120,206 599,999 17. executive VP and president, the Americas 4,097,155 782,917 0 682,493 1,500,218 381,527 750,000 Ford Motor Co.

Raymond Scott 4,209,079 818,172 0 2,219,401 992,327 179,179 0 18. executive VP and president, seating 4,974,865 804,100 0 2,219,494 1,807,611 143,660 0 Lear Corp.

Terrence Larkin 4,191,397 818,172 0 2,219,401 992,327 161,497 0 19. executive VP, business development, general 4,828,891 804,100 0 2,219,494 1,659,285 146,012 0 counsel and corporate secretary Lear Corp. Bob Shanks 4,089,621 772,500 0 1,745,994 889,339 81,789 599,999 20. executive VP and CFO 5,181,838 700,000 227,500 818,988 2,471,303 64,048 899,999 Ford Motor Co.

Robin Adams 3,898,112 216,667 0 1,826,765 1,240,000 614,680 0 21. vice chairman, executive VP and chief 5,476,716 635,812 0 3,057,009 1,430,000 353,895 0 administrative officer ■ Retired April 30, 2013. BorgWarner Inc. Jeff Vanneste 3,530,262 683,633 0 1,867,397 829,150 150,082 0 22. senior VP and CFO 3,968,821 531,901 175,000 2,647,434 548,553 65,933 0 Lear Corp.

Richard Dauch 3,367,640 1,181,818 0 0 2,030,000 155,822 0 23. co-founder and former executive chairman 17,844,125 2,000,000 4,000,000 6,874,007 4,201,202 141,916 627,000 American Axle & Manufacturing Holdings Inc. ■ Died August 2013.

Harmon Smith 3,364,245 625,000 0 1,000,009 1,724,375 14,861 0 24. executive VP, homebuilding operations and area 2,163,474 601,923 0 600,005 953,800 7,746 0 president, Texas PulteGroup Inc. Mel Stephens 3,268,605 645,349 0 1,712,929 782,718 127,609 0 25. senior VP, communications, facilities and investor 3,886,975 634,250 0 1,712,925 1,418,056 121,744 0 relations Lear Corp.

Top compensation for non-CEO executives at publicly held companies in Wayne, Oakland, Macomb, Washtenaw and Livingston counties for companies' fiscal 2012.3 Incentive plan/retirement column is total of nonequity incentive-plan compensation, nonqualified deferred compensation and change in pension value. NA = not available. LIST RESEARCHED BY CRAIN'S STAFF 20140519-NEWS--0025-NAT-CCI-CD_-- 5/16/2014 6:19 PM Page 1

May 19, 2014 CRAIN’S DETROIT BUSINESS Page 25 Sources: Severstal weighs options for Dearborn plant BLOOMBERG NEWS The North “A deal closed at $1.5 billion three vice presidents. American would boost Severstal’s market Dey said the changes reflect the OAO Severstal, the Russian steel- operations capitalization as it would mean company’s shift in priorities. maker controlled by billionaire of Russian that its American assets have a The old team “was focused on Alexey Mordashov, said it is consid- steelmaker higher valuation in terms of multi- building new assets, investing in OAO ering “a range of strategic options” ples compared with the parent com- Dearborn and maintaining an au- Severstal for its North American unit amid re- pany,” Kirill Chuyko, the Moscow- tomotive business; doing the M&A ports the business may be sold. The are based in Dearborn. based head of equity research for and the divestment,” he said. review could even result in a sale of BCS Financial Group, said Tuesday. “That was probably the right team. its Dearborn plant, sources say. Now we face a different challenge “No decision has yet been taken Changes in North America … a change in focus.” as to which, if any, such (strategic COURTESY OF SEVERSTAL NORTH AMERICA Dey said late last year that the options) might be pursued,” the Severstal North America, the new direction of Severstal is fo- Cherepovets-based company said Corp., whose Great Lakes Works Companhia Siderurgica Nacional Dearborn-based U.S. subsidiary of cused on higher-margin, or value- in a regulatory statement last operates in Ecorse and River has made an approach for the as- Severstal, replaced nearly all of its added, products thanks to the in- week. Rouge, and number more than sets, for which Severstal may re- senior management last year in an vestments in North America. Severstal, whose North Ameri- two, these people said last week. ceive as much as $1.5 billion, ac- attempt to create “profitable, sus- “We believe, we have the poten- can operations are based in Dear- Spokeswomen from U.S. Steel cording to a May 9 report in the tainable growth,” CEO Saikat Dey tial to make these assets more born, is assessing offers for its and Severstal declined to com- Wall Street Journal. A spokesman said. profitable,” Dey said. “All it takes plants in Dearborn and Columbus, ment. for Sao Paulo-based CSN declined Dey replaced former CEO Sergei is good driving.” Miss., people familiar with the The U.S. sites have total annual to comment. Kuznetsov on Sept. 3, 2013, and a Severstal North America will matter said May 10, asking not to capacity to produce 5.2 million Severstal advanced 7 percent in flurry of management changes fol- also focus on “cash discipline” and be identified because the delibera- metric tons of steel. The Russian trading last week to $8.82 in Lon- lowed. Within weeks, nearly all of quality, Dey said. tions are private. The bidders in- company has invested more than don trading, the highest since it top management had been re- Crain’s Detroit Business con- clude Pittsburgh-based U.S. Steel $2 billion in the assets since 2004. Jan. 24. placed, including its CFO and tributed to this report.

CEOs: Compensation numbers say, ‘These execs have delivered’ ■ From Page 1 The share price of the compa- income-salary correlation. as shareholders themselves.” nies headed by the highest-paid THEY MADE MONEY THE OLD-FASHIONED WAY ... James Verrier of BorgWarner Inc. Total base salaries for the top 25 CEOs was up an average of 40.3 According to various measurements, local CEOs outperform national saw his total compensation climb CEOs in 2013 was $26.1 million, percent for the year, compared to benchmarks — if company performance is the yardstick. David Sowerby of from $3.2 million to $8.1 million. down 7 percent, or $2 million, from 29.6 percent for the S&P 500 and Loomis Sayles & Co. LP used data from Thomson Reuters Baseline to Part of his increase was in stock 2012. Plant had the highest base 30.1 percent for the S&P 1,500. develop the following data highlights: awards for previous performance, salary, just more than $2 million. In addition, return on equity, a Ⅲ As of Dec. 31, 2013, the share price of the companies headed by the which went from $1.5 million to Cash bonuses were off 50.6 per- measure of net income returned as $4.8 million, and a boost in non- highest-paid CEOs was up an average of 40.3 percent for the year, cent to $3.9 million. Mulally had a percentage of shareholder equi- compared to 29.6 percent for the S&P 500 and 30.1 percent for the S&P equity incentive and retirement the highest bonus, almost $2 mil- ty, also beat the S&P averages. The 1,500. Seventeen area companies beat both S&P averages compensation, which went from lion. average 12-month ROE of the com- Ⅲ The three-year growth in share price was up 56 percent for local $954,614 to $2.1 million. panies tracked in the Crain’s List companies, compared with 47 percent for the S&P 500 and 48 percent for David Dauch’s compensation at Reagan said executives can ex- of Top-Compensated CEOs was the S&P 1,500. Twelve state companies beat both S&P averages. American Axle and Manufacturing pect in coming years to see their 22.3 percent, compared to 15.9 per- Ⅲ Net income for the local companies was up 23 percent in 2013, Holdings Inc. went from $4.2 million base salaries remain low com- cent for the S&P 500. compared to 4 percent for both the S&P 500 and the S&P 1,500. to $6.3 million while his firm’s net pared to prerecession salaries, for Seventeen local companies beat the S&P averages. “These CEOs have delivered, income fell from $367.7 million to bonuses to remain constrained whether you look at what the stock Ⅲ Three-year net income was up 16 percent for local companies, compared $94.5 million. He had increases in and for stock awards based on de- to 7 percent for both the S&P 500 and the S&P 1,500. Thirteen companies price has done, return on equity or his base salary from $873,333 to fined targets — set by the board — beat the S&P averages. earnings. Companies here have just more than $1 million; in stock to continue to serve as a big carrot. Ⅲ Return on equity for the S&P 500 in 2013 was 15.9 percent, with return outperformed those nationally,” awards from $979,013 to almost $1.8 Last year, stock awards totaled he said. on equity for the S&P 1,500 at 15.4 percent. The local companies averaged 22.3 percent, with 13 local companies beating both of the S&P averages. million; and in nonequity incen- $78.4 million, off $77.4 million, or “They have outperformed the tive and retirement compensation about 50 percent from 2012, but market as a whole, in every met- Ⅲ Revenue at area companies was up 7 percent in 2013, compared to flat growth for the S&P 500 and 5.3 growth for the S&P 1,500. Eleven from $2.3 million to $3.4 million. that decline is an anomaly; award ric. You connect companies beat both S&P averages. Simoncini’s compensation rose totals in 2012 were something of an the dots be- — Tom Henderson from $10.1 million to $10.8 million outlier, reflecting the big rise in tween perfor- while net income for Lear fell from stock prices. Stock awards in 2012 mance and com- initiated a 15-year performance he will retire July 1. 1.3 billion to $431.4 million. And were up 201.9 percent from 2011. pensation, plan for him that could reward The other 13 who repeated as Edward Christian’s compensation Mulally had the largest stock whether you’re him with $53.3 million in stock members of the top 25 were: Richard at Saga Communications Inc. went award, more than $10.9 million. He a CEO or you’re awards. Whether they eventually Dugas of PulteGroup Inc.; Rodney from $1.6 million to $2.6 million continues to reap the benefit of a PGA profes- were collected or not, for account- O’Neal of Delphi Automotive plc; while net income dropped from keeping Ford out of bankruptcy sional. If you ing purposes, they were listed as Matthew Simoncini of Lear Corp.; $17.9 million to $15.3 million. during the recession and for what don’t make the 2012 compensation. Timothy Wadhams of Masco Corp. Paul Reagan, a senior lecturer is generally regarded as a highly cut on the PGA Roberts is not in the top 25 this (who retired in February of this in the School of Business Adminis- successful stint in his nearly eight Sowerby tour, you don’t year, nor are nine others from the year); Patrick Doyle of Domino’s Piz- tration at Wayne State and a prin- get paid,” said Sowerby. (See data years at the helm of the automaker, top 25 of 2012. If you compare what za Inc.; Gerard Anderson of DTE Ener- cipal in the Birmingham-based highlights box on this page) although Ford was something of a the top 25 CEOs were paid in 2013 gy Co.; Daniel Akerson of General Mo- compensation consulting firm of relative underperformer in 2013. The highest-compensated local Dorey-Reagan & Associates LLC, said with what those same 25 executives tors Co. (who retired in January); Its share price gain was 19.2 per- executives got paid well, though, CEO compensation in 2013 contin- were paid in 2012, the decline in com- Joseph Welch of ITC Holdings Corp.; cent and revenue growth was 3.4 perhaps surprisingly, less than in Roger Penske of Penske Automotive ued three trends that emerged dur- pensation is much less, off 2.66 per- percent, both below local company 2012. centage points from $195.1 million. Group Inc.; Robert Taubman of Taub- ing the recovery of the Great Re- averages and national averages. man Centers Inc.; Timothy Leuliette cession: a moderation in both base Roberts’ pay total of $54.2 mil- Return on equity was 32.5 percent, of Visteon Corp.; Charles McClure Jr. salary and cash incentive pay- The biggest CEO earners lion in 2012 was more than double which was above both local and the $26.2 collected by John Plant of of Meritor Inc. (who resigned in May ments and a growth in compensa- national averages, and earnings The top 25 execs in 2013 were paid TRW Automotive Holdings Corp. Plant 2013); and Jeffrey Edwards of Cooper- tion driven by stock awards. growth was 14 percent, below the a total of $189.9 million, which is off took over the No. 1 spot in 2013 de- Standard Holdings Inc. local average but above the nation- 39 percentage points from the $311.2 spite a drop in pay to $24.5 million, Sudip Datta, a professor of finance al average. million that the top 25 were paid in which included $4.6 million in and interim chairman of the depart- Pay for performance 2012. But that 2012 number was dri- stock awards and $12.8 million in ment of finance in the School of “Companies are willing to pro- “We saw an incredible story at ven in large part by two things: One nonequity incentive and retire- Business Administration at Wayne vide their executives with the Ford,” said Reagan, taking a was a reward in compensation for ment compensation. State University, said that, for the means to participate in the contin- longer-term view of Mulally’s executives for what was a fantastic Alan Mulally of Ford Motor Co. most part, compensation mirrored ued resurgence of the equity mar- reign. “Rarely do you see that kind bull market and a sharp run-up in moved up a spot to No. 2 in 2013, company performance last year. kets via stock grants and stock op- of performance by a CEO. It gives stock prices. The other was an out- his overall pay of $23.2 million in- “In general, the total compensation awards,” Reagan said. “These you faith in executive perfor- lier in the form of compensation for cluding $10.9 million in stock tion for most of the firms is consis- grants are not only a means of com- mance. It really does.” Brett Roberts, the CEO of Credit Ac- awards and $3.9 million in non- tent with net income change. It pensation — they also serve to pro- Tom Henderson: (313) 446-0337, ceptance Corp. of Southfield. equity incentive and retirement was what you’d expect,” he said. mote shareholder interests by more [email protected]. Twitter: In 2012, his board of directors compensation. He has announced There were exceptions to the net closely establishing the executives @tomhenderson2 20140519-NEWS--0026-NAT-CCI-CD_-- 5/16/2014 5:23 PM Page 1

Page 26 CRAIN’S DETROIT BUSINESS May 19, 2014 Nova: Company also rises with the sun ■ From Page 1 trusted us with an $18.5 million based Clean Energy Coalition, said to 20 jobs created in the solar con- project. They supported us big- Nova Consultants fills a valuable struction and engineering fields time,” Agrawal said. “Solar is now role in Michigan to elevate solar through DTE’s solar program. 75 percent of our business.” power as a technology. Randy Czubko, president of Val- 2014 After 23 projects with DTE total- “Solar hasn’t taken off in Michi- ley City Sign, said the Grand Rapids- UPCOMING ing 11 megawatts and more than 14 gan as in other parts of the coun- based manufacturing company projects with 1.8 megawatts for a try,” he said. “It is a tough go for produced mounting structures and growing number of private solar many companies in the industry to posts for Nova’s solar panel pro- PARTNER EVENTS projects, Nova posted revenue of make it work. Nova is a great exam- jects at the Ford and GM plants. $12 million last year and projects ple for other companies because “Ford and GM had special re- more than $14 million this year, there is high value for utility-scale quirements. They didn’t want to Coming Up from the Troy Chamber Agrawal said. Nova also provides arrays.” bury the posts in the black top TNT—Troy’s Night on the Town ongoing maintenance services for Clean Energy is a nonprofit or- (parking lot) so we created the ce- This event is going to be dynamite! Experience three of ganization that helps bring togeth- ment ballasts to hold the panels Troy’s fi nest restaurants all in one evening—The Capital eight solar projects with 515 kilo- Grille, Ocean Prime and McCormick & Schmick’s Seafood watts of power, he said. er many types of companies in the down,” Czubko said. & Steaks. Restaurants will provide a sampling of tasty renewable energy industry to ex- The solar component work for hors d’oeuvres and a cash bar. A VIP Reception is avail- Sunny business forecast pand the marketplace and lower Nova was the first of its kind for able at an additional cost, 5-5:30 p.m., at Ocean Prime. costs for solar and other renewable Valley City Sign, but Czubko said The reception will include cocktail tasting and is limited. For DTE, Nova conducts feasi- technologies, Reed said. the company also is seeing a grow- May 29 • 5:30-7:30 p.m. bility studies of potential solar ing business for companies wanti- Tickets: $25 sites and calculates what size solar Solar supply chain ng stand-alone solar-illuminated Registration: 248-641-8151 or array can be supported in each signs. [email protected] area. DTE then decides whether or Agrawal said Nova’s solar con- “It’s an excellent application for not to pursue the project. tract with DTE and its growing solar,” he said. “It costs thousands CEO Series Luncheon featuring Mat Ishbia, CEO, If DTE goes ahead, Nova does number of smaller commercial of dollars to run a (power) line out United Shore Financial Services the engineering work, procure- contracts have helped to create a to a sign. We can engineer a sign Mat Ishbia will speak about how lessons in business and ment and construction. DTE then supply chain of 50 to 60 subcon- with a solar panel to charge the basketball have helped him make United Shore Financial manages the ongoing operation. tractors in the solar installation batteries with LED lights, and the Services (USFS) one of the nation’s leading residential Some of Nova’s exclusive pro- and manufacturing industry in customer can save money.” mortgage lenders and one of the nation’s Best Places to jects with DTE include Ford Motor Michigan. Mark Ferda, renewable energy Work. He will explain why USFS stresses a work/life bal- Co.’s Wayne Assembly Plant, Gen- “There are a number of compa- account manager with Mc- ance and why the 1,200+ person team headquartered in eral Motors Co.’s Detroit-Hamtramck nies working in the solar manufac- Naughton-McKay Electric Company, Troy is comprised of “thumb pointers, not fi nger pointers.” turing in Michigan, but we had to go which has warehouses in Madison Event partner: Central Michigan University Global Campus Assembly Plant, Blue Cross Blue Shield of Michigan’s downtown De- out of state when we first started” Heights and Ann Arbor, said the June 24 • 10:30 a.m.-1 p.m. with the DTE contract, Agrawal company expanded into solar sev- Somerset Inn, 2601 W. Big Beaver Rd., Troy troit parking garage and an 80- said. en years ago and has been growing Member: $28 • Non-Member: $38 kilowatt solar array at DTE’s own For example, when Nova was its electrical distribution business Table of 8 with Recognition: $210 parking area in Detroit. Registration: 248-641-8151 or Tony Tomczak, DTE’s director of working on the initial Scio Town- at a 15 percent annual clip. [email protected] supply chain management, said ship project in 2010 for DTE, Agraw- “We supply all of Nova’s projects Nova has met the engineering and al said his company had to purchase with DTE and do in excess of $1 mil- MSED Monthly Meeting—Annual Automotive Round- generation expectations of the solar racking parts from suppliers lion a year with residential and table Luncheon: “Managing Growth in Innovation” state’s largest utility supplier of so- in Arizona. Racking helps to secure small commercial projects,” Ferda At this event, you will hear a candid, off-the-record discus- lar power. Nova is completing four the solar panels to the posts. said. sion from a panel of experts in the fi eld, representing projects and plans two more, he “It was very expensive to ship McNaughton-McKay sells solar both automotive OEMs and suppliers. Panelists include said. (the components). We decided to de- panels, brackets, inverters and con- Steve Kiefer, vice president of global powertrain, General Agrawal said Nova’s designs sign some of our own (solar compo- nectors and wires for the systems. Motors Co. and Doug Grimm, chairman, president & CEO, and installation process have cre- nents) and looked for local suppli- “The price of materials has Grede Holdings. Moderator: David Versical, director of ated 30 percent more power than ers to give them the business,” said come down by 50 percent since we editorial operations, Automotive News DTE required as a minimum for Agrawal, who estimated Michigan started,” Ferda said. “That has June 11 • 11 a.m.-1 p.m. each project. companies may have created 200 helped to stimulate growth, but if Somerset Inn, 2601 W. Big Beaver Rd., Troy Tomczak said DTE works very jobs over the past several years to we lose the 30 percent federal tax MSED Members: $45 • Non-Members: $60 closely with Nova to generate “the meet the solar demand. credit in 2015 … our business will Registration: msedetroit.org or call Meeting best efficiencies we can out of the Agrawal said Nova has doubled drop 50 to 75 percent.” Coordinators at (248) 643-6590 panels.” its staff to 40 since it received the Adam Parr, account manager DTE contract. with Albion-based Patriot Solar Coming Up from the Southfi eld Area When DTE completes its planned solar projects, the Detroit-based utili- While most wind components Group, said his company began Chamber of Commerce that include blade, towers and tur- manufacturing roof and ground SouthÀ eld Area Chamber Golf Outing ty will have 15 megawatts of owned solar power generation and 7 bines are manufactured outside of mounted structures for solar pan- Join us for a day fi lled with relationship building, golf and Michigan, Tomczak said, Michi- els originally in 2005. opportunities to promote your business. megawatts of customer-owned solar. gan-based companies project much “We work in Michigan with June 23 • 11 a.m.-1 p.m. In contrast, Jackson-based Con- of the construction work for wind Nova, but we do quite a bit of work Plum Hollow Country Club, 21631 Lahser Rd, Southfi eld sumers Energy projects about 6 Members: $130 • Non-Members: $150 megawatts of solar power for its pro- power generation. in New Jersey and Massachusetts, Registration: southfi eldchamber.com/golfouting jects by 2015. “From DTE’s perspective, the where there are higher renewable But Michigan legislators have jobs created and sustained for portfolio standards and higher tax OCN Regional Mixer not yet committed to continuing wind is much more than solar,” incentives,” Parr said. “The tax in- This joint Chambers of Commerce event features mem- investing in solar, wind or other Tomczak said. DTE estimated that centives and state mandates really bers from the Greater Farmington Area, West Bloomfi eld renewable energy sources past wind projects employ up to 100 help to bring down the cost for Area, Southfi eld Area, Chaldean American, Asian Pacifi c 2015, when the state’s renewable workers during construction and these projects.” and the Michigan Hispanic Chambers of Commerce. energy mandate ends. another 10 people on-site during Jay Greene: (313) 446-0325, operations. [email protected]. Twitter: June 25 • 6-8 p.m. So far, utilities that include DTE DTE estimates there have been 15 @jaybgreene Hilton Garden Inn, 26000 American Dr., Southfi eld and Consumers Energy have spent Members: $10/$15 at the door • Non-Members: $25 $2.3 billion on wind, solar, biogas Registration: www.southfi eldchamber.com and other renewable energy power sources and are nearing their 10 percent goal. CEED Microloan Programs WEBINARS TOPICS:SMALL-BIZ FUNDING, TALENT STRATEGY As one of the fi rst micro lenders in the country since The Michigan Legislature has 1984, CEED provides more than capital assistance. started to hold hearings on extend- Small businesses looking for insight on the topics of access to capital and Clients receive no-cost tools and resources to build and ing the legislation, although most new supply chains can join Crain’s for a free webinar May 22 at noon. maintain a successful business. Programs such as the observers in Lansing don’t believe Speakers for the webinar will be Mike Cope, senior vice president for small- Small Business Detroit Microloan Program, Washtenaw any bills will be approved until next business banking in Michigan at Comerica Bank, and Trevor Pawl, County Microloan Program and Oakland County Microloan year. managing director of the Michigan Economic Development Corp.’s Pure Michigan Business Connect program. Program give access to fi nancing up to $50,000. Funds A work group commissioned may be used for equipment, inventory, supplies and some earlier this year by the Michigan To register, go to crainsdetroit.com/webinars. working capital. Public Service Commission is study- The series will continue May 28 at noon, with a webinar discussion on To learn more and register for an upcoming loan ing ways to improve customer- creating a talent strategy and keeping a startup culture as a business orientation, visit miceed.org owned solar projects through utili- grows. Speakers will be Debbie Shapiro, founder of HR Connections, and Charlie Moret, president and CEO of Invest Michigan. ty companies and whether to initiate community solar projects. Many of the speakers from the webinar series will host roundtable For more local events, visit Crain’s Executive Calendar at discussions on July 24 at the Crain’s Salute to Entrepreneurs event at 7:30 A report is expected in July. a.m. in Dearborn at The Henry hotel. crainsdetroit.com/executivecalendar Sean Reed, founder and execu- To register, go to crainsdetroit.com/events. tive director of the Ann Arbor- 20140519-NEWS--0027-NAT-CCI-CD_-- 5/16/2014 6:00 PM Page 1

May 19, 2014 CRAIN’S DETROIT BUSINESS Page 27

Ziebart: Shaking off rust FREE WEBINAR: Register at crainsdetroit.com/webinars ■ From Page 3 away from it, you can’t see the diana, of which 12 are franchises. film.” But he also said demand for cer- Ziebart reports about 400 loca- tain products is a growth driver. tions worldwide, and Baker said The company is seeing high single- global systemwide sales were $135 digit growth in aftermarket truck million in 2013. With the strong accessory sales, he said, and some April bump (winter months are strong demand for tonneau covers typically slow for coatings sales), along with a spring season boost in presents: 2014 sales are up about 7 percent glass repair service. year-to-date — meaning they could “As the vehicles become more top $140 million this year, a record computerized, getting into the since Baker became an officer of electrical circuits of the vehicles is CYBERSECURITY: the company. getting more challenging. So inter- Ziebart Corp., including U.S. face modules are becoming a de- stores, reported just under $9 mil- mand item,” Zoldowski said. lion revenue in 2011, including “It used to be a quick little job about $3.7 million of royalty in- making a 4-pin connection to hook come from nearly 90 U.S. franchise up trailer lights, but today with locations, according to a franchise LED lighting and other changes, disclosure document. the wires going to the back of the Understand the Risks, U.S. stores report an average of vehicle are multitasking now. So about $780,000 annually in single- we’ve had to have new modules store sales. that can connect to the factory Reduce Your Exposure “As the car market has changed, equipment.” we have frequently had to reposi- International locations are li- tion ourselves within it,” Baker censed through an individual said. Ziebart master franchise license “But it’s not so much that we holder in each country, and the need to rebrand as it is that we just service centers are required to buy need to reintroduce the brand.” their products from the parent June 5 • Noon - 1 p.m. Ziebart owns and operates 12 company in Troy. U.S. locations in the metro Detroit, A franchise fee is $25,000, and Cleveland, Chicago, Pittsburgh, the company estimates the total Minneapolis and Columbus, Ohio, upfront investment in a Ziebart areas, Baker said, for about 100 to- franchise ranges from $172,000 to tal corporate employees. All other $331,000. This includes more than sponsored by: locations are franchises, with $100,000 for inventory and other sometimes-differing demand for costs paid to the franchisor. its products. Over time, Ziebart has diversi- Saudi Arabian service centers, fied from its rustproofing roots for example, have seen aggressive into several other aftermarket ser- sales in rustproofing due to sand- vices — detailing, glass repair, dia- storms, while Baker estimates that mond gloss paint protection, re- rustproofing, along with treatments mote starters and other to reduce road noise inside vehicles accessories. and some detailing services, ac- Some of the changing product count for only about 20 percent of mix has been a reaction to the mar- sales companywide. ket. Baker said rust protection ac- Founded as a rustproofing shop counted for 80 percent of sales in in 1959 by the late Kurt Ziebart, the late 1980s, but it began falling the company adopted a franchis- off after the Detroit OEMs began Is your company supporting the troops? ing business model early on but offering new manufacturers’ war- expanded it after Ziebart sold the ranty protection against rust. business in 1963 to Roger Wain- The demand has picked up again dle, a corrosion studies expert in recent years, Baker said, as au- who renamed it Ziebart Process tomotive prices continued to climb Corp. and new longer-term financing The company signed its first in- packages became available, so ternational licensing agreement in original owners are more likely to 1965 for a franchise in Canada, keep their cars much longer than then a Japan licensing deal in 1969. those warranties last. International service locations ac- Today, Ziebart offers 29 different counted for 30 percent of sales as products, including Z Shield paint recently as the mid-2000s, Baker protection, across its various said, but became a majority of rev- stores and “processing centers” — Tell your story with an ad enue after North American prod- car dealers, body shops and others uct sales contracted in the last re- that also offer its services. in this special section of cession. The company has occasionally Get additional print and Ziebart International has been looked at branching out into retail Crain’s Detroit Business online coverage employee-owned through an em- product sales at auto parts stores, Advertise with a half page or larger ployee stock ownership plan since but Baker said that would clash and support our veterans. and we’ll include a highlight of up to the 1990s. with its strategy of business devel- two of your recent veteran hires in International markets remained opment through new franchises a special advertising section in the the majority of sales even through and processing centers. In a report to be published July 14, the economic recovery, while do- “It can be very tempting to want Crain’s Michigan Business will focus on: print issue. Additionally include online mestic service was rebounding to put our name on some glass proﬁ les (information provided by your ■ along with U.S. auto sales, mainly cleaner or a truck cover for over- What Michigan is doing to help members of the armed company) for a special “Hired Veterans” due to more new license agree- the-counter sales, and build our forces transition into the workforce advertising feature on our website. ments. Fast economic growth and business,” he said. ■ increased car ownership in emerg- “But because we have been fo- What businesses can do to enlist the skills of veterans Full page advertisers receive ing international markets, along cused for so long on exclusivity 20 copies of the issue. ■ Resources and programs to help veterans and employers with differences in climate affecting agreements with our licensees … ISSUE DATE: July 14 product demand, have also con- and (on) equating the brand with ■ Proﬁ les of veterans-turned-entrepreneurs tributed to growth overseas. a professional-quality installa- CLOSING DATE: July 3 David Zoldowski, owner of tion, we didn’t want to compete Brighton-based aftermarket glass with that and with our own li- and accessories company Auto One censees in the over-the-counter Inc., said his company is still too market.” For more information contact small to target overseas growth Chad Halcom: (313) 446-6796, like Ziebart. Auto One has 16 loca- [email protected]. Twitter: [email protected] or (313) 446-6032. crainsdetroit.com tions, 14 in Michigan and two in In- @chadhalcom 20140519-NEWS--0028,0029-NAT-CCI-CD_-- 5/16/2014 6:20 PM Page 1

Page 28 CRAIN’S DETROIT BUSINESS May 19, 2014 Wage: Minimum wage bill poses problems for Dems and GOP ■ From Page 1 Most Democrats voted for the bill association. after winning some key concessions, But he did say the level of increase namely that future minimum wage Can proposal amend a law that doesn’t exist? approved is a “high number.” increases will be tied to inflation. “We recognize and appreciate But they are now hearing from BY CHRIS GAUTZ several previous Republican governors, said with what the Senate was trying to do to supporters of the ballot measure CAPITOL CORRESPONDENT this issue there is not a clear answer. mitigate the far ends of what this who are frustrated that the months “The answer is, they may be able to vote (on the ballot proposal was going to mean to they spent gathering signatures to The impetus for the hurried passage of Senate Bill proposal), but it would be a nullity,” he said. “You our industry,” Winslow said. “We place it on the November ballot 934 is to try to kill a proposed ballot measure seeking might be voting to amend something that didn’t ex- are now having conversations with could be for nothing, and workers to raise the minimum and tipped wage to $10.10 an ist.” House leadership. I don’t think would end up with a smaller raise. hour, but there remains confusion over whether it And if that were to happen, there would be no ef- we’ve reached the finish line on this “The bill doesn’t go far enough,” would. fect from that vote, and if Senate Bill 934 were to be- one.” said Danielle Atkinson, with Raise The bill repeals the state’s current minimum come law, it would remain so. Michigan, the group behind the bal- wage law and replaces it with a mostly identical new McLellan said all the Board of Canvassers can do lot proposal. one. Since the ballot proposal wants to amend cur- is decide if there are enough valid signatures. Democratic disappointment rent law, if it is first repealed, then the ballot propos- The bill now heads to the state “The Board of Canvassers does not make value Atkinson said supporters of the al would be seeking to amend a law that no longer House, where it received a chilly judgments,” he said. ballot proposal are disappointed exists. reception from Ari Adler, press The group behind the proposal, Raise Michigan, with the Senate action and the sup- secretary for House Speaker Jase That in theory means the ballot proposal is moot. plans to turn in its signatures by the May 28 dead- port the bill received from 10 of the Bolger, R-Marshall. But no one seems to be sure if that’s the case. line to the state’s bureau of elections regardless. 12 Senate Democrats. Fred Woodhams, spokesman for the Secretary of From there, the bureau’s staff will check the va- Adler said the bill needs to be re- They were also disappointed and State, said the department doesn’t have the authority lidity of the signatures and give a recommendation viewed closely because it changes surprised by the support Democrat- to order the petition sponsors to cease circulating to the Board of Canvassers on whether to approve the law in ways Bolger has “grave ic gubernatorial candidate Mark their petitions for a proposed legislative initiative, or the proposal to move forward based on whether it concerns about.” Schauer gave when he showed up act on its own to remove a proposal from the ballot has sufficient signatures. “We will not make any decisions unannounced on the Senate floor af- once it’s been certified by the state Board of Can- Once the signatures are submitted, the process of about what to do with the bill until ter the vote to take credit for it and vassers. verifying them typically takes a few months, Wood- we have a chance to get a better un- thank Republicans who voted for it. So who does? hams said. derstanding of the potential nega- “The sky is still blue, right?” she Chris Gautz: (517) 403-4403, [email protected]. tive impact of this proposal on Longtime attorney and campaign law expert said with a laugh. Richard McLellan, who has served as an adviser to Twitter: @chrisgautz Michigan’s working families and Regardless, Atkinson said Raise job providers,” Adler said in a state- Michigan has collected more than ment. dated pay hikes on autopilot.” painful to our members.” islation if it goes too far as well. the 258,088 signatures needed to se- “We are asking them to remove “The ballot proposal would be The same is true for the Michigan cure a spot on the November bal- Republican disappointment the indexing or kill the bill,” he said. terrible for small businesses,” Restaurant Association, said Justin lot. The deadline to submit those Rob Fowler, president and CEO Fowler said. Winslow, vice president of govern- signatures is May 28, and the Studley said the chamber is now of the Small Business Association of He said he is hopeful the Legisla- ment affairs. group plans to do so, she said. talking with House members about Michigan, wouldn’t say he is op- ture can find a middle ground, but Winslow said he is not in a posi- “We are in it until November,” its concerns with the bill, especial- posed to the Senate-passed ver- warned that while SBAM opposes tion to endorse or oppose the Sen- she said. ly the inflation provision, saying sion, but plans to continue to work the ballot measure, it could also ate-passed version of the bill, as he that would put “government man- to find a solution that is “less end up opposing passage of the leg- waits to hear from members of the See Next Page

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May 19, 2014 CRAIN’S DETROIT BUSINESS Page 29 Transit: RTA board to vote on finalists for CEO www.crainsdetroit.com EDITOR-IN-CHIEF Keith E. Crain ■ From Page 3 GROUP PUBLISHER Mary Kramer, (313) 446-0399 or [email protected] Capital Area Transit System in Baton The RTA is awaiting word on $2 service urban denizens desire.” ment is not conducive to building a ASSOCIATE PUBLISHER Marla Wise, (313) 446- Rouge, La., after five years in April million in operational funding in the The RTA is better aimed at man- sustainable system,” the newspaper 6032 or [email protected] EXECUTIVE EDITOR Cindy Goodaker, (313) 446- 2013; he spent 20 years with the state budget. The Senate budget has aging cooperation, Smith said. reported. He defended his record as 0460 or [email protected] MANAGING EDITOR Jennette Smith, (313) 446- Chicago Transit Authority prior to that. the money, but the House version “Some of the current responsibil- CEO, citing an increased number of 1622 or [email protected] All three candidates have famil- does not, and the RTA board mem- ities of our local providers might be routes, additional buses and short- MANAGER, DIGITAL STRATEGY Nancy Hanus, iarity with the local political and bers have been issued talking points appropriately transferred to the er wait times, the paper said. (313) 446-1621 or [email protected] MANAGING EDITOR/CUSTOM AND SPECIAL transportation culture, have run to lobby lawmakers for the money. RTA, like intercity and long-haul Marshall wants to discuss the PROJECTS Daniel Duggan, (313) 446-0414 or [email protected] transit agencies, and have experi- The state’s fiscal year begins Oct. 1. corridor route, but I foresee a need Baton Rouge situation during his SENIOR EDITOR/DESIGN Bob Allen, (313) 446- ence with transit funding efforts, and a desire for good local agencies interview, Palombo said. 0344 or [email protected] SENIOR EDITOR Gary Piatek, (313) 446-0357 or which are three of the leading crite- Down the road long into our future,” he said. Marshall was at Chicago’s bus [email protected] ria set by the RTA board for its hire. There has been some back-chan- system from 1989 to 2009, working WEB EDITOR Kristin Bull, (313) 446-1608 or [email protected] The candidates were not at Fri- The RTA CEO is a key figure in nel talk about the Detroit Trans- up from the management training WEST MICHIGAN EDITOR Matt Gryczan, (616) 916- day’s RTA executive and policy the region’s transportation situa- portation Corp., which has its own department to oversight of bus op- 8158 or [email protected] WEB PRODUCER Norman Witte III, (313) 446- committee meeting. A message was tion, especially as officials suggest board and is a separate city corpora- erations and service management. 6059, [email protected] left for Ford; Crain’s did not have DDOT perhaps be absorbed by the tion rather than agency, taking over He worked in marketing and polit- EDITORIAL SUPPORT (313) 446-0419; YahNica Crawford, (313) 446-0329 contact information for Martin and authority amid Detroit’s bank- DDOT, but no official proposals. ical consulting prior to that. NEWSROOM (313) 446-0329, FAX (313) 446- Marshall. ruptcy — something that would re- 1687 TIP LINE (313) 446-6766 The RTA CEO reports to the nine- quire a unanimous RTA board REPORTERS member board and has overall re- vote before a referendum in The interviews Michael Ford Jay Greene, senior reporter: Covers health care, insurance, energy utilities and the environment. sponsibility for all aspects of RTA Wayne, Oakland, Macomb and Two of the three finalists are fa- Ford was hired from a pool of 60 (313) 446-0325 or [email protected] administration and operations. Washtenaw counties. miliar to the RTA board: Martin candidates in 2009 to run Ann Ar- Amy Haimerl, entrepreneurship editor: Covers entrepreneurship and city of Detroit. (313) 446- The authority was created by DDOT’s retiree pension and was interviewed by the board last bor’s transportation system. The 0416 or [email protected] the state in 2012 to coordinate vari- health care obligations — numbers year before it hired Hertel, and job had been vacant for two years. Chad Halcom: Covers litigation and the defense industry. (313) 446-6796 or [email protected] ous transit agencies in Wayne, weren’t immediately available Fri- Marshall also was an applicant He was running his own compa- Tom Henderson: Covers banking, finance, Oakland, Macomb and Washtenaw day — for decades have worried last year, but wasn’t interviewed. ny, Camas, Wash.-based MG Ford technology and biotechnology. (313) 446-0337 or [email protected] counties. transit insiders and fueled lan- The interviews, which are open to Consulting, when he was hired. Kirk Pinho: Covers real estate, higher education, All federal and state funding for guage in the RTA enabling legisla- the public and will include time for Prior to that, Ford was COO and Oakland and Macomb counties. (313) 446-0412 or [email protected] DDOT, SMART, AATA and the De- tion that creates a high bar for it to comment, will begin at noon assistant general manager of the Bill Shea, enterprise editor: Covers media, troit Transportation Corp. (better absorb another transit agency. Wednesday at the Southeast Michigan San Joaquin Regional Transit District advertising and marketing, the business of sports, and transportation. (313) 446-1626 or known as The People Mover) goes To take over DDOT rather than Council of Governments office at 1001 in Stockton, Calif., from 2007-08, [email protected] through the RTA, which approves just provide funding supervision Woodward Ave. The RTA has been and held a variety of management Dustin Walsh: Covers the business of law, auto suppliers, manufacturing and steel. (313) 446- grants and the operating and capi- would require a unanimous RTA operating out of SEMCOG’s head- roles at the Tri-County Metropolitan 6042 or [email protected] Sherri Welch, senior reporter: Covers nonprofits, tal plans for those agencies. board vote, and then voter ap- quarters, and using its staff, until it Transportation District in Portland, services, retail and hospitality. (313) 446-1694 or proval in the four counties — no gets its own funding established. Ore., from 2002-07. [email protected] simple task in a region traditional- SEMCOG is the area’s regional He was director of operations LANSING BUREAU Filling the job Chris Gautz: Covers business issues at the Capitol ly bereft of cooperation. transportation planning agency. and maintenance for Community and utilities. (517) 403-4403 or [email protected] As regional transit evolves and While Detroit Emergency Man- There is no scheduled date to Transit in Everett, Wash., from 1991- ADVERTISING Detroit’s M-1 Rail streetcar and oth- ager Kevyn Orr has suggested have a CEO hired, but SEMCOG 2001, and worked at Greyhound Lines SALES INQUIRIES (313) 446-6052; FAX (313) er non-bus systems are created, it merging DDOT into the RTA as a Deputy Executive Director Inc. as a manager from 1983-1991. 393-0997 will be vital to have a CEO with cost-saving measure to be ex- Carmine Palombo said the expec- As head of the AATA, Ford has SALES MANAGER Tammy Rokowski SENIOR ACCOUNT EXECUTIVE: Matthew J. multi-modal transit experience, plored, it would be years down the tation is that a deal isn’t expected worked with the RTA because the Langan said Megan Owens, executive di- road and there haven’t even been to take long to work out. authority has increasing amounts ADVERTISING SALES Christine Galasso, Jeff Lasser, Sarah Stachowicz rector of Detroit-based Transporta- preliminary talks about it, said A specific salary hasn’t been set, of financial oversight of the major CLASSIFIED SALES Angela Schutte, manager, tion Riders United, an organization RTA Chairman Paul Hillegonds. Palombo said, but the RTA has ear- local transit agencies. (313)-446-6051 dedicated to improving and pro- Conan Smith, a Washtenaw marked $930,000 for staffing. DIGITAL MARKETING MANAGER Jennifer Chinn moting transportation access and County commissioner and execu- Other candidates AUDIENCE DEVELOPMENT DIRECTOR Eric Cedo mobility in the Detroit area. tive director of EVENTS MANAGER Kacey Anderson “Someone that can handle a the nonprofit Albert Martin Among the other applicants were SENIOR PRODUCER FOR DIGITAL/ONLINE PRODUCTS Pierrette Dagg combined system is important, Michigan Suburbs Martin’s resume, as provided by 36th District Court Judge Donald SENIOR ART DIRECTOR Sylvia Kolaski and understands importance of Alliance, is skep- the RTA, shows he has worked as a Coleman; Neil Greenberg, a former SALES SUPPORT Suzanne Janik, YahNica Crawford working with wide range of peo- tical of the RTA consultant for transit and other in- SMART and AATA employee who PRODUCTION MANAGER Wendy Kobylarz ple,” she said. absorbing the lo- dustries. He also was director of la- is editorial director of Santa Bar- PRODUCTION SUPERVISOR Andrew Spanos Liz Gerber, an RTA board mem- cal transit agen- bor relations for Southfield public bara, Calif.-based transportation CUSTOMER SERVICE MAIN NUMBER: Call (877) 824-9374 or write ber from Washtenaw County, ex- cies. schools from 2001-05. information design firm CHK Ameri- [email protected] pressed confi- “Our goal He ran DDOT from 1994 to 2000, ca; Taiwo “Ty” Jaiyeoba, a transit SUBSCRIPTIONS $59 one year, $98 two years. Out of state, $79 one year, $138 for two years. dence Friday in shouldn’t be the and worked at the Michigan Depart- principal at Atlanta-based HDR Engi- Outside U.S.A., add $48 per year to out-of-state the batch of fi- RTA’s takeover ment of Transportation from 1991-93. neering Inc. who has worked in the rate for surface mail. Call (313) 446-0450 or Smith (877) 824-9374. nalists. of DDOT or He was general manager of the transportation agencies in Grand SINGLE COPIES: (877) 824-9374 “I think the SMART or AATA, but rather the suburban bus system from 1984- Rapids and Sacramento, Calif.; and REPRINTS: (800) 290-5460, ext. 125; three will give smooth integration and coordina- 1991, and was its human resources Todd Pappas, who worked in a vari- (717) 505-9701, ext. 125; or lindsay.wilson @theygsgroup.com us some con- tion of those systems,” he said. “If director since 1980. ety of logistics roles. TO FIND A DATE A STORY WAS PUBLISHED: trast (in inter- ultimately the data shows that we From 1973 to 1980, Martin was One CEO applicant, Marie (313) 446-0406 or e-mail [email protected] CRAIN’S DETROIT BUSINESS IS PUBLISHED BY views),” she can best serve the public through an industrial relations analyst Donigan, withdrew Thursday night, CRAIN COMMUNICATIONS INC. said. “Which of the merger of these systems, so be with Ford Motor Co. He began his Palumbo said. No reason was given. CHAIRMAN Keith E. Crain their different it, but at least for now that seems career with Economic Opportunity She’s a former state representative, PRESIDENT Rance Crain Gerber TREASURER Mary Kay Crain strengths and unlikely and inappropriate.” Atlanta Inc. in 1965. transit advocate and partner at Roy- Executive Vice President/Operations skills is a priority?” It comes down to money and lo- al Oak-based Donigan McLogan Con- William A. Morrow Executive Vice President/Director of Strategic This is the RTA’s second at- cal control, Smith said. sultants LLC. Operations Chris Crain tempt to hire a CEO. “Dense urban areas like Detroit Brian Marshall Donigan is one of the organizers Vice President/Production & Manufacturing Dave Kamis The job was accepted by SMART and Ann Arbor are going to need Marshall resigned as CEO from of the Metro Coalition of Congrega- Chief Information Officer CEO John Hertel last year, but he and use more-intense public trans- Baton Rouge’s public transit system tions of the Harriet Tubman Center’s Anthony DiPonio stepped away in January because portation services,” he said. “The in April 2013 amid public criticism RTA summit focused on jobs and G.D. Crain Jr. Founder (1885-1973) Mrs. G.D. Crain Jr. Chairman (1911-1996) the organization still had no mon- funding support for those are likely of the Capital Area Transit Sys- economics scheduled for June 4 at EDITORIAL & BUSINESS OFFICES: ey for staff. Hertel, a longtime fig- to be local, either through local tax- tem’s performance, according to the Detroit Zoo. 1155 Gratiot Ave., Detroit MI 48207-2732; (313) 446-6000 ure in mass transit, continued to ation or fare box revenues. Region- that city’s The Advocate newspaper. Bill Shea: (313) 446-1626, Cable address: TWX 248-221-5122 AUTNEW DET run SMART while working with- al revenue streams are likely to be In a resignation letter, Marshall [email protected]. Twitter: CRAIN’S DETROIT BUSINESS ISSN # 0882-1992 is published weekly, except for a special issue the out a contract at the RTA. insufficient to support the levels of wrote that “the current environ- @bill_shea19 third week of August, and no issue the third week of December by Crain Communications Inc. at 1155 Gratiot Ave., Detroit MI 48207-2732. Periodicals postage paid at Detroit, MI and additional mailing offices. POSTMASTER: Send address changes to CRAIN’S DETROIT BUSINESS, From Previous Page with a mostly identical new one. But knowing the threat was real bill has largely lost the support of Circulation Department, P.O. Box 07925, Detroit, MI 48207-9732. GST # 136760444. Printed in that Republicans could kill the bal- the business community. U.S.A. But the ballot proposal may nev- The reason for that is the ballot lot proposal and leave workers Entire contents copyright 2014 by Crain er be printed on a November ballot. drive is seeking to amend the cur- Fowler said SBAM is opposed to Communications Inc. All rights reserved. rent law. If the law is repealed, with no increase in wages, or a the government setting the wage Reproduction or use of editorial content in any The real impetus for Senate Bill manner without permission is strictly small one, Senate Democrats prohibited. 934 was to make moot the ballot then the ballot proposal would be base, so accepting any increase proposal through a bit of legisla- seeking to amend a law that no worked behind the scenes with has been tough, while recognizing tive maneuvering. longer exists. Richardville and won changes that that passing the ballot proposal is The bill, sponsored by Senate Ma- Democrats initially howled at allowed them to swallow hard and the worst-case scenario. jority Leader Randy Richardville, R- the way Republicans were at- vote for it. “It’s going to be hard for us to Monroe, repeals the state’s current tempting to derail the ballot mea- But in making those changes, es- support the outcome, no matter minimum wage law and replaces it sure and not allow a vote. pecially the inflation index, the what,” he said. 20140519-NEWS--0030-NAT-CCI-CD_-- 5/16/2014 5:24 PM Page 1

Page 30 CRAIN’S DETROIT BUSINESS May 19, 2014 Brokers: Real estate isn’t the only thing moving these days ■ From Page 3 tinue to oversee operations and of personnel,” Hayman said. teaches in the University of Michigan’s mark Grubb in 2010. He worked for Jones Lang LaSalle and the compa- management of Redico’s Hawaii “Maybe it’s just random timing, or Stephen M. Ross School of Business. Grubb & Ellis from 1999 to 2004 be- ny’s president of Canadian opera- portfolio and new leasing opportu- the improving real estate market. It Albert Ellis, who had been a se- fore becoming the managing direc- tions (2010-12). nities. Jonas will also work on any could be that more transactions are nior associate in the Detroit office tor for First Industrial’s Detroit of- “I went to Avison Young because special projects in which senior- occurring, so more options are open of Colliers International Inc., left the fice. of the platform,” Becker said. “It’s a level oversight is needed. for people to make a change.” company in February and is now Emmons was a broker on the unique principal-owned business, Overseeing new building projects Dwoskin’s last day with Marcus senior associate for Southfield- May 2013 deal to sell Travelers as opposed to a big, publicly owned at Redico is Kenneth Till, senior & Millichap, where he had worked based Farbman Group. He joined Towers I and II in Southfield to real estate company. It’s also an op- vice president of development, who since 2002, was Colliers in December 2011 after Time Equities Inc. based out of New portunity to do a big ‘greenfield’ manages office and retail develop- May 9; his first working for four years as an asso- York City. Lehman Bros. Holdings build in the Midwest.” ment, redevelopment and acquisi- day at Hayman ciate with Farmington Hills-based Inc. was the seller in the $25.1 mil- Becker said he has pursued “a tion. is June 2. He Friedman Integrated Real Estate Solu- lion deal, according to CoStar. number of opportunities for (real Haboian’s first day with Redico said that during tions LLC, according to his LinkedIn Many of the longtime real estate estate brokerage company) acqui- was May 1. His last day at Kojaian his time with profile. and real estate finance companies sition in Detroit,” and that he is was Feb. 28. Marcus & Mil- Among his most recent deals is have connections; Redico devel- still looking to buy a small firm for Examples of Haboian’s leasing lichap, he over- the sale of the former headquarters oped the Travelers Towers and Avison Young to stock the local of- work while at Kojaian included saw $4 billion in of Crain Communications Inc., the par- Lehman was a 13-year business fice with brokers. leases of 375,000 square feet for CHE real estate trans- ent company of Crain’s Detroit partner with Kojaian that resulted If that doesn’t pan out, Becker Trinity Health at the Victor Corporate actions. Business, near the Detroit River to in many developments and acqui- will look to hire from other real es- Center in Livonia; 175,000 square Dwoskin Another cate- ME Enterprise LLC, a Birmingham- sitions in the region. tate companies. feet for Mercedes-Benz Financial Ser- gory of broker moves has to do with based joint venture between co- Ellis and Emmons declined to “We are continuing to evaluate vices USA LLC in the Farmington upstart brokerages to the market. presidents T.J. Elia and Clint Man- comment further on their job opportunities in the marketplace, Hills Officenter; and 125,000 square Steve Morris, a longtime tenant sour. That $2.5 million deal closed changes. and we are going to make a deci- feet for International Automotive Com- representation broker, has opted to in August 2013, according to Wash- Meanwhile, brokerage Avison sion fairly soon as to whether to go ponents Group in Southfield. again run his own office. He is now ington, D.C.-based real estate infor- Young, which has been on a hiring with an organic growth strategy, Competing for talent affects real principal of a new Farmington mation service CoStar Group Inc. spree in many which means recruiting brokers estate companies just like every Hills-based firm, Axis Advisors LLC. Larry Emmons joined the South- big markets, is from other firms,” he said. other industry, and there isn’t a sin- Morris had been principal in the field office of CBRE Inc. in Septem- looking to add During his time with Jones gular reason for the latest moves, Southfield office of Mohr Partners Inc. ber as senior local talent. The Lang LaSalle, Becker was a broker said Andrew Hayman, president of until January. Before then, he was vice president of Toronto-based on deals including a 60,000-square- Troy-based Hayman Cos. managing director of the Southfield capital markets firm has flown foot lease for Ernst & Young LLP at Hayman made a high-profile hire office of what was then Newmark after working as under the radar One Kennedy Center downtown; a recently when it hired Jonathan Knight Frank. And prior to working senior managing since November 300,000-square-foot lease in 2003 for Dwoskin, regional manager for the there, he had run his own broker- director of the 2012, when it EDS Corp. in the Renaissance Cen- Southfield office of Marcus & Mil- age company, GVA Strategis, created capital markets opened a Detroit ter; and sold a 600,000-square-foot lichap Real Estate Investment Services from the former Morris & Berke. group in the office with Jim General Motors Co. building in Pon- Inc., as senior executive vice presi- Morris, whose notable large Southfield office Becker Becker at the tiac to Hewlett-Packard Co., he said. dent. Dwoskin was a Crain’s 40 un- transactions included the land sale of Newmark Grubb helm as principal and managing Kirk Pinho: (313) 446-0412, kpin- der 40 selection in 2009. for the Kojaian-developed Farming- Knight Frank. He director. Becker had been the in- [email protected]. Twitter: @kirkpin- “There is always shifting around ton Hills Corporate Center, also Emmons started at New- ternational director (2007-12) for hoCDB

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with smoked pig heads and based in Dearborn, is assess- communities. bones. The Traverse City Sinai-Grace ing offers for its plants in Ⅲ Business executives Atlas Oil races craft brewer, known for giv- Dearborn and Columbus, will coordinate with eight ing its beer a culinary twist, Miss., Bloomberg reported. Detroit city departments describes the porter as names CEO Ⅲ Rhode Island-based Cit- over the next eight weeks “similar to taking a soft izens Financial Group Inc., op- on the “Project Lean” ini- pretzel, wrapping it in ham MC Sinai-Grace Hospi- erating as Charter One in tiative, to use lean process to power up and dipping it in choco- tal in Detroit named Michigan, filed a registra- and management princi- late.” D Paula Autry as CEO, tion statement with the U.S. ples to bolster city services. For its part, Lockhart’s effective June 30. She re- Securities and Exchange Com- Ⅲ Southeast Michigan’s will prepare a 60-pound places Reginald Eadie, M.D., mission for a proposed ini- unemployment rate fell 1.5 Belle Isle smoked, stuffed porchetta, a recently tial public offering of its percent, to 8.5 percent, in boneless pork roast. named CEO common stock. the first quarter of 2014 of DMC Ⅲ Pig ’n Pint is from noon-3 Donald Stebbins, former compared with that period relatively new busi- Harper Uni- p.m. at the 202 E. Third St. CEO of Van Buren Town- in 2013, the Workforce Intelli- ness segment of Atlas versity Hos- ship-based Visteon Corp., gence Network reported. restaurant. The event is A Oil Co. is already at pital and will earn $2.6 million in Ⅲ Yankee Air Museum sponsored by Good Pour LLC, work on Belle Isle making Hutzel stock incentives and a founder Dennis Norton said he a Livonia-based craft beer preparations for the Chevro- Women’s $900,000 base annual salary and the owner of the historic promotional company. let Detroit Belle Isle Grand Hospital. as CEO of Van Nuys, Calif., Willow Run Bomber Plant ex- Prix. Autry has wheel supplier Superior In- pected to sign a purchase Autry The Taylor-based fuel Painting’s long journey been chief dustries International Inc. agreement for the property. supplier to more than 400 of staff and vice president Ⅲ The Detroit Three au- Ⅲ Funding was approved convenience stores and gas continues on film of strategic planning at tomakers again ranked low for a $7 million University of stations in the upper Mid- A new film documentary Morehouse School of Medi- for poor relations with its Michigan Health System pro- west has helped set up 75 Brogan & Partners has created tells the story of a 17th cen- cine in Atlanta. supplier base compared to ject, the Emergency Criti- a number of stickers to lighten on-site generators and 50 tury Spanish painting’s its Japanese competitors cal Care Center, where the light towers on the island the mood at the Mackinac domestically, said a survey most critically ill and in- Policy Conference. journey from a drawing and will collaborate with room wall at Meadow Brook ON THE MOVE by Birmingham-based Plan- jured adults will get initial Riverview-based Gibbard Hall in Rochester Hills to Ⅲ The Detroit Pistons in- ning Perspectives Inc. emergency care, AP report- Electric Inc. to keep them Stick with the humor the Detroit Institute of Arts. troduced Stan Van Gundy as Ⅲ Frontier Airlines added a ed. It is slated to open in operating throughout the There are no sacred cows Salvador Salort-Pons, a coach and president of bas- flight from Detroit Metropoli- two phases starting in May 30-June 1 event. at the Detroit Regional Cham- DIA curator, noticed “The ketball operations. Van tan Airport to Washington spring 2015 at University The company has been fu- ber’s Mackinac Policy Confer- Infant Saint John the Bap- Gundy, 54, reportedly Dulles International Airport, Hospital in Ann Arbor. eling generators on-site for ence. tist in agreed to a $35-million, beginning Sept. 8. Ⅲ The House Fiscal Agency a couple of weeks, said At- Business leaders, May- the five-year contract. Ⅲ Detroit-based Blue Cross estimated the state will col- las President and COO Mike or Mike Duggan and oth- Wilder- Ⅲ Jon Fitzgerald, senior Blue Shield of Michigan donat- lect about $873 million less Evans, and expects to in- ers are once again targets ness,” a vice president of philan- ed $150,000 to health centers revenue this budget year crease its presence closer to for the Brogan & Partners paint- thropy at Detroit-based Hen- in Detroit and Lincoln Park. and next than was projected race time. Convergence Marketing ing by ry Ford Health System, will Ⅲ Detroit’s three casinos in January, AP reported. Atlas, founded in 1985 as Inc.’s sticker book, which Bar- leave effective June 30 to be- reported a total revenue de- Ⅲ Lawmakers voted to a fuel supplier, has expand- will be distributed on tolome come executive vice presi- cline of 6.5 percent in April implement — and delay — ed in the generator fuel Mackinac Island again at Esteban dent and chief development compared to that month statewide standards for market over the past five this year’s conference. Murillo, officer at the Hackensack last year, said the Michigan evaluating teachers and years, launching a genera- Stickers with slogans while University Medical Center Gaming Control Board. school administrators. The tor assurance program in such as “Tell Matty Moroun visiting the historic home Foundation in New Jersey. Michigan House approved a 2009 and an emergency ser- to jump off his own bridge last year. The painting had Ⅲ Royal Oak hired Todd delay until next academic vices division about three THER NEWS and stop trying to jump on been a part of the Meadow Fenton, former senior devel- O year; the Senate OK’d a de- years ago. Customers in- ours” and “Does your legis- Brook estate since owners opment manager of the Ⅲ U.S. Bankruptcy Judge lay until 2015-16. clude banks, data storage lator need a kick in the as- Alfred and Matilda Dodge Wayne County Economic De- Steven Rhodes rejected a re- Ⅲ Medicaid enrollment centers and offices with phalt?” are included in this Wilson acquired it in 1926. velopment Growth Engine, in quest by Financial Guaranty under the Healthy Michigan emergency power needs. year’s book. For the next year after the new position of econom- Insurance Co. for permis- Plan passed the halfway Evans said Atlas is in 30 The agency has been dis- the discovery, a team of edi- ic development manager. sion to assess the value of mark toward its goal of states, and he hopes to take tributing the humor stick- tors from Oakland University Ⅲ Wayne State University city-owned art at the Detroit signing up 458,790 unin- it nationwide. ers on-and-off at the confer- followed the painting as it named John Shallman senior Institute of Arts by remov- sured people thought to be Back for its third year ence since 2001. underwent restoration; that director of licensing and ing as many as 3,000 works eligible this year, said the since returning from hiatus journey is chronicled in “A Kenneth Massey senior di- from the walls for experts state Department of Commu- and orga- Masterpiece Revealed.” rector of venture develop- to examine. Meanwhile, nity Health. nized by Beer, BBQ to ham it up Watch the 28-minute film at ment. Shallman was direc- Emergency Manager Kevyn Ⅲ Legislation increasing Chair- tor of commercialization at Orr made the city’s case to regulations for compound- man-CEO at Royal Oak event oakland.edu/amasterpiece Royal Oak-based Beaumont lawmakers in Lansing for ing pharmacies passed the Roger revealed. What happens when you Health System; Massey was state financial aid. Michigan Senate after a fatal Penske of The painting is on loan to combine a tap takeover and managing director of Micro- Ⅲ U.S. Rep. John Conyers, meningitis outbreak last Bloom- the DIA for the next five a pitmaster dinner? Call it Dose Life Sciences LLC of D-Detroit, filed suit in feder- year, AP reported. field years; it is on display in a the Pig ’n Pint. Farmington Hills and asso- al court to get back on the Ⅲ Tuition would decrease Hills- European gallery inside the Lockhart’s BBQ in Royal ciated venture capital fund Aug. 5 primary ballot, The for some military veterans based museum. Oak is the scene of the May LifeLine Ventures LLC. Detroit News reported. who attend in-state public Penske 31 beer-and-barbecue event universities and community Penske Corp., the Wayne County officials said featuring Right Brain Brew- Buddy’s Pizza has a special Conyers did not have colleges under legislation Grand Prix expects to draw ery’s new Mangalitsa Pig COMPANY NEWS passed by the Michigan more than 100,000 fans to enough signatures to appear Porter — a beer brewed treat for dog lovers House, AP reported. Belle Isle. Ⅲ Edmonton, Alberta- on the ballot, and that sever- Rather than throwing Ticket sales are up nearly based design firm Stantec al people unlawfully circu- leftover pizza dough in the 8 percent over last year de- Inc., with offices in Farming- lated his petitions because garbage, Buddy’s Pizza is of- OBITUARIES spite a $10 price increase, ton Hills and Ann Arbor, they did not appear to have fering it to pet owners look- Ⅲ Martin Jacob, president and newly installed double- The Pig Porter said it expects to purchase been registered voters or ing to throw their dog a of Livonia-based packaging decker corporate chalets Texas-based SHW Group LLC, had registered too late. is described as bone. distributor M. Jacob & Sons along the final straightaway an architecture, engineer- Ⅲ The Michigan Depart- The Farmington Hills- (now MJS Packaging), died that hold 3,000 are already ing and planning firm with ment of Environmental Quality similar to based pizza chain plans to May 9. He was 87. sold out. an office in Berkley, for an updated permits for Dear- begin offering its “Buddy Ⅲ Cornelia Kennedy, a for- Other local businesses in- undisclosed price by the end born-based Severstal North taking a soft Bones,” made from leftover 6th U.S. volved in the Grand Prix in- of this month. America and the southwest mer judge for the pizza dough, in its stores to- Ⅲ Circuit Court of Appeals and clude Warren-based Andi- pretzel, General Dynamics Land Detroit Marathon Petroleum amo Restaurant Group, day, in exchange for a $2 do- Systems, Sterling Heights, Co. LP refinery, expanding U.S. District Court for the providing meal service at wrapping it in nation to the Michigan Hu- and Arotech Corp., Ann Arbor, testing requirements and Eastern District of Michigan hospitality chalets and the mane Society. were granted military con- adjusting emission limits. who was the first female ap- concession area, and ham and The dough includes tracts for $163 million and Ⅲ Detroit Mayor Mike pointed to the federal Rochester Hills graphics grains, water, yeast and mo- $5.2 million, respectively. Duggan announced the ex- bench in Michigan and the company I.M. Branded LLC, dipping it in lasses, which, as it turns Ⅲ Russian steelmaker pansion of the city’s online first female chief judge of a providing signs and banner out, makes for a dog-friend- OAO Severstal, whose North home auctions to the U.S. district court, died displays. chocolate. ly treat. American operations are Boston-Edison and Osborn May 12. She was 90. 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