VOL. 39, NO. 34 AUGUST 20 - 26, 2018

Source Lunch Real estate Union Trust could be to condos. Page 2

Greg Malkin, fellow, The List Burton D. Morgan CLEVELAND BUSINESS The region’s highest-paid Page 39 CFOs Page 34

AT THE TABLE GOVERNMENT JobsOhio SIZZLING OUTDOOR SPACES likely will survive election But the group could soon get new leader

By JAY MILLER

[email protected] @millerjh

It looks likely that JobsOhio,, the private-sector economic develop- ment nonprofit created by outgoing Gov. John Kasich, will survive in 2019, regardless of whether Demo- crat Richard Cordray or Republican Mike DeWine becomes the next gov- ernor. Both candidates issued statements indicating that they intend to keep the state's principal business attrac- tion organization outside of state government. The only question may be who will get to choose the nonprofit’s next leader: the current, nine-member The screened-in, outdoor at the Fredericks’ home in North Ridgeville includes a TV screen over the and a conversation pit, with a board, all named by Kasich, or the fan and heating units to temper air flow. (Peggy Turbett for Crain’s) board that will lead the organization after the new governor fills five seats cooking has gone high-end, and that have four-year terms that expire in July 2019? business for outdoor is booming John Minor, who became Jobs- Ohio’s president and chief invest- By JOE CREA with an electronic system to raise ment officer in July 2012, told Crain’s and lower screens if the flying pests he plans to leave the job, but he is [email protected] are too pesky. There’s a bar, TV vague about details. screens, a conversation pit, and both “I plan to leave JobsOhio at some Like legions of Clevelanders, Kevin ceiling fans and heating units to point, but I do not have a set time- and Mary Frederick call themselves maintain just the right degree of frame or a specific date,” he said in a foodies. They dote on fine dining, -en comfort. telephone interview. “The board and joy discovering new restaurants, love But that’s just where the fun be- I have had ongoing discussions about to cook at home and even have taken gins, at least for a cooking couple like succession planning relative to my cooking classes with Michael Symon. the Fredericks. role as leader of JobsOhio.” But like an increasing number of Their outdoor kitchen is fitted with Asked whether the board would Americans, the Fredericks take their a sophisticated Wolf range specifical- wait to appoint a successor until the hobby up another notch. They’ve in- ly outfitted for outdoor use. The setup new governor filled board seats with vested big time in the luxury of a includes a grill, an oven and a side directors of his choosing, Minor said sprawling outdoor kitchen. gas burner. Oh, and a brick pizza that has come up in the succession Just a few steps from their , oven. conversations the board is having but the North Ridgeville couple has So, seriously, why? he would not be more specific about erected a storm-resistant pavilion “Well, we love to entertain. And to The Fredericks’ outdoor kitchen features a of cooking appliances, when he would leave and when the that serves as an open fitted SEE KITCHENS, PAGE 33 including a pizza oven, a Wolf oven and main grill, and side gas burner. SEE SURVIVE, PAGE 35 Entire contents © 2018 by Crain Communications Inc. Inside Banks are looking to bolster offerings with help We visit Kent from fintech startups. to chat about Page 11 small-town banking in M&A market forces the modern tweaks in PE dealings. era. Page 15 Page 14

P001_CL_20180820.indd 1 8/17/18 4:09 PM PAGE 2 | AUGUST 20 - 26, 2018 | CRAIN’S CLEVELAND BUSINESS For-sale suites eyed for Union Trust space By STAN BULLARD developer, the late Nathan Zaremba, to lose presales on units as the hous- 41 [email protected] ing market soured in 2008. A welter of Condominium and units @CrainRltywriter lawsuits resulted that were consoli- that were listed for sale in the 44113 dated into a single case. Zaremba and 44114 zip codes on Realtor.com, In the hunt for uses to occupy the Management Co., a company then as of Thursday, Aug. 16. massive Union Trust office building headed by the late brother, Timothy at 925 Euclid Ave., real estate owner Zaremba, one of Nathan Zaremba’s lenders since the housing market and developer Frank Sinito’s Millen- siblings, led an investor group that started to recover in 2011 have pre- nia Cos. is contemplating a run at the bought the remaining 57 unsold ferred townhouse units which allow missing link in downtown Cleve- units in 2012 to resolve the litigation. buyers to own the ground under- land’s revival: condominiums. They've remained rentals since. neath their units. A proposal to include 60 luxury Another potential hurdle for con- The eR altor.com website shows condominiums is included in an in- dos at 925 Euclid Ave. might be less how little is underway in the condo vestment summary that Millennia daunting than generally thought. category, at least in downtown Cleve- Housing Capital Ltd., Sinito’s fi- Projects such as Union Trust, a land. The market last Thursday, Aug. nance-raising subsidiary, is sharing property better known by its former 16, offered just 41 condominium and with prospective investors for the name as the Huntington Building, townhouse units for sale in the 44113 proposed $350 million project. generally require using state and fed- and 44114 zip codes, but just one The investment outline, which in- eral tax credits, which are not appli- new construction offering, town- cludes potential costs and sources of cable to for-sale projects. They need at the low-rise portion of Za- funds for the mammoth project was to be rented for five years under fed- remba’s Avenue District. If down- obtained by Crain’s Cleveland Busi- eral law. town does not offer condominiums, ness from a third party on grounds he However, experts say it might be it risks losing buyers to city neighbor- not to be identified because he is not Cleveland-based Millennia Cos. may put luxury condominiums into the possible to include for-sale units be- hoods that are offering part of Millennia’s staff or the project former Huntington Building as part of its $350 million plan to resurrect cause they are technically air rights for sale with prices from $260,000 to team. the mostly empty property for contemporary use. (Stan Bullard) within the of a structure reno- almost $1 million. Or such well- Co-working space, a trendy open vated with the credits. heeled prospects might buy high- office-sharing plan serving multiple spirit that drove Sinito, in partner- lenders dislike the property type after Clevelanders already have demon- priced suburban townhouses. tenants in one suite, also is a compo- ship with his wife Malisse, to build a suffering huge losses on them na- strated an appetite for condos in a True to form, Sinito’s Millennia nent of the office portion of the plan hospitality company with multiple tionally in the housing bust. They can historic property, however. Public has talent in even the condo arena. if a third-party provider such as We- restaurants, a more than 20,000-suite also provide a source of continued Square also is home to the Park Michael Friedman, for the past Work or Regus will lease space for apartment empire and the 2016 pur- development when real estate devel- Building, a 140 Public Square land- three years president of Millennia such an operation. However, other chase of Key Center and its 57- opers overbuild the rental apartment mark that was converted to condo- Housing Capital, sold distressed con- potential uses have been aired pub- Key Tower centerpiece. market, but that’s not yet on the hori- miniums in the housing boom. The dos and townhouses throughout the licly since Millennia bought the Condominiums are often dis- zon. residential conversion met historic nation for lenders and developers in property for $40 million last spring, cussed downtown because they pro- Thel ast major downtown condo guidelines but did not use the credits, the early 2000s. Friedman declined including market and affordable vide a way to introduce home owner- construction project sank during the which allowed the suites to be sold. to comment for this story on the in- apartments, a restaurant and a luxu- ship to the city center where land housing bust as the 10-story Avenue Suites have recently been resold for clusion of condos in the 925 Euclid ry car showroom. costs are high. However, condo proj- Tower, 1211 St. Clair Ave., which had upward of $400,000 according to plan. Taking a run at for-sale condo- ects are only now starting to surface 62 suites, failed. Cuyahoga County land records. For his part, Sinito, via his assis- miniums reflects the entrepreneurial and rise because, developers say, A construction setback caused the Since condos use air rights, local tant, declined comment.

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P002_CL_20180820.indd 2 8/17/18 1:21 PM CRAIN’S CLEVELAND BUSINESS | AUGUST 20 - 26, 2018 | PAGE 3 State’s business gateway has roadblocks By JAY MILLER means a delay of a month in getting “Several businesses about not getting their withholding payment. and net profits payments from the tax [email protected] So it is an option for businesses, or have called to ask us department. The cities count on @millerjh their accountants, to make monthly to fix it because they those monthly or quarterly distribu- or quarterly payments for municipal tions from the state to pay their bills. The updated Ohio Business - net profits taxes and state commer- couldn’t log on. We Amy Arrighi, chief legal counsel way, which Lt. Gov. Mary Taylor has cial activity taxes, as well as local in- can’t fix it. It’s the for the Regional Income Tax Agency, beefed up to be a one-stop location come tax withholding for employees. the Brecksville agency that collects for all business transactions with the State collection is attractive to busi- state’s system.” and administers municipal income state, has had more than its share of nesses, which must file with multiple taxes for 320 Ohio cities, said the cit- glitches since the new site went live communities because they have em- — Veronica Showalter, fiscal ies that RITA represents got only $6.5 July 2. ployees working in a number of com- manager, Troy million of an expected $7.8 million in Business users and their account- munities. employee withholding payments in ing firms have struggled to create log- Then the tas te updated the gate- As important, the statement said July. ins and get running on the system The Ohio Business Gateway has way design in July. Shortly after the no late payment penalties would be Veronica Showalter, fiscal manag- they use to file local income tax with- been updated, but the website new system was up and running, assessed to any business that was un- er of Troy in Central Ohio, said last holding and net profits tax withhold- has had a plethora of glitches Taylor told Crain’s about the startup able to make a monthly tax payment Wednesday, Aug. 15, that until now, ing. Municipalities, which receive the since it went live July 2. pains. She said the gateway’s tele- by their deadline, provided a com- the city was getting its June net prof- proceeds of the income tax withhold- phone help desk was getting 5,000 plaint had been made through a help its and withholding tax payments ing, are complaining about slow pay- odds with the state since legislation, calls a day. desk. through the state a month after the ment. which passed last year and went into “That was extraordinary volume,” “It was a frustrating process as (ac- state collected the taxes. So she ex- In a letter to legislators released on effect in January, allowed businesses Taylor said. “Of course, you’re going countants) were trying to get into the pected that taxes collected in June Aug. 10, Kent Scarrett, executive di- to elect to file their municipal tax col- to have glitches, but from everything system and get their login and pass- would be released to the Troy Busi- rector of the Ohio Municipal League, lections with the state, through the I’ve heard, those glitches are being word updated and make a payment,” ness Gateway account in July. complained about the gateway’s Business Gateway. The state tax de- managed and dealt with as quickly as said Greg Saul, director of tax policy “This asp t month, we didn’t get our shortcomings. partment then would distribute the possible.” for the Ohio Society of Certified Pub- June disbursement until August,” she “We are writing to alert you to the taxes collected to the local govern- However, the complaints contin- lic Accountants. “The tax deadlines said. “This is money we used to col- disgraceful failure of the Ohio Busi- ments. ued. were coming whether you could get lect ourselves and got in June. We ac- ness Gateway to collect and remit The tas te developed and is pro- Thev olume prompted Joe Testa, into the system or not.” tually received notification of how municipal tax revenues despite re- moting the Business Gateway as a director of the Ohio Department of Part of the problem was the tighter much we would get (for June) on July peated assurances they would be one-stop, online location for all busi- Taxation, to issue a statement on July security on the Business Gateway 27, but it wasn’t deposited (in the able to do so,” the letter stated. “For ness transactions with the state, in- 26 that acknowledged that customers system. Accounting firm tax profes- city’s Business Gateway account) un- weeks, both taxpayers and munici- cluding license applications and oth- of the gateway had “experienced is- sionals, who used to be able to log on til Aug. 3.” palities have been unable to properly er certifications. sues” when they logged onto the new to their clients’ accounts and make She added that she, too, is hearing use the Ohio Business Gateway. Mu- Thecities opposed letting busi- system. The statement said that both periodic tax payments through their from businesses about their struggles nicipalities are reporting taxpayers, nesses file through the gateway. the Department of Administrative own email addresses, now had to cre- with the new gateway. including entire accounting offices, When communities get payments Services, which administers the sys- ate a new email address — and login “Several businesses called to ask attempting to file and finding them- filed with them directly, they get their tem, and the Department of Taxa- and password — for each client to get us to fix it because they couldn’t log selves locked out of the OBG com- money immediately. Payments made tion, which processed tax payments into the client’s tax department ac- on,” she said. “We can’t fix it. It’s the pletely, unable to even log into their to the state are forwarded to munici- made through the gateway, had add- count. state’s system. But their payment is accounts to make payments.” palities through a city’s Business ed help desk staff to speed up prob- On the other side of the process, still due by a certain date. I can’t Ohio municipalities have been at Gateway account. State processing lem solving. municipalities are complaining waive that deadline.”

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P003_CL_20180820.indd 3 8/17/18 1:25 PM PAGE 4 | AUGUST 20 - 26, 2018 | CRAIN’S CLEVELAND BUSINESS

DON’T LET THE DOG DAYS OF Area colleges see program SUMMER MELT YOUR DEALS reviews as way to refocus

By RACHEL ABBEY McCAFFERTY

[email protected] @ramccafferty Talk your local credit The sweeping cuts to degree pro- union before the grams at the University of Akron and summer is over. Hiram College aren’t taking place in a vacuum. In fact, even more program- • Commercial Real Estate Loans up to $10 million matic shakeups could be on the hori- zon as Northeast Ohio colleges face • No Prepayment Penalties heightened competition for their ser- vices and calls from state officials for more cross-institutional collaboration. The University of Akron last week announced plans to phase out nearly 20% of its less viable degrees or degree Contact Jonathan A. Mokri tracks — such as a master’s in sociolo- The University of Akron last week announced plans to phase out less 440.526.8700 • [email protected] gy or a bachelor’s in interior design. It viable degree programs. (Contriubted photo) www.cbscuso.com also identified programs in which it wanted to pump more resources, in- taught out. elimination or redesign of others. And Your Business Lending Partner SM cluding cybersecurity and polymer Joseph M. Gingo, chair of the Uni- Hiram’s plan did include a small num- science. Hiram College in May ap- versity of Akron board and president, ber of layoffs. proved a plan to add some programs chairman and CEO of A. Schulman Hiram president Lori Varlotta said in areas it believes could grow and Inc. in Fairlawn, said that could mean the college has made “significant eliminate others. Hiram’s recom- some tenured faculty members will strides” in its restructuring this sum- mended restructuring, for example, teach more undergraduate courses, mer and has finalized the names and would cut religious studies as a major lessening the university’s reliance on configuration of its new schools. and a minor and cut majors but retain adjunct faculty. But these plans aren’t without chal- minors in economics, philosophy and Overall, the academic program re- lenges. At UA, ripples of dissent began mathematics. view is expected to lead to about $6 almost immediately, as the University “Part of the solution to the econom- million in savings in the coming years, of Akron chapter of the American As- Providing a private travel experience ic problems that the university and Gingo said. But that money is going to sociation of University Professors and that exceeds expectations many, many other universities face is be applied to other areas, like salaries the Faculty Senate Executive Commit- to have distinctive programs we can for new hires and money to start labs tee released a statement questioning grow and attract resources from the where appropriate. whether there was adequate faculty outside,” said John C. Green, a “We’re refocusing, redirecting — input in this decision. A report from the 30-plus-year veteran of the University this is not a cost-cutting program in Academic Policies Committee de- of Akron who took over as interim that sense,” Gingo said. scribed what it viewed as limitations to president in May. The university plans to hire 23 ten- the academic review process, includ- Cleveland State University went ure-track faculty, eight non-tenure- ing its “ambitious timeline” and wheth- through a similar review a few years track faculty and one contract profes- er there was enough shared gover- ago, suspending a little more than 20 sional in the areas in which it sees nance. The process reflected “years of programs, said Jianping Zhu, provost growth potential. Green said the under-investment in the academic and senior vice president for academ- searches will begin immediately, with mission, which in itself no doubt af- ic affairs. Suspended programs in- the hopes of having these hires in fected programmatic outcomes on cluded a graduate program in art his- place by fall 2019. The university ex- metrics which primarily had to do with tory, while the areas of investment pects to spend about $2.8 million on current and potential financial perfor- included health and engineering. these hires. mance,” the statement read. Since that major review, the univer- The areas in which Akron wants to Time will tell what comes of these FEATURING: FlySkyQuest.com sity has continued to monitor its pro- invest are cybersecurity, criminal jus- concerns. grams and invest in areas it sees po- tice and emergency services; polymer At Hiram, Varlotta said some peo- » 15 Private Jets tential growth, Zhu said. There are a and chemical sciences; health and ple have questioned the college’s new » Free In-Flight WI-FI 216-362-9904 few reasons he sees this as a necessity. biosciences; performing arts; digital approach, but that many also got in- [email protected] State support for higher education is communication; and business, law volved in the implementation pro- » Jet Card & New Club Programs less than it was a few decades ago, Zhu and education. Green said the areas cess. When people voice their con- said. And in Northeast Ohio, there’s a identified for growth had the potential cerns, the college can better large number of higher education in- to attract students, but also grant understand them. stitutions and fewer traditional, col- funding. “And I think it’s a very healthy way lege-aged students than in the past. Ultimately, Ramsier said, the re- to effect change on a college campus,” “So going forward, this should be an view was important to set a “baseline” Varlotta said. “We’re not always going ongoing process for all universities, if as the university decides what it’s go- to be in agreement.” All your business, they want to survive, basically,” Zhu ing to be going forward. In addition, cuts to majors in core said. areas, like mathematics, can bring The University of Akron currently Honing the vision challenges, said Martin Van Der Werf, office and offers 414 degrees or degree tracks — associate director of editorial and that is, concentrations within larger UA’s academic program review will postsecondary policy at the George- warehouse needs degrees. The plan approved by the inform its next strategic plan, which town University Center on Education board of trustees on Wednesday, Aug. the university hopes to approve by and the Workforce, which studies 15, will cut 80 of those degrees. Those December. University leadership will post-secondary education and work- programs are ones facing low enroll- also look into whether it needs to do force needs. A discipline like math is a ment and, in some cases, competition any academic reorganizing in light of “building block” for other areas, like from nearby universities. Fewer than the academic program review. Plans computer science, he said, and cut- 5% of the university’s students are en- for the university’s next budget, which ting the major can weaken that educa- rolled in those programs. will have to account for many of these tion overall. Without a major, there’s Though the University of Akron has academic changes and hires, will take less incentive for faculty in that area to made its share of cuts in recent years, place in the spring. join a college or university. university officials have stressed this The university, of course, is now Many of the programs that Hiram plan is not purely based on its searching for its next permanent pres- saw low enrollment in, like math and well-documented financial problems ident following a series of leadership second languages, are those seeing over the last few years brought on changes, and Gingo said he hopes low enrollment across the country, largely by shrinking enrollment. having a solid strategic and academic Varlotta said. Colleges and universi- Provost Rex Ramsier said that while plan in place will help attract candi- ties will have to find a way to continue admission has been suspended in dates who are the best fit. teaching those foundational courses. GREAT PRODUCTS, bachelor’s programs like art history or Hiram, meanwhile, aimed for its re- “We can’t abandon those disci- mathematics, the university won’t design to transform it into the “new plines,” Varlotta said. “That we know SINCE 1961 GREAT PEOPLE, stop teaching those subjects entirely. liberal arts,” a reimagining of how a for sure. But we also need to figure out (216) 229 - 9300 GREAT PRICES! And no layoffs are planned for regular liberal arts education is delivered. At creative ways to get those very import- faculty, contract professionals or staff Hiram, these changes included addi- ant parts of the curriculum into an un- www.cbfindustries.com positions. Green said faculty will be tion of programs like criminal justice dergraduate student’s repertoire of reassigned once their programs are and international studies, and the classes.”

P004_CL_20180820.indd 4 8/17/18 3:36 PM CRAIN’S CLEVELAND BUSINESS | AUGUST 20 - 26, 2018 | PAGE 5 Pennsylvania Steel reinforces its local foothold

By RACHEL ABBEY McCAFFERTY

[email protected] @ramccafferty

Pennsylvania Steel Co. has been in the metal distribution business for almost 50 years, but in Ohio, it’s pret- ty new. The company acquired Erie Metals Inc. for an undisclosed amount in 2016, giving the metal service center a foothold in the Cleveland market. President and COO Barry Walsh said the current challenge is to raise the brand awareness of the business locally. Erie Metals had kept a pretty low Pennsylvania Steel recently moved into a new building on Geiger Street profile as it is, and now Pennsylvania in Berea. Steel and its workers are the “new guys” in the market, he said. about 340 employees. Joe Dom- derstood sales, and what we had to “They just don’t know who we are,” browski, the founder, is still the ma- do to, you know, was get where we Walsh said. “And that’s our biggest jority owner, and Walsh has a minori- wanted to go,” Straka said. challenge is establishing our brand ty stake. Walsh said annual revenue The former owners were around and letting people know that we’re was in excess of $130 million last retirement age, and Straka said Penn- here for the long haul.” year. sylvania Steel made them a “gener- Pennsylvania Steel aims to grow Pennsylvania Steel got its start as a ous” offer. the companies it acquires, and Walsh distributor of cold finished steel bar, Straka has stayed with the compa- said moving what was known as Erie but its acquisitions have helped it to ny part-time to maintain the Erie Metals to a new, larger location is an add to its product line over the years. Metals accounts. Walsh called the ar- “important step” in that process. Erie Today, it offers products like carbon rangement a “win-win.” Metals had been located in a small and alloy tubing, stainless steel bar Straka said there have been some building on Lincoln Avenue in Berea and aluminum bar. It also has val- challenges since the acquisition, as and moved in May to a building it’s ue-added cutting services and its the company has struggled to find leasing on Geiger Street, also in own drivers. employees. Walsh, too, noted the dif- Berea. At the time of the acquisition, Erie ficulty of finding employees at every Walsh said the old building was Pennsylvania Steel offers products such as carbon and alloy tubing, and Metals specialized in Pennsylvania level, and they’re not alone. Straka just about 7,500 square feet, while stainless steel and aluminum bars. (Contributed photos) Steel’s “favorite product,” Walsh said: said it’s a problem he hears about the new one is about 21,000 square cold finished steel bar. But now, from his customers, as well. feet. He declined to share how much “And with good fortune, good sales, scary life moment, either getting Pennsylvania Steel can offer its other But overall, Straka said Pennsylva- Pennsylvania Steel was investing in good luck, good reception by the married or buying your first house, products through the Berea location, nia Steel is “determined” to grow the the new building. market, we’ll be outgrowing this right? Where you’re like, ‘What are too. company, and he thinks it’s headed Walsh doesn’t think this will be the building sooner than later.” we doing? Can we pull this off?’ ” The Berea acquisition in 2016 is in the right direction. last stop for the Northeast Ohio divi- Pennsylvania Steel, based in Ben- Walsh said. the company’s most recent addition. The Berea facility is still a small sion. Pennsylvania Steel has made salem, Pa., was founded in 1972. Apparently, they could. Since Jim Straka and Mike Reese started part of Pennsylvania Steel’s opera- quite a few acquisitions in its history, When Walsh joined in 1981, it was 1997, Pennsylvania Steel has expand- Erie Metals in 1991. Straka said he tions, but it’s growing. When Penn- so he has experience with similar still a very small company. The com- ed to New York, Connecticut, Massa- handled the administrative side of sylvania Steel acquired Erie Metals, it market expansions. pany made its first acquisition in chusetts, North Carolina and Virgin- things, and Reese, his brother-in-law, had about six to eight employees. To- “This is really what I’d call our 1997. ia. was in charge of the operations. day, employment is around 15, Walsh stepping stone building,” Walsh said. “We’ve likened that to pick your Overall, Pennsylvania Steel has “He understood the steel and I un- said.

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P005_CL_20180820.indd 5 8/17/18 11:43 AM PAGE 6 | AUGUST 20 - 26, 2018 | CRAIN’S CLEVELAND BUSINESS

Newly Renovated Office Building 4608 St. Clair Avenue, Cleveland, OH 44103

PROPERTY OVERVIEW × Total Building Area: 17,331 SF × Additional 0.39 AC of land for Office Area: 15,400 SF sale for possible parking spaces × E. 47th and St. Clair × 5,000 - 10,000 SF available for lease × Renovated in 2002 × Offered for sale at: $995,000 × Sale leaseback potential × Additional land site offered at: $47,000 × 28 Parking spaces × Lease rate: negotiable Dan Catalano David Wagner 216.861.5411 216.839.2002 www.hannacre.com [email protected] [email protected] A kitchen that looks like it would be found in a new suburban home and full-size appliances are features in the Residences at Halle, which are designed to make downsizing empty nesters feel at home. (Stan Bullard) Downtown apartment rentals gain momentum By STAN BULLARD Millennia did not comment for “We’re confident we’ll be leased by this story, but seems unperturbed by Nov. 1,” Pace said. “We’re pleased [email protected] the building’s 33% vacancy rate. with the activity because the win- @CrainRltywriter That’s because owner Frank Sinito dows are just now going in at the has deepened his commitment to building. We’ve got a mix of mid-ca- When K&D Group opens apart- downtown by buying and undertak- reer professionals and people with ments in the Halle Building, 1228 Eu- ing a renovation of The Statler Apart- families moving in from out of town.” clid Ave., for the first residential ments, 1128 Euclid Ave., and the He’s eager to land tenants on a move-ins on Friday, Aug. 24, tenants empty 925 Euclid Ave. building for a 1-million-square-foot office and -re will begin to occupy all 20 suites on mixed-use project including new tail section of the lakefront project so the landmark’s sixth floor. apartments and a hotel. he then can focus on the next round Even though the Willough- And at Independence-based Da- of apartments. by-based real estate owner and de- lad Group’s Worthington Yards, 623 However, caution is manifest. veloper will be finishing additional Johnson Court, all 108 suites have Price said Halle has leased because it in the 11-story structure and been full since the early spring. has larger suites and multiple We’re Ready When You Are. turning them over to tenants through While the market is more competi- two- to attract empty nest- Your choice. Three jets and a prop. Just 10 minutes December, Doug Price, K&D Group tive — a shock after owners leased ers and others who want to live east of downtown Cleveland. Executive airport service CEO, said the firm has leased 70% of most of the downtown apartments as downtown for a long time. and convenience. Learn more at ClassicJetCharter. the 123 suites it’s installing above the they opened the — developers “It’s not a case of build it and lease com or call Erin at 440-942-7092. old department store’s retail first and owners see things settling down. it now,” he said. “It’s back to strategy floor and office suites. “I’m pleased with the market and and the specifics of each property, Although Price credits K&D’s strat- the properties,” said Rich Cicerchi, such as its location and amenities. FLEET: TWO LEARJET 31A, ONE CITATION JET, ONE CESSNA 414A AIRCRAFT MANAGEMENT | SALES AND ACQUISITIONS | CLEVELAND BASED egy for building bonus-sized apart- CEO of Cleveland-based Cicerchi Apartments in the region as a ments suited to downsizing empty Development Co. “Both my down- whole remain strong, with vacancy at nesters for its progress so far at Halle, town (The Southworth on 3.6% as of June 1, according to NOAA, it’s another sign the apartment mar- Ontario and The Krause on East the same as in June 2017. Regional ket regained its momentum through Fourth Street) are full.” vacancy peaked at 6.6% last January. the region’s key spring and summer He said the downtown market is Price said K&D, which has apart- leasing season. more competitive than other parts of ments from the West Side to Shaker Statistics from the Northern Ohio the region where he has holdings, but Heights, has occupancy in the 90% Apartment Association show the they don’t have the current level of range. switch in downtown’s outlook. The new development downtown enjoys. “It’s strong everywhere except for trade group reported vacancy at the “We just work at it,” he said. “When (the older) high-rise buildings,” Price end of July of 3.3%, compared to 5.6% we have a vacancy, we advertise it said. vacancy at the beginning of the year. and show it. Sometimes we don’t get He said the slowing for-sale resi- That’s very different than last Octo- a qualified tenant who went else- dential market means K&D is not los- ber, when vacancy for the Northeast where, but we keep at it.” ing tenants to home purchases as it section of Cleveland, which includes At Landmark Management of was a year ago. downtown and near West Side neigh- Cleveland, which owns six properties K&D is also readying apartments borhoods, hit 8.4%, the highest figure downtown, Robert Rains, a principal, at Terminal Tower for delivery late since 2010. said the company’s portfolio is al- next year, but Price said the growing Part of the surge in empty suites most 95% leased, the same as it was number of projects was a factor in the was due to new properties opening in in August a year ago. Last winter, company’s recent decision, among the fall and winter that have now Rains was worried about a 20% va- others, to drop the purchase of the 55 benefited from a strong spring and cancy rate. However, the occupancy Public Square office building, pri- summer leasing season. came back with the new renting sea- marily as a candidate for conversion Warrensville Heights-based Weston son. to mixed-use with the addition of Inc.’s Standard, 99 W. St. Clair, opened “The arm ket has really come back,” apartments. in January with 20 tenants but now has Rains said. “I can’t explain it.” So it goes for this year. However, 157 suites leased and another 128 At downtown Cleveland’s North CoStar estimates about 2,000 apart- available, according to the company. Coast Harbor, the has start- ments that are in the planning and Cleveland-based Millennia Cos. ed leasing because the building construction phases will hit the mar- opened The Garfield, 1965 E. Sixth should be ready Nov. 1. Dick Pace, ket in the next few years. St., with 123 suites last fall. Through president of Cumberland Develop- People watching the apartment Aug. 6, it had leased 74 of its 123 ment Co., which partners with Dal- market for softening might do well to units, according to online real estate las-based Trammell Crow Co. on the keep in mind the phrase that Cleve- data provider CoStar, compared with waterfront project, said the 16-unit land sports fans know so well: “Wait 40 last January. property is half-leased. until next year.”

P006_CL_20180820.indd 6 8/17/18 1:23 PM CRAIN’S CLEVELAND BUSINESS | AUGUST 20 - 26, 2018 | PAGE 7 The Week THE END IS NEARER Thompson Hine LLP, who is serving as FirstEnergy Solutions Inc., the chair; Alexander Cutler, former chair subsidiary of Akron-based and CEO of Eaton Corp.; Stephen FirstEnergy Corp. going through Ho man, president of the Jewish bankrupt proceedings, moved one Federation of Cleveland; Loretta J. step closer to shuttering its three Mester, president and CEO of the nuclear power plants. The company Federal Reserve Bank of Cleveland; said Aug. 15 that it submitted plans and Beth E. Mooney, chair and CEO of to the federal Nuclear Regulatory KeyCorp. Committee members Commission for its "certifi ed fuel selected Helen V. Cantwell and Arian handler training and retraining square feet, is considered the world's M. June from the New York law fi rm program," which details how those largest incubator for startups. Debevoise & Plimpton LLP to who supervise and conduct the investigate Preucil's tenure at the removal of the plants' nuclear fuel A CLOSER LOOK orchestra. would be trained. Submitting the The Cleveland Orchestra said it program plan to the NRC is a required formed a fi ve-member committee of CHANGE OF PLANS part of the agency's prominent Northeast Ohio business K&D Group of Willoughby dropped its decommissioning process, and FES executives to investigate allegations planned purchase of the 22-fl oor 55 described it as "its latest step in the The Cuyahoga Valley Scenic Railroad will buy four historic California of sexual misconduct against Public Square o ce building from an regulatory process leading to the Zephyr cars for a combined $1.5 million. (Contributed photo) suspended concertmaster William a liate of Optima Management deactivation of its three nuclear Preucil. Preucil was suspended on July Group. Doug Price, K&D CEO, said the power plants beginning in 2020." be put into service on the CVSR, will unprecedented level of access to BRI 27 in the wake of a Washington Post deal was "just not a good fi t for us." Those plants include one in arrive in the valley on Sept. 20 after data across our region," said story that detailed allegations made K&D Group on May 30 had confi rmed Pennsylvania and two in Ohio — the making the trek from Seattle, with a JumpStart CEO Ray Leach. "Not only against him by violinist Zeneba its intent to buy the structure. If the Perry Nuclear Power Plant and the stop in Chicago. is this an essential building block in Bowers. In that story, Bowers said deal had gone through, Miami-based Davis-Besse Nuclear Power Station the e ort to put Northeast Ohio at Preucil assaulted her in his hotel Optima would have trimmed its near Toledo — that local o cials AROUND THE BLOCK the forefront of blockchain-based after a lesson when she was a fellow exposure in Cleveland to one have said will cause signifi cant job The e ort to create a center for technology, it is also important at the New World Symphony, the building, the One Cleveland Center losses if they are shuttered. FES blockchain development in Cleveland evidence of the critical mass the country's leading training orchestra skyscraper, from four o ce buildings says there are 625 employees at is getting a boost, with the Blockland movement is gaining." for young professionals, in 1998. The it acquired in the mid-2000s. K&D is Davis-Besse, 655 at Perry and 691 membership of JumpStart Inc. in the Blockland Cleveland is an orchestra on Aug. 16 said its board of currently converting part of Terminal workers at the Beaver Valley Power Toronto-based Blockchain Research organization that auto dealer and trustees appointed the following Tower on the opposite quadrant of Station in Shippingport, Pa. Institute. The institute, known as BRI, investor Bernie Moreno hopes will people to the special committee to Public Square to apartments as well is conducting multimillion-dollar grow into something on the order of conduct the investigation: David J. as retaining o ce space in part of ON TRACK research on the impact of blockchain Station F in Paris, which, at 366,000 Hooker, former managing partner of the building. The Cuyahoga Valley Scenic Railroad technology on business, government bolstered its fl eet in a big way. The and society. It's working through CVSR signed an agreement to buy four more than 70 projects that explore historic California Zephyr cars — two blockchain technology and will vista dining cars, one sleeper car inform members about blockchain and one baggage car. Joe Mazur, strategies and market opportunities. president and CEO of the nonprofi t Blockchain technology allows CRAIN’S his special supplement is used railroad, said CVSR will pay $1.5 million information to be distributed as a tool for readers to become for the historic cars, which were all securely, but not copied. A key built in the 1940s and sold as a set by attraction for government and T more actively involved within private owners. "We're really ecstatic business is that everything from our region’s nonprofit community. to bring a fl eet like this into the driver's license registrations to Cuyahoga Valley National Park," he medical records can be stored said. The cars, which Mazur said are in digitally, and securely. "This Use this advertising opportunity great condition and will immediately partnership will bring an GIVING to showcase your organization along with your commitment to GUIDE Northeast Ohio. “You can count on ...... #...... L...... P....V...... L. 7....@...... L... ...V...... ...... L.. ...P.....V.. ..L..L...... P.v. POWERED BY: Dell Duncan BOOK YOUR AD TODAY! nnnnnnnnnnnnnnnnnnnnnnnnn nnnnnnnnnnnnnnnnnnn CONTACT: Lisa Rudy • [email protected] PRESENTED BY: ISSUE DATE: Oct. 29 | AD CLOSE: Aug. 31

Mayor Martin S. Horwitz To view the 2017 Giving Guide, [email protected] 999 '#%*911&1*+1%1/ visit CrainsCleveland.com/GivingGuide 216.292.1901

P007_CL_20180820.indd 7 8/17/18 2:37 PM PAGE 8 | AUGUST 20 - 26, 2018 | CRAIN’S CLEVELAND BUSINESS Opinion

Personal View It’s OK to start small in efforts to spark change in the region By ED BUCHHOLZ

It’s an exciting time in our beloved city’s business communi- ty. There is a feeling that anything could happen, and that all possible futures might be better than the status quo. Several initiatives and reports have taken the focus recently, with bold visions of what Cleveland can be and should do. I’ve heard many people admonishing those with concerns about these projects as having “typical Cleveland mindsets” and flippantly dismissing them as “naysayers.” As a founder ex- cited about the promise of these efforts, but lifetime Ohioan, let me try to bridge the gap between enthusiast and skeptic. My years of The initiatives getting the ma- startup life jority of the attention are all root- ed in “transformational change.” have taught me This is a tried-and-true Midwest- Editorial ern approach. It’s always about plenty about “building the largest thing” or be- seeing things coming “the capital of” another thing. Swinging for the fences and through. thinking big are the metaphors of They’ve also choice at the moment, and have Greener pastures been for the majority of my mem- taught me ory. about the The University of Akron’s recent academic pruning — a move I don’t disagree that bold vi- that will ultimately eliminate almost 20% of the beleaguered sions and speaking with certainty importance of university’s degree programs and tracks — is a welcome move Restored are important to catalyzing defining in a region where educational overlap is bogging down an oth- There’s a valuable lesson in persistence and the pursuit of change. The thing about swinging erwise strong, if slow-moving, academic ecosystem. good policy to be learned from the effort to secure full funding for the fences is that when you fall success and Should the University of Akron, for example, offer a fashion for the Great Lakes Restoration Initiative. short, it’s usually a quick out. This embracing merchandising program when Kent State University offers one The U.S. Senate this month signed off on a 2019 funding bill that has been the story with several of of the best in the nation only a few miles down the road? Abso- included $300 million for the initiative, which was started in 2010 the game-changing projects that failure. lutely not, and it appears the cadre of university leaders in and since then has helped preserve the environmental well-being we’ve undertaken in recent histo- Northeast Ohio are cooling their competitive instincts in the of the Great Lakes through efforts to, among other things, reduce ry. It’s not that they didn’t have promise, rather the will (wheth- spirit of strengthening the region’s talent pipeline. pollution, combat harmful algal blooms and fend off invasive spe- er political or financial) to follow through ran short. Also, the decisive and thoughtfully considered actions to cies such as Asian carp. The U.S. House of Representatives in July Some of our best results have come from the most aged pro- slim the offerings and invest in some others at the University of approved a funding bill that also provided $300 million for the ef- grams. Look at JumpStart’s 15 years of continued monetary and Akron are a welcome development for a university that has fort, which virtually ensures that level of funding when the two cultural returns. Destination Cleveland has altered the percep- spun — and even flattened — its tires in recent years amid a bodies reach the final version of the spending legislation. tion of our metropolis in the minds of countless visitors. Jobs flurry of recent leadership upheavals. The funding is a significant victory for Great Lakes states. Ohio and Third Frontier have done material good for the state’s John Green, a veteran of the university and the fifth person to President Donald Trump wanted to reduce spending on the economy. hold presidential duties in five years in some capacity, isn’t shy- initiative to $30 million, which continued a trend (misguided, These are well-funded initiatives with specific goals. They’ve ing away from difficult decisions to right-size an institution in our view) started by President Barack Obama of proposing also had the time and space to make incremental improve- where he’s worked for 30-plus years. Green, the oft-quoted po- massive cuts to a modestly budgeted program that represents ments and learnings. Grind-it-out stories of building a wall by litical scientist during election cycles, isn’t in the job to stroke the largest investment in the health of the Great Lakes. laying individual bricks. egos. The effort by Ohio’s elected officials to keep the initiative fully My years of startup life have taught me plenty about seeing Scott Scarborough — who was ousted from the top post after funded was bipartisan, with key roles played by Republicans in- things through. They’ve also taught me about the importance of a mere two years on the job — wasn’t off base when he declared cluding Sen. Rob Portman and Rep. Dave Joyce, and Democrats in- defining success and embracing failure. Not every great idea the university needed to reinvent itself to thrive in the modern cluding Sen. Sherrod Brown and Rep. Marcy Kaptur. Republicans works out. Not every late night of fevered programming results economy. His tact, of course, left plenty to be desired. So, it’s since January 2017 have not distinguished themselves in standing in usable code. Not every iteration of a logo design leads to an refreshing to see Green take a thoughtful approach with his first up to the president, so we’re pleased to see that in this case, they acceptable result. Not every sales call means revenue in the major decision. were able to put partisanship aside to support an initiative that since door. It doesn’t mean that those hours and labors were wasted. As the University of Akron goes on the prowl for a permanent its founding has supported more than 3,000 projects that address Rather, they serve as opportunities to practice, to hone skills — and hopefully transformational — president it so desperately Great Lakes environmental problems. As Portman noted, the Great and to learn from mistakes. needs, its interim leadership must not shy away from the diffi- Lakes provide drinking water for 40 million people and contribute Even failed startups build relationships, develop muscle cult decisions needed to make the university a sustainable and $10 billion in tourism each year. If the cost to be vigilant in preserv- memory and improve odds for future success. They instill value ultimately thriving enterprise. ing that is $300 million, it represents a strong return on investment. in hard work, persistent effort and small wins. So, too, should After all, finding a capable captain for a ship that’s already We’re in an era of political division and distraction, but it doesn’t be our approach to initiatives to change Northeast Ohio’s eco- taking on water is a herculean task — one the University of Ak- have to be that way. When our elected representatives focus on nomic outlook. Here’s how we can maximize the outcomes: ron’s trustees haven’t been able to accomplish yet. constructive, responsible solutions to our problems, we all win. SEE REGION, PAGE 9

Publisher and Editor: Elizabeth McIntyre ([email protected]) Write us: Crain’s welcomes responses from readers. Letters should be as brief as possible and may be edited. Send letters to Crain’s Cleveland Business, 700 West St. Clair Ave., Suite 310, Managing Editor: Scott Suttell ([email protected]) Cleveland, OH 44113, or by emailing [email protected]. Please include your complete name and city from which you are writing, and a telephone number for fact-checking purposes. Sections Editor: Timothy Magaw ([email protected]) CLEVELAND BUSINESS Sound off: Send a Personal View for the opinion page to [email protected]. CLEVELAND BUSINESS Contact Crain’s: 216-522-1383 Please include a telephone number for verification purposes.

P008_CL_20180820.indd 8 8/17/18 11:41 AM CRAIN’S CLEVELAND BUSINESS | AUGUST 20 - 26, 2018 | PAGE 9 REDEFINING CORPORATE HOSPITALITY

Personal View Data can be key in aiding

students’ career decisions Conferences • Trade Shows • Meetings • Fundraisers • Ceremonies • Celebrations By RANDY BENNETT and WILLIAM H. GARY SR. choices that reconcile their passions with opportuni- ties — rather than having to choose one or the other. Recently, students across Ohio and the country From a financial perspective, having this informa- graduated with precious two- and four-year degrees, tion is more important to students than ever before. the first step toward gainful employment, essentially Ohio ranks 16th on the list of average student loan ICONIC VENUES AWARD-WINNING STATE-OF-THE-ART AV ALL-IN-ONE SERVICE with a family sustaining wage. Thousands more have debt by state. Ohio’s class of 2016 has average student CUISINE earned short-term certificates and other credentials to loan debt of $29,579, which, with a 6% interest rate, 440.449.0700 make them attractive employees. These individuals can mean monthly payments of $333 over 10 years. To TM EXECUTIVECATERERS.COM have invested time and money to obtain skills and be able to afford to repay this loan, including interest, training required for employment in industries that at 10% (gross monthly income), students will need to are eagerly looking for hard-working, qualified em- find a job that pays over $40,000. ployees. The College Transparency Act could help change This investment in education is one of the most im- this, by collecting existing information in one place portant actions an individual can take, because it where it can be available publicly. This data would be should lead to a better job. At manufacturing company useful and clear to career-minded students, parents Automation Tool & Die in Valley City, hiring decisions and high school guidance counselors that jobs in the are critical, and we look to partner with educational tool and die industry, for example, are in demand, lu- institutions like Cuyahoga Community College to de- crative and provide immediate employment for peo- velop and employ the best trained individuals. The ple with in-demand skills and credentials. The bill also value of this training cannot be understated. Prospec- is vital to Ohio businesses that benefit from the exis- tive students must be proactive in deciding which pro- tence of a navigable data system that would yield the grams and institutions will best help them achieve talent pipeline that growing local industries demand. their goals. In this tight labor market, businesses are struggling To this end, there is legislation in the U.S. Congress to find qualified workers. called the College Transparency Act. The bill would If students have the data to make an informed deci- create a user-friendly website with information about sion, they will consider pursuing fields where employ- college costs, graduation rates and post-college em- ers are hiring. ployment, with the purpose of revealing what careers Not only would that make the toughest decisions for are in demand, what programs are best for getting stu- businesses and students much easier, it would go a dents employed and what wages they can expect once long way to growing our local economy. employed. The data, from colleges and universities and from Bennett is vice president of Automation Tool and Die federal and state agencies, could lead to skilled, moti- in Valley City and a member of Business Leaders vated workers. There would be a real connection be- United for Workforce Partnerships. Gary is executive tween a selected curriculum and a job in the work- vice president for workforce community and economic force, and potential students would be able to make development at Cuyahoga Community College.

REGION Make smaller objectives CONTINUED FROM PAGE 8 Lofty goals are important. But let’s set out a plan of action that gets us there with smaller steps that each Focus on founders have their own value. Track metrics against the sub-objectives to get a picture of how we’re progress- Startups fuel the engine of emerging economies. ing to the final goal. Without founders, that motor grinds to a halt. Found- ers are the key. Regions with poor startup communi- Keep going Crains-4x4-v1.indd 5 8/6/18 3:42 PM ties view entrepreneurs as grist for the mill. The best ones treat them as catalysts, leaders, even celebrities. Even if we’re not the “Capital of X Technology” by We should view ourselves as cheerleaders for, and 2020, why should we stop working together toward be- welcome home. servants to, entrepreneurs. Every PowerPoint slide ing one of the hot spots? If we don’t end up with the We are yourour furniturefurniture partner.partner. EveryoneEveryone hashas aa budgetbudget && wishlist. mapping the ecosystem should have founders as the “World’s Largest Z,” why can’t we just have a great one, WeWe havehave thethe creativecreative answersanswers toto getget youyou both.both . Office.Restaurant. Residential. Work. Play. Live. hub of the wheel, not as a spoke. Every decision made filled with talented energetic people doing amazing Trust for Public Land, welcome home. on a new innovation space should be through the lens things? You don’t have to be the very best of some- of what will attract and help entrepreneurs. Every con- thing to have value. Your worth is not based in super- ference should be about informing and connecting latives, and neither is Cleveland’s. those starting and running companies. The future is in our hands, and many of us are show- ing our commitment to Northeast Ohio by engaging Build relationships and making an effort. No one will “naysay” our intent to help, and we should not begrudge their well-earned Never before have I seen such levels of cooperation skepticism of “savior projects.” between civic leaders, business owners and economic I encourage everyone to do something to improve development organizations. The relationships devel- our region’s future. Any of the initiatives in the spot- oped are going to be fruitful regardless of the outcome light will welcome your involvement. Bringing togeth- of any one mission. er three peers over coffee or mentoring a young found- So, too, have been the results of StartInCLE’s events er can have dramatic impact. Don’t be discouraged if and platforms. We’ve never seen more founders con- your contributions feel small. They are important. necting on a deeper level and building real relation- Cleveland has always been great. Yes, it can be im- ships that can benefit each of us, but also as a whole. proved, but it doesn’t need to be the best at anything for me to happily call it home. Listen to LeBron James’ Simplify social structures advice to the media after Game 1 of the NBA Finals … “Be better tomorrow.” GDOT DESIGN . A DIVISION OF GEIS COMPANIES Committees and subcommittees are great for struc- 330.528.3500 . [email protected] turing unwieldy groups and focusing labors. They’re Buchholz is the managing director of StartInCLE, a GDOT DESIGN office at the 9 . 2017 east 9th street suite 200 . cleveland ohio 44115 not great at allowing for the organized chaos and ser- founder-led and founder-focused community headquarters . 10020 aurora-hudson road . streetsboro ohio 44241 an exclusive TEKNION dealer endipity required to encourage greatness. Democra- organization that provides events, support, knowledge Photo by Harry Dempsey - Autohaus Image tize and decentralize with technology. and connections to Northeast Ohio entrepreneurs.

P009_CL_20180820.indd 9 8/17/18 12:02 PM August 20, 2018 SPONSORED CONTENT ASK THE PROFESSIONAL

The Evolving Community Banking Landscape

Insights from a financial industry veteran estfield Bank manages $1.5 billion in assets and serves business and individual cli- Other banks formed hundreds of years ents from locations throughout Northeast Ohio. As president, Mike Toth oversees ago have expensive branches that no longer align with client preferences. W Westfield Bank’s performance and growth objectives. He is responsible for retail, Westfield Bank, founded in 2001, is mortgage and private banking. Mike has more than 25 years of banking experience across part of the modern era. We leverage Northeast Ohio, including leadership roles with large regional banks in retail banking, busi- technology to serve clients through mobile and internet banking, while still ness banking, product management and procurement. delivering personalized interactions As such, he has experienced significant changes within the banking industry. Community at our branch locations in Cuyahoga, banks, he says, are uniquely positioned to both retain and build their customer base amid an Medina, Stark, Summit and Wayne counties. This approach has enabled evolving, tech-dependent banking landscape. “We believe that you have to strike the right balance the bank to provide trust, personal between investing in technology while continuing to develop and maintain relationships with relationships, convenience and security. customers,” Toth says. “We’ve found, through client feedback and testimonials, that clients still prefer to have a relationship with a banker they know and trust.” Will emerging technologies Mike shares his perspectives with Crain Content — Cleveland on how banks are make traditional banking Bank deposits are the “raw materi- obsolete? reshaping their delivery models to serve the financial needs of consumer and business clients. als” that banks use to fund their loans. Bitcoin and cryptocurrencies will In a rising rate environment, banks’ continue to become more prevalent. What is your outlook on the a wholesale surge in new companies in competition, which can lead to irrational raw materials become more expensive. However, they are not a threat to tradi- local banking climate? the region. Despite this, Northeast Ohio pricing and terms on loan and deposit A shortage of raw materials (deposits) tional banking. Population trends suggest that the still is an attractive market for companies; products. Community banks offer a can make it more challenging to pro- Our industry is governed through rules density is shifting to the Columbus and therefore, it still is attractive to banks. New unique solution by partnering with vide loans to businesses and consum- and regulations that are designed to pro- Cincinnati areas. While some new mid- regional and national banks have entered businesses long term while reinvesting ers. That is why so many banks across tect clients, banks and shareholders.These dle market-sized companies have en- the region because of the opportunities. in the communities they serve. the region have increased their focus regulations have been tested and modi- tered Northeast Ohio, there hasn’t been This environment creates more on deposit offers. fied over decades and through multiple How do small banks Westfield Bank has launched special economic cycles. The industry continues compare to big banks? rate offers to attract new depositors to evolve in a way that is safe, secure and The ability to leverage outsourced to the bank and to retain the clients delivers necessary services to clients. technology partners levels the playing we have. Those local deposits help Cryptocurrencies are not regulated field. Years ago, new bank products and us provide loans to local businesses. in the same manner. They have solutions were developed in-house. “Banking local” is one way Northeast experienced extreme volatility despite However, fintech firms and other Ohio residents help the Northeast a relatively stable economy. Time partners now enable banks to buy Ohio community financially prosper. will tell how these cryptocurrencies the services rather than investing in respond in an economic downturn. the “build.” This allows smaller banks How are client preferences to purchase and integrate solutions changing for banking services? What will the industry look into the bank in a faster and cheaper The first ATMs were introduced like in 10 years? way and can create parity of financial in the 1960s, and the fear was that There were approximately 18,000 solutions with the larger banks. tellers would become obsolete. This banks in 1986. Today, there are fewer Historically, larger commercial clients didn’t happen. Internet banking was than 6,000. While the number of have sought loans and deposits from introduced in the 1980s, and the acquisitions has dropped, the pace of bigger banks with larger balance sheets. fear was that bank branches would acquisitions has remained fairly steady. In today’s banking era, smaller banks become obsolete. This didn’t happen. There are more than 180 banks often provide capital to larger commercial Mobile banking was introduced in the headquartered in Ohio, most of which Business Banking Simplified. clients. Banks such as Westfield use local mid-2000s, and the speculation was are below $1 billion in asset size. deposits to reinvest into local relationships that internet banking would become (Westfield Bank is around the 15th- in the form of loans to both businesses obsolete. This didn’t happen. largest.) That number climbs to 450- Westfield Bank makes business and consumers. Larger banks can take Clients prefer to have multiple plus when you add in Ohio-based credit banking easy. Mobile banking. local deposits and allocate them to other options available to them. When a new unions and other financial institutions. Cash management services. Locally markets, which benefits communities banking channel is introduced, some It is likely that the historical pace of other than Northeast Ohio. clients migrate to the new channel acquisition will continue into the future approved loans. Knowledgeable advice. more quickly than others. However, as banks deal with the changing techno- It’s everything you need. Simplified. How do banks make money, they still use the other channels. The logical, regulatory and economic envi- introduction of a new banking channel and how is that impacted by ronments. This will create opportunities becomes more of an “and” than an “or.” for both community and regional banks Contact the business banking the economic environment? We’ve found that clients like a mix to achieve greater efficiencies and pro- team today at 800.368.8930. Community banks make money of traditional banking coupled with vide enhanced capabilities to consum- primarily in two ways: net interest modern technology. Our goal is to ers and businesses across the state. income, which reflects the difference provide high-touch personalized service Technology will continue to evolve between what clients pay on their loans while also investing in technological and help banks deliver financial and what they are paid on their deposits, solutions that enable banking 24/7. We solutions that are safer, faster and and fee income. Generally, community strive to provide a consistent experience cheaper. Keeping up with the pace of westfield-bank.com banks derive the bulk of their income — across all channels. technological innovation and providing often 80% or more — from the income 6/18 Some banks formed in the modern client-centric solutions will not be nice they generate from their loans. era have no physical branch presence. to have, but table stakes for all banks.

WB_Crains_AskExpert_Ad-618.indd 1 6/14/18 10:21 AM This advertising-supported section is produced by Crain Content Studio-Cleveland, the marketing storytelling arm of Crain’s Cleveland Business. The Crain’s Cleveland Business newsroom is not involved in creating Crain Content Studio-Cleveland content.

P010_CL_20180820.indd 10 8/14/18 1:53 PM CRAIN’S CLEVELAND BUSINESS | AUGUST 20-26, 2018 | PAGE 11 Focus FINANCE Private equity’s evolution - Page 14 | Q&A - Page 15 | Adviser - Page 17 Banks unlock new business with fintech

erhui1979/iStock Banks are increasingly locking arms with innovative tech startups in hopes of modernizing their offerings

By JEREMY NOBILE al wisdom to go and build it yourself, particularly if you’re a larger institution,” said Dennis Devine, head of consum- [email protected] er and business banking and co-president of community @JeremyNobile banking for the $136 billion in assets KeyBank. “We learned quickly there is innovation occurring in the space A few years ago, traditional banks largely looked at fin- that we could partner with in ways we had not thought of tech startups — many of which sought to flip the world of before.” financial services on its head — either dismissively or as Fintech is a term generally ascribed to any financial foes eager to disrupt their business models. technology. In that regard, banks have been engaged with But banks and fintechs have become darlings in recent fintech since they started using computers and the inter- years. That trend is resulting in new and modern prod- net. The term itself could refer to any financial process ucts, services and revenue streams for banks while simul- built around technology or firms developing those. That taneously creating a slew of lucrative opportunities for could involve payments or money management services fintech companies — a sector that has seen $57.9 billion for consumers, or something that streamlines internal ac- of global investment at mid-year 2018, which is already counting processes for companies, or cryptocurrencies 52% more than the $38.1 billion invested through the en- like Bitcoin and the blockchains on which those are built. tirety of 2017, according to KPMG’s Pulse of Fintech re- Within that space are countless startups racing to de- port. velop the next big fintech-based service or product. “I think there might have been historically convention- SEE FINTECH, PAGE 12

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we want the banking experience to FINTECH be in the hands of big data providers CONTINUED FROM PAGE 11 such as an Apple or Amazon? Or do we as consumers want trust and ac- But it was really just within recent cess available through the local years that ntech companies truly bank?  e local bank can make the began nding their place in the customer experience better and easi- banking world. er by working with ntech.”  e modern-day dynamic between ntechs and nancial institutions be- Mutual understanding gan a few years ago as large U.S. banks and regional banks started working In the tech world, banking’s dynam- with them.  at includes Cleve- ic with ntech companies is due to a land-based KeyBank, who had con- con uence of factors from a competi- solidated computer systems in 2014 tive landscape to the sheer sophistica- with the Oracle Banking Platform. tion of technology to the brainpower A good example of how the com- behind it all that’s allowing these start- pany turned an early ntech relation- “Four years ago, we ups to go to market in droves. ship into an additive service for the In many ways, though, ntech’s bank itself comes with its investment might’ve thought themselves weren’t developing prod- in HelloWallet in 2015. about doing that ucts and services with the customer The 2009-founded startup offers in mind.  at’s something that has financial management tools, which ourselves. Now I have evolved in the last ve years or so, Get more Key first rolled out for its employees a separate o ce in said Nathan Hodgen, a senior prod- before offering the same platform uct manager in Cleveland for Am- to customers. Before that partner- Washington, D.C. with Trust Innovation Lab. ship, HelloWallet had hardly any tech leaders and “ ere’s been such an engineering with Ancora. users. and IT focus for so long in ntech Since then, Key has grown into Hel- designers, most of and other tech. But concentrating on We offer proprietary investment strategies, wealth planning and retirement plan loWallet’s largest customer. Key was whom didn’t work the customer experience and what so enamored with the service it ac- the customer really needs as the focal solutions - all with a personalized service to help you get more out of life. quired the business from Morningstar with a bank before.” point — which seems obvious — in May, adding about 36 employees. we’re actually doing now instead of 216-825-4000 / www.ancora.net “Four years ago, we might’ve — Dennis Devine, head of consumer brie y talking about what customers thought about just building that our- and business banking and want and then how do you build the selves. Now I have a separate o ce in co-president of community banking, infrastructure for it,” Hodgen said. Washington, D.C. with tech leaders on KeyBank’s HelloWallet acquisition “Also, the discipline of product man- and designers, most of whom didn’t agement is starting to get traction in work with a bank before,” Devine collections and receivables. De- more traditional institutions.” said. “Now they’re designing nan- signed to support corporate clients, Prior to his current job, Hodgen cial wellness solutions central to the the rm incorporates machine learn- worked with the Federal Reserve client.  at’s an excellent evolution ing and predictive analytics as well. Bank of Cleveland, where he worked that has occurred.” For smaller banks, which don’t on a series of projects, including Today, thanks to HelloWallet, have the scale to even consider build- modernization and mobile e orts for

VOL. 39, NO. 21 MAY 21 - 27, 2018 Celebrate your Success with Reprints & Recognition Products FINANCE SUCCESS IS IN VOL. 39, NO. 21 MAY 21 - 27, 2018

VICTORY’SFINANCE SIGHT By JEREMY NOBILE Devine said the number of clients tak- ing such comparable tech platforms banks in the Fed's system. [email protected] SUCCESS IS IN @JeremyNobile VICTORY’S VOL. 39, NO. 21 SIGHT MAY 21 - 27, 2018 The largest money manager in NortheastFINANCE Ohio, which has beenBy rather JEREMY quietly NOBILE amassing size for well over a century, has achieved ex- plosive growth [email protected] a management-led and We have all channels of communication covered to ensure everyone in your network private equity supported separation from Key-SUCCESS IS IN @JeremyNobile Corp a few years ago. Now, following a recent IPO, Brooklyn, Ohio- based Victory CapitalThe Management’s largest money parent managerVICTORY’S in Northeast SIGHT company, Victory CapitalOhio, whichHoldings, has beenis setting rather quietly amassing By JEREMY NOBILE en onto the nancial wellness plat- themselves even if they wanted to, “In a lot of ways, people are just the stage for its next sizeera offor growth well over driven a century, by its has achieved ex- multi-boutique model and a consistent acqui- plosive growth since a [email protected] and sitions strategy. private equity supported separation@JeremyNobile from Key- CEO David Brown: “We eventually evolved to the point where it just didn’t make sense for Key “We saw an opportunityCorp a infew the years market ago. to do to be the owners of Victory Capital.” (Ken Blaze for Crain’s) something different thanNo w,what following was happening, a recent IPO, Brooklyn, Ohio- which was our integrated,based Victory multi-boutique Capital Management’s TheTher largeste was parentmoney no animosity manager there.in Northeast The relation - That was nearly five years ago. And while model that we havecompany, today,” said Victory Victory Capital CEOOhio, Holdings,ship which between ishas setting been Key rather and Victoryquietly amassingis still strong, in Crestview is still a majority owner of the busi- David Brown, who joinedthe stage the firm for its in next 2004 era while ofsize growth factfor well —driven the over latter’sby a itscentury, headquarters has achieved off ex Tiedeman- ness — of which employees own a 35% stake is aware your firm’s achievement. it was still a part of Key. plosiveRoad growth sits within since a complexmanagement-led for KeyCorp and staff it — it’s given Brown and Victory’s board free- multi-boutique model and a consistent acqui- That model, whichsitions truly strategy.started to develop atpriv atesubleases equity supportedfrom the company. separation The from timing Key- simply dom to operate how it likes. Corp a few years ago. Victory following a management-led“We saw an opportunity buyout in feltthe right, market Brown to do said, CEOfor Victory David toBrown: step out “We on eventually its O nceevolved separate to the from point Key, where Victory it setjust out didn’t on an make sense for Key Now, following a recent IPO, Brooklyn, Ohio- from Key in 2013, is largelysomething what Browndifferent feels than po - whatown was and happening, continue theto work be the it had owners been doingof Victory for Capital.”acquisition (Ken streakBlaze forto Crain’s give )it more scale. It’s based Victory Capital Management’s parent sitions the firm to flourishwhich aswas its industryour integrated, evolves. somulti-boutique long as Key refocused Ther on othere was strategies. no animosity there.bought The three relation companies- That since was then: nearly Munder five years ago. And while company, Victory Capital Holdings, is setting Key’s investment management business “We eventually evolved to the point where it Capital (in 2014); Compass Efficient Model Port- model that we have today,”the saidstage Victoryfor its next CEO era ofship growth between driven byKey its and Victory is still strong, in Crestview is still a majority owner of the busi- that eventually became Victory was more than just didn’t make sense for Key to be the owners folios (in 2015), which became known as CEMP; form per banker per day is up by 32%. ntech partnerships are an import- David Brown, who joined the firm in 2004 while fact — the latter’s headquarters off Tiedeman ness — of which employees own a 35% stake coming to their senses as banks have multi-boutique model and a consistent acqui- a century old as the company looked to shed of Victory Capital,” Brown said. and RS Investments (in 2016). It also took a mi- it was still a part of Key. sitions strategy. Road sits within a complex for KeyCorp staff it — it’s given Brown and Victory’s board free- the division several yearsThat ago. model, which truly started“We saw to andevelop opportunity at subleases in the market from to the do company. CEO David The Brown: timing “We simply eventually dom evolved to operate to the how point it likes.where it just didn’t make sense for Key Many banking conglomeratesVictory following were makinga management-ledsomething Victory different buyout than Capital feltwhat right, was Brownathappening, a said,glance forto Victory be the ownersto step out of Victory on its Capital.”Once (Ken separate Blaze for from Crain’s Key,) Victory set out on an similar moves aroundfrom that Key time, in 2013,shedding is largely their whichwhat Brownwas ourfeels integrated,po- own andmulti-boutique continue the workTher it ehad was been no animositydoing for there.acquisition The relation streak- toThat give wasit morenearly scale.five yearsIt’s ago. And while money managers to cutsitions costs the and firm focus to flourishon coremodel as its JindustrythatJVictory we haveevolves. Capital today,” spunso longsaid out Victoryas of Key KeyCorp refocusedCEO followingship on between other a management-led, strategies. Key and Victory boughtisprivate still strong, threeequity-support- incompanies Crestview since is still then: a majority Munder owner of the busi- ed buyout valued at $246 million in 2013. banking services in thoseKey’s years investment following managementtheDavid Brown, business who joined the “Wefirm eventuallyin 2004 while evolved fact —to the pointlatter’s where headquarters it Capital off Tiedeman(in 2014); Compassness — of Efficient which employees Model Port own- a 35% stake last recession. Key eventuallythat eventually sold the became business Victoryit was stillwasJJSince a more part thatof than Key. deal, just the didn’t firm hasmake gone sense fromRoad for $18 Key sits billionto within be thein a assets complexowners to for$60.9folios KeyCorp billion, (in 2015),staff 148 it which — it became’s given knownBrown asand CEMP; Victory’s board free- employees to 300, 18 investment strategies to 72 and five franchises to nine, plus a to Victory employeesa — century there were old aboutas the 148 company at That looked model, to which shed truly of started Victory to Capital,”develop at Brown subleases said. from the company. Theand timing RS Investments simply dom (in to2016). operate It also how took it likes. a mi- Victorysolutions following platform, a management-led VictoryShares. buyout felt right, Brown said, for Victory to step out on its Once separate from Key, Victory set out on an the time — and Newthe York division private several equity years firm ago. from Key in 2013, is largely what Brown feels po- own and continue the work it had been doing for acquisition streak to give it more scale. It’s Crestview Partners for Many$246 million.banking Proceedsconglomerates J wereJThe firmmaking raised about $140 million in a recent IPO (NASDAQ: VCTR). That capital will help sitions thesupport firm toits flourish eventual as itsVictoryseparation industry evolves.from Capital Crestviewso long as atPartners, Key a refocused glance the New on other York strategies. private equity firmbought three companies since then: Munder of Key’s sale were usedsimilar to buy moves back stock,around bene that- time, shedding their Key’sthat investment still holds managementa majority stake business in the business.“We eventually evolved to the point where it Capital (in 2014); Compass Efficient Model Port- fiting shareholders. JJVictory Capital spun out of KeyCorp following a management-led, private equity-support- money managers to cut coststhat and eventually focus on became core Victory was more than just didn’t make sense for Key to be the owners folios (in 2015), which became known as CEMP; ed buyout valued at $246 million in 2013. banking services in thosea yearscentury following old as the the company looked to shed of Victory Capital,” Brown said. and RS Investments (in 2016). It also took a mi- For more information contact last recession. Key eventuallythe divisionsold the several business years ago.JJSince that deal, the firm has gone from $18 billion in assets to $60.9 billion, 148 “So that’s where this ntech ts,” ant way to compete for market share success with technology,” Hodgen to Victory employees — thereMany were banking about 148 conglomerates at employees were making to 300, 18 Victoryinvestment strategiesCapital to at 72 aand glance five franchises to nine, plus a the time — and New Yorksimilar private moves equity around firm that time,solutions shedding platform, their VictoryShares. Crestview Partners for $246money million. managers Proceeds to cut costs JandJThe focus firm on raisedcore aboutJJVictory $140 Capitalmillion inspun a recent out of IPO KeyCorp (NASDAQ: following VCTR). a management-led, That capital will private help equity-support- ed buyout valued at $246 million in 2013. of Key’s sale were used to buybanking back services stock, bene in those- yearssupport following its eventual the separation from Crestview Partners, the New York private equity firm that still holds a majorityJ stake in the business. fiting shareholders. last recession. Key eventually sold the business JSince that deal, the firm has gone from $18 billion in assets to $60.9 billion, 148 to Victory employees — there were about 148 at employees to 300, 18 investment strategies to 72 and five franchises to nine, plus a the time — and New York private equity firm solutions platform, VictoryShares. Crestview Partners for $246 million. Proceeds JJThe firm raised about $140 million in a recent IPO (NASDAQ: VCTR). That capital will help of Key’s sale were used to buy back stock, bene- support its eventual separation from Crestview Partners, the New York private equity firm that still holds a majority stake in the business. Laura Picariello, Reprints Sales Manager fiting shareholders. he said. “ ere’s a really quanti able just like their larger counterparts. said. Tel (732) 723-0569 • Fax (888) 299-2205 • [email protected] way to look at this.” First Federal Lakewood, a mutual As far as the role banks are playing Key has engaged a slew of ntech bank with roughly $1.8 billion in as- in the ntech revolution, much of companies through general invest- sets, invested in Boston startup Nu- that is also simply an evolution of ments, partnerships and acquisitions merated Growth Technologies in strategies for those ntech rms. since Oracle and HelloWallet. One 2017 out of interest in its small busi- Just like how banks have been this spring, with Bolstr, is designed to ness lending app, which was rolled leery of startups, some startups, often streamline small business lending. out in the rst quarter of this year. erroneously, believe they can rein- Another, with Billtrust, began in 2017  e bank, which has a nearly 5% vent nancial services without the and o ers cloud-based payment cy- stake in the company, sought that support of a bank in their corner. cle management. One from 2015 deal because of concerns customers Maybe some will be succesful with with AvidXchange establishes auto- might seek loans through online that. Yet, they ultimately bene t from mated bill payment solutions.  e lenders like Kabbage (which secured the customer base and legitimacy a examples go on from there. $250 million from SoftBank Group traditional, regulated banking com- last year) or peer-to-peer lending pany has to o er. Tech connections platforms like LendingClub, said “You can’t just pull those custom- Tom Fraser, president and CEO of ers out of thin air,” Hodgen said. “If Many others are taking a similar First Mutual Holding Co.  e new you’re a ntech company, you’re bet- approach toward ntech and innova- app lets First Federal streamline the ter o doing things together. And tion, partnering with related startups traditionally slow loan process while maybe that’s just a natural evolution. to ultimately either cut costs, im- maintaining low rates so it can com- Startups and ntechs are drawing prove services or grow revenues — pete not just with fellow banks but this conclusion: I got these great and those things certainly aren’t mu- non-bank nancial institutions. ideas, but how do I get customers?” tually exclusive. “It’s moved from being fear or dis- But the evolution in thinking for “At Fifth  ird Bank, we see ntech respect or a sense of rivalry,” Fraser banks can’t be understated. as an opportunity, not a threat. We said of how bankers view the ntech “Banks are going to be looking to have always embraced innovation, space. “When each sees the bene ts partner with smaller companies be- and our strategy is to buy, partner the other brings to the table, it makes cause just naturally larger corpora- and/or build, as illustrated by several the partnership easier and creates a tions are slower at creating innova- of our recent innovations,” said Fifth sense of trust.” tion,” said Ari Lewis, co-founder of  ird Bank president and CEO Greg So are tiny and agile ntech com- Grasshopper Capital, a cryptocur- Carmichael, whose background is in panies really the disruptors of bank- rency hedge fund launched in Cleve- & technology, having worked at Emer- ing they claimed they could be — or land, and a consultant to blockchain Because more lives more goals come together here. son as chief information o cer and wanted to be — years ago? and other ntech companies. “Many in IT at GE before that, in an emailed Bankers don’t seem to think so. corporations are concerned more Our office features commercial, business, consumer, and private banking as well as treasury statement. “ is strategy is driven by  e concern has largely faded, at with preserving management and management and convenient ATM services. No matter what you’re looking for, you’ll find an the way our customers and clients least. making sure bottom lines are good.” expert who will work with you to reach your goals. want to bank, which is anywhere, In fact, partnering with them may It’s all about growth and revenue anytime. Innovation and technology be a path toward avoiding impacts for banks. are in the bank’s DNA. Fifth  ird from the real disruptors. It's quickly Take, for instance, Goldman Sachs. was the rst bank to introduce a net- becoming a common practice in  e massive bank, which is known work ATM infrastructure back in the banking today. for banking some of the world’s late 1970s.” “ e true disruptors are the Ama- wealthiest people, now o ers a lend- One of the bank’s more recent zons of the world.  e Googles.  ose ing product for middle-class people 491 North Cleveland-Massillon Road • Akron partnerships involves Intellect Glob- accumulating massive amounts of through Marcus, an online banking 330.664.2911 • stbank.com al Transaction Banking, whose ser- data consumers in general.  ey’re business that started in 2016.  ere MEMBER FDIC vices include not just payment trans- the greater threats to banks than any have been some hiccups there. But actions but cash management, startup ntech is,” Fraser said. “Do for Goldman Sachs, the opportunity

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we want the banking experience to is in creating new revenue streams by be in the hands of big data providers serving people it hasn’t before all Investors haven’t been this such as an Apple or Amazon? Or do while cutting costs or otherwise we as consumers want trust and ac- keeping them super low. cess available through the local All those factors mean there is a bullish on U.S. stocks since ’15 bank? The local bank can make the dearth of opportunity for fintech customer experience better and easi- startups today, which could very well The bull run that has taken U.S. our view remains: peak profits, poli- Some 57% of respondents in the er by working with fintech.” see a lucrative payday if they build equities to record highs this year cy and returns,” said Michael Hart- survey cited a trade war as the big- something the traditional finance may be about to reach its peak, ac- nett, Bank of America Merrill gest tail risk. Mutual understanding sector really wants. cording to the latest survey of fund Lynch’s chief investment strategist. A net 67% of recipients said the “As technology grows and you see managers by Bank of America Mer- “Rising corporate leverage concerns U.S. was the most favorable region In the tech world, banking’s dynam- more advancements with AI or rill Lynch. say bonds should outperform for corporate profit expectations, ic with fintech companies is due to a blockchain or whatever, there’s al- Allocations to U.S. stocks jumped stocks, while a weaker profit out- the highest proportion in 17 years. confluence of factors from a competi- ways going to be opportunity. I be- 10 percentage points this month to look suggests defensives could out- Long FAANG and BAT remained the tive landscape to the sheer sophistica- lieve startups are better versed for a net 19% overweight, the highest perform cyclicals.” most-crowded trade identified by tion of technology to the brainpower that opportunity because they have since January 2015, the survey said. Safe-haven appeal has combined investors for the seventh straight behind it all that’s allowing these start- the ability to not have to worry about That makes America the most pop- with a strong earnings season to month. “Four years ago, we ups to go to market in droves. things like shareholders and have the ular equity region for the first time keep the stock market of the world’s The survey was conducted be- In many ways, though, fintech’s opportunity to move quickly,” Lewis in five years, according to the bank’s biggest economy attractive this year tween Aug. 3 and Aug. 9 among 243 might’ve thought themselves weren’t developing prod- said. “Banks are recognizing this. analysts. even as President Donald J. Trump’s investors with a total of $735 billion about doing that ucts and services with the customer And that will only create more op- “With investors telling us they are trade curbs pose a threat to global under management. in mind. That’s something that has portunity.” long on the U.S., the Fed and cash, economic growth. — Bloomberg ourselves. Now I have evolved in the last five years or so, a separate office in said Nathan Hodgen, a senior prod- uct manager in Cleveland for Am- Washington, D.C. with Trust Innovation Lab. tech leaders and “There’s been such an engineering and IT focus for so long in fintech designers, most of and other tech. But concentrating on whom didn’t work the customer experience and what the customer really needs as the focal with a bank before.” point — which seems obvious — we’re actually doing now instead of THERE’S ONLY ONE THING TO DO — Dennis Devine, head of consumer briefly talking about what customers and business banking and want and then how do you build the co-president of community banking, infrastructure for it,” Hodgen said. WITH A CROOKED STOCKBROKER. on KeyBank’s HelloWallet acquisition “Also, the discipline of product man- agement is starting to get traction in collections and receivables. De- more traditional institutions.” signed to support corporate clients, Prior to his current job, Hodgen the firm incorporates machine learn- worked with the Federal Reserve ing and predictive analytics as well. Bank of Cleveland, where he worked For smaller banks, which don’t on a series of projects, including have the scale to even consider build- modernization and mobile efforts for ing such comparable tech platforms banks in the Fed's system. themselves even if they wanted to, “In a lot of ways, people are just fintech partnerships are an import- coming to their senses as banks have ant way to compete for market share success with technology,” Hodgen just like their larger counterparts. said. First Federal Lakewood, a mutual As far as the role banks are playing bank with roughly $1.8 billion in as- in the fintech revolution, much of sets, invested in Boston startup Nu- that is also simply an evolution of merated Growth Technologies in strategies for those fintech firms. 2017 out of interest in its small busi- Just like how banks have been ness lending app, which was rolled leery of startups, some startups, often out in the first quarter of this year. erroneously, believe they can rein- The bank, which has a nearly 5% vent financial services without the stake in the company, sought that support of a bank in their corner. deal because of concerns customers Maybe some will be succesful with might seek loans through online that. Yet, they ultimately benefit from lenders like Kabbage (which secured the customer base and legitimacy a $250 million from SoftBank Group traditional, regulated banking com- last year) or peer-to-peer lending pany has to offer. platforms like LendingClub, said “You can’t just pull those custom- Tom Fraser, president and CEO of ers out of thin air,” Hodgen said. “If First Mutual Holding Co. The new you’re a fintech company, you’re bet- app lets First Federal streamline the ter off doing things together. And traditionally slow loan process while maybe that’s just a natural evolution. maintaining low rates so it can com- Startups and fintechs are drawing pete not just with fellow banks but this conclusion: I got these great non-bank financial institutions. ideas, but how do I get customers?” “It’s moved from being fear or dis- But the evolution in thinking for respect or a sense of rivalry,” Fraser banks can’t be understated. STRAIGHTEN HIM OUT. said of how bankers view the fintech “Banks are going to be looking to space. “When each sees the benefits partner with smaller companies be- the other brings to the table, it makes cause just naturally larger corpora- At Meyer Wilson, we’ve been successfully representing individual investors against their brokerage the partnership easier and creates a tions are slower at creating innova- frms for more than 15 years. We’ve done it locally. We’ve done it nationally. And we’ve built our sense of trust.” tion,” said Ari Lewis, co-founder of So are tiny and agile fintech com- Grasshopper Capital, a cryptocur- reputation on our success. So if you know of a stockbroker who is crooked, negligent, or just plain panies really the disruptors of bank- rency hedge fund launched in Cleve- not smart enough to do the right thing, call us. We can help. ing they claimed they could be — or land, and a consultant to blockchain wanted to be — years ago? and other fintech companies. “Many Bankers don’t seem to think so. corporations are concerned more The concern has largely faded, at with preserving management and least. making sure bottom lines are good.” In fact, partnering with them may It’s all about growth and revenue be a path toward avoiding impacts for banks. from the real disruptors. It's quickly Take, for instance, Goldman Sachs. Get what’s coming to you. becoming a common practice in The massive bank, which is known banking today. for banking some of the world’s “The true disruptors are the Ama- wealthiest people, now offers a lend- zons of the world. The Googles. Those ing product for middle-class people investorclaims.com accumulating massive amounts of through Marcus, an online banking Meyer Wilson Co., LPA Cleveland Columbus Los Angeles 216.600.1355 data consumers in general. They’re business that started in 2016. There the greater threats to banks than any have been some hiccups there. But startup fintech is,” Fraser said. “Do for Goldman Sachs, the opportunity MW_CrainsCleve_8.125x10_Straighten_FA.indd 1 1/27/16 9:40 AM

P012_013_CL_20180820.indd 13 8/17/18 11:12 AM PAGE 14 | AUGUST 20 - 26, 2018 | CRAIN’S CLEVELAND BUSINESS FINANCE M&A market spurs shifting PE strategies By JEREMY NOBILE that, but the big one is the deals are cheaper. That’s sort of just a fact of [email protected] life.” @JeremyNobile Investment firms in Northeast Ohio tend to focus on the middle When Chip Chaikin started in pri- market, even lower ends of the mid- vate equity two decades ago, compa- dle market. A number of relatively ny multiples of earnings before inter- young firms in this region, like Align est, taxes, depreciation and Capital Partners, MavenHill Capital amortization (EBITDA) — the key el- and Watervale Equity Partners, are ement in a company’s price tag when doing just that. MavenHill, for exam- it’s being bought or sold — were ple, is targeting companies in the in- roughly half of what they are today. dustrial and health care sectors with Investment firms are enjoying between just $1 million and $6 mil- those prices on the sell side. But on lion of cash flow. the buy side, that trend is making it But even the market’s larger firms increasingly difficult for funds and are doing the same thing. their investors to make as much as “Small is where it’s at to generate they used to. The margin between above-market returns,” said Steve buying and selling is under pressure Rosen, co-CEO of Cleveland’s Resil- from high front-end costs. ience Capital Partners. “Keep in And that’s reshaping strategies for mind that a recession is coming and private equity funds across the in- there are going to be plenty of losses dustry. Blue Point Capital Parnters partner Chip Chaikin, right, said the last five companies his firm has sold have had and failures, and most will be in “When I started, we were buying an EBITDA in double digits. Resilience Capital Partners co-CEO Steve Rosen, meanwhile, said, “Small is where small business. That is exactly the companies at five times EBITDA,” it’s at to generate above-market returns.” (Contributed photos) reason why the regulated banks fo- said Chaikin, a partner with Cleve- cus on making loans to larger com- land-based Blue Point Capital Part- ular strategy for putting that money cording to Bain and Co.’s 2018 Global Evolution in thinking panies. Resilience will be there ners. “Now, the last five we sold were to work. Private Equity Report. when the recession hits and most in double-digit multiples. You’re just Meanwhile, financial buyers — Firms typically go for large compa- The idea of private equity being small businesses, if they can find a not doing your job if you’re not think- like private equity funds and other nies first because they have the scale drawn to smaller and possibly even financial partner in that period, will ing about how to get returns out of investment firms — continue to see to offer more transformative impact, earlier stage businesses is an evolu- come out stronger with fewer com- this environment.” dry powder build up as investors as in stronger returns. tion for the industry. The whole pur- petitors.” The M&A landscape has been this flood funds with capital. So to keep those returns strong, pose of a venture capital sector, after The Riverside Co., a global private way now for a couple years, and it’s As of June, that global dry powder firms are evolving in their approach all, is to feed capital to those riskier equity firm co-headquartered in reshaping strategies for investment supply topped $1.07 trillion, setting a to making deals. investments that coincide with Cleveland and New York and the firms. new high-water mark for the indus- They’re diversifying the types of younger companies. Among various largest in this region, closed a mi- Strategic buyers — think of com- try, according to research firm Pre- companies they’d consider investing things, private equity funds like scale cro-cap fund in 2016 with $650 mil- panies buying other companies — qin. At least $3 trillion has been in, while looking for add-on compa- and predictability, which is some- lion of capital. It’s still going after are flush with cash to put to work. raised for funds in the past five years. nies like never before. thing a startup simply doesn’t offer. large companies in other funds. But Earnings of companies in the S&P That competition for deals is And, even though they’re still dig- “Everyone has been moving down- money in the microcap fund is tar- 500 were just 2% shy of a record in what’s creating today’s seller’s mar- ging through the upper ends of the stream,” said Douglas Neary, vice geting companies with roughly $7 July. ket where price multiples are regu- market, they’re increasingly paddling chairman at Calfee, Halter & Gris- million of EBITDA, something much

Tax reform is inflating balance larly in the double digits. They were downstream for deals. There, multi- wold and senior partner in the firm’s smaller than the firm has typically fo-

sheets even more. Naturally, buying 11 times EBITDA for half of all com- ples are lower because cash flow is corporate and capital markets prac- cused on in its 30-year history.

other companies has become a pop- panies acquired in recent years, ac- lower. But there’s also more risk. tice.03-07John “There Sare Grimm.qxp a couple factors 2/23/2016 in 10:43 AM PageSEE M&A1 , PAGE 16

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P014_CL_20180820.indd 14 8/17/18 11:14 AM CRAIN’S CLEVELAND BUSINESS | AUGUST 20 - 26, 2018 | PAGE 15

FINANCE Q&A: Howard Boyle President and CEO, Hometown Bank

At 120 years old, Kent’s Hometown Bank, which has roughly $200 million in And that will change things even assets today, has witnessed — and weathered — plenty of change unfold more. Wait until five years from now. through the years, from evolutions in the banking industry to the It will be even more different than it multimillion-dollar redevelopment of a now-college town that was historically is today. founded due to the surrounding canal and railroad network. The same can be said for the bank's 68-year-old leader, Howard Boyle, who has worked at the Do you think there will always be a institution more than 43 years and guided it as president and CEO since the draw to a physical branch mid-1980s. From the advent of the internet to modern regulations squeezing location? community bank margins today, Boyle brings a unique and long perspective of I do. I mean, look at our . There’s how the industry has changed through the decades. Crain’s sat down with people there all the time, and they Boyle to discuss those very trends from the point of view of a seasoned don’t have to do that. To come in and community banker — who once did every job at the bank, including shoveling talk to a teller is something that is the sidewalk — to get a sense of what’s on his mind as he looks at the still in demand, particularly in a small landscape for banking today. — Jeremy Nobile town. There is always someone who wants a relationship with their bank that’s more than you can have You’ve been with Hometown Bank have 66 today. So it wasn’t a real online. And there’s enough of them in now for more than four decades long ladder. And I was working for a our community that keep us viable. and CEO for over three. What path president at the time who had been And it’s people from all different age lead you here? in place since 1943. groups. So I became CEO in ’85 or ’84, but actually got here in 1975. Kent is my When you look around town, does As one of the local banks for a hometown, and I went to Theodore it feel like a lot has changed? college town, do you get many Roosevelt High School (in Kent) and Well, we may be the only community students from Kent State Ashland University. When I got out of charter in the area besides Portage University as customers? college, I got drafted and spent two Community Bank now. There used to We really don’t. The only draw we years in the service. One of my be more. There was a period in time get from KSU is because we have an friends, someone I grew up with, told when I knew all the CEOs and I could ATM that’s closer to the bars me if he weren’t a lawyer, he’d be a pick up the phone and call any one of than anyone else. That’s a very banker. Well, he said there were them. I don’t have the foggiest idea popular machine. But students two banks down the road and he who’s running some of these banks anymore don’t bank in the made me an appointment with both now. community of their college, which is of them. I just picked one. And what you did when I was in that’s about it. I just thought it was A lot of that is probably just due college. It’s not necessary now with wonderful to work for an to consolidation. What first comes to mind when lot less touchy-feely than banking online banking. And there really institution in a community I grew up Yes, everything has consolidated. you reflect on how the industry was in that era. People used to come aren’t many banks that go on in. What I used to consider main offices itself has changed over all these in and sit down and talk. We still do campuses anymore to try to get aren’t there any longer. They just years? that. But it’s not as prevalent as it people to open accounts, unless Did you ever aspire to work at a have some operations there, but Banking used to be a very personal was 20 or even 10 years ago. you’re a regional or national bank. bank, let alone become the CEO of they don’t have staff with backroom type of activity, but over the years, Compared with 40 years ago, it’s Like that’s something maybe Fifth one? administration and things like that. we’ve created so many types of completely different. Third would be interested in. It’s I really didn’t. I was just looking for a So there’s really no one to talk to. access to the bank we haven’t had expensive to have an office on job at the time. When I started, the Sometimes there’s a branch before. Online. Mobile. It’s great for Tech has really revolutionized the campus itself. bank only had five employees. We manager, sometimes not. the bank and the consumer. But it’s a business. SEE Q&A, PAGE 20

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P015_CL_20180820.indd 15 8/17/18 11:15 AM PAGE 16 | AUGUST 20 - 26, 2018 | CRAIN’S CLEVELAND BUSINESS

FINANCE M&A Pay gap narrows among CONTINUED FROM PAGE 14 “As bigger boys are moving down- stream, the middle market is moving highest-paid local CFOs further downstream, too,” Neary said. “Everyone is looking for smaller By CHUCK SODER on a percentage basis than those at for TransDigm Group until January deals because they want to find any- larger companies. 2018. His pay increased 717% to $7.1 thing. And the bigger (the compa- [email protected] The median 2017 pay increase was million, but only because the Cleve- nies) are, the more competitive they @ChuckSoder 5.4% for the top 20 CFOs who held the land-based aerospace supplier are.” position through both 2016 and 2017. awards stock options to most of its Riverside co-CEO Stewart Kohl There’s still a huge gap between the By comparison, the median increase top executives every two years. He’s said, “We are not going downstream executives at the top our Highest-Paid for the other 18 CFOs meeting that cri- at No. 2 on the list. No. 1 is Eaton CFO per se, but we are definitely looking CFOs list (see Page 34) and those at teria was 12.1% — and only two of Richard Fearon, who earned $8.6 and creating new ways to maintain the bottom. But the gap got a little bit those executives saw their pay drop in million in 2017. the quality of deals and returns in a narrower in 2017, at least by one 2017, compared to eight in the top 20. This year, we added tenure informa- hyper-competitive environment.” “We are not going measure. That certainly wasn’t the case with tion to the list, so you can see how long Those methods for achieving value The median total compensation this list last year, when the median in- each executive has been a CFO — and in a deal include viewing deals more downstream per se, increase for the 60 local chief finan- crease for the top 20 was 6.9% — more if they’ve left the position. And in the globally — particularly for firms like but we are definitely cial officers on the full digital version than double the 3% increase for the full digital list — which is available to Riverside and Blue Point that own of the list was 11.1% in 2017, up from rest of the CFOs on the list. And CEOs Crain’s Data Members — we included companies overseas that could bene- looking and creating 4.7% the previous year. at larger public companies have re- how long they’ve been with their com- fit from a domestic company in the new ways to maintain That increase might not be too sur- ceived pay increases way beyond their panies. On average, the CFOs on the United States, or vice versa — strate- prising to regular Crain’s readers. Ear- counterparts at smaller companies, list received the title roughly eight years gically using operating partners and the quality of deals lier this year, we published two other judging by our Highest-Paid CEOs ago and joined their respective compa- specializing in other industries. and returns in a lists ranking local public company ex- lists from the past two years. nies about 16 years ago. Some of them ecutives by total compensation. The Of course, we’re talking about have been working for the same firm Rowing downstream hyper-competitive median 2017 total compensation fig- small numbers of executives, so the for quite a while: 19 joined in the 1990s, environment.” ure rose tremendously for our High- median could change noticeably if six joined in the 1980s and one — for- Even fintechs and related startups, est-Paid CEOs list; it also edged up for we were to remove just a few execu- mer FirstEnergy CFO James F. Pearson, which are ripe for venture capital, are — Stewart Kohl, co-CEO, Riverside our Highest-Paid Non-CEOs list. tives from our calculations. who is now executive vice president of increasingly hitting radar screens of What’s more surprising is that And the story would change dras- finance — has in a sense worked for the private equity funds. For firms based “Today, every business is a tech- CFOs toward the bottom of the full tically if we were looking at average same employer continuously since the in Northeast Ohio, who as a group nology business. We've applied for list (who tend to work for smaller pay increases — largely because of 1970s. He joined an Ohio Edison sub- have historically focused largely on more than 50 patents across the port- companies) actually got better raises Terrance Paradie, who served as CFO sidiary, Penn Power, in 1976. manufacturing, opening up to tech folio over the past five years,” Rosen investments marks an evolution in said. “We have three operating part- strategy. ners focused just on robotics, soft- Private equity funds aren't just ware and digital marketing. We have carelessly throwing money at risky made tech add-on acquisitions with- investments, of course. They're not in a platform investment. I would say really doing venture deals. Their in- that, if you are not investing in these vestors wouldn't like that. areas, you are not going to be around A LITTLER 2018 Littler Ohio for long.” REGIONAL “Don’t be shy about Nachshon Ventures is a new in- EMPLOYER Employer Conference vestment firm recently formed in reaching out to who Kirtland that hasn't made any deals OCTOBER 18 | LANDERHAVEN you think might be a yet but is targeting a slew of potential companies in industries ranging logical partner. Even from commercial real estate to data if you’re not ready to security. The firm is being led by Ja- THE PREMIERE LABOR AND EMPLOYMENT son Wuliger, a co-founder and for- LAW CONFERENCE COMES TO CLEVELAND sell, (the firms) will be mer vice president at Beachwood's willing to sit down SplashLink. For Wuliger — who said he's being and talk with you opportunistic about what deals his today.” firm would seek — the chance of a re- cession in the future is influencing his — Douglas Neary, vice chairman, perspective on investment strategies as Calfee, Halter & Griswold much as anything in today's market. “There has been a lot of talk about DON’T MISS EARLY But they are taking on more risk us being at the peak of the cycle or BIRD REGISTRATION! than before. even beginning to look downward in- Save $50 reference Blue Point, for instance, acquired stead of up,” he said. “I'm not sure an online sales platform a few years how accurate any of that is, but it's promo code ago called NWL to support one of its something to keep in mind when you CRAINS50 As part of Littler’s Regional portfolio apparel companies, Vetta decide how much risk to put on. As Employer series, this conference LLC. NWL only existed for a few few we look at various opportunities, one years and was rather small when Blue question we are asking regardless of provides legal and human Point bought it. The deal was more of the industry or stage of the company resources professionals with an indirect reaction to market condi- is, what makes you think your com- tions: Blue Point wasn't actively think- pany is going to be resilient through a strategies to navigate the ing about going downstream as much recession? It's not like we're calling continually shifting employment as finding something that was partic- for one. But a downturn is more likely and labor law terrain. ularly additive to Vetta, something now than it was a few years ago.” which was prioritized over size or lon- Neary said the takeaway for all this gevity of the target company. for companies who could be featured Breakfast and Program: “That's a business we would not in a deal is that now may be the best For more information have bought 10 years ago,” Chaikin time to shop around. and to register, go to 8:00am-4:30pm said. “But given the growth in that “Don't be shy about reaching out Littler.com/ohio-employer Cocktail reception following segment and the value it could add, to who you think might be a logical we did end up buying a pure e-com- partner. Even if you're not ready to or contact Rachel Edman merce business.” sell, (the firms) will be willing to sit at [email protected] Register by August 31 for Smaller, tech-centric companies down and talk with you today,” Neary a discounted, early bird rate. are often tacked on to other compa- said. “Building bridges with those CLE, SHRM and SPHR/PHR credit pending $140 Early Bird Rate nies as add-on acquisitions to sup- who might be logical buyers as a way port platform investments. There has for you, the seller, to gather informa- $195 Standard Rate been a significant uptick in add-on tion probably isn't a bad idea today. deals as a result of that movement. It'll be a cagey discussion. But over Riverside is especially active with time, you could get some good in- With a singular focus on labor and employment law, Littler, the add-on deals today. sights into where your business world’s largest labor and employment law fi rm, provides legal Even Resilience, which has histori- would fit with some of them and how strategies and solutions for employers of all sizes, everywhere. littler.com cally focused on manufacturing to position it best.” companies, is looking at smaller tech As Chaikin points out, “It's hard to companies for value. imagine there'll be a better time to sell.”

P016_CL_20180820.indd 16 8/17/18 12:03 PM CRAIN’S CLEVELAND BUSINESS | AUGUST 20 - 26, 2018 | PAGE 17

FINANCE AVAILABLE 132 N. HOWARD ST Adviser: Tony Constantine Akron, Ohio 44308

Zones can be spots for tax perks $7/SF RETAIL/RESTAURANT OPPORTUNITY 5,850 Investments made in opportunity venture capital groups) must be cer- NNN IN THE HEART OF AKRON’S SF NORTH-SIDE DISTRICT zones can generate significant tax Constantine is tified by the Treasury Department. benefits for the investment itself as a tax partner We are currently awaiting guidance well as savings on capital gains tax at Ciuni & on the certification process. from the sale of existing properties Panichi in when reinvested in opportunity zone Beachwood. Deferral of gain on original property. This innovative “everybody property wins” program is designed to pro- mote business in economically dis- If a taxpayer has a capital gain he tressed areas by delivering signifi- or she can potentially defer the gain cant tax benefits to its investors. for up to nine years by investing it BEST RETAIL LOCATION The potential benefits are as fol- sich has identified several census into a qualified opportunity fund. IN AKRON! lows: tracts as opportunity zones, includ- The gain must be reinvested within JJProperty owners can defer the ing parts of downtown Cleveland 180 days. The gain will be recognized gains on the sale of existing proper- and Akron. A number of suburbs, at the earlier of the sale of the invest- ties for up to 10 years, and such as Cleveland Heights, Euclid ment or Dec. 31, 2026. It is important SVN SUMMIT COMMERCIAL JJProperty owners may be able to and Warrensville Heights, also have to note that there is currently no re- REAL ESTATE GROUP, LLC exclude all, or a portion of, the gain qualified census tracts. quirement that the proceeds be rein- CONTACT: Ben Christopher on the eventual sale of the opportu- vested — simply the gain. Associate Advisor 3045 Smith Road, Suite 200 nity zone property. Investments must be made [email protected] Akron, OH 44333 For example, if a property sells for through a qualifying fund Reduction of gain on the 330-631-7285 (234) 231-0200 $2 million, triggering a $1 million sale of the opportunity gain, the owner may be able to defer The investment must be made fund property recognition of this gain if it’s reinvest- through a qualified opportunity fund ed in qualifying property in an op- organized for the purpose of invest- The basis in the opportunity fund portunity zone within 180 days. In ing in opportunity zone assets. The property is increased by certain addition, if this replacement proper- opportunity fund is required to hold amounts based on the holding peri- ty is held for sufficient time, the gain at least 90% of its assets in qualified od: 10% of the deferred gain if held on the sale of this replacement prop- opportunity zone property. That’s for five years, an additional 5% if held erty will not be taxed. defined as a business or business for seven years and if held for 10 The opportunity zone program property located within a qualified years, the basis is increased to the was established by Congress as part opportunity zone. fair-market value of the investment of the Tax Cuts and Jobs Act — the Qualified opportunity zone busi- on the date of sale or exchange. federal tax overhaul that was signed ness property means tangible prop- Any future gain beyond the de- into law late last year. The goal of the erty used in a trade or business. ferred gain can be eliminated if held program is to address the uneven Property must be acquired after Dec. for 10 years. economic recovery taking place 31, 2017 or substantially improved. In order to take advantage of this throughout the nation by providing U.S. Department of Treasury and IRS provision, a taxpayer can defer a gain valuable tax incentives to encourage guidelines defining “substantially by simply attaching the requisite investment in distressed communi- improved” have not yet been re- form to their tax return. The available ties. Every state has now identified leased. guidance is very general in nature, low-income census tracts as oppor- In order to be considered a quali- and it seems that this incentive has tunity zones, and a full listing of all fied opportunity fund, an entity (in- broad applicability. However, it’s areas is available online. cluding banks, community develop- possible that additional guidance is A GALA TO CELEBRATE AND SUPPORT NEOMED In Northeast Ohio, Gov. John Ka- ment financial institutions and issued that narrows that. 6 P.M. | SATURDAY, SEPTEMBER 8, 2018

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P017_CL_20180820.indd 17 8/16/18 3:59 PM PAGE 18 | AUGUST 20 - 26, 2018 | CRAIN’S CLEVELAND BUSINESS CRAIN’S CLEVELAND BUSINESS | AUGUST 20 - 26, 2018 | PAGE 19

FINANCE Rich pros barred from tax break find new shelter BLOOMBERG on age: Generally, workers in their 30s and early 40s can pitch in fewer There’s one area where the tradi- than $100,000, but limits for older tional pension plan is getting new life workers rise quickly, to above — as a tax dodge for wealthy business $200,000 for those in their late 50s owners. and above $300,000 for those in their Pensions, also known as de- late 60s. fined-benefit plans, can be used by Many large law firms and medical doctors, law partners and wealth groups already offer cash balance managers to stash hundreds of thou- plans to help their highly paid part- sands of dollars in income a year. By ners lower their tax bills. While these doing so, they’ll get around the in- professionals may boost contribu- come limits Congress created to bar tions, if possible, to try to take advan- them from a generous new tax break tage of the pass-through deduction, for owners of pass-through entities, the biggest potential opportunity un- who report the firms’ income on der the new law is for the thousands their individual tax returns. of smaller businesses that don’t yet The Treasury Department proposed have such offerings. regulations this month specifying who Even before the tax law, the popu- qualifies for the 20% deduction, which larity of cash balance plans was surg- effectively slashes the top tax rate to ing for small business owners. There cash balance plan, recipients gener- business. Owners must be sure of sta- just under 30% from 37%. The rules were 20,500 such plans in 2016, up ally roll their account balance into an ble, consistent profits before they also say that planning techniques such almost threefold since 2010, accord- IRA and manage the money them- commit to funding several years of as the “crack and pack” — where busi- ing to Kravitz estimates based on In- selves. Most choose to do so since the pension contributions, said Jamie ness owners split their firms into differ- ternal Revenue Service data. The ma- IRA is a more cost-effective vehicle Hopkins, a professor at the American Superior Service, Smart Solutions ent entities to lower their tax bills — are jority are run by businesses with and they can invest more aggressive- College of Financial Services. considered abusive. fewer than 10 employees; 37% of ly than in a cash balance plan. There’s That’s pushing top-earning service plan holders were doctors or - no limit on how much users can roll No annuities professionals to figure out other ways tists, while 10% were accounting, fi- over. They don’t pay taxes until they to get below the income limits of nance or insurance firms, and 9% pull the money out, typically when Businesses also need to make sure $315,000 if they’re married, or were legal firms. they’re in retirement and in a much they’re cutting their owners’ tax bills $157,500 if they’re single, so they can The interest is a change for the tra- lower tax bracket. enough to make up for pensions’ take full advantage of one of the tax ditional pension plan, which has higher costs. Because of the complex law’s biggest gifts. One of the work- been slowly dying after most big U.S. Lower-paid employees rules, it can cost thousands of dollars arounds is a retirement plan more employers replaced guaranteed re- to set up and then administer a de- associated with union workers. tirement benefits with less-costly The rich aren’t the only ones who fined-benefit plan. Kravitz estimates “Doctors and lawyers got really an- 401(k) retirement accounts. can benefit from the pension work- the doctor’s office above would be noyed when they were excluded from Defined-benefit pensions can around. Like other retirement plans, charged a one-time setup fee of Serving Northern Ohio the pass-through deduction,” said shield more income from the IRS defined-benefit plans are governed $5,500 and annual fees of $8,880. for over thirty-five years... Daniel Kravitz, president of retire- than a 401(k)-style defined contribu- by regulations, called non-discrimi- Charges can be much higher for ment plan administrator Kravitz. “Af- tion account or individual retirement nation rules, that require owners to ter tax reform, these plans become account, or IRA. Annual employee spread at least some retirement Fiber-Seal is the #1 Source for: even more beneficial.” contributions are capped at $18,500 wealth to lower-paid employees. Preventative Care Programs for Carpet, Area Rugs, Panel Systems and Upholstery. Kravitz said his firm, a specialist in this year for 401(k)s and $5,500 for The rules depend on the age and Maintenance Made Simple defined-benefit plans for small busi- IRAs for those under 50. income levels in a workforce, but typ- • • Cleaner Workplace Appearance Controlled Maintenance Costs nesses, is actively marketing pen- A cash balance pension is the ically setting up a cash balance pen- • • Protecting your investments Lengthen the life of your furnishings sions as a way for service profession- “next logical step” for successful sion for a business’s owner will re- TRADE SHOW DISPLAYS THAT GET RESULTS! Maintaining a healthy indoor environment. A better work place, fewer worries. als to get around the new rules. business owners who are already quire a profit-sharing retirement 23860 Miles Road, Ste. 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For small, profitable professional OPEN TO THE COMMUNITY having his busiest sales year ever, as A 61-year-old married doctor with businesses, however, the vast majori- clients start new pensions called a practice earning $650,000 a year ty of the benefit can usually go to cash balance plans and boost contri- could set up a defined-benefit pen- owners, not employees. If the doc- butions on existing plans. sion to get his taxable income under tor’s office that brings in $650,000 THE CLE STATE REC With a cash balance plan, partici- $315,000. He could put $268,000 in a employs four people earning from pants know each year how much cash balance pension, in addition to $21,000 to $51,000 a year, retirement Gym, Wellness Center & Sports Facility All Under 1 Roo ! they individually hold. Employers putting money in his 401(k) and con- rules dictate that those four employ- Memberships Starting at just $30/month & No Contracts make contributions according to a tributing to employee retirement ac- ees would split an annual retirement set formula and manage all partici- counts, and get down to an effective contribution from the doctor of Our members enjoy incredible value for their dollar: pants’ investments collectively, usu- tax rate of 20%, according to Kravitz’s $13,825. • Spacious, modern facility, featuring 5 fitness , ally guaranteeing a set return. calculations. Setting up a cash balance plan indoor track and pools, and functional space with turf The contribution limits are based After several years of saving in a isn’t the right strategy for every • 50+ FREE fitness classes offered each week, including yoga, Pilates, cycling, Bodypump • 125+ pieces of cardio & free weight equipment A CSU Rec membership is more than just gym access – Plans shift focus away from costs it’s an investment in your wellness. With about one-third of plan spon- visers, and that the number of plan year, with 56% of sponsors saying they Banner Stands Table Throws Quick Fabric Displays sors citing it as their major concern, sponsors actively looking to switch made that change to increase employ- effectively preparing employees for plan advisers — 22% — while histori- ee participation and 47% saying they Leave the competition behind with custom trade show displays from Post Up Stand. Attract retirement financially has slightly cally high, is down considerably from did it to increase savings rates. more attention, build strong relationships and increase sales with our high-quality portable edged out an emphasis on reducing an all-time high of 38%. The top changes to investment displays. All orders are ready for local pickup or shipping in 48 hours after proof approval. plan costs as their top issue. The easonr for most plan design menus included replacing an under- That was the key finding of Fidelity changes, the survey found, was to in- performing fund — 33% — adding an Visit our showroom at 14300 N. Industrial Avenue in Maple Heights or online at Investments’ ninth annual of crease employee participation or sav- index fund — 28% — and adding a postupstand.com to see our complete line of trade show and marketing displays. plan sponsor attitudes, which also ings rates. lower-cost class of shares — 25%. found that 82% of sponsors are making A greater percentage of plan spon- The study surveyed sponsors that changes to their plan design and 83% sors — 39% versus 25% in 2017 — re- use a variety of record-keepers and Order by October 31, 2018 and use promo code NEW MEMBER SPECIAL! Mention this ad & SAVE 50% on 3 months of memberships when paid in full! are changing their investment menus. ported that they added or changed a have at least 25 participants and $10 CC18 to receive15% off your next order! 800.935.3534 Stop in for a tour! Call 216-802-3200 or visit CSUREC.COM to learn more. The survey also found that more matching contribution, making that million in plan assets. plans than ever — 92% — use plan ad- the top change to plan design this — Investment News

P018_19_CL_20180820.indd 18 8/16/18 4:00 PM PAGE 18 | AUGUST 20 - 26, 2018 | CRAIN’S CLEVELAND BUSINESS CRAIN’S CLEVELAND BUSINESS | AUGUST 20 - 26, 2018 | PAGE 19

FINANCE

Bloomberg cash balance plan, recipients gener- business. Owners must be sure of sta- larger  rms, though they can spread ally roll their account balance into an ble, consistent pro ts before they the costs over more partners or partici- IRA and manage the money them- commit to funding several years of pants. Typically, the money is invested selves. Most choose to do so since the pension contributions, said Jamie conservatively, guaranteeing a particu- IRA is a more cost-e ective vehicle Hopkins, a professor at the American lar rate of return, such as 4% a year. and they can invest more aggressive- College of Financial Services. For rank-and- le workers, the great ly than in a cash balance plan.  ere’s appeal of a de ned-bene t pension is no limit on how much users can roll No annuities that it can guarantee a certain level of over.  ey don’t pay taxes until they income for life. Cash balance plans ef- pull the money out, typically when Businesses also need to make sure fectively o er the same thing, with they’re in retirement and in a much they’re cutting their owners’ tax bills rules requiring them to o er a way to lower tax bracket. enough to make up for pensions’ convert pension balances into an in- higher costs. Because of the complex come stream from an annuity. In Did your company have a stellar year? Lower-paid employees rules, it can cost thousands of dollars practice, the wealthy participants in to set up and then administer a de- cash balance plans aren’t interested. An ad in Crain’s is the best way to boast to the  e rich aren’t the only ones who  ned-bene t plan. Kravitz estimates “Nobody ever takes an annuity,” Brag. Cleveland business community. can bene t from the pension work- the doctor’s o ce above would be said John Lowell, a partner and actu- BOOK YOUR AD TODAY TO RUN IN OUR BEST ISSUES. around. Like other retirement plans, charged a one-time setup fee of ary at October  ree Consulting. “Ul- de ned-bene t plans are governed $5,500 and annual fees of $8,880. timately, they are a tax play more Contact Lisa Rudy • [email protected] by regulations, called non-discrimi- Charges can be much higher for than they are a retirement plan play.” nation rules, that require owners to spread at least some retirement wealth to lower-paid employees.  e rules depend on the age and income levels in a workforce, but typ- ically setting up a cash balance pen- sion for a business’s owner will re- TRADE SHOW DISPLAYS THAT GET RESULTS! quire a pro t-sharing retirement contribution for middle-class em- ployees equal to about 7.5% of their r salaries. A cash balance plan can be TURNAROUND! too expensive, therefore, for larger businesses with many low earners. The law firm of Matasar Jacobs is proud to welcome For small, pro table professional businesses, however, the vast majori- ty of the bene t can usually go to JEFFREY S. HOLIK owners, not employees. If the doc- tor’s o ce that brings in $650,000 as Of Counsel to the firm’s Financial Services Industry Group. employs four people earning from $21,000 to $51,000 a year, retirement rules dictate that those four employ- Jeff is an accomplished lawyer and securities industry ees would split an annual retirement professional with over 25 years of experience as a senior contribution from the doctor of $13,825. financial services attorney including serving as the general Setting up a cash balance plan counsel of a bank-affiliated broker-dealer and as a senior isn’t the right strategy for every officer of FINRA. His deep knowledge of the retail financial services industry from both the corporate and regulatory perspective will provide clients with a practical Plans shift focus away from costs and highly effective approach to resolving enforcement year, with 56% of sponsors saying they Banner Stands Table Throws Quick Fabric Displays litigation matters. made that change to increase employ- ee participation and 47% saying they Leave the competition behind with custom trade show displays from Post Up Stand. Attract did it to increase savings rates. more attention, build strong relationships and increase sales with our high-quality portable  e top changes to investment displays. All orders are ready for local pickup or shipping in 48 hours after proof approval. menus included replacing an under- performing fund — 33% — adding an Visit our showroom at 14300 N. Industrial Avenue in Maple Heights or online at index fund — 28% — and adding a postupstand.com to see our complete line of trade show and marketing displays. lower-cost class of shares — 25%.  e study surveyed sponsors that 1111 Superior Avenue, Suite 1355 Cleveland, OH 44114 use a variety of record-keepers and Order by October 31, 2018 and use promo code have at least 25 participants and $10 CC18 to receive15% off your next order! matasarjacobs.com million in plan assets. 800.935.3534 — Investment News

P018_19_CL_20180820.indd 19 8/16/18 4:01 PM PAGE 20 | AUGUST 20 - 26, 2018 | CRAIN’S CLEVELAND BUSINESS

FINANCE

“In working with Nesco Resource, I have had nothing but success. I have other agencies that I can use, but I will continue to use

Nesco for every opportunity that comes up This panorama shows downtown Kent in 1917 near the intersection of Main and Water streets. Hometown where I need a qualified individual!” Bank, founded in 1898, can be seen in the center by the front two cars. (Hometown Bank) — Anthony Vocaire Northeast Ohio Territory Manager, Century Equipment Q&A With some of the highest customer satisfaction ratings in CONTINUED FROM PAGE 15 our industry Nesco Resource isn’t just another choice in it’s the smart choice. What’s the greatest challenge for staffing... community banks today? Costs of Nesco Resource: Smart recruiting. business and technology? Regulations? nescoresource.com Yes. It’s having the staff to Nesco Resource is a wholly owned subsidiary of Nesco Inc., a privately held diversified holdingcompany focused on sectors understand all the regulations and including manufacturing, human resource services, and real estate. being able to satisfy those and IT concerns, which are difficult for a community institution. When there were five of us, we still had reports we had to send to the government. But you have to drill down so much deeper today. We couldn’t do that if Hometown Bank in Kent is 120 years old. we weren’t so computerized. It’s just a totally different environment. But Growth overall at the bank has stopping it when they had the ability as far as the customer is concerned, been somewhat flat in recent to stop it before. we try to get that face to the years. Is that by design? customer to be the same. It is. We are growing, but modest Are there any kinds of regulatory growth, we think, is smart growth. roadblocks you’ve encountered Witness the Path to the PGA TOUR And as far as keeping faces the We are not trying to be the largest that don’t seem to get talked same, you’ve been the face of the bank in the metropolitan area. about as much? August 30 - September 2 bank as CEO for a particularly long There’s no way in the world we could I’ll tell you what one of my pet peeves time. Why do that? Isn’t it good to compete with Huntington Bank or right now is. I think banks should be Canterbury Golf Club have new leadership at some anyone like that. Well, we compete in more involved in helping communities point? different ways, like for service and in regenerate. You see these abandoned You have to look at the bank we the hearts of the community. houses because banks have no ability have. We think it’s important to the to do anything with them. The bank community that the staff is Does the regulatory environment will walk away and leave it for consistent and recognizable. They still feel like the greatest headwind someone else to worry about. I think want to bank with someone who to growth for banks of your ilk? banks should have the ability through lives next door. It’s part of this It is for sure. We’ve been here a while, a subsidiary to help redevelop community bank mentality. including through the 1980s and all distressed communities. But right the issues going on then. It’s very now, banking law doesn’t allow us to You’re 68, right? If I may be so common for legislatures to overreact do that. I mean, who is better suited blunt, are there any plans to retire? and close the barn door when the to pick up a piece of property, fix it up Not in the near term. horse is already gone. They realize and sell it because it was foreclosed? they’ve done these things and then We could make it viable. Why can’t we But surely there’s a succession come back and make adjustments. just do that? plan in place, yes? We’re in a period of adjustment-mak- Ticket and Volunteer Opportunities available at Possibly. (Boyle smiles and glances ing right now, and that is making it a Sounds like you tried to do this www.dapchampionship.com at president and COO Michael Lewis little easier for us. before, establishing a community sitting nearby.) He’s been at development company through Hometown Bank now 20 years. I assume you’re talking about the the bank. scaling back of Dodd-Frank in the We did, just a few months ago, in Is the plan for the bank to stay spring? fact. And we were rejected by the independent? Yes. Dodd-Frank was tremendous state. They said we could own the real estate auction A bank could come into Kent and overkill. The CFPB was tremendous property, but there was no enabling open up across the street and in a overkill. Frankly, both were unneces- legislation in banking law that would relatively short amount of time be sary. There was plenty of ability for allow the renovation of property that the size that we are. No one really the regulatory agencies to do all wasn’t taken back in foreclosure. needs us, so there’s no market for those things. They just didn’t. It’s not And that’s only because nobody ever us. That said, we don’t have any uncommon for a regulator who has thought of it. It’s not a bad idea. It’s a interest in selling. We control our effectively overlooked something great idea. I definitely think a bank stock to the point we aren’t going to that has caused a problem to come should be able to have a be sold unless we want to be. up with some new concept of development company. Employers are expected to stick Apple Valley Resort & Development Land View Sample Units 11-2pm Fri Aug 24 & Sept 7 with modest pay raises next year HOWARD, OH • 428 Clubhouse Drive Despite a corporate tax cut, record proving economy, raises have still not raising wages. • Sale #1: Includes 31 condominium units as improvements on 9 of the 11 low unemployment and an acceler- hovered around 3%. In fact, American workers effec- parcels as ordered by the Court in accordance with the terms regarding ating economy, employers aren’t “Since 2008, we have been wait- tively got a pay cut this year: U.S. av- the Partition Action as required to clear title to the property. planning big increases to their salary ing” for employers to meaningfully erage hourly earnings adjusted for • Sale #2: Includes all remaining parcels not dedicated to the condominium budgets for next year, a new survey raise wages, says Sandra McLellan, inflation fell 0.2% in July from a year Regime and an improved Manager’s Residence. from Willis Towers Watson finds. the North America Rewards practice earlier. Auctions: In a survey of 814 organizations, leader at Willis Towers Watson. This Economists have multiple theories 12pm Fri Sept 14 on site or bid the consulting firm found that, on av- year will not be that year. “It’s not a about why wages haven’t grown, de- erage, employers plan on giving out radical change, it’s a slight uptick,” spite all signs suggesting they should: online at auctionnetwork.com 3.1% pay raises in 2019. That’s an in- she says. decreased bargaining power for em- crease of about 0.1 percentage point The economic recovery has yet to ployees, low productivity, stock buy- 800.801.8003 • williamsauction.com/Apple from previous years. Before the re- hit workers’ wallets. Unemployment backs, globalization and automa- cession, employers gave out 3.8% in- continues to fall, and demand for la- tion, to name a few. OH DANIEL S. NELSON RE LIC BRKP.2018002343; ANDREW WHITE AUC LIC 2003000128; RES AUCTION SERVICES RE LIC # 2009004189 creases. Since then, despite the im- bor is increasing, but employers are — Bloomberg

P020_CL_20180820.indd 20 8/16/18 4:02 PM Sponsored Content

Forecaster reflects a nudge in the number of NORTHEAST OHIO male RNs — to 9% in 2015 from 8% in 2013, but gender parity is just one consideration, said Pamela Waite, director of healthcare workforce. The center is also working closely with the Ohio Action Coalition (led by the Ohio League for Nursing and the Ohio Hospital Association) on one of its main initiatives, which is to in- crease diversity in nursing to reflect the patient population’s ethnic and cultural diversity. These efforts are especially significant because North- east Ohio is one of the few regions in the coun- try that is a health care export market, mean- ing that patients who live outside of the region come here for health care. “We are encouraged because the numbers are changing,” Waite said. “There is more diversi- ty in the younger nurses when you look at the breakdown of nurses by age. In the category of nurses who have 41-plus years’ experience, there are only .1% who are Hispanic or Latino. That number increases to 1.6% when you look at nurses with 0 to 10 years’ experience.” Plus, according to the Nursing Forecaster, males represent a larger percentage of younger nurses — at 13.3% with 10 or fewer years in the field, versus 1.1% among nurses with 41 ENRICHING years-plus experience. “There are a lot of initiatives in Northeast Ohio to continue improving these numbers,” she said. Summa Health has a large immigrant and migrant patient population, and is imple- THE WORKFORCE menting an English as a Second Language, or ESL, offering, to attract more employees Leaders outline some ways the industry is coalescing representing those communities, said Lorraine Washington, senior vice president of human a workforce that best serves, represents the community resources and volunteer services. The health system also has developed resource groups for LGBTQ employees and employees of By KATHY AMES CARR color. The 7,200-employee system currently has nearly 400 job openings, and is increasing he health care industry is a jobs gen- its recruitment efforts among diverse popula- erator in Northeast Ohio, employ- tions as part of its goal to fill those openings, ing about 214,000 within a nine- including senior leadership positions, said county region, which is 31% above Washington, noting that the health system has Tthe national average. The predominantly made gains there as well. female-employed health care and social service “We have three African-Americans on our workforce is composed mostly of registered leadership team. Three years ago, there was nurses (16.5%), nursing assistants (8.3%), one,” she said. “Among every business and home health aides (6%), licensed practical and in health care, the objective should be to have vocational nurses (4.5%), and medical secre- a workforce that reflects the community they taries (4.1%). Employment streams through CAROLYN LANIER LORRAINE PAMELA WAITE serve,” Washington said. various facets of an operation — including ad- chief of staff and vice WASHINGTON director ministration and leadership — and permeates president for diversity, senior vice president of of healthcare DATA SOURCES: July 2018 EMSI employment through fields such as law, retail, manufac- equity and inclusion human resources and workforce data for Ashtabula, Cuyahoga, Geauga, Lake, turing, education, food service, construction, Northeast Ohio volunteer services The Center Lorain, Medina, Portage, Stark and Summit communication and technology. With a work- counties; Center for Health Affairs; Ohio Action force that is 74% white and 80% female, the Medical University Summa Health for Health Affairs Coalition’s Education Diversity Toolkit. industry indeed has an opportunity to diversify its workforce, local industry leaders say. ence and philosophy on health care. Our inter- The Center for Health Affairs, the region’s Profiles included in Northeast Ohio’s Notable “When we look at the disparities in the health views with our candidates are very important hospital advocacy organization, views diversity Women in Health Care represent women care workforce, what we’re seeing is the sector because we want to know if they will be able and inclusion as a key aspect of filling a work- nominated by companies and organizations is still largely trending toward female nurses to empathize with and understand the needs of force need, particularly as Northeast Ohio faces within Northeast Ohio. To be considered, and male doctors,” said Carolyn Lanier, chief of the patients they will be caring for.” a shortage of 3,500 nurses by 2020. Its Nursing completion of an extensive survey, including staff and vice president for diversity, equity and a letter of endorsement, was required. Stories inclusion at Northeast Ohio Medical University. included in this section are based on But, workforce demographics are shifting, submitted survey information. Additional driven in large part by more intentional outreach women were submitted by an internal and recruitment efforts among NEOMED and selection committee for the other health care providers and stakeholders. purposes of creating “Our incoming classes are approaching a a diverse and com- gender-split, of which we are very proud,” La- prehensive list. nier said. “We’ve also been working with the admissions department and have made chang- es to our student admissions process. We’re looking at holistic admissions.” By those measures, standardized test scores now form just part of the candidate’s picture. “We look at the student’s background, experi-

FOR MORE FACES OF NOTABLE WOMEN IN NORTHEAST OHIO’S HEALTH CARE COMMUNUTY, SEE PAGES S2-S11.

This advertising-supported section is produced by Crain Content Studio-Cleveland, the marketing storytelling arm of Crain’s Cleveland Business. The Crain’s Cleveland Business newsroom is not involved in creating Crain Content Studio-Cleveland content.

SP01_SP011_CL_20180820.indd 21 8/14/18 11:58 AM S2 August 20, 2018 NOTABLE WOMEN IN HEALTH CARE SPONSORED CONTENT SPONSORED CONTENT NOTABLE WOMEN IN HEALTH CARE August 20, 2018 S3

DIANE BEASTROM KAREN BUTLER President and CEO Chief Operating Koinonia Inc. Officer Northeast Ohio Diane Beastrom has nurtured Independence-based Koinonia Homes Inc. from a handful of Cuyahoga Neighborhood County group homes to one of the region’s leading community-based service providers for adults with intellectual and developmental disabilities. Today, Koinonia is a $30 million enterprise with 21 licensed Health Services Inc. residential homes, 51 supported living sites, day support and vocational and career services. Beastrom has managed mergers with two other intellectual and developmental disabilities service providers, Karen Butler’s NOTABLE expanding into Summit, Medina, Lake, Geauga and Lorain counties. She also helped launch adult and superpower is her school-based employment services. In addition, she has overseen two strategic planning processes, innate ability to bring “which have made the growth and prosperity of the organization possible,” according to Koinonia board people together to member Julie Johnson, president of the Boys & Girls Clubs of the Western Reserve. “The key to Diane’s success is that she understands achieve a common WOMEN the various social determinants that impact those with I/DD and addresses them in a holistic fashion,” Johnson said in the nomination. vision, according to Mary Scott, center director of Northeast Ohio Neighborhood (NEON) Health Services Inc. In 2018, Butler devised and implemented NEON’s first agency-wide operations planning VICKI BOKAR process. “The process opened dialogue and spurred Willie F. Austin in Health Care Senior Director of Corporate Compliance and Business Ethics interpersonal interaction among groups of employees ... many of whom had never had the opportunity to President & CEO Cleveland Clinic engage with each other,” Scott said in the nomination form. Butler is the second-most senior executive RITA ANDOLSEN While most compliance departments consist of lawyers writing policies and responding to issues, Director, External Affairs at the nonprofit health center network where she is Mr. Willie F. Austin, the NEON Health Services’ Board Vicki Bokar has taken a more creative approach to Cleveland Clinic’s corporate compliance oversight, responsible for the effective operation of its seven The MetroHealth System according to Don Sinko, the health system’s chief integrity officer. “Vicki has developed a staff with locations that staff more than 235 employees. Under diverse backgrounds: nurses, coders, billers, lawyers and researchers,” Sinko said in the nomination. Butler’s leadership, the agency initiated the full-scale Rita Andolsen is nothing short of a “force of Directors, and staff would like to congratulate The diversity provides insight into effective implementation of various laws and regulations, he said, implementation of a $1 million renovation project at of nature,” according to Elizabeth Allen, “because they know the operations.” Bokar began her career at Cleveland Clinic as an emergency the Hough Health Center, increased revenues by more senior vice president of external affairs for room nurse before transitioning to compliance roles. Recently her expertise has been integral in due than 35% and expanded its program to more Ms. Karen K. Butler, Chief Operating Officer, The MetroHealth System. “She wants to diligence related to the acquisitions of Akron General Hospital in 2015, Union Hospital this year, than six locations distributing more than 125,811 make Cuyahoga County a better place for current acquisition activities in Southeast Florida and the startup of Cleveland Clinic London. Bokar also coordinates cybersecurity pounds of food to families in need. for being selected as one of everyone, especially children and those and HIPAA security matters and has been effective at educating technical staff on the people aspects of patient data security. who face the highest hurdles and toughest challenges,” Allen said in the nomination. Cleveland’s Notable Women in Health Care. “Join her – or get out of the way.” Andolsen took a communications leadership role at MetroHealth four years ago after more than 25 years in media, TV newsrooms and community outreach, including a long and prominent career www.neonhealth.org at WKYC Channel 3. At MetroHealth, Andolsen’s direction of the “Know the Risks” campaign has been particularly impactful. Launched in conjunction with the county in 2017, the campaign enlightened the public about the link between prescription painkillers and heroin addiction. It was run almost exclusively pro bono and resulted in unprecedented local media coverage that garnered MetroHealth about $2 million in free media/advertising. Congratulations JULIA (JUDY) BARTEL Chief Clinical Officer to all of the 2018 Hospice of the Western Reserve It is not a stretch to say Julia (Judy) Bartel is a People with developmental disabilities have intricate healthcare Notable Women in pioneer in hospice and palliative nursing. She entered the field when it was a comparatively new and unfamiliar specialty. Ursuline College needs and Koinonia is committed to ensuring those who are was the first in the U.S. to offer a master’s medically fragile enjoy healthy, fulfilling and enriched lives. Health Care. in palliative nursing, and Bartel was the first student to graduate from the program. During her career at Hospice of the Western Reserve, Bartel has innovated, among others, a consultative palliative care program that reduced hospital readmissions and enabled independence; a dementia care program that engages individuals in care decisions earlier in their disease Cynthia Moore-Hardy, process; and a renal disease model that integrates palliative care with dialysis services. Today, she is one of only 68 Palliative Care Nursing Fellows in the CONGRATULATIONS TO OUR OWN FACHE U.S. In the nomination, Hospice vice president of human resources Clement Hearey credits Bartel’s leadership for being “a nationally recognized leader in hospice and palliative care.” Diane Beastrom President and CEO of ONE OF THIS YEAR’S WOMEN OF NOTE IN HEALTHCARE! Lake Health

KOINONIAHOMES.ORG | 216.588.8777 |

lakehealth.org

Koinonia_WomenHalf.indd 1 8/2/18 11:26 AM

SP01_SP011_CL_20180820.indd 22 8/14/18 11:58 AM S2 August 20, 2018 NOTABLE WOMEN IN HEALTH CARE SPONSORED CONTENT SPONSORED CONTENT NOTABLE WOMEN IN HEALTH CARE August 20, 2018 S3

DIANE BEASTROM KAREN BUTLER President and CEO Chief Operating Koinonia Homes Inc. Officer Northeast Ohio Diane Beastrom has nurtured Independence-based Koinonia Homes Inc. from a handful of Cuyahoga Neighborhood County group homes to one of the region’s leading community-based service providers for adults with intellectual and developmental disabilities. Today, Koinonia is a $30 million enterprise with 21 licensed Health Services Inc. residential homes, 51 supported living sites, day support and vocational and career services. Beastrom has managed mergers with two other intellectual and developmental disabilities service providers, Karen Butler’s NOTABLE expanding into Summit, Medina, Lake, Geauga and Lorain counties. She also helped launch adult and superpower is her school-based employment services. In addition, she has overseen two strategic planning processes, innate ability to bring “which have made the growth and prosperity of the organization possible,” according to Koinonia board people together to member Julie Johnson, president of the Boys & Girls Clubs of the Western Reserve. “The key to Diane’s success is that she understands achieve a common WOMEN the various social determinants that impact those with I/DD and addresses them in a holistic fashion,” Johnson said in the nomination. vision, according to Mary Scott, center director of Northeast Ohio Neighborhood (NEON) Health Services Inc. In 2018, Butler devised and implemented NEON’s first agency-wide operations planning VICKI BOKAR process. “The process opened dialogue and spurred Willie F. Austin in Health Care Senior Director of Corporate Compliance and Business Ethics interpersonal interaction among groups of employees ... many of whom had never had the opportunity to President & CEO Cleveland Clinic engage with each other,” Scott said in the nomination form. Butler is the second-most senior executive RITA ANDOLSEN While most compliance departments consist of lawyers writing policies and responding to issues, Director, External Affairs at the nonprofit health center network where she is Mr. Willie F. Austin, the NEON Health Services’ Board Vicki Bokar has taken a more creative approach to Cleveland Clinic’s corporate compliance oversight, responsible for the effective operation of its seven The MetroHealth System according to Don Sinko, the health system’s chief integrity officer. “Vicki has developed a staff with locations that staff more than 235 employees. Under diverse backgrounds: nurses, coders, billers, lawyers and researchers,” Sinko said in the nomination. Butler’s leadership, the agency initiated the full-scale Rita Andolsen is nothing short of a “force of Directors, and staff would like to congratulate The diversity provides insight into effective implementation of various laws and regulations, he said, implementation of a $1 million renovation project at of nature,” according to Elizabeth Allen, “because they know the operations.” Bokar began her career at Cleveland Clinic as an emergency the Hough Health Center, increased revenues by more senior vice president of external affairs for room nurse before transitioning to compliance roles. Recently her expertise has been integral in due than 35% and expanded its pantry program to more Ms. Karen K. Butler, Chief Operating Officer, The MetroHealth System. “She wants to diligence related to the acquisitions of Akron General Hospital in 2015, Union Hospital this year, than six locations distributing more than 125,811 make Cuyahoga County a better place for current acquisition activities in Southeast Florida and the startup of Cleveland Clinic London. Bokar also coordinates cybersecurity pounds of food to families in need. for being selected as one of everyone, especially children and those and HIPAA security matters and has been effective at educating technical staff on the people aspects of patient data security. who face the highest hurdles and toughest challenges,” Allen said in the nomination. Cleveland’s Notable Women in Health Care. “Join her – or get out of the way.” Andolsen took a communications leadership role at MetroHealth four years ago after more than 25 years in media, TV newsrooms and community outreach, including a long and prominent career www.neonhealth.org at WKYC Channel 3. At MetroHealth, Andolsen’s direction of the “Know the Risks” campaign has been particularly impactful. Launched in conjunction with the county in 2017, the campaign enlightened the public about the link between prescription painkillers and heroin addiction. It was run almost exclusively pro bono and resulted in unprecedented local media coverage that garnered MetroHealth about $2 million in free media/advertising. Congratulations JULIA (JUDY) BARTEL Chief Clinical Officer to all of the 2018 Hospice of the Western Reserve It is not a stretch to say Julia (Judy) Bartel is a People with developmental disabilities have intricate healthcare Notable Women in pioneer in hospice and palliative nursing. She entered the field when it was a comparatively new and unfamiliar specialty. Ursuline College needs and Koinonia is committed to ensuring those who are was the first in the U.S. to offer a master’s medically fragile enjoy healthy, fulfilling and enriched lives. Health Care. in palliative nursing, and Bartel was the first student to graduate from the program. During her career at Hospice of the Western Reserve, Bartel has innovated, among others, a consultative palliative care program that reduced hospital readmissions and enabled independence; a dementia care program that engages individuals in care decisions earlier in their disease Cynthia Moore-Hardy, process; and a renal disease model that integrates palliative care with dialysis services. Today, she is one of only 68 Palliative Care Nursing Fellows in the CONGRATULATIONS TO OUR OWN FACHE U.S. In the nomination, Hospice vice president of human resources Clement Hearey credits Bartel’s leadership for being “a nationally recognized leader in hospice and palliative care.” Diane Beastrom President and CEO of ONE OF THIS YEAR’S WOMEN OF NOTE IN HEALTHCARE! Lake Health

KOINONIAHOMES.ORG | 216.588.8777 | lakehealth.org

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K. KELLY DEBORAH HARDY PATTI DR. CHARIS ENG DEPOMPEI Chairwoman HANCOCK Associate Provost for Teaching and Learning, Dean of Faculty and Dean of Health Technologies President Cleveland Clinic’s Genomic Medicine Institute Executive Chief UH Rainbow Babies Nursing Officer Lakeland Community College & Children’s and Dr. Charis Eng’s pioneering work to unite “cancer” and “genetics” research as a young student “set sail on Cleveland Clinic A 17-year veteran at Lakeland Community College, Deborah Hardy has created, implemented and overseen UH MacDonald an unpredictable journey that would eventually make her the leading expert in the field of clinical cancer genetics,” according to Dr. Serpil Erzurum, chair of Cleveland Clinic’s Lerner Research Institute. In the Charged with a number of initiatives in response to the educational, social and economic needs of Lake County and beyond. Women’s hospitals nomination form, Erzurum cites Eng’s “tireless support, inspired mentorship and active promotion of young overseeing Cleveland Among her recent accomplishments are facilitating designs for a $40 million overhaul and expansion of the scientists” among her key contributions to cancer research and treatment. In addition to breakthrough training Clinic’s nursing college’s dated Health Technologies Building and crafting and carrying out a launch plan to align curriculum Patti DePompei has initiatives, Eng, who has directed the Genomic Medicine Institute for 13 years, is an empathetic caregiver to organization – which development, program implementation and hiring at the renovated facility. The latter led new high-demand been a champion her patients and an active investigator, having published more than 500 peer-reviewed articles to date and is its largest employee programs and certificates, according to nominator Bob Cahen, executive director of The Lakeland Foundation, for women’s and serving as the principal investigator on over $50 million in lifetime grants and other funding. Her lab has led group – K. Kelly who said Hardy managed the project alongside a long list of day-to-day responsibilities. “It requires extensive creativity, time management and children’s services at University Hospitals for nearly discoveries in breast and thyroid cancers, among others, as well as identified a mutation associated with Cowden disease and autism. She also is Hancock leads approximately 24,000 caregivers, skills to manage her many roles,” he said. Outside of the classroom, Hardy also is noted for her leadership in the Ohio Skills Bank initiatives, three decades. DePompei began her career as a professor and vice chair of the Department of Genetics and Genome Sciences at Case Western Reserve University School of Medicine. including 13,000 bedside nurses, 1,100 advanced collaboration with employer and educational systems, nursing and allied health programs, and advancement of biotechnology. registered nurse at Rainbow Babies & Children’s and practice nurses and 610 executive nurse leaders. held several management roles before being named Hancock, who is a 25-year Cleveland Clinic veteran, president of both that hospital and MacDonald recently developed an integrated system-wide nursing Women’s Hospital in 2012. Under her leadership, ANDREA KANTER JACOBS CINDY GENSAMER operating model and budget. She also led nursing Rainbow improved the delivery of health care to functions for the service expansion at Avon Hospital, Executive Director of Operations Vice President 65,000 children enrolled in Medicaid through a played a vital role in integrating nursing services Cleveland Clinic coordinated-care program that later received a Absolute Rehabilitation & Consulting Services Inc. at Cleveland Clinic Abu Dhabi and established a $12.7 million federal Health Care Innovation Award. centralized 24/7 nurse staffing office. Additionally, Andrea Kanter Jacobs leads enterprise-wide initiatives of Cleveland Clinic’s operations division, which Earlier this summer, she opened the doors of the new Cindy Gensamer started in an entry-level position at Absolute Rehabilitation & Consulting Services Inc. under her leadership, Cleveland Clinic launched the serves more than 57,000 caregivers globally. Appointed to the position in 2012 after executive roles Rainbow Center for Women & Children in Cleveland’s 26 years ago and has worked her way into a leadership role at the North Canton organization. Named first comprehensive APRN/PA transition to practice/ at South Pointe Hospital and Regional Hospitals, Jacobs’ responsibilities span strategy, policy, system MidTown neighborhood. The center addresses health vice president in 2003, Gensamer manages a team of 12 direct reports and oversees a staff of more fellowship program in the country and became a integration and change initiatives. In the past five years, she has proposed $32 million of initiatives of care disparities by increasing access to care and than 1,800 employees throughout Ohio, Michigan, Pennsylvania and West Virginia. During her tenure, National League of Nursing Center of Excellence. which $28 million was either approved or endorsed. Efficiencies enacted resulted in $83.8 million, or focusing on community wellness beyond traditional Absolute Rehabilitation has developed multiple person-centered care therapy interventions and has Calling her a “remarkable, forward-thinking leader, a 18.6%, savings between 2014 and 2017. Jacobs is also actively involved in the High Reliability rollout, medical services. “Patti’s unwavering passion for become a leader in “bundling,” a new way that collaborative services are delivered to clients and billed to smart and compassionate colleague and an exceptional which aims to build the safest hospital system and chaired the 2017 corporate United Way campaign, quality patient- and family-focused care and service payors. Meanwhile, Gensamer herself has emerged as an expert in areas related to fiscal responsibility, nurse,” in the nomination, Cleveland Clinic CEO Dr. Tom which yielded the highest participation since 2012. “Her experiences, from a practicing attorney to an is remarkable,” said Mary Ann Dragon, director of clinical expertise, regulatory compliance and management of successful rehabilitation departments. Mihaljevic said Hancock “fulfills her calling with a level administrator in various capacities with deep financial, strategic and operational knowledge, help her bring best practices to the team patient and family services at UH Rainbow and “Cindy is highly respected nationally,” said Gerald Schroer Jr., CEO of Absolute Rehabilitation’s parent company, The Schroer Group, in of poise and professionalism that is unmatched.” for successful outcomes,” Cleveland Clinic communications director Eleanor Hayes said in the nomination. MacDonald, in the nomination form. the nomination form. “She knows more about health care details than nearly anyone I know.”

Leading the Way in Health Care Congratulations, Congratulations to all Crain’s Cleveland Business Notable Women in Health Care, especially our own. Grace Wakulchik, on being named a Notable Woman in Healthcare. You’ve made the future brighter for the kids in our care.

Dr. Deborah L. Hardy Lisa Kristosik, MSN, RN Associate Provost for Teaching & Learning, President Dean of Faculty and Visiting Nurse Association of Ohio Dean of Health Technologies Associate of Applied Studies in Nursing Lakeland Community College Lakeland Community College

AKRONCHILDRENS.ORG

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K. KELLY DEBORAH HARDY PATTI DR. CHARIS ENG DEPOMPEI Chairwoman HANCOCK Associate Provost for Teaching and Learning, Dean of Faculty and Dean of Health Technologies President Cleveland Clinic’s Genomic Medicine Institute Executive Chief UH Rainbow Babies Nursing Officer Lakeland Community College & Children’s and Dr. Charis Eng’s pioneering work to unite “cancer” and “genetics” research as a young student “set sail on Cleveland Clinic A 17-year veteran at Lakeland Community College, Deborah Hardy has created, implemented and overseen UH MacDonald an unpredictable journey that would eventually make her the leading expert in the field of clinical cancer genetics,” according to Dr. Serpil Erzurum, chair of Cleveland Clinic’s Lerner Research Institute. In the Charged with a number of initiatives in response to the educational, social and economic needs of Lake County and beyond. Women’s hospitals nomination form, Erzurum cites Eng’s “tireless support, inspired mentorship and active promotion of young overseeing Cleveland Among her recent accomplishments are facilitating designs for a $40 million overhaul and expansion of the scientists” among her key contributions to cancer research and treatment. In addition to breakthrough training Clinic’s nursing college’s dated Health Technologies Building and crafting and carrying out a launch plan to align curriculum Patti DePompei has initiatives, Eng, who has directed the Genomic Medicine Institute for 13 years, is an empathetic caregiver to organization – which development, program implementation and hiring at the renovated facility. The latter led new high-demand been a champion her patients and an active investigator, having published more than 500 peer-reviewed articles to date and is its largest employee programs and certificates, according to nominator Bob Cahen, executive director of The Lakeland Foundation, for women’s and serving as the principal investigator on over $50 million in lifetime grants and other funding. Her lab has led group – K. Kelly who said Hardy managed the project alongside a long list of day-to-day responsibilities. “It requires extensive creativity, time management and children’s services at University Hospitals for nearly discoveries in breast and thyroid cancers, among others, as well as identified a mutation associated with Cowden disease and autism. She also is Hancock leads approximately 24,000 caregivers, skills to manage her many roles,” he said. Outside of the classroom, Hardy also is noted for her leadership in the Ohio Skills Bank initiatives, three decades. DePompei began her career as a professor and vice chair of the Department of Genetics and Genome Sciences at Case Western Reserve University School of Medicine. including 13,000 bedside nurses, 1,100 advanced collaboration with employer and educational systems, nursing and allied health programs, and advancement of biotechnology. registered nurse at Rainbow Babies & Children’s and practice nurses and 610 executive nurse leaders. held several management roles before being named Hancock, who is a 25-year Cleveland Clinic veteran, president of both that hospital and MacDonald recently developed an integrated system-wide nursing Women’s Hospital in 2012. Under her leadership, ANDREA KANTER JACOBS CINDY GENSAMER operating model and budget. She also led nursing Rainbow improved the delivery of health care to functions for the service expansion at Avon Hospital, Executive Director of Operations Vice President 65,000 children enrolled in Medicaid through a played a vital role in integrating nursing services Cleveland Clinic coordinated-care program that later received a Absolute Rehabilitation & Consulting Services Inc. at Cleveland Clinic Abu Dhabi and established a $12.7 million federal Health Care Innovation Award. centralized 24/7 nurse staffing office. Additionally, Andrea Kanter Jacobs leads enterprise-wide initiatives of Cleveland Clinic’s operations division, which Earlier this summer, she opened the doors of the new Cindy Gensamer started in an entry-level position at Absolute Rehabilitation & Consulting Services Inc. under her leadership, Cleveland Clinic launched the serves more than 57,000 caregivers globally. Appointed to the position in 2012 after executive roles Rainbow Center for Women & Children in Cleveland’s 26 years ago and has worked her way into a leadership role at the North Canton organization. Named first comprehensive APRN/PA transition to practice/ at South Pointe Hospital and Regional Hospitals, Jacobs’ responsibilities span strategy, policy, system MidTown neighborhood. The center addresses health vice president in 2003, Gensamer manages a team of 12 direct reports and oversees a staff of more fellowship program in the country and became a integration and change initiatives. In the past five years, she has proposed $32 million of initiatives of care disparities by increasing access to care and than 1,800 employees throughout Ohio, Michigan, Pennsylvania and West Virginia. During her tenure, National League of Nursing Center of Excellence. which $28 million was either approved or endorsed. Efficiencies enacted resulted in $83.8 million, or focusing on community wellness beyond traditional Absolute Rehabilitation has developed multiple person-centered care therapy interventions and has Calling her a “remarkable, forward-thinking leader, a 18.6%, savings between 2014 and 2017. Jacobs is also actively involved in the High Reliability rollout, medical services. “Patti’s unwavering passion for become a leader in “bundling,” a new way that collaborative services are delivered to clients and billed to smart and compassionate colleague and an exceptional which aims to build the safest hospital system and chaired the 2017 corporate United Way campaign, quality patient- and family-focused care and service payors. Meanwhile, Gensamer herself has emerged as an expert in areas related to fiscal responsibility, nurse,” in the nomination, Cleveland Clinic CEO Dr. Tom which yielded the highest participation since 2012. “Her experiences, from a practicing attorney to an is remarkable,” said Mary Ann Dragon, director of clinical expertise, regulatory compliance and management of successful rehabilitation departments. Mihaljevic said Hancock “fulfills her calling with a level administrator in various capacities with deep financial, strategic and operational knowledge, help her bring best practices to the team patient and family services at UH Rainbow and “Cindy is highly respected nationally,” said Gerald Schroer Jr., CEO of Absolute Rehabilitation’s parent company, The Schroer Group, in of poise and professionalism that is unmatched.” for successful outcomes,” Cleveland Clinic communications director Eleanor Hayes said in the nomination. MacDonald, in the nomination form. the nomination form. “She knows more about health care details than nearly anyone I know.”

Leading the Way in Health Care Congratulations, Congratulations to all Crain’s Cleveland Business Notable Women in Health Care, especially our own. Grace Wakulchik, on being named a Notable Woman in Healthcare. You’ve made the future brighter for the kids in our care.

Dr. Deborah L. Hardy Lisa Kristosik, MSN, RN Associate Provost for Teaching & Learning, President Dean of Faculty and Visiting Nurse Association of Ohio Dean of Health Technologies Associate of Applied Studies in Nursing Lakeland Community College Lakeland Community College

AKRONCHILDRENS.ORG

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LINDA MCHUGH RITA NAVARRO- LISA KRISTOSIK Chief Human Resource Officer HORWITZ President Cleveland Clinic President and CEO Notable. Insightful. Resourceful. Visiting Nurse Association of Ohio Better Health Linda McHugh is the highest-ranking female administrator in the history of Cleveland Clinic, where When Visiting Nurse Association of Ohio Partnership she oversees the work lives of Ohio’s second-largest employer with more than 50,000 caregivers merged with New Jersey-based Visiting and a $1.5 billion-plus annual payroll. McHugh started her 33-year career at Cleveland Clinic as Nurse Association Health Group in 2017, the Rita Navarro-Horwitz’s a medical technologist, later holding administrative positions of increasing responsibility including Cleveland organization’s president and CEO job is to reduce health and executive administrator for the Cleveland Clinic and former CEO Toby Cosgrove. In 2016, McHugh Dr. Steven Landers tapped Lisa Kristosik as health care disparities in oversaw implementation of a complete replacement of the human resources technology and the the new leader of Ohio operations. Kristosik, Northeast Ohio. A native creation of an internal caregiver resource portal with mobile capabilities for access in multiple ways Congratulations who joined VNA in 2010, became chief Clevelander, she joined at any time or location. More recently, she has focused on the integration of more than 5,500 new operating officer in 2012. Over the last Better Health Partnership in 2011 as business development caregivers from the merger with Akron General Health System. McHugh also leads Cleveland Clinic’s employee engagement efforts. several years, she has spearheaded many innovative programs, notably an director and advanced to the organization’s top official in In the nomination Cosgrove said McHugh “brings strategic leadership, broad-based management, financial and administrative skills Elizabeth Sullivan Ambulatory Withdrawal Management Program that expanded VNA’s role in 2017. Navarro-Horwitz contributed to a $4 million CDC and knowledge to this very important position.” behavioral health to address the opioid crisis. Recently, she also facilitated regional grant for improving racial and ethnic approaches We are pleased and proud to congratulate our the launch of a pediatrics home visiting program with MetroHealth to to community health, and disseminated Better Health Partnership’s hypertension best practice intervention to accomplished colleague on being honored as one address the high rehospitalization rate of NICU babies. In the nomination CYNTHIA MOORE-HARDY of Northeast Ohio’s Notable Women in Health Care. form, Landers credits Kristosik with being at the center of VNA’s growth, Medicaid providers statewide. She also was instrumental especially relative to the partnership between VNA Health Group and VNA President and CEO in forming a ground-breaking partnership with the United As co-chair of our firm’s national Healthcare of Ohio. “Lisa was at the forefront of the partnership and played a critical Lake Health Way of Greater Cleveland 211 to connect primary care Practice Group, Liz demonstrates her commitment role in the transition,” he said. and social services to address social determinants of every day to advising healthcare providers on a Cynthia Moore-Hardy calls on her nursing background to drive patient-centered care at Lake Health health, which are the conditions in which people are born, variety of legal, business and regulatory issues. and beyond. President and CEO for more than a decade, “Cynthia has been able to keep Lake Health grow, live, work and age. In the nomination, Dr. Shari a strong, independent, high quality organization while competing with significantly larger health Bolen, a medical professor and director of Better Health JEANNINE MARKS systems in Northeast Ohio,” Michael Mayher, chair of the Lake Health Board of Trustees, said in the Partnership’s cardiovascular disease programs said in Executive Director nomination. Moore-Hardy initiated a Lean program in 2012, which has saved more than $11 million the nomination that Navarro-Horwitz “has a gift for Stewart’s Caring Place and has avoided $2.5 million in additional construction costs by improving patient flow in pre- and connecting with others on health improvement in a way post-op surgery areas. She also has overseen service expansion, including the recently opened SOM that has allowed her to lead Better Health Partnership staff and others in the community to successfully collaborate Jeannine Marks launched the Akron Marathon Center and Perrico health campuses, a new Mentor wellness campus, which opened in January, and a to improve health outcomes in the region and reduce with her husband in 2003, but today the planned hospital in Beachwood, which is scheduled to open early 2019. Among her contributions outside of Lake Health, disparities in care.” lifelong Akron resident charts the course for Moore-Hardy served as the 2016 board chair of the Ohio Hospital Association. Stewart’s Caring Place. A friend of the late Dr. mcdonaldhopkins.com Stewart Surloff’s family, Marks helped open Crain’s business newspaper 8/2018 6 X 6 the nonprofit cancer wellness center in 2004 Chicago | Cleveland | Columbus | Detroit | Miami | West Palm Beach and has been involved in various roles from an unpaid board member and committee leader to a staff position as director of development. Since being named executive director in 2016, she has stabilized the center’s financial health by leveraging relationships with donors, corporations and community partners to establish a capital campaign, increasing endowments with Akron Community Foundation and driving the organization’s income “to a meaningful positive,” said Congratulations Cindy Stephanie Davis-Dieringer, Stewart’s director of programs and operations, The Board of Directors, Donors, Staff, in the nomination. “Her efforts also allows Stewart’s clients access to health The Schroer Group proudly care services at significant cancer wellness programs at University Hospitals, Volunteers and Participants of Cleveland Clinic, Akron General, Summa Health Systems and Aultman acknowledges Cindy Hospital,” Davis-Dieringer said. Gensamer, Vice President The Gathering Place of Absolute Rehabilitation for being recognized as Congratulate Eileen Saffran a fresh approach to one of Crain’s Cleveland content marketing Business 2018 Notable For Her Commitment Women in Healthcare. We are grateful to Cindy for to Enhancing the Lives her dedication to patients, of Those Touched families and staff and her commitment to providing by Cancer in excellence in quality care. Our Community

Let Crain Content Studio — Cleveland, the content marketing The Gathering Place is a caring community that division of Crain's Cleveland Business, bring the right content supports, educates and empowers individuals and strategy to your marketing plan.

families coping with the impact of cancer in their lives MORE INFORMATION: through programs and services provided FREE of charge. Contact Amy Stoessel at 216.771.5155 or [email protected]. www.touchedbycancer.org • 216.595.9546 CrainsCleveland.com/Custom

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LINDA MCHUGH RITA NAVARRO- LISA KRISTOSIK Chief Human Resource Officer HORWITZ President Cleveland Clinic President and CEO Notable. Insightful. Resourceful. Visiting Nurse Association of Ohio Better Health Linda McHugh is the highest-ranking female administrator in the history of Cleveland Clinic, where When Visiting Nurse Association of Ohio Partnership she oversees the work lives of Ohio’s second-largest employer with more than 50,000 caregivers merged with New Jersey-based Visiting and a $1.5 billion-plus annual payroll. McHugh started her 33-year career at Cleveland Clinic as Nurse Association Health Group in 2017, the Rita Navarro-Horwitz’s a medical technologist, later holding administrative positions of increasing responsibility including Cleveland organization’s president and CEO job is to reduce health and executive administrator for the Cleveland Clinic and former CEO Toby Cosgrove. In 2016, McHugh Dr. Steven Landers tapped Lisa Kristosik as health care disparities in oversaw implementation of a complete replacement of the human resources technology and the the new leader of Ohio operations. Kristosik, Northeast Ohio. A native creation of an internal caregiver resource portal with mobile capabilities for access in multiple ways Congratulations who joined VNA in 2010, became chief Clevelander, she joined at any time or location. More recently, she has focused on the integration of more than 5,500 new operating officer in 2012. Over the last Better Health Partnership in 2011 as business development caregivers from the merger with Akron General Health System. McHugh also leads Cleveland Clinic’s employee engagement efforts. several years, she has spearheaded many innovative programs, notably an director and advanced to the organization’s top official in In the nomination Cosgrove said McHugh “brings strategic leadership, broad-based management, financial and administrative skills Elizabeth Sullivan Ambulatory Withdrawal Management Program that expanded VNA’s role in 2017. Navarro-Horwitz contributed to a $4 million CDC and knowledge to this very important position.” behavioral health to address the opioid crisis. Recently, she also facilitated regional grant for improving racial and ethnic approaches We are pleased and proud to congratulate our the launch of a pediatrics home visiting program with MetroHealth to to community health, and disseminated Better Health Partnership’s hypertension best practice intervention to accomplished colleague on being honored as one address the high rehospitalization rate of NICU babies. In the nomination CYNTHIA MOORE-HARDY of Northeast Ohio’s Notable Women in Health Care. form, Landers credits Kristosik with being at the center of VNA’s growth, Medicaid providers statewide. She also was instrumental especially relative to the partnership between VNA Health Group and VNA President and CEO in forming a ground-breaking partnership with the United As co-chair of our firm’s national Healthcare of Ohio. “Lisa was at the forefront of the partnership and played a critical Lake Health Way of Greater Cleveland 211 to connect primary care Practice Group, Liz demonstrates her commitment role in the transition,” he said. and social services to address social determinants of every day to advising healthcare providers on a Cynthia Moore-Hardy calls on her nursing background to drive patient-centered care at Lake Health health, which are the conditions in which people are born, variety of legal, business and regulatory issues. and beyond. President and CEO for more than a decade, “Cynthia has been able to keep Lake Health grow, live, work and age. In the nomination, Dr. Shari a strong, independent, high quality organization while competing with significantly larger health Bolen, a medical professor and director of Better Health JEANNINE MARKS systems in Northeast Ohio,” Michael Mayher, chair of the Lake Health Board of Trustees, said in the Partnership’s cardiovascular disease programs said in Executive Director nomination. Moore-Hardy initiated a Lean program in 2012, which has saved more than $11 million the nomination that Navarro-Horwitz “has a gift for Stewart’s Caring Place and has avoided $2.5 million in additional construction costs by improving patient flow in pre- and connecting with others on health improvement in a way post-op surgery areas. She also has overseen service expansion, including the recently opened SOM that has allowed her to lead Better Health Partnership staff and others in the community to successfully collaborate Jeannine Marks launched the Akron Marathon Center and Perrico health campuses, a new Mentor wellness campus, which opened in January, and a to improve health outcomes in the region and reduce with her husband in 2003, but today the planned hospital in Beachwood, which is scheduled to open early 2019. Among her contributions outside of Lake Health, disparities in care.” lifelong Akron resident charts the course for Moore-Hardy served as the 2016 board chair of the Ohio Hospital Association. Stewart’s Caring Place. A friend of the late Dr. mcdonaldhopkins.com Stewart Surloff’s family, Marks helped open Crain’s business newspaper 8/2018 6 X 6 the nonprofit cancer wellness center in 2004 Chicago | Cleveland | Columbus | Detroit | Miami | West Palm Beach and has been involved in various roles from an unpaid board member and committee leader to a staff position as director of development. Since being named executive director in 2016, she has stabilized the center’s financial health by leveraging relationships with donors, corporations and community partners to establish a capital campaign, increasing endowments with Akron Community Foundation and driving the organization’s income “to a meaningful positive,” said Congratulations Cindy Stephanie Davis-Dieringer, Stewart’s director of programs and operations, The Board of Directors, Donors, Staff, in the nomination. “Her efforts also allows Stewart’s clients access to health The Schroer Group proudly care services at significant cancer wellness programs at University Hospitals, Volunteers and Participants of Cleveland Clinic, Akron General, Summa Health Systems and Aultman acknowledges Cindy Hospital,” Davis-Dieringer said. Gensamer, Vice President The Gathering Place of Absolute Rehabilitation for being recognized as Congratulate Eileen Saffran a fresh approach to one of Crain’s Cleveland content marketing Business 2018 Notable For Her Commitment Women in Healthcare. We are grateful to Cindy for to Enhancing the Lives her dedication to patients, of Those Touched families and staff and her commitment to providing by Cancer in excellence in quality care. Our Community

Let Crain Content Studio — Cleveland, the content marketing The Gathering Place is a caring community that division of Crain's Cleveland Business, bring the right content supports, educates and empowers individuals and strategy to your marketing plan. families coping with the impact of cancer in their lives MORE INFORMATION: through programs and services provided FREE of charge. Contact Amy Stoessel at 216.771.5155 or [email protected]. www.touchedbycancer.org • 216.595.9546 CrainsCleveland.com/Custom

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HOLLY PERZY CHRISTINE POLISENA INNETTE SARDUY SHERYL Vice President Senior Account Executive Chief Nursing Executive SEREDA of Care Delivery, Gallagher Northeast Ohio VA Healthcare System Vice President Executive Director, As a registered dietitian, Christine Polisena used to help people eat healthier or stop smoking. Today, and Chief Innette Sarduy leads the nursing practice for Northeast Ohio VA Healthcare System, which serves she deploys those same counseling and coaching skills to help the corporate clients of Cleveland- Advancement more than 112,000 veterans with 18 locations across 24 counties. She has comprehensive oversight The MetroHealth based Gallagher make smart choices in the design of patient-centered health care and benefits Officer over approximately 1,115 nurses and 800 nursing students. Nominator Susan Fuehrer, the health System programs. Polisena joined Gallagher in 2017 after more than a decade of benefits consulting and system’s CEO, credits Sarduy’s leadership for how Northeast Ohio VA has “remained a 5-Star Overall Eliza Jennings product management at Healthspan, Mercer and Oswald Companies. At Gallagher, Polisena launched Quality hospital and frequently outperforms VA and the private sector on all patient care metrics.” Dr. Holly Perzy is on the a strategic initiative of developing direct relationships with health systems to open the lines of Coming to the Northeast Ohio VA in 2012, Sarduy has empowered nurses by decentralizing decision- Sheryl Sereda is frontline of health care communication and negotiation between employers and providers. She also founded the internal making at the organization-wide council level and the patient-care unit level. She also created an the driving force transformation. She is Gallagher Resources and Opportunities for Women (GROW) initiative to develop skills and leadership award and recognition program and a hospital-wide Nurses Week celebration, which has ushered in one behind Eliza Jennings’ responsible for leading value-based care delivery through among women in its Ohio office. In the nomination, Gallagher marketing director Leslie Berzansky said Polisena “challenges the of the lowest RN turnover rates in all VA, and most recently helped deploy an RN Care Management initiative, which aims to reduce emergence as a progressive provider of services for The MetroHealth System’s Skyway program, which aims to status quo and pushes all of us to think differently in our approach to solving today’s complex issues in our industry.” emergency room visits and acute hospitalizations among veterans through more integrated chronic disease management. older adults, particularly those struggling with dementia. help Northeast Ohio businesses provide affordable quality Joining Eliza Jennings as chief development officer health care to employees. In four years, Skyway has grown in 2011, Sereda gained responsibility for sales and to 30 clients and 24,000 members and accounts for marketing, board development/education and special approximately 7.5% of patient encounters and just under EILEEN SAFFRAN SUSAN SCHEUTZOW projects in 2013. Under her leadership, the Olmsted 10% of MetroHealth’s revenue. Among the accomplish- Founder, CEO Partner Township nonprofit underwent a complete rebranding, ments under her leadership, the health system developed The Gathering Place Kohrman Jackson & Krantz including a new name and tag line, and raised $1.1 the first internal medicine/pediatric department in the million toward the launch of Saido Learning, a national nation. Perzy also created Spry, a membership-based The Gathering Place is the 18-year-old realization of founder and social worker Eileen Saffran’s dream Susan Scheutzow is a nationally recognized leader in health care law. At Kohrman Jackson & Krantz, business line that provides training in a cognitive personalized primary care practice. In the nomination, to create a place to support patients and their families through a cancer journey. Saffran launched The Scheutzow chairs the Cleveland firm’s Healthcare Law Practice Group, which she started upon joining KJK therapy technique shown to improve the symptoms of colleague Dr. Eileen Seeholzer calls Perzy a “clinician Gathering Place’s first support center in Beachwood in 2000, after raising $920,000 in less than one eight years ago. Previously, Scheutzow served as in-house general counsel for Southwest General Health dementia. Sereda’s advocacy of the dementia therapy at visionary” whose “work in benefit design and patient year. Under her leadership, the organization has expanded its footprint by doubling the Beachwood Center, for which she currently serves as outside general counsel and board member of Southwest General national industry and scientific conferences has resulted care operations has helped more people have affordable presence with a larger facility, opening a Westlake location and adding a Wellness Center. To date, Community Health Foundation. “She has participated in the formation of the organization’s direction, in contracts with 20 aging services organizations in high-quality care with a better experience.” Previously, the Saffran and her staff have raised more than $35 million to support The Gathering Place’s mission. assists us through challenges and celebrates with us in our successes,” said Southwest General’s CFO Mary 12 states. “Her thoughtful execution and versatility Cleveland native was the first medical director of one of More than 40,000 different individuals making more than 309,000 visits have accessed its free Ann Freas in the nomination. Among other notable contributions to her field, Scheutzow pioneered the is evidenced in her success as a fundraiser, marketer, the largest multispecialty suburban practices. She and her programming. The Gathering Place also manages a warehouse that sells gently used home furnishings curriculum in health law at Cleveland State’s Cleveland-Marshall College of Law, continues to teach health program manager and proponent for Saido Learning,” husband are also actively involved in donating and fund- and accessories. “Ms. Saffran’s resonate leadership and vision has forever changed the landscape for supportive care oncology services law graduate and undergraduate courses at Baldwin Wallace University, authored the book, Ohio Health Care Provider Law, an essential Richard Fletcher, Eliza Jennings Advancement raising for the new MetroHealth Brecksville location. in Greater Cleveland,” said Wendy Rowehl Miano, director of nursing for University Hospitals Seidman Cancer Center, in the nomination. reference guide for 20-plus years, and is editor-in-chief of the American Health Lawyers Association’s professionally reviewed journal. Committee chair, said in the nomination.

CONGRATULATIONS Congratulations! SHERYL L. SEREDA Christine Polisena | SeniorAccount Executive

Crain’s Cleveland Business 2018 Notable Women in Healthcare Honoree Congratulations to our colleague, Christine Polisena, on your recognition as a Notable Woman in Healthcare. We are proud to have you on our team.

Sheryl L. Sereda © 2018 Arthur J. Gallagher & Co. | AJG.COM Vice President and Chief Advancement Officer 34004A

SP01_SP011_CL_20180820.indd 28 8/14/18 11:59 AM S8 August 20, 2018 NOTABLE WOMEN IN HEALTH CARE SPONSORED CONTENT SPONSORED CONTENT NOTABLE WOMEN IN HEALTH CARE August 20, 2018 S9

HOLLY PERZY CHRISTINE POLISENA INNETTE SARDUY SHERYL Vice President Senior Account Executive Chief Nursing Executive SEREDA of Care Delivery, Gallagher Northeast Ohio VA Healthcare System Vice President Executive Director, As a registered dietitian, Christine Polisena used to help people eat healthier or stop smoking. Today, and Chief Skyway Innette Sarduy leads the nursing practice for Northeast Ohio VA Healthcare System, which serves she deploys those same counseling and coaching skills to help the corporate clients of Cleveland- Advancement more than 112,000 veterans with 18 locations across 24 counties. She has comprehensive oversight The MetroHealth based Gallagher make smart choices in the design of patient-centered health care and benefits Officer over approximately 1,115 nurses and 800 nursing students. Nominator Susan Fuehrer, the health System programs. Polisena joined Gallagher in 2017 after more than a decade of benefits consulting and system’s CEO, credits Sarduy’s leadership for how Northeast Ohio VA has “remained a 5-Star Overall Eliza Jennings product management at Healthspan, Mercer and Oswald Companies. At Gallagher, Polisena launched Quality hospital and frequently outperforms VA and the private sector on all patient care metrics.” Dr. Holly Perzy is on the a strategic initiative of developing direct relationships with health systems to open the lines of Coming to the Northeast Ohio VA in 2012, Sarduy has empowered nurses by decentralizing decision- Sheryl Sereda is frontline of health care communication and negotiation between employers and providers. She also founded the internal making at the organization-wide council level and the patient-care unit level. She also created an the driving force transformation. She is Gallagher Resources and Opportunities for Women (GROW) initiative to develop skills and leadership award and recognition program and a hospital-wide Nurses Week celebration, which has ushered in one behind Eliza Jennings’ responsible for leading value-based care delivery through among women in its Ohio office. In the nomination, Gallagher marketing director Leslie Berzansky said Polisena “challenges the of the lowest RN turnover rates in all VA, and most recently helped deploy an RN Care Management initiative, which aims to reduce emergence as a progressive provider of services for The MetroHealth System’s Skyway program, which aims to status quo and pushes all of us to think differently in our approach to solving today’s complex issues in our industry.” emergency room visits and acute hospitalizations among veterans through more integrated chronic disease management. older adults, particularly those struggling with dementia. help Northeast Ohio businesses provide affordable quality Joining Eliza Jennings as chief development officer health care to employees. In four years, Skyway has grown in 2011, Sereda gained responsibility for sales and to 30 clients and 24,000 members and accounts for marketing, board development/education and special approximately 7.5% of patient encounters and just under EILEEN SAFFRAN SUSAN SCHEUTZOW projects in 2013. Under her leadership, the Olmsted 10% of MetroHealth’s revenue. Among the accomplish- Founder, CEO Partner Township nonprofit underwent a complete rebranding, ments under her leadership, the health system developed The Gathering Place Kohrman Jackson & Krantz including a new name and tag line, and raised $1.1 the first internal medicine/pediatric department in the million toward the launch of Saido Learning, a national nation. Perzy also created Spry, a membership-based The Gathering Place is the 18-year-old realization of founder and social worker Eileen Saffran’s dream Susan Scheutzow is a nationally recognized leader in health care law. At Kohrman Jackson & Krantz, business line that provides training in a cognitive personalized primary care practice. In the nomination, to create a place to support patients and their families through a cancer journey. Saffran launched The Scheutzow chairs the Cleveland firm’s Healthcare Law Practice Group, which she started upon joining KJK therapy technique shown to improve the symptoms of colleague Dr. Eileen Seeholzer calls Perzy a “clinician Gathering Place’s first support center in Beachwood in 2000, after raising $920,000 in less than one eight years ago. Previously, Scheutzow served as in-house general counsel for Southwest General Health dementia. Sereda’s advocacy of the dementia therapy at visionary” whose “work in benefit design and patient year. Under her leadership, the organization has expanded its footprint by doubling the Beachwood Center, for which she currently serves as outside general counsel and board member of Southwest General national industry and scientific conferences has resulted care operations has helped more people have affordable presence with a larger facility, opening a Westlake location and adding a Wellness Center. To date, Community Health Foundation. “She has participated in the formation of the organization’s direction, in contracts with 20 aging services organizations in high-quality care with a better experience.” Previously, the Saffran and her staff have raised more than $35 million to support The Gathering Place’s mission. assists us through challenges and celebrates with us in our successes,” said Southwest General’s CFO Mary 12 states. “Her thoughtful execution and versatility Cleveland native was the first medical director of one of More than 40,000 different individuals making more than 309,000 visits have accessed its free Ann Freas in the nomination. Among other notable contributions to her field, Scheutzow pioneered the is evidenced in her success as a fundraiser, marketer, the largest multispecialty suburban practices. She and her programming. The Gathering Place also manages a warehouse that sells gently used home furnishings curriculum in health law at Cleveland State’s Cleveland-Marshall College of Law, continues to teach health program manager and proponent for Saido Learning,” husband are also actively involved in donating and fund- and accessories. “Ms. Saffran’s resonate leadership and vision has forever changed the landscape for supportive care oncology services law graduate and undergraduate courses at Baldwin Wallace University, authored the book, Ohio Health Care Provider Law, an essential Richard Fletcher, Eliza Jennings Advancement raising for the new MetroHealth Brecksville location. in Greater Cleveland,” said Wendy Rowehl Miano, director of nursing for University Hospitals Seidman Cancer Center, in the nomination. reference guide for 20-plus years, and is editor-in-chief of the American Health Lawyers Association’s professionally reviewed journal. Committee chair, said in the nomination.

CONGRATULATIONS Congratulations! SHERYL L. SEREDA Christine Polisena | SeniorAccount Executive

Crain’s Cleveland Business 2018 Notable Women in Healthcare Honoree Congratulations to our colleague, Christine Polisena, on your recognition as a Notable Woman in Healthcare. We are proud to have you on our team.

Sheryl L. Sereda © 2018 Arthur J. Gallagher & Co. | AJG.COM Vice President and Chief Advancement Officer 34004A

SP01_SP011_CL_20180820.indd 29 8/14/18 12:00 PM S10 August 20, 2018 NOTABLE WOMEN IN HEALTH CARE SPONSORED CONTENT SPONSORED CONTENT NOTABLE WOMEN IN HEALTH CARE August 20, 2018 S11

PATTY STARR ELIZABETH SULLIVAN GRACE WAKULCHIK Executive Director Co-Chair, National Healthcare President Health Action Council Practice Group Akron Children’s Hospital McDonald Hopkins Patty Starr is breathing new life into the Grace Wakulchik is the third Cleveland-based Health Action Council In the 10 years since graduating from law president in Akron Children’s 128- KJK is proud to by driving conversation, creativity and school, Elizabeth Sullivan has emerged as a year history and the first woman programming around corporate and go-to resource for health care organizations to hold the title. Wakulchik began congratulate community responsibility in fostering healthier, navigating complex regulatory, licensing, her career in nursing, joining Akron more productive workforces. Coming to Health contractual, compliance, corporate and Children’s in 1992 and advancing Action Network in 2013 from a leadership reimbursement issues. Sullivan began into various management roles SUSAN role at the Council of Smaller Enterprises, her legal career at McDonald Hopkins in before being named president last Starr led the staff and board through an extensive five-year planning process, 2008, and returned in 2016 as a member in the Cleveland firm’s Business year. Today, the seasoned leader oversees the largest independent SCHEUTZOW instituted an annual two-day strategic planning session and strengthened the Department and National Healthcare Practice, after four years as associate pediatric health care system in Northeast Ohio with more than organization’s group purchasing and education portfolios. With her guidance, counsel for The Cleveland Clinic Foundation. In 2017, she became the firm’s 1,000 providers spread across two hospital campuses with for being selected Health Action Network marks its fourth consecutive year of year-over-year co-chair. Recently, Sullivan and her practice group represented a number of 24/7 emergency ; more than 60 primary, specialty and growth and national expansion — now at more than 200 corporate members clients in overpayment disputes with government and commercial payors. urgent care locations; and nearly 30 NICU, pediatric inpatient as one of Crain’s nationwide — while maintaining a 95% retention rate. Don Bell, Health Sullivan and her practice group advocated on behalf of client providers, unit and specialty care services at partner facilities. Wakulchik Notable Women Action Council Board chair and Ohio Health director of executive rewards, successfully halting government payment suspensions as well as reducing championed Lean Six Sigma practices, which were integrated into called Starr “the most innovative health care professional I have met,” in the alleged overpayment amounts, in some cases by millions of dollars. Sullivan the 2015 design and construction of the Kay Jeweler’s Pavilion, in Healthcare. nomination. “She pushes the boundary of health care into areas that have not also has been instrumental in raising awareness of the practice group’s implementation of electronic health records and patient portal, and yet been considered or fully explored,” he said. expertise, internally and externally. “She brings an enthusiasm and effort to regional growth, among others. “She leads by engaging stakeholders the growth of our health law practice that serves as a great example to our in decisions at the point of impact and celebrating wins across the associate attorneys,” co-chair Richard Cooper said in the nomination. team,” Akron Children’s COO Lisa Aurilio said in the nomination.

Managing editor, custom For more information about custom Writer/Project editor: Writer: Graphic designer: and special projects: publishing opportunities, Kathy Ames Carr Judy Stringer Staci Buck Amy Ann Stoessel, [email protected] please contact Amy Ann Stoessel.

A law firm built for business kjk.com We salute you. Congratulations to our 2018 Notable Congratulations Women in Health Care Honorees: Vicki Bokar, RN Judy Bartel, MSN, ACHPN, CHPCA, FPCN Crain’s Cleveland Business will highlight accomplished women within Northeast Ohio’s finance sector in a Chief Clinical Officer special section October 15. Charis Eng, MD, PhD

Submit your nomination today: K. Kelly Hancock, DNP, RN, NE-BC CRAINSCLEVELAND.COM/NOMINATIONS Andrea Kanter Jacobs, JD Deadline to nominate is . August 24 Linda McHugh, MT, MBA For questions, contact Amy Ann Stoessel, managing editor of custom and special projects, at [email protected] or at 216-771-5155. THANK YOU for your leadership and committment to our mission. 2018 Notable Women in Health Care Northeast Ohio Same-day appointments 216.444.CARE clevelandclinic.org 800.707.8922 | hospicewr.org

SP01_SP011_CL_20180820.indd 30 8/14/18 12:00 PM S10 August 20, 2018 NOTABLE WOMEN IN HEALTH CARE SPONSORED CONTENT SPONSORED CONTENT NOTABLE WOMEN IN HEALTH CARE August 20, 2018 S11

PATTY STARR ELIZABETH SULLIVAN GRACE WAKULCHIK Executive Director Co-Chair, National Healthcare President Health Action Council Practice Group Akron Children’s Hospital McDonald Hopkins Patty Starr is breathing new life into the Grace Wakulchik is the third Cleveland-based Health Action Council In the 10 years since graduating from law president in Akron Children’s 128- KJK is proud to by driving conversation, creativity and school, Elizabeth Sullivan has emerged as a year history and the first woman programming around corporate and go-to resource for health care organizations to hold the title. Wakulchik began congratulate community responsibility in fostering healthier, navigating complex regulatory, licensing, her career in nursing, joining Akron more productive workforces. Coming to Health contractual, compliance, corporate and Children’s in 1992 and advancing Action Network in 2013 from a leadership reimbursement issues. Sullivan began into various management roles SUSAN role at the Council of Smaller Enterprises, her legal career at McDonald Hopkins in before being named president last Starr led the staff and board through an extensive five-year planning process, 2008, and returned in 2016 as a member in the Cleveland firm’s Business year. Today, the seasoned leader oversees the largest independent SCHEUTZOW instituted an annual two-day strategic planning session and strengthened the Department and National Healthcare Practice, after four years as associate pediatric health care system in Northeast Ohio with more than organization’s group purchasing and education portfolios. With her guidance, counsel for The Cleveland Clinic Foundation. In 2017, she became the firm’s 1,000 providers spread across two hospital campuses with for being selected Health Action Network marks its fourth consecutive year of year-over-year co-chair. Recently, Sullivan and her practice group represented a number of 24/7 emergency rooms; more than 60 primary, specialty and growth and national expansion — now at more than 200 corporate members clients in overpayment disputes with government and commercial payors. urgent care locations; and nearly 30 NICU, pediatric inpatient as one of Crain’s nationwide — while maintaining a 95% retention rate. Don Bell, Health Sullivan and her practice group advocated on behalf of client providers, unit and specialty care services at partner facilities. Wakulchik Notable Women Action Council Board chair and Ohio Health director of executive rewards, successfully halting government payment suspensions as well as reducing championed Lean Six Sigma practices, which were integrated into called Starr “the most innovative health care professional I have met,” in the alleged overpayment amounts, in some cases by millions of dollars. Sullivan the 2015 design and construction of the Kay Jeweler’s Pavilion, in Healthcare. nomination. “She pushes the boundary of health care into areas that have not also has been instrumental in raising awareness of the practice group’s implementation of electronic health records and patient portal, and yet been considered or fully explored,” he said. expertise, internally and externally. “She brings an enthusiasm and effort to regional growth, among others. “She leads by engaging stakeholders the growth of our health law practice that serves as a great example to our in decisions at the point of impact and celebrating wins across the associate attorneys,” co-chair Richard Cooper said in the nomination. team,” Akron Children’s COO Lisa Aurilio said in the nomination.

Managing editor, custom For more information about custom Writer/Project editor: Writer: Graphic designer: and special projects: publishing opportunities, Kathy Ames Carr Judy Stringer Staci Buck Amy Ann Stoessel, [email protected] please contact Amy Ann Stoessel.

A law firm built for business kjk.com We salute you. Congratulations to our 2018 Notable Congratulations Women in Health Care Honorees: Vicki Bokar, RN Judy Bartel, MSN, ACHPN, CHPCA, FPCN Crain’s Cleveland Business will highlight accomplished women within Northeast Ohio’s finance sector in a Chief Clinical Officer special section October 15. Charis Eng, MD, PhD

Submit your nomination today: K. Kelly Hancock, DNP, RN, NE-BC CRAINSCLEVELAND.COM/NOMINATIONS Andrea Kanter Jacobs, JD Deadline to nominate is . August 24 Linda McHugh, MT, MBA For questions, contact Amy Ann Stoessel, managing editor of custom and special projects, at [email protected] or at 216-771-5155. THANK YOU for your leadership and committment to our mission. 2018 Notable Women in Health Care Northeast Ohio Same-day appointments 216.444.CARE clevelandclinic.org 800.707.8922 | hospicewr.org

SP01_SP011_CL_20180820.indd 31 8/14/18 12:00 PM The Customer is TIME IS RUNNING OUT in Control AUGUST 23, 2018 HILTON CLEVELAND DOWNTOWN MIDMARKET 100 Lakeside Ave E, Cleveland, OH 44114 PERSPECTIVES

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PANEL DISCUSSION: The Future of Customer Service: Building and Maintaining Relationships in the Digital Age Jason Therrien, thunder::tech SUPPORTING SPONSOR Cat Kolodij, business leader, marketing and experience strategy, Progressive Insurance Rob Heiser, president and CEO, Segmint Moderator Deborah Knupp, managing director, GrowthPlay

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P032_CL_20180820.indd 32 8/15/18 7:58 PM CRAIN’S CLEVELAND BUSINESS | AUGUST 20 - 26, 2018 | PAGE 33 Big Green Egg’s popularity is driving business

By JOE CREA and other brands (Kamado Joe, Akorn the porcelain-clad kamados are made North eld Fireplace & Grills, which Kamados, Primo Ovals, Visions) are in Monterrey, Mexico, by the Daltile has been selling BGEs for nearly 25 [email protected] charcoal- and hardwood- red cook- company. years, carries most of the sizes or can ers. Although they can be used to turn With 15 stores in Northeast Ohio have one shipped within the week. You can call cults a weird thing. out a quick batch of burgers, kama- and Erie, Pa., Litehouse Pools and “Over the past 15 years, it’s become And granted, it’s easy to be creeped do-style cooking is exceptionally ver- Spas is arguably Northeast Ohio’s big- a big entity,” said co-owner Jason Bo- out by them, or dismiss them out of satile, from cold-smoking salmon to gest distributors of Big Green Eggs. sze. “Maybe 10 years ago, we might hand. high-heat stir-frying. Regional general manager Ken Seeber have sold 20 or 15 Eggs. Once we start- But certain cults are just so joyful, Unlike conventional grills, kama- said sales of BGEs have more or less ed cooking on them — our side patio so mesmerizing, you almost want to dos shine at “low-and-slow” cooking. doubled over the past  ve years. is right out on Route 82, and tra c join right in with the innocently ad- e kamado creates an airtight envi- “ e unit sells itself,” Seeber said. would be backed up and the smoke dictive fun. ronment that slowly cooks and “ e popularity of the product, would be spewing — that drew cus- at is how so many of us feel about smokes meats, poultry and other through their forums and people us- tomers in, and it really took o .” the Cult of the Big Green Egg. foods to perfection. ing them — pure word of mouth — are Each year, the numbers went up For the unacquainted, “the Egg” With estimated annual revenues what really drive the sales.” steadily, at around 30% to 40% annu- (or “BGE”) is a large, heavy ovoid- just shy of $5 million (tracking the ac- Because of their sheer bulk — sizes ally. Today, the shop sells upward of shaped ceramic outdoor cooker clad tual numbers of units sold annual range from the 10-inch “mini” to XXL 100 units a year. in a distinctive shade of avocado proves elusive) the BGE brand is a po- (a 29-inch, 375-pound behemoth) — e bonus bene t, he adds, as how green. Generically speaking, the BGE tent product. An average setup for a few stores display the full range of the Eggs draw customers, and sales, employs the “kamado” style of cook- large Egg will set you back around units. Seeber said the large and ex- for other products. ing, an ancient technique that dates $1,000. tra-large units are Litehouse’s biggest “We get more business because of back to China’s Qin Dynasty, about Competitors abound, but “Egg- sellers. our Egg customers,” he said. 221 to 206 BC. heads” — I’m among them — are de- Later adopted by the Japanese, ka- voted to the latter-day original. The Big Green Egg comes in several sizes, including large ones like this mado is Japanese for “stove.” BGE’s Founded in 1974 in Tucker, Ga., today one, which requires its own stand. (Contributed photo)

First, sales of built-in units took a SubZero/Wolf, the leader in top- house?) runs around $3,200, versus he and his wife have sunk into their KITCHENS big jump, Bosze said. People began line cooking appliances, produces a an indoor unit priced closer to $1,700. backyard Valhalla. CONTINUED FROM PAGE 1 putting money into their , the line exclusively manufactured for out- Carefully insulated and water- “I wish I knew,” he said. A couple of better to enjoy Northeast Ohio’s too- door kitchens. A 30-inch Wolf outdoor proofed wiring, corrosion-resistant times I started to put that together just us, the biggest part of friendship is to brief summers. unit runs around $4,670; the 54-inch metals, weatherproofed casings and to  nd out. I guess I can say that it was break bread with someone. Why not “ e DIY shows out there are part model is $8,450. A Swedish-made higher levels of testing all add cost. probably upwards of $100,000. have them over?” Kevin Frederick of it, and in Cleveland, with our cli- Asko outdoor dishwasher (who wants Kevin Frederick hesitates a mo- “I’m probably afraid to know, ex- said. mate, you’d think that would stop to haul dirty  atware back into the ment when asked exactly how much actly. And it’s probably better I don’t.” And given the shorter outdoor en- people,” he said. “But they’re putting tertaining season in Northeast Ohio, in whole kitchens, with refrigerators, the Fredericks reasoned, if you can wine coolers and fully plumbed sinks extend the patio’s use — maybe a out there.” month before the season and a month One customer, in Sagamore Hills — or so after — why not? “not exactly a high-end community,” “ at’s why we put in the heaters,” Bosze said — has probably sunk north Kevin Frederick said. of $300,000 into his outdoor patio. So what started out as maybe a “ at’s including a pool and other high-end grill and a microwave un- amenities,” Bosze added. “And that’s KNOW THE folded into a dream space. just a modest house. You wouldn’t “When we started to build the know from looking at his house from house, we know something would be the street that his backyard is like out there — a sound system, maybe heaven.” RULES the TVs — but this was all uncharted Dan Baron of Baron Landscaping in ground for us,” he said. Independence already is booking in- Understand retirement plan What was once a niche is, increas- stallations well into 2019. Outdoor ingly, going mainstream. According to kitchens have become his main enter- regulations benefiting you the Freedonia Group, a Cleve- prise, and business is booming. and your company land-based marketing research group, “Ten years ago, maybe we were do- demand for outdoor cooking is pro- ing one a year. Today, we’re doing jected to rise by 5.4% annually to $325 maybe 25 a year. at’s how much it’s million in 2022. Infrared grills, multi- grown. Now outdoor living spaces is FREE WEBINAR | AUG. 30 • NOON – 1 PM ple cooking units, artisanal equip- ALL we do,” Baron said. ment like pizza ovens and more are And every project is unique. driving costs — and sales. “Not every client has the same goals Sure, millions of us satisfy our pas- in mind,” Baron said. “My  rst objec- sion for playing with  re with a $50 tive is to  nd out what they want, then charcoal setup from the local hard- produce a kitchen that meets their ware store. Upgrading to a Weber needs and desires.” Spirit propane grill, typically priced Baron said he’s currently involved around $300 to $400, is a big deal. A in completion of a $100,000 project great guy I know, a pure red-collar that will take his group until the end of working guy, is not-so-secretly salivat- the season to  nish. Is your retirement plan compliant? In this one-hour webinar, we will ing over the prospect of  nishing out “ ese projects are done every- identify key regulations impacting your company’s retirement plan and his patio to expand the brickwork, add where, even in Battery Park, on a - share ways to use these regulations to you and your company’s benefit. a pergola and build a granite-topped top four stories up,” he said. “If you counter to accommodate his real want to do it right, all the bells and pride-and-joy: a large Big Green Egg whistles, you’re looking at $30,000 to SPEAKERS: kamado-style cooker. $40,000. You want to add a  replace? HOSTED BY: Clearly, it’s more than weekend We’re not talking about a  re pit, warrior stu . It’s full-blown passion. (which) can add about $2,500. A real “Over the past three to  ve years, it’s  replace can add $15,000 to $20,000.” Jeff Ahola WEBINARS exploded,” said Jason Bosze, who runs And it probably goes without saying CEO, Ahola Human Capital the North eld Fireplace & Grill (for- — and with all due respect — the Management merly the Fireplace Shoppe) in North- equipment involved isn’t exactly the  eld. At age 39, he’s been in the wood stu you’ll  nd on the big-box store PRESENTED BY: stove,  replace and grill business for display  oors. 20 years, starting in the 800-square- Matt Kyser, who specializes in top- foot showroom his father and uncle line appliances at Trevarrow Inc. in Matt Loeffler opened in 1976. Parma, said there are major reasons Founder and CEO “ have always been our why savvy customers spend large on Blue Tree Wealth Advisors LLC main business. When gas prices were dedicated outdoor equipment. CPA/PFS, CFP®, CTFA, CMA high, people who were struggling to “As I told one of our customers who pay their utility bills were buying looked at the price of an outdoor grill wood stoves like crazy. But now grills and kind of shook, these are a whole are huge. di erent league. ey’re thinking “It used to be grills were just sold in they’ll pay $1,500 or under, but the the summer. But now, these past  ve moderately priced units aren’t built REGISTER: CRAINSCLEVELAND.COM/WEBINARS years, (sales) are busy constantly.” the same way.”

P033_CL_20180820.indd 33 8/17/18 4:12 PM PAGE 34 | AUGUST 20 - 26, 2018 | CRAIN’S CLEVELAND BUSINESS

THE LIST Highest-Paid CFOs Ranked by 2017 Compensation

TOTAL COMPENSATION NONEQUITY PENSION THIS CFO 2017 % STOCK OPTION INCENTIVE VALUE YEAR TENURE IN POSITION 2016 CHANGE SALARY BONUS AWARDS AWARDS PLAN CHANGE OTHER

Richard H. Fearon/Eaton $8,602,980 (1) (0.8) $764,850 $0 $2,508,244 $820,473 $1,347,288 $2,983,382 $37,493 1 April 2002 - present $8,673,939

Terrance M. Paradie/TransDigm Group Inc. $7,122,400 (2) 717.3 $520,000 $2,300 $0 $3,047,850 $445,200 $0 $3,107,050 2 April 2015 - January 2018 $871,439 (2)

James F. Pearson/FirstEnergy Corp. $5,977,966 5.4 $662,214 $0 $2,124,671 $0 $662,943 $2,512,687 $15,451 3 2013 - March 2018 $5,670,945

Jon P. Marten/Parker Hannifin Corp. $3,812,399 (13.2) $688,615 $0 $1,350,166 $746,967 $905,085 $0 $121,566 4 November 2010 - April 2017 $4,394,354

John P. Sauerland/Progressive Corp. $3,701,176 10.5 $571,154 $0 $1,840,065 $0 $1,277,957 $0 $12,000 5 April 2015 - present $3,349,554

Donald R. Kimble/KeyCorp $3,585,368 14.7 $650,000 $0 $1,349,971 $149,997 $1,400,000 $0 $35,400 6 June 2013 - present $3,125,076

Catherine A. Suever/Parker Hannifin Corp. $3,550,813 NA $570,747 $0 $1,849,646 $153,010 $538,377 $343,023 $96,011 7 April 2017 - present NA

Laura K. Thompson/Goodyear Tire & Rubber Co. $3,547,080 (30.5) $650,000 $0 $495,463 $712,490 $298,192 $1,350,719 $40,216 8 December 2013 - present (3) $5,105,271

Mark R. Belgya/The J.M. Smucker Co. $3,241,202 (14.7) $618,125 $11,500 $1,150,000 $0 $569,250 $861,358 $30,969 9 January 2005 - present $3,801,050

Allen J. Mistysyn/Sherwin-Williams Co. $3,201,662 NA $600,002 $0 $878,969 $757,237 $849,000 $0 $116,454 10 January 2017 - present NA

Vincent K. Petrella/Lincoln Electric Holdings Inc. $3,129,746 (3.1) $485,000 $0 $1,053,455 $275,030 $952,004 $169,120 $195,137 11 February 2004 - present $3,230,903

Christopher A. Chapman/Diebold Nixdorf $2,978,218 (4) 55.1 (4) $574,178 $0 $1,710,187 $343,487 $230,000 $80,875 $39,491 12 June 2014 - present $1,919,629

Robert G. O'Brien/Forest City Realty Trust Inc. $2,865,741 37.8 $583,000 $0 $790,418 $0 $1,425,133 $9,732 $57,458 13 April 2008 - present $2,079,242

Michael F. Biehl/Covia Holdings Corp. (formerly Fairmount Santrol) (5) $2,777,382 45.4 $453,200 $0 $435,302 $261,510 $1,610,168 $0 $17,202 14 April 2016 - June 2018 $1,910,446

Philip D. Fracassa/The Timken Co. $2,771,845 36.2 $512,500 $0 $645,104 $275,865 $525,902 $670,000 $142,474 15 February 2014 - present $2,035,672

John W. Richardson/A. Schulman Inc. $2,694,386 NA $432,692 $0 $2,025,300 $199,976 $0 $0 $36,418 16 November 2016 - present NA

Gregory A. Thaxton/Nordson Corp. $2,288,063 (5.4) $450,000 $0 $567,270 $423,951 $397,215 $407,504 $42,123 17 January 2008 - present $2,419,339

Matthew L. Ostrower/DDR Corp. $2,281,443 NA $414,744 $522,260 $1,325,789 $0 $0 $0 $18,850 18 March 2017 - present NA

Timothy K. Flanagan/Cleveland-Cliffs Inc. $2,194,333 NA $400,000 $318,000 $760,951 $0 $540,829 $144,000 $30,553 19 January 2017 - present NA

Robert Kenneth Gudbranson/Invacare Corp. $1,974,545 32.6 $445,668 $0 $939,602 $576,452 NA NA $12,823 20 April 2008 - November 2017 $1,488,883

Brian C. Witherow/Cedar Fair LP $1,949,060 0.4 $525,838 $0 $907,187 $0 $495,636 $0 $20,399 21 January 2012 - present $1,942,116

Bradley C. Richardson/PolyOne Corp. $1,775,275 12.5 $569,615 $0 $277,915 $295,964 $576,063 $0 $55,718 22 November 2013 - present $1,577,332

Michael J. Tokich/Steris $1,713,052 (61.5) $456,250 $0 $606,564 $394,605 $180,244 NA $75,389 23 March 2008 - present $4,452,251 (6) (6)

Russell L. Gordon/RPM International Inc. $1,583,008 (48.4) $475,000 $0 $213,546 $387,000 $450,000 $16,671 $40,791 24 April 2012 - present $3,066,097 (7) (7)

Andrew J. Rebholz/TravelCenters of America LLC $1,572,500 (5.0) $300,000 $750,000 $522,500 $0 $0 $0 $0 25 November 2007 - December 2017 $1,655,000

Mark O. Eisele/Applied Industrial Technologies Inc. $1,475,726 27.0 $451,500 $0 $350,187 $135,844 $404,409 $85,974 $47,812 26 January 2004 - August 2017 $1,161,767

Ware H. Grove/CBIZ Inc. $1,448,731 13.0 $428,500 $0 $466,500 $261,750 $262,242 $0 $29,739 27 December 2000 - present $1,282,525

David S. Huffman/TFS Financial Corp. $1,390,284 5.3 $481,166 $0 $94,619 $217,728 $534,821 $2,796 $59,154 28 2000 - present $1,319,790

Benjamin J. Schlater/Ferro Corp. $1,334,386 22.3 $412,000 $0 $345,334 $149,556 $380,800 $0 $46,696 29 September 2016 - present $1,091,181

Joseph P. Kelley/Materion Corp. $1,301,833 22.5 $406,615 $0 $295,568 $72,225 $485,743 $30,587 $11,095 30 January 2015 - present $1,062,448

Matteo Anversa/Myers Industries Inc. $1,275,393 359.1 $425,000 $0 $362,062 $202,339 $275,193 $0 $10,800 31 December 2016 - present $277,784

Patrick W. Fogarty/Park-Ohio Holdings Corp. $1,228,732 12.8 $345,000 $400,000 $457,200 $0 $0 $7,506 $19,026 32 June 2015 - present $1,089,281

Paul F. DeSantis/Omnova Solutions Inc. $1,219,526 22.1 $448,818 $0 $450,640 $0 $269,400 $0 $50,668 33 July 2014 - present $998,987

Christopher J. Holding/TimkenSteel Corp. $1,147,118 32.7 $376,688 $0 $450,468 $188,928 $91,021 $0 $40,013 34 June 2014 - present $864,197

RESEARCHED BY CHUCK SODER ([email protected])

Data provided by S&P Global Market Intelligence (Marketintelligence.spglobal.com), with additional information researched by Crain's. The full digital list includes 60 public company CFOs. Crain's does not independently verify the information and there is no guarantee these listings are complete or accurate. Send feedback to Chuck Soder: [email protected]. (1) Fearon’s total compensation was higher than normal in 2016 and 2017 because it includes payouts from a discontinued incentive plan and stock awards from a new plan. (2) TranDigm awards stock options to most of its executives every two years, which causes their compensation to vary widely from year to year. (3) Thompson is slated to retire in the first quarter of 2019. (4) Multiple Diebold Nixdorf executives received additional compensation in 2017 for work related to the company's merger with Wincor Nixdorf. (5) Fairmount Santrol merged with Unimin Corp. on June 1, 2018 and changed its name. (6) Certain Steris executives received large one-time stock awards in fiscal 2016 as compensation for work related to the Synergy Health acquisition. (7) RPM granted performance-based stock awards to several top executives in 2016.

P034_CL_20180820.indd 34 8/17/18 1:19 PM CRAIN’S CLEVELAND BUSINESS | AUGUST 20 - 26, 2018 | PAGE 35

state-run liquor agency to JobsOhio. omist at the W.J. Upjohn Institute for SURVIVE  e new nonpro t issued long-term Employment Research in Kalama- CONTINUED FROM PAGE 1 bonds to pay for the use of the liquor zoo, Mich., responded to that as- business and used the pro ts to pro- sessment in a tweet saying that board would name his replacement. vide grants and loans to induce while the McKinsey report provides “Come July of 2019 there are ve businesses to move to the state or to some useful analysis of Ohio’s seats whose terms end,” he said. help existing businesses expand op- strengths and weaknesses, it doesn’t “Whoever the next governor is may erations in Ohio rather than else- tell the whole story. actually decide to reappoint some of where. “(T)his report does not in any way those board members. It’s hard to  e idea drew on programs in provide an impact evaluation or a know what the makeup of the board other states, including economically performance assessment or a bene- will be.” booming states like Texas and Flori- t-cost analysis of how the world Asked about the candidates’ as- da.  ose states had moved eco- di ers with JobsOhio’s various pro- sessment of JobsOhio and the nam- nomic development from a state grams, versus a world without those ing of Minor’s successor, the DeW- agency to a nonpro t entity that programs,” he wrote. “We need bet- ine campaign said JobsOhio has could have a freer hand when it ter performance standards for eco- served Ohio well and that the candi- came to using tax dollars to attract nomic development evaluation re- date would like to name Minor’s Ohio governor candidates Richard Cordray, left, and Mike DeWine have new business to the state. While ports.  ere is no evidence that successor. issued statements indicating they intend to keep business attraction these private economic develop- privatizing economic development “We’ve seen tremendous job organization JobsOhio. (Bloomberg/contributed photos) ment organizations, including Job- either helps or hurts economic de- growth in Ohio since its inception sOhio, generally are considered to velopment.” and have an unemployment rate  e board members who hold investment banking rm before its be able to negotiate more quickly Bartik is among a small group of near historic lows,” the campaign seats with terms that end in July collapse in 2008. and easily with a business choosing critics of privatized state economic said in an emailed statement. “If 2019 are James Boland, retired vice JobsOhio took shape during the among expansion sites in several development programs. John Minor decides to leave, the chairman of the Ernst & Young ac- 2010 election campaign. Kasich said states, they are criticized for high Good Jobs First, a Washington, board should proceed with identify- counting rm and former president, then he would replace the state’s de- pay to sta and a lack of transparen- D.C., nonpro t, in a 2014 survey of ing a list of quali ed successors. CEO and vice chairman of the Cava- partment of development with a pri- cy in their handling of what is, ulti- these organizations, including Job- We’re hopeful that the time frame liers Operating Co.; Gary Heminger, vate, nonpro t economic develop- mately, public money. sOhio, said that these privatizations for a nal selection can wait until chairman and CEO of Marathon Pe- ment corporation that, he said, the In a meeting at Crain’s o ce July have done a poor job of reporting the new or reappointed board mem- troleum Corp. of Findlay; Stephen E. governor would lead. 16, Minor said that in a performance their results publicly. bers are in place.” Markovich, senior vice president of After Kasich defeated Democratic review conducted by the McKinsey “ ree-fourths of major state de-  e Cordray campaign also indi- OhioHealth, a Central Ohio hospital incumbent Ted Strickland to be- & Co. consulting rm, JobsOhio velopment programs still fail to dis- cated its support of JobsOhio. group; Larry Kidd, principal and come governor in 2011, House Bill 1 ranked among the top ve in a group close actual jobs created or workers “As governor, I’ll maintain and re- CEO of Reliable Sta ng Services of created JobsOhio. To create a reve- of 17 similar economic development trained, and only one in 11 discloses form JobsOhio so that it creates Jackson; and Barbara Snyder, presi- nue stream to sta the organization, organizations that included all of its wages actually paid,” the report stat- more economic opportunity for all dent of Case Western Reserve Uni- to market the state to businesses in- Midwest peers as well as organiza- ed. “Despite having three separate Ohioans by investing in our home- versity. ternationally and to o er nancial tions in faster-growing states such as sources of disclosure, the quality of grown small businesses across the Other members of the board are incentives, the Legislature allowed California, Florida and Texas. disclosure for (JobsOhio) has been state, in addition to e ectively com- William Batchelder of Mentor, for- the state to lease the pro table, However, Tim Bartik, senior econ- declining.” peting to bring more jobs and com- mer speaker of the Ohio House of panies to Ohio,” an emailed state- Representatives; John Bishop, chair- ment read. “I’ll also work to improve man of the executive committee of our workforce development pro- the Columbus-based Motorists In- grams and keep Ohio an open and surance Group; and  omas Wil- tolerant state so that businesses can liams, president and CEO of North REGISTER TODAY! nd the skilled workers they need American Properties of Cincinnati; and feel comfortable here, and so and Minor. our children can stay here, start Minor joined JobsOhio as a man- families and invest in our communi- aging director when it was created in ties.” July 2011. He was named president  e Cordray campaign did not re- and chief investment o cer in No- spond to a second email late last vember 2012, replacing Mark Kvamme. Both Minor and Kasich FAMILY week about the timing of choosing Minor’s replacement. had worked at the Lehman Brothers CRAIN’S FAMILY BUSINESS BUSINESS FORUM FORUM TITLE SPONSOR SEPT. 12, 2018 Corporate College East 4400 Richmond Road Warrensville Heights HOST // VIDEO SPONSOR OUR FAVORITE ANSWER YES From ESOPs and talent recruitment to managing TO LOAN REQUESTS IS relationship dynamics, establishing the next generation of leadership at your family business MAJOR SPONSORS can be a tricky proposition. When it comes to commercial loans, Geauga Savings Bank is your no-hassle YES bank. 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GSB_LoanAd_Craines_4x6.indd 1 7/24/18 4:18 PM P035_CL_20180820.indd 35 8/17/18 4:13 PM PAGE 36 | AUGUST 20 - 26, 2018 | CRAIN’S CLEVELAND BUSINESS AKRON Rice Oil turns to water for new endeavor By DAN SHINGLER As far as how it works, it’s mostly proprietary, but Charlton said the [email protected] system uses a medium developed in @DanShingler Wooster that separates the water from oil as they pass through it — For 60 years, Akron’s Rice Oil & En- and it doesn’t wear out or fill up with vironmental has been selling petro- oil and have to be replaced. leum and synthetic oil to area manu- If the EPA agrees it works as well as facturers, auto shops and dealers, advertised, Charlton said he’ll first and anyone else who needed lubri- use the system to expand his oil wa- cants. ter separation cleaning business, but Now, it’s taking oil away from cli- then look for other industries to ent sites, as well as delivering it. And serve. it’s getting a lot of attention from Chema thinks he’ll find them. folks who hope it will succeed with its “At every turn, there’s some wa- new endeavor — and maybe even ter-related problem,” Chema said. help Akron develop a new economic “There are humanitarian crises in Af- development cluster around water rica because there’s not drinking wa- technology. ter available, we have worries about “Since we started this at the end of homeland security and people possi- April, we’ve met with 49 people bly poisoning water supplies, we across 37 different organizations,” have algae in Lake Erie — and the oil said David Charlton, who co-owns and gas industry is really in search of the company with his wife, Susan. new solutions for its water challeng- Everyone, it seems, is interested in es,” Chema said. new technology Rice is preparing to That last one, the oil and gas indus- use, which Charlton said comes from try, could be big for Rice given its sys- Wooster-based ABS Materials and tem specifically works with oil and the College of Wooster. there is now so much shale drilling That’s because Charlton said — going on in Ohio. and demonstrated — that the system The interest goes beyond Rice, too. can take dirty water that’s full of oil in Chema and others hope Akron and one end and produce clean water out Rice Oil & Environmental co-owner David Charlton says the company is getting a lot of attention for the the region can use water technology the other, along with separating water-cleaning technology it’s using. (Dan Shingler) as an economic development lever. waste. That, supporters say, is huge Thanks to work by groups like the Ak- — and warrants attention. different from what’s been used in its clients’ oil-water separators, he said. ron Global Water Alliance and the “There’s a lot of interest in this,” the past — in my opinion, for two Charlton said, and cleaning the oil They’re not complicated devices. Cleveland Water Alliance, the area is said Tom Chema, chairman of the reasons, one is environmental and from the water is the toughest part. Basically, they’re underground tanks already known as a hot spot for water Cleveland-based Gateway Group the other is cost,” Chema said. He has been sending the dirty water that take in oil and water and then al- tech, and designated as a water tech- and longtime local economic devel- Chema said he’s somewhat famil- he collects elsewhere to be cleaned, low the heavier water to flow out a nology hub by the EPA, Chema not- oper whose previous roles also in- iar with the challenges of cleaning but now hopes to start doing it him- lower outlet, while the oil is retained. ed. clude chair of the Public Utilities dirty water from his days at the self — at a lower cost and with a Except, if they’re left unattended, “I think we could be a real hub not Commission of Ohio and president PUCO, which oversees private water much cleaner end result. they no longer work. They fill with oil only for cleaning up water but for of Hiram College. and sewer companies around the “When I started this, I didn’t even and begin discharging it into the some of the related IT solutions … Chema was one of those 49 people, state. There are ways to do it now, he know what an oil-water separator sewer system, where it’s difficult to the Akron water department is very as was a water expert he brought said, but Charlton appears to have a was until someone called and asked fully remove, Charlton said. highly regarded, and having that along from California to see and eval- better and cheaper mousetrap. me if we could clean one out. I said So, he’s working with his custom- available to review new technologies uate Charlton’s system. Both were “These are all very expensive pro- sure, and then I had to look it up,” ers to help raise awareness and begin could be a big benefit to the city as a impressed, and his associate went cesses, and there has to be, from a said Charlton. cleaning more of the systems. whole,” Chema said. home interested in partnering with societal point of view, a lower cost Once he started, though, he dis- He hopes to begin using his new Kyle Kutuchief, Akron program di- Rice, Chema said. alternative — and I think David has covered something else about system sometime later this year or rector for the Knight Foundation, said “There are a lot of interesting tech- his finger on one,” Chema said. oil-water separators. Almost every early in 2019. he’s also talked with Charlton and nologies out there, and that’s one of For his part, Charlton’s not claim- business has one, but most don’t The system is now being evaluated been impressed as well, though he them. To separate oil and water is a ing to have any second sight as he know it, and few ever bother to clean by the U.S. Environmental Protection cautions he’s not one to give a techni- very important task right now, and basically fell into this opportunity. them out. That’s a problem for sewer Agency, and Charlton says he’s hope- cal evaluation of the ABS system. we need to try technologies that are Rice began getting requests to clean systems, but an opportunity for Rice, ful to get approval to use it soon. SEE RICE, PAGE 37 BioflightVR gets investment in Akron operations

By DAN SHINGLER Shorten married a woman from Ak- “I think it’s going to be very helpful share the product with others and ers in California still make a little fun ron who wanted to move back home. in a pediatric setting,” said Dr. Eliza- the sales revenue among themselves. of him for moving to Ohio, but they’re [email protected] That has worked out for the best, beth Biddell, head of the Austen Sim- Shorten said the company’s first no longer dubious about Akron’s @DanShingler Shorten said. His company has found ulation Center for Safety and Reli- modules from its Akron office will be ability to support the operation like a capable and willing partner in Ak- ability, which is BioflightVR’s out this year, first at Duke and then at they once were. BioflightVR has caught an updraft ron Children’s and may ultimately neighbor in Akron’s Austen BioInno- Akron Children’s. Shorten said his co-founders came in Akron. partner with other area hospitals. vation Institute and its partner in de- Then, to continue the work, the out for a week in July, and he thinks it The company, which works with Finding local investors is a nice bo- velopment. company will need to raise money. changed their outlook on Akron. hospitals to develop virtual reality nus, too, he said. If you’re thinking pediatric cardiac Shorten said he hopes to raise $1.2 “That absolutely helped galvanize training modules for doctors and oth- Themo dules that BioflightVR and arrests are fairly rare, you’re right. million by early 2019, a figure that in- them and gave them the confidence er health care providers, said it has its partners create are meant to help But that’s exactly why the module is cludes the $500,000 being invested that we absolutely have the right peo- received a new investment in its Ak- train doctors and others, including needed, Shorten and Biddell said. and raised by Acquire and $200,000 ple here to make this work,” Shorten ron operations and is close to unveil- doctors in training, without always re- They said that in most cases in previously put up by an angel investor. said. ing its first products in conjunction quiring a physical patient or cadaver. which a child goes into cardiac ar- That will enable Shorten to finish BioflightVR co-founder Randy Os- with Akron Children’s Hospital and Shorten brings a special effects rest, he or she is taken to the nearest his current projects with Akron Chil- born said he’s exactly right. Duke University in Durham, N.C. background — he was the architect emergency room, which is not likely dren’s and maybe even begin to hire “To be honest, I was a little skepti- The investment is coming via Ak- of many of the effects on the televi- to be a pediatric unit. Virtual reality a few people. So far, he’s been largely cal at first that we could actually ron-based Acquire Investments, said sion show “CSI” — to the company modules can give doctors there the a one-man-show in Akron, albeit make it work there,” Osborn said.” We Acquire founder and managing part- and said his work with Duke is actu- pediatric training they need to quick- with plenty of help from folks at Ak- have pretty good inroads here in L.A. ner Bill Manby. ally to support their cadaver training. ly and properly treat a patient having ron Children’s and BioFlightVR in But it turns out it’s a gold mine of “This or und is $500,000, and we’ve It won’t replace the use of real ca- a cardiac event, they said. Los Angeles. medical opportunities there. I didn’t seeded it with $250,000 from Ac- davers altogether, Shorten said, but it That’s another reason that Akron Manby said he thinks the fundrais- realize all that was there around Ak- quire. We hope to coordinate an ef- will enable Duke to use them more Children’s and BioflightVR said ing is doable, in part because numer- ron.” fort to close out that round pretty effectively by allowing students to they’ll make the modules available to ous doctors have shown interest in Now, he’s not only no longer skep- quickly,” said Manby, who added that work with virtual cadavers before other hospitals, possibly on a sub- the technology, and physicians often tical, he thinks Akron could see more he’s working to raise another they are given real ones. scription basis, so patients get the are comfortable investing in compa- of BioFlightVR, especially with the $250,000 from local investors. At Akron Children’s Hospital, the best care whether they’re taken to the nies or technologies they understand new local investment. Los Angeles-based BioflightVR es- current work is toward developing Akron hospital or not. It’s also the in a medical context. “Since we’ve received this invest- tablished an office in Akron in 2017, modules that will help doctors deal company’s long-term business mod- As for Shorten, he’s apparently ment, we’ll be expanding in the Ak- largely because co-founder Rik with pediatric cardiac arrest. el: develop with partners and then here to stay. Yes, he said his cowork- ron area as well,” Osborn said.

P036_CL_20180820.indd 36 8/17/18 1:29 PM CRAIN’S CLEVELAND BUSINESS | AUGUST 20 - 26, 2018 | PAGE 37 AKRON RICE Seco plots $8M expansion in Green CONTINUED FROM PAGE 36 By KYLE BROWN move as an opportunity to try to re- Kutuchief said water issues are be- place some older equipment, coming increasingly important in [email protected] Kaufman said. Akron, which not only is spending “When you get into a nice, new more than $1 billion to separate its Seco Machine, a manufacturer of place, you want to upgrade some storm and sanitary sewer systems cast urethane products and a division equipment,” he said. under a federal mandate, but in- of A. Stucki Co., will move to a new fa- As it continues to grow, Seco will be creasingly is using its waterways to cility that increases floor space by focusing on more opportunities for make the city more desirable to resi- about 60% in the first quarter of 2019. automation, Seccombe said. The dents by improving the Ohio and Erie The move to a new $8 million facili- company already has three robot Canal, its locks and Summit Lake in ty in Green has been a few years in the work cells, and rather than taking the city. making, said Tom Seccombe, general away jobs, they’ve allowed Seco to Knight doesn’t make grants to pri- manager at Seco. The new facility will add more employees. vate companies but might help Rice have 120,000 square feet of manufac- “Our goal is not to reduce labor,” convince some of its beneficiary orga- turing, distribution and office space, Seccombe said. “It takes the monotony nizations to use the system, he said. an expansion from the 75,000 square out of some of the jobs,CRAIN'S and CLEVELAND I think it BUSINESS“We’re μ interested AUGUST 20, 2018because μ PAGE we 37 feet at its current facility in North Can- just makes the quality of the job better.” know as a region, and certainly in the ton. Construction is underway at Seco Machine’s planned facility in Green. Seco recently hired its first robotics city of Akron, we view our waterways “It was pretty apparent by about (Contributed photo) engineer, and the company is looking a very important public resource … 2014, 2015 that it wasn’t our ideal at several projects especially in its ure- making sure people aren’t dumping building,” Seccombe said. feet of infrastructure as a knockout on payroll from the first day in the new thane line that could benefit from au- unnecessary oil into our waterways, The North Canton facility wasn’t in- that can be added in the future. The facility. tomation, Seccombe said. especially if you can do it effectively tended for heavy industry, and wasn’t location also has additional land that The new facility also will give the The move also will give Seco the working with a local company, it’s a a location that would impress cus- could be used for expansion. company more accessibility options, ability to diversify its offerings as it no-brainer,” Kutuchief said. tomers, Seccombe said. The site already is being excavated, with close proximity to the Ak- grows more toward industrial cus- Charlton said he’s been a bit over- “Our workmanship and our people Kaufman said. The majority of the ron-Canton Airport, Seccombe said. tomers, Kaufman said. whelmed by all the attention. Rice Oil do, but getting customers there was space in the new facility will be cov- Seco is looking into working with the “Even though Stucki in general has is small, with just 13 employees, and always a problem,” he said. ered by the machine shop, with the Ohio government to establish itself as been a rail-based company, it’s an op- Charlton said he’s often a bit intimi- As it became a division for A. Stuc- urethane line on a smaller footprint. a foreign trade zone to take advantage portunity to get into more of the in- dated hosting important people like ki, Seco grew from a two-bay section Seco also worked with the city of of import and export incentives. From dustrial segment as a whole, to be able Chema in his modest offices. of the North Canton facility, taking on Green because of a tax abatement in a transportation standpoint, being to provide turnkey solutions, whether But he’s glad for the support and its urethane line in addition to its ma- which any improvements to the site near the airport also will assist travel- it’s just a machining job or urethane, very optimistic. Oil and water clean- chine shop capabilities, said Jon have taxes abated by 100% for 15 ing employees, as the company logs or a component that combines both up could become bigger than the lu- Kaufman, product manager of ure- years, Seccombe said. more than 100 flights per month. of those to diversify the product line bricant business ever was for Rice thanes and polymers for A. Stucki. The “It was one of the only cities around A. Stucki has 17 global locations, and reach outside of rail,” Kaufman Oil, Charlton predicts. company worked with Seco to devel- that was willing and able to do this sort and moving near an airport will pro- said. There’s another bonus, too. Charl- op its capabilities and bring more pro- of thing,” he said. “The city of Green is vide a facility as a central hub for With both its urethane and ma- ton’s children were never interested cesses in-house, which calls for a larg- really aggressive in bringing in retail as meetings, Kaufman said. chining lines seeing growth, the new in selling oil. Like many in their teens er footprint. well as industrial business, and we just The firm already is purchasing new facility will prime Seco for the current and early 20s, they had higher ideals. The orN th Canton facility did give really felt like they were a fit.” equipment for its machining line, Sec- economy, Seccombe said. But suddenly they’re interested in the the company room to grow without As part of the abatement, the com- combe said. On the urethane side, the “We really feel there’s some great family business — previously owned needing to move right away, but the pany is required to create a certain company is looking at adding another opportunities to grow business in the by their paternal grandfather — now new planned facility in Green will im- number of jobs over time, so employ- line specifically to build inventory for U.S.,” he said. that it’s involved in sustainability. prove on that as well, Seccombe said. ees will be added in the future, he the move and then to add capacity for This story originally appeared in “We talk about it around the din- The aw y the building is designed, it said. Seco still will pay taxes on the when they move into the new facility. Rubber & Plastics News, a sister publi- ner table now,” Charlton said. “We gives Seco an additional 50,000 square land, and pay the city’s 2% income tax The company also will be using the cation of Crain’s Cleveland Business. never used to talk about oil at home. REAL ESTATE CLASSIFIED Phone: (216) 771-5276 Copy Deadline: Wednesdays @ 2:00 p.m. Contact: KateKate RozekRozek E-mail: [email protected] All Ads Pre-Paid: Check or Credit Card

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P037_CL_20180820.indd 37 8/17/18 1:30 PM PAGE 38 | AUGUST 20 - 26, 2018 | CRAIN’S CLEVELAND BUSINESS Meet the Leadership Cleveland Class of 2019

The Cleveland Leadership Center to address community issues through Downtown Cleveland Alliance Community Center of Greater Cleveland n Summer Paris, corporate responsibility & has announced the 65-member collaborative civic leadership while n Grant Dinner, chief operating officer, n Timothy Hilk, president and CEO, YMCA communications manager, ArcelorMittal Leadership Cleveland Class of 2019. developing a broader and more di- Weinberg Wealth Management, LLC of Greater Cleveland n Gregory Peckham, executive director, Leadership Cleveland is a verse set of relationships among n James Eck, vice president and general n Wendy Hoke, president, Beaumont School LAND studio 10-month program “that empowers p e e r s .” manager – Ohio & West Virginia distribution, n Rita Navarro-Horwitz, president and chief n Erica Penick, executive director, The recognized, senior-level leaders with The program year begins with a re- Dominion Energy executive officer, Better Health Partnership Presidents’ Council additional knowledge, skills and re- treat in September 2018. One day n Julie Edgar, vice president of innovation, n David Kall, Cleveland office managing n Steven Ross, president, Squire Ridge lationships to advance and deepen each month, participants take part in chief sustainability officer, Lubrizol Corp. member, McDonald Hopkins, LLC Company, LLC their community impact,” according a civically themed session built n Mary Kim Elkins, senior vice president, n Douglas Katz, chef/proprietor, chef/ n Joao Jose San Martin, senior VP and chief to a news release from the Cleveland around a curriculum featuring other taxes, Eaton Corp. partner, chef owner, fire food and drink/ human resources officer, PolyOne Corp. Leadership Center. The program “en- civic, political and business leaders. n Christopher Ericksen, vice president, Provenance/Fire Spice Co. n Jason Shefrin, executive vice president, gages participants in opportunities The members of the Class of 2019 are: UWUA Local 270 n David Leopold, partner, chair immigration operations, InterDesign n David Eubank, chief information officer, law, Ulmer & Berne LLP n Lawrence Soloff, senior director, medical n Harlin Adelman, vice president and Wellness and Family Resource Center, Forest City Realty Trust n Nora Loftus, partner, Frantz Ward LLP services, Cleveland Indians deputy general counsel, University Murtis Taylor Human Services System n Timothy Flanagan, executive vice n Manoj Malhotra, dean, Weatherhead n William Stewart Jr., partner, Jones Day Hospitals Health System n Jason Bristol, partner, Cohen Rosenthal president, chief financial officer, School of Management, Case Western n Karyn Sullivan, chief operating officer, n Jennifer Allanson, senior vice president, & Kramer LLP Cleveland-Cliffs Inc. Reserve University Bober Markey Fedorovich Falls Communications n Roseann Canfora, chief communications n Michelle Fritz, director of development n Kelly Manderfield, chief marketing n Catherine Tkachyk, chief innovation and n Christopher Alvarado, executive director, officer, Cleveland Metropolitan School and donor communications, The Cleveland officer, Cleveland Metroparks performance officer, Cuyahoga County Slavic Village Developmwent District Foundation n Kevin McDaniel, executive director, n Daniel Urban, executive vice president n Stephen Anthony, special agent in n Tracy Carter, vice president of govern- n Katherine Gallagher, mayor, City of Neighborhood Leadership Institute and chief operating officer, Wickens Herzer charge, Federal Bureau of Investigation ment relations, The MetroHealth System Brooklyn n Margaret McKenzie, president, Cleveland Panza Cook & Batista Co. n Amy Arbogast, chief financial officer and n Charles Chaikin, partner, Blue Point n Scott Garson, manager, Allegro Realty Clinic South Pointe Hospital, Cleveland n Allison Vann, rabbi, Suburban Temple-Kol treasurer, Vocational Guidance Services Capital Partners Advisors Clinic Ami n Nic Barlage, president, business n Laura Chalker, chief program officer, The n Don Graves, head of corporate responsi- n Azim Nakhooda, principal and partner, n Ramonita Vargas, executive director, operations, Cavaliers Operating Co. Centers for Families and Children and Circle bility & community relations, KeyBank Cedar Brook Group Spanish American Committee for a Better n John Barnes, partner, Grant Thornton LLP Health Services n Kevin Griffin, senior vice president, The n Christopher Nehez, vice president and Community n Michael Bates, president, Notre Dame n Thomas Coyne, partner, Thompson Hine Adcom Group chief information officer, Oatey Co. n Natoya Walker Minor, chief, public affairs, Schools LLP n Kenya Guess, president, Bonnie Speed n James Newbrough, chief executive City of Cleveland, Office of the Mayor n Jack Binder, CEO, LifeAct n Severine De Wagheneire, managing Delivery officer, Menorah Park n Richard Wesorick, managing partner, n Kevin Bishop, council member, City of director, Accenture n Kenneth Haffey, senior partner, Skoda n Nigamanth Sridhar, dean of the college Tarolli, Sundheim, Covell & Tummino LLP Cleveland n Michael Deemer, executive vice Minotti & Co. of graduate studies and professor, n Brian Williams, executive director, PNC n Heather Brissett, director of the president, business development, n Phyllis Harris, executive director, LGBT Cleveland State University Fairfax Connection

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P038_CL_20180820.indd 38 8/17/18 3:07 PM CRAIN’S CLEVELAND BUSINESS | AUGUST 20 - 26, 2018 | PAGE 39 Source Lunch Greg Malkin Director of the Young Entrepreneur Institute at University School and fellow at the Burton D. Morgan Foundation Greg Malkin will tell you he loves being an evangelist for capitalism — spreading the word about how young people can use it to advance themselves, their families and communities. It might not be a perfect system, he tells them, but it’s the best so far when it comes to generating wealth and producing the things that people need and want. ¶ After 30 years of practicing what he preached as an entrepreneur, mostly in the field of computer-aided design, Malkin is now at his pulpit full-time. ¶ Malkin recently became a fellow at the Burton D. Morgan Foundation in Hudson — itself a virtual church of capitalism — where he’ll help the organization work with teachers and schools to teach entrepreneurialism, financial literacy and other important topics related to business. ¶ It won’t be a new challenge for Malkin, though — he’s been doing this very thing through the Young Entrepreneur Institute at University School, where he already teaches teachers and other school officials what they need to know in order to prepare students to succeed, whether they become entrepreneurs or not — because everyone needs to have at least some understanding of how business and money works, Malkin contends. — Dan Shingler

Five things First, where are you from? about systems. … That actually I went to Cleveland Heights High turned out to be very useful, Favorite entrepreneur in history School. I’m a Heights Tiger, ’72. because everything is a system. Henry Heinz You have a new role at the Morgan What’s your favorite thing about Favorite restaurant Foundation. Are you leaving the what you do today? Paris Room in Chagrin Falls Young Entrepreneur Institute at The impact. It’s changing children’s University School? lives. A lot of my friends say I should Favorite movie No, I’ll remain director there. And while be teaching college, but college kids “The Man Who Would Be King” it’s basically at University School, 98% don’t have the same relationship of what I do has nothing to do with with teachers as high school, middle Favorite music event University School — but University school and elementary school kids. Paris Jazz Festival in France School provides us with parking, office You can really change the trajectory and all kinds of services. They also of somebody’s life in a really Favorite local park provide us with a 501(c)3 designation. profound way at that age, and I want Cuyahoga Valley National Park to have impact on kids. You already reach more kids than are at University School then. Why do you think kids need to How many? learn about entrepreneurs? We work with 300 or 400 schools, Entrepreneurship is a vehicle to and reach about 10,000 students in teach resilience and grit. It’s a great Northeast Ohio every year. way to teach overcoming failure. That’s why I also like sports. When I How is that possible? first got into this, I was skeptical We focus on teaching the teachers, about middle school and high so those 10,000 kids were primarily schools. I thought that there’s too taught by teachers that we taught … much emphasis on sports. … But That leverage model, that’s how we sports do a great job of teaching can reach so many kids. how to overcome failure — you lose all the time in sports — as well as You obviously think education is teaching teamwork and leadership. important. Where did you go to college? What about schools generally: MIT. But I don’t think I could get in What can they do better? today (chuckles). School, in my opinion, doesn’t reward many of the skills that make you Any advice for kids and parents successful in life. In school, there’s a picking a college? test with an answer you’re looking Lunch spot Parents ask me what college a kid for. But failure in school is should go to, but I say there’s no catastrophic. That’s not a good way Panera Bread correlation to the college you go to to teach failure. … Another thing I 6130 Kruse Drive, Solon and happiness in life. … You can go to don’t think schools are very good at www.panerabread.com Harvard and still be unhappy and is teaching risk management. Life is unsuccessful. There’s no correlation. all about risk and reward. If you take The meal It’s what you do with it. a risk and it doesn’t work out, do you One had a four-cheese grilled cheese never take a risk again? sandwich and a Pellegrino water, the You have a degree in chemical other had a large iced tea/lemonade. engineering, but you didn’t Why do you do this?

become a chemical engineer. Why? I’m a big believer in capitalism. I say that Volume 39, Number 34 Crain’s Cleveland Business The vibe My dad. He was a chemical engineer I’m a preacher for the gospel of (ISSN 0197-2375) is published weekly at 700 West Need you ask? Panera is everywhere and I wanted to be like him … but I capitalism. Most schools don’t do a very St. Clair Ave., Suite 310, Cleveland, OH 44113- 1230. Copyright © 2018 by Crain Communications and the Solon store is fairly typical hated it, hated it. Boring, buried in good job of teaching capitalism. … Inc. Periodicals postage paid at Cleveland, Ohio, and — generally busy, full of a diverse smelly stuff, it was horrible and it Much of what kids learn in school is 700 W. St. Clair Ave., Suite 310, at additional mailing offices. Price per copy: $2.00. Cleveland, OH 44113 mix of people from business types just wasn’t interesting to me. negative about capitalism. It has Phone: 216-522-1383; www.crainscleveland.com POSTMASTER: Send address changes to Crain’s on laptops to parents herding kids serious faults, but it has been the most Cleveland Business, Circulation Department, 1155 Reprints: Laura Picariello ; (732) 723-0569 Gratiot Avenue, Detroit, Michigan 48207-2912. and teens gathering for lunch. But it still helped you? successful system we’ve come up with Customer service and subscriptions: 877-824-9373 1-877-824-9373.

It helped me, because chemical so far. Our children are going to grow up Subscriptions: In Ohio: 1 year - $64, 2 year - $110. Outside Ohio: 1 year - $110, 2 year - $195. Single copy, $2.00. Allow 4 weeks The bill engineering is very much about the in a capitalistic society. They need to for change of address. For subscription information and delivery concerns send correspondence to Audience Development Department, Crain’s Cleveland Business, 1155 Gratiot Avenue, Detroit, Michigan, 48207-9911, or email to customerservice@ $13.27, plus tip design of chemical plants, which is understand how that works. crainscleveland.com, or call 877-824-9373 (in the U.S. and Canada) or (313) 446-0450 (all other locations), or fax 313-446-6777.

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