Can Ceos Be Super Heroes? Do We Expect Too Much from the Boss?
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EXECUTIVE SUMMARY Can CEOs Be Super Heroes? Do We Expect Too Much from the Boss? New York Stock Exchange | June 4 - 5, 2013 PRESENTING SPONSORS Deloitte IBM Korn/Ferry International PepsiCo UPS CNBC NYSE Euronext Yale CEO Summit June 4-5, 2013 | New York Stock Exchange Can CEOs Be Super Heroes? Do We Expect Too Much from the Boss? Table of Contents Key Themes from June 2013 CEO Summit 2 Covering the Map: How Much of the Globe to Visit — How to Have Impact When in Town 7 PaNEliSTS Michael a. leven, President & COO, las Vegas Sands Corporation Gen. Peter Chiarelli (Ret.), 32nd Vice Chief of Staff, U.S. armY , Chairman & CEO, Rockwood Holdings Francisco luzón, Former Executive Vice President, Banco Santander Michael H. Posner, assistant Secretary of State (2009-2013) Patricia F. Russo, Former CEO, alcatel-lucent Tom Tait, MaYor, City of anaheim, California lynn Tilton, CEO, Patriarch Partners Keith E. Williams, President & CEO, Underwriters laboratories R. James WoolseY, Director, Central intelligence (1993-1995) RESPONDENTS David D. Blakemore, Business President, The Dow Chemical CompanY Brian G. Bowler, Retired ambassador to the United Nations, Republic of Malawi Wendy Hayler, Vice President Global aviation SecuritY, UPS Simon C. Hemus, President & COO, Tupperware Brands Dave Muscatel, CEO, Rand McNally S. Prakas Sethi, Professor, Baruch College/CUNY Bruce SpeechleY, Travel & Transportation Services leader, iBM The CEO as Statesman: Your Voice in Public Policy 10 PaNEliSTS ashton B. Carter, Deputy Secretary of Defense Richard J. Berry, MaYor, City of albuquerque, New Mexico William H. Donaldson, 27th Chairman, U.S. Securities and Exchange Commission R. David Edelman, Senior advisor for internet, innovation & Privacy, The White House Richard B. HoeY, Chief Economist, BNY Mellon Robert D. Hormats, U.S. Under Secretary of State Stuart a. Miller, President & CEO, lennar Corporation Duncan Niederauer J. Stapleton RoY, Former U.S. ambassador to China, Singapore, and indonesia David M. Walker, 7th Comptroller General of the U.S. Robert Wolf, Former Chairman, UBS americas RESPONDENTS Zhiwu Chen, Yale School of Management Zack Cooper, Yale UniversitY Joele Frank, Managing Partner, Joele Frank, Wilkinson Brimmer Katcher Harry Greenspun, Senior advisor, Health Care Transformation, Deloitte Center for Health Solutions Christopher ShaYs, Member of Congress (1987-2009), State of Connecticut 2 The Time Needed for Innovation and Impact: Enough Rope to Climb Out, or for a Hanging? 12 PaNEliSTS John C. Bogle, Founder, The Vanguard Group Walter W. Buckley iii, Chairman & CEO, iCG Peter J. Devlin, President, Fish & Richardson Robert E. Diamond Jr., Former President & CEO, BarclaYs PlC Sean J. Egan, Managing Director, Egan-Jones Ratings Co. Jim GraY, MaYor, City of lexington, KentuckY Fred Hassan, Chairman, avon Products Stephen W. Hasselmann, North america Strategy leader, iBM Michael F. Holland, Chairman, Holland & CompanY Ray lane, Former Chairman, Hewlett-Packard Company; Managing Partner, Kleiner Perkins Nell Minow, Co-Founder, GMi Ratings Gary P. Naftalis, Partner and Firm Co-Chair, Kramer levin Naftalis & Frankel William R. Nuti, Chairman & CEO, NCR Corporation Jed S. Rakoff, Judge, Southern District of New York, U.S. District Court Benjamin a. Walter, CEO, Hiscox USa RESPONDENTS ardeshir Contractor, CEO, Kiran Energy Debra Crew, President, americas Beverages, PepsiCo John H. Eyler, Former Chairman & CEO, ToYs “R” Us Frederick Frank, Vice Chairman, Burrill & CompanY Harvey J. Goldschmid, Commissioner (2002-2005), U.S. Securities & Exchange Commission Jonathan R. MaceY, Professor of Corporate law, Yale law School Steve Papa, Founder, Endeca William D. Perez, Former President & CEO, Wm. Wrigley Jr. CompanY Building Up or Breaking Up: When Is Bigger Better; When is Smaller Beautiful? 14 PaNEliSTS Stephen a. Schwarzman, Chairman & CEO, The Blackstone Group Thomas W. Horton, Chairman & CEO, american airlines John J. legere, President & CEO, T-Mobile USa Steve Miller, Chairman, aiG Todd R. Peters, CEO, GENCO Nicholas T. Pinchuk, Chairman, President & CEO, Snap-on incorporated Garry O. Ridge, President & CEO, WD-40 CompanY Frederick O. Terrell, Vice Chairman, Credit Suisse RESPONDENTS Edward J. De la Rosa, President, De la Rosa & CompanY William H. Fuessler, Financial Services Strategy & Transformation leader, iBM Barry M. Gosin, CEO, Newmark Grubb Knight Frank William P. Putsis, Professor, Kenan-Flagler Business School, University of North Carolina John a. Quelch, Professor, Harvard Business School Mary C. Tanner, Senior Managing Director, Burrill & CompanY 3 Staying Current on Customers and Your Business While Living Your Life: What to Read; When to Breathe? 17 PaNEliSTS James D. Wolfensohn, President 1995-2005, World Bank Group Saul J. Berman, Global Strategy Consulting leader, iBM Kelly Evans, Co-anchor, Squawk on the Street, CNBC Greg Fischer, MaYor, City of louisville, KentuckY Steven H. Grapstein, CEO, a/X armani Exchange Sly James, MaYor, City of Kansas CitY, Missouri Joseph J. lhota, Former Chairman & CEO, Metropolitan Transportation authority (MTa) Mark Penn, Corporate Vice President, Microsoft Corporation; Former CEO, Burson-Marsteller Carl Quintanilla, Co-anchor, Squawk on the Street, CNBC Stephanie Rawlings-Blake, MaYor, City of Baltimore, Maryland Robert B. Simonds, Film Producer, The Robert Simonds CompanY Scott Smith, MaYor, City of Mesa, arizona RESPONDENTS Elisabeth DeMarse, Chairman, President & CEO, TheStreet, inc. James S. Denton, Publisher & Editor, World affairs Stephen a. GreYser, Harvard Business School Thomas a. Kolditz, Professor, Yale School of Management Renée Mauborgne, Professor & Distinguished Fellow, iNSEaD David W. Miller, Director, Faith & Work initiative, Princeton UniversitY Dan Raviv, National Correspondent, CBS Radio Legend in Leadership Award: James D. Wolfensohn, President 1995-2005, World Bank 20 PRESENTER William H. Donaldson, 27th Chairman, U.S. Securities and Exchange Commission 4 Yale CEO Summit June 4-5, 2013 | New York Stock Exchange Can CEOs Be Super Heroes? Do We Expect Too Much from the Boss? Key Themes from June 2013 CEO Summit The 72nd Yale CEO Leadership Summit, held on June 5 and 6, 2013, brought together business executives, federal government officials, mayors, investors, academ- ics, and heads of nonprofits and was led by Yale professor Jeffrey Sonnenfeld, the founder and president of the Chief Executive Leadership Institute. This Summit dealt with a wide range of topics including how companies decide which countries to enter, how CEOs and companies have their voices heard in the public debate, the similarities and differences between public officials and CEOs, how boards measure CEO performance, whether CEOs are heroes—and much more. The stage of the industry in a particular market. The understanding of the local market, including the culture. The skills, cost, and productivity of the workforce. The proximity of customers and the importance of being located near customers. The ability to form positive, stable, long-term relationships with unions and government. Also, whether the government would provide support, such as infrastructure and tax relief, or if the government might prove a barrier. The amount of innovation possible in a given market, due to the education and creativity of the workforce and the ability to Edward SnYder and Jeffrey Sonnenfeld protect IP. Companies see opportunities in markets across the globe, and use numerous criteria in deciding which While often challenging and frustrating, it is opportunities to pursue. important that business make its voice heard in Despite the relatively slow growth of the U.S. economy, many CEOs Washington, D.C. remain bullish on the U.S. and are investing in America. Reasons Participants expressed frustration with legislation and regulation, include relative stability, a generally business-friendly environment mentioning Dodd-Frank and the Affordable Care Act, which are seen (compared to many other countries), proximity to established cus- as imposing significant costs on business. Some criticized President tomers, prospects for future growth, a large and affluent population, Obama for acting like a legislator, not a leader, or for being the CEO protection of intellectual property, and an ability to form positive of just one party, not the nation. While a few participants defended relationships with state and local leaders. Also, the ideas of “national the president’s leadership and economic policies, others see the coun- interest” and revitalizing the manufacturing sector evoke passions. try’s slow but ongoing recovery as taking place despite these policies, Beyond the U.S., some business leaders see opportunities in Western not because of them. (Mayors noted that elected officials are not Europe, with Germany and Spain mentioned. For particular indus- CEOs; they cannot make unilateral decisions and cannot fire those tries and opportunities, these countries have workers with the req- who disagree with them. Elected officials must work collaboratively uisite skills, and those pursuing opportunities in these markets have with multiple stakeholders to build support, which is very differ- had positive experiences building relationships with unions and the ent from the role of a CEO. Several mayors encouraged the CEOs government. (Other participants were less positive about conditions in attendance to serve at some point as an elected official, which is in Europe, citing often inflexible unions and governments.) extremely difficult but highly