CEO Caucus September 23, 2020

KEYEXECUT THEMESIVE S SUMMARYUMMARY

EXECUTIVE SUMMARY

EconomicEconomic Rejuvenation:Rejuvenation: SafelySafely BringingBringing CorporationsCorporations andand CommunitiesCommunities outout ofof COVIDCOVID CavesCaves

VirtualVirtual Caucus Caucus || SeptemberSeptember 23,23, 20202020

PRESENTING SPONSORS The Lowdown on Showdowns: Piloting around Partisan Divides in Immigration, Infrastructure, and Industry

Washington, DC | March 13, 2018

PRESENTING SPONSORS KEY THEMES SUMMARY VIRTUAL Yale CEO Caucus September 23, 2020

Agenda

Welcome & Overview

Jeffrey A. Sonnenfeld, Senior Associate Dean for Leadership Studies, Yale School of Management

Navigating a New Map for Global Diplomacy & Trade

Robert Lighthizer, United States Trade Representative Introduction by: David P. Abney, Executive Chairman, UPS RESPONSES David P. Abney, Executive Chairman, UPS Richard Adkerson, Vice Chairman, President & CEO, Freeport-McMoRan Arvind Krishna, Chief Executive Officer, IBM Corporation Doug Parker, Chairman & CEO, American Airlines Group Maurice R. Greenberg, Chairman & CEO, CV Starr & Co. Neal Froneman, Chief Executive Officer, Sibanye-Stillwater David M. Cote, Retired Chairman & CEO, Honeywell International Mary T. Barra, Chair & CEO, General Motors Company D. James Umpleby III, Chairman & CEO, Caterpillar Mark A. Weinberger, Former Global Chairman & CEO, EY Carla Hills, US Trade Representative (1989-1993); 5th US Secretary of Housing & Urban Development J. Stapleton Roy, 5th US Ambassador to China John Negroponte, US Deputy Secretaty of State (2007-2009); US Ambassador to the UN (2001-2004) Nicholas T. Pinchuk, Chairman & CEO, Snap-on Incorporated Matthew S. Levatich, Former President & CEO, Harley-Davidson Inc. Tamara L. Lundgren, President & CEO, Schnitzer Steel Industries John Visentin, Vice Chairman & CEO, Xerox Holdings Corporation Joel Szabat, Under Secretary for Transportation Policy, US Department of Transportation Eddie Tam, Chief Executive Officer, Central Asset Investments R. Adam Norwitt, President & CEO, Amphenol Corporation Hugh T. Dugan, Special Assistant to the President, The National Security Council

Jared Kushner, Senior Advisor, The White House Introduction by: Stephen A. Schwarzman, Co-Founder, Chairman & CEO, Blackstone RESPONSES Arne M. Sorenson, President & CEO, Marriott International Kevin Sneader, Global Managing Partner, McKinsey & Company Albert Bourla, Chairman & CEO, Pfizer Alex Gorksy, Chairman & CEO, Johnson & Johnson Stefano Pessina, Executive Vice Chairman, Walgreens Boots Alliance Peter Orszag, CEO, Financial Advisory, Lazard; Former Director, US Office of Management and Budget James R. Clapper, Director (2010-2017), US National Intelligence Joel N. Myers, Chairman & President, AccuWeather A. Muskfiq Mobarak, Professor of Economics, Yale University James H. Rosen, President & CEO, Artizan Biosciences David J. Shulkin, 9th Secretary, US Department of Veterans Affairs Rich Lesser, President & CEO, Boston Consulting Group Sten H. Vermund, Dean, School of Public Health, Yale University

Navigating This Fall Domestically: Just When You Thought It Was Safe to Come Out. Is It?

Richard W. Edelman, Chief Executive Officer, Edelman Kyle Dropp, Co-Founder, Morning Consult Sara Eisen, Co-Anchor, CNBC Jerry Greenfield, Co-Founder, Ben & Jerry’s Homemade Richard J. Kramer, Chairman, President & CEO, The Goodyear Tire & Rubber Company Margaret Keane, Chief Executive Officer, Synchrony James P. Keane, President & CEO, Steelcase Stuart A. Miller, Executive Chairman, Lennar Corporation Jonathan Greenblatt, CEO & National Director, Anti-Defamation League David H. McCormick, Chief Executive Officer, Bridgewater Associates Bob Diamond, Founder & CEO, Atlas Merchant Capital Jeffrey M. Solomon, Chairman & CEO, Cowen Inc. Anthony Scaramucci, Founder & Co-Managing Partner, SkyBridge Capital Thomas A. James, Chairman Emeritus, Raymond James Financial Harold L. Yoh III, Chairman & CEO, Day & Zimmermann Ivan G. Seidenberg, Retired Chairman & CEO, Verizon Communications Sarah K. Williamson, Chief Executive Officer, FCLT Global James F. McCann, Founder & Chairman, 1-800-Flowers.com Helena Foulkes, Former Chief Executive Officer, Hudson’s Bay Company Kay Koplovitz, Founder, USA Networks; Managing Partner, Springboard Growth Capital Mark Fields, Former President & CEO, Ford Motor Company Paul Polman, Co-Founder & Chair, Imagine; Retired CEO, Unilever PLC Maria Pope, President & CEO, Portland General Electric Maggie Wilderotter, Chair & CEO, Grand Reserve Inn Steve Case, Chairman & CEO, Revolution; Founder & Former CEO, America Online (AOL) Thomas J. Quinlan III, Chairman, President & CEO, LSC Communications Richard H. Pildes, Professor of Constitutional Law, New York University

Legend in Leadership Award: Arne M. Sorenson, President & CEO, Marriott International

PRESENTATION Virginia M. Rometty, Executive Chair, IBM Corporation Alex Gorsky, Chairman & CEO, Johnson & Johnson Adam M. Aron, President & CEO, AMC Entertainment

Economic Rejuvenation: Safely Bringing Corporations and Communities out of COVID Caves

On September 23, 2020, the Chief Executive Leadership Institute held its first ever virtual CEO Caucus. Yale Professor Jeff Sonnenfeld led discussions among CEOs, policymakers, academics, and other thought leaders about international trade and diplomacy, the response to the COVID-19 pandemic, and the role of business in addressing systemic racism. The Legend in Leadership Award was bestowed upon Arne Sorenson, President and CEO of Marriott International.

In the upcoming presidential election, CELI participants According to Lighthizer, Trump wants a certain type of country and overwhelming prefer Joe Biden. communities where families stay together, where children are proud of their parents for their work, and where parents have confidence and In a real-time poll of CELI participants, 77% plan to vote for Joe hope their children will do even better than them. This vision leads to Biden in the upcoming presidential election, with 62% believing that a set of economic policies and trade policies that put America and its Biden will win the election. workers first, even if that slightly increases inefficiency and costs.

Donald Joe Lighthizer sees this vision coming to fruition through: Survey Question Trump Biden • The USMCA (US-Mexico-Canada Agreement), which affects $1.3 trillion in trade and is moving forward with implementation. It is a Who will you be voting for in the presidential 23% 77% step forward for American workers and farmers. election? The China Phase 1 deal, which has several parts, including areas Who do you think will win the presidential 38% 62% • of tech transfer, intellectual property, and financial services, and election? includes purchasing requirements. • A deal with Japan focused largely on agriculture and digital trade. The Trump administration has very different trade • A deal with South Korea that is being worked on. objectives and policies. Lighthizer asserted that the administration’s economic and trade United States Trade Representative policies have succeeded. Robert Lighthizer explained that Manufacturing jobs had increased by 500,000 through February of historically, US trade policy has been • 2020. driven by traditional economic ideas of free trade, efficiency, and lower • The median income for 2019 rose by 6.8%, representing more than prices for consumers. He termed $6,000 for many workers. these ideas “a noble ambition” but • The US trade deficit had declined in four of the previous five said that President Trump has a very quarters. Robert Lighthizer, United States Trade different philosophy regarding the Representative objectives of trade. • 75% of large companies are thinking about moving some of their operations out of China.

“We have changed the way we think Survey Question Yes No about trade, the way we think about its effect on working class people.” Our business has suffered from the US-China 61% 39% trade war and other Trump trade policies. ——Robert Lighthizer, US Trade Representative Have US-China trade tensions weakened 88% 12% CEOs commended the Trump administration on the USMCA and business confidence? agreed that the World Trade Organization (WTO) is broken and in Has the Phase One US-China trade deal positively 21% 79% need of repair. But participants challenged the administration on the impacted your business? importance of free global trade and on the need for increased focus on digital trade and US competitiveness in technology and the industries Do you, as a business leader, understand where 6% 94% of the future. we are regarding a possible Phase 2 US-China trade deal and the future outlook for US-China relations?

Do you believe protectionist trade policies are 43% 57% effective in addressing challenges such as intellectual property theft, forced technology transfer, and unfair competitive practices?

The outlook for US-China relations is worse as a 78% 22% result of Trump administration policies.

D. James Umpleby III, Chairman & Arvind Krishna, Chief Executive Officer, CEO, Caterpillar IBM Corporation In addition to the trade war with China, US policy under the Trump administration has closed the country’s doors to immigrants. This has A former long-term diplomat said the idea of “Put America first” is hindered the flow of creative, talented people to America’s universi- nothing new, as every American diplomat has always put American ties and companies, which could have a detrimental long-term impact interests first, as foreign diplomats do for their country. However, on the US economy. Talented immigrants, who have started numer- this individual argued that the current administration is falling short ous companies in the US such as Google and Tesla, are likely to take by not working cooperatively with other countries and not joining to- their talents to other countries where they are more welcome. gether on common interests, such as climate change and North Korea. Lighthizer acknowledged that in changing the paradigm for trade Progress in the Middle East holds great potential for policy there will undoubtedly be some tension along the way, but sees regional economic development. this as part of the process and believes the results are positive. In Israel’s first 72 years the country entered into two peace agreements—with Egypt and Jordan. Then, over a period of 29 days the Americans want strong action against China, but country had two more agreements, with the UAE and Bahrain, with busines leaders don’t agree with the action taken. others likely to follow in the near future. These achievements were led Mark Penn shared data showing that 53% of Americans see China as by Jared Kushner, based on a business plan he developed. This plan, an enemy and 70% believe that China is creating global tensions and which aims to improve the lives of instability. Many Americans believe that China is primarily respon- Palestinians, intends to create one sible for the coronavirus pandemic (60%), the US-China trade war million new jobs, double the GDP in (46%), the crackdown on free speech in Hong Kong (67%), and hu- Palestine, and reduce the poverty rate man rights abuses among Muslim Uighur minorities in China (60%). by 15%. Kyle Dropp of polling company Morning Consult said these views Success to date has been based on of China are not limited to Americans, as citizens in most countries thinking differently, taking risks, around the world hold a negative view of China. finding common interests, and Jared Kushner, Senior Advisor, The White Caucus participants share this criticism of China, with 62% say- bringing together the right people in House ing their business has suffered due to unfair Chinese competitive the region. practices. In response, a majority of Americans want the US government to “There are still governance and hold China accountable through diplomatic actions and economic security issues, but there are a very sanctions. However, the majority of CEO Summit participants are not ambitious set of leaders right now fans of the approach taken by the Trump administration or the results who want to bring new hope for their that have been achieved. Most say that businesses have suffered from people . . . hopefully there’s much the US-China trade war and Trump trade policies, believe the future more to come.” outlook is worse, don’t support protectionist policies, and don’t un- ——Jared Kushner, Senior Advisor, The White House derstand the status of a possible Phase 2 trade deal.

A conference in Bahrain that at- In contrast to the government, the private sector has stepped up and tracted business leaders and investors moved incredibly quickly, with impressive results. Albert Bourla, from Israel, Arab countries, the US, CEO of Pfizer, said, “It is a question of when, rather than a ques- and around the world has helped tion of if, we will have a vaccine.” He is hopeful that Pfizer’s vaccine build momentum and support for candidate, for which about 34,000 people have already been enrolled the plan and is likely to produce in a phase 3 study, will yield results before the end of October, though considerable investment. This mo- approval and distribution will obviously take longer. mentum is occurring despite 63% of Stephen A. Schwarzman, Co-Founder, Chairman & CEO, Blackstone Caucus participants believing that new diplomatic accords have not received the attention they deserve.

“This region . . . could actually be the greatest emerging market if there was peace and stability . . . Albert Bourla, Chairman & CEO, Pfizer Alex Gorsky, CEO, Johnson & Johnson there is a huge opportunity to invest and particularly “Biology got us here and it’s going to take to invest in the women and Dina Powell McCormick, Member of the biology, great chemistry, great engineering Management Committee, Goldman Sachs young of the region.” to get us out. I’m very proud of the way the ——Dina Powell McCormick, Member of the [pharmaceutical] industry has responded.” Management Committee, Goldman Sachs ——Alex Gorsky, CEO, Johnson & Johnson

While business leaders are disappointed with the As Sten Vermund, Dean of the School of Public Health at Yale, government’s response to the pandemic, the private shared, there are currently: sector—particularly pharma—has stepped up. • 487 drugs in preclinical studies, with 37 in phase 1, 67 in phase 2, As of the Caucus, more than 200,000 people in the US had died from and 22 in phase 3 trials. COVID-19, making it the third leading cause of death in 2020, after 92 vaccines in preclinical development, with 26 in phase 1, 14 in only heart disease and cancer. Caucus participants don’t believe that • phase 2, and 10 in phase 3. these results and the damage to businesses were inevitable. They rate President Trump poorly for his response to the COVID crisis and A year from now we will be in a very different place in terms of vac- believe his poor response and that of the US government have cost cines and treatments. Until then, we are dependent on classic public lives and hurt businesses. health measures of masks and handwashing.

Survey Question Grade % “I’ve never seen activity in both the public and private sectors for drug development and A/A+ 6% vaccine development that I’ve seen here.” B/B+ 9% President Trump said that he deserves an ——Sten H. Vermund, Dean, School of Public Health, Yale University A+ for his leadership through the COVID C/C+ 18% crisis. What grade would you give him? D/D+ 12% The speed of the pharmaceutical industry is a result of significant long-term investments, an ongoing focus on safety and efficacy, and F 55% partnership among companies and between companies and entities such as the CDC, FDA, and NIH.

Survey Question Yes No The partnership is seen through a joint pledge among multiple pharmaceutical companies emphasizing their commitment to conduct Is the US performing worse than other industrialized 84% 16% the necessary scientific studies nations in battling and containing COVID? thoroughly, completely, and safely. Could the 200,000 deaths in the US have been far 86% 14% This unprecedented joint statement less with a more vigorous government response? was issued to avoid politicization of the vaccine development process and On balance, has the Trump administration’s 84% 16% to ensure public trust in the process. response to the COVID 19 crisis hurt your business? This was necessary in part because there has been a dramatic decline in David J. Shulkin, 9th Secretary, US the trust of public officials, confusion Department of Veterans Affairs

among the messages from public health officials, and a significant Businesses have a critical role to play in addressing increase (about 15 percentage points) in the reputation of the top systemic racism. pharmaceutical companies. Data shared by Richard Edelman highlights current attitudes toward In April 2020, about 75% of people said they would get a COVID-19 race and the view of government and business. There is growing vaccine but currently fewer than 50% say they would do so. Current support among the public for protests and for Black Lives Matter. polls from Morning Consult show that the percentage of Democrats There is tremendous disappointment in government, with only 36% and Republicans who would not get a vaccine is now equal and only of individuals believing that government is ever going to do anything. 31% of Black adults would get a vaccine. There is a higher expectation (52%) that business will take action but there is a substantial gap in what people expect from business and Clearly, when an FDA-approved vaccine becomes available, com- what business is seen as delivering. munication, education, and outreach will be necessary, especially from trusted sources like doctors, with a consistent message. It may Currently, most individuals (71%) trust their own employer to also be necessary to get buy-in from regulators in foreign countries, respond to racism. When companies speak up about racism and such as Germany, which are seen by many as more credible than US take some type of action, they experience a tremendous gain in trust regulators. And, businesses have an important role to play in educat- among all populations, especially Black Americans. ing employees about the importance of getting vaccinated as part of The power of business was shown through the Stop Hate for Profit making society healthy. campaign, organized this past summer by the ADL in conjunction with The speed of response is not limited NAACP and several other organizations. The goal was to get Facebook to the pharmaceutical industry. and other social media platforms to stand up against racist content. Over General Motors’ experience in mov- 1,100 of the world’s most prominent brands participated in this effort. ing quickly to manufacture 30,000 ventilators—using its capabili- “There’s an interesting ties and those of its suppliers—is conversation to have about reflective of the rapid response of the role of the private countless American manufacturing Mary T. Barra, Chair & CEO, General sector and businesses . . . Motors Company companies. in pushing these social media companies to abide by the same standards of decency that are expected of all other businesses today, particularly in the media space.” ——Jonathan Greenblatt, CEO and National Director, Anti-Defamation League

LEGEND IN LEADERSHIP AWARD Arne M. Sorenson, President & CEO, Marriott International Virginia Rometty, Alex Gorsky, and Adam Aron saluted Legend in Leadership Award recipient Arne Sorenson, President and CEO of Marriott International. Arne was recognized for his tremendous business results at the helm of Marriott as well as for the acquisition of Starwood Hotels and Resorts. But beyond his business results, those who know Arne well commend him for his character, authenticity, values, inspiration, humility, people skills, and leadership. He is a great listener and has perpetuated a culture at Marriott of teamwork, collaboration, and deep respect. In accepting this award, Arne noted that business is at an important cross- roads. Society has little faith in other institutions and has high expectations for business to solve problems. It is a time when businesses need to have Arne M. Sorenson, President & CEO, Marriott International purpose and transparency, and must treat employees and customers with respect each day.