CONUNDRUM COVID Fective COVID-19 Vaccine

donors aimat Justice Kilbride, graduated income tax Madigan spendsto enhance hispower; Republican Illinois politicalspending Here’s thestorybehind o thestate’s Supreme Court. Bil- income taxandknock aDemocrat ing e to defeat orts thegraduated Republican megadonors are fund- the Illinois House. Meanwhile, ready voting enormous in edge in abidto enlarge hisparty’s al- ing millionsinto legislative races broker Michael Madigan ispour- sides oftheaisle.both ofbig-moneyplayerspriorities on a trail of campaign cash maps the businesses biggest minority-owned CRAIN’S LIST Longtime DemocraticLongtime power Heading into Tuesday’s election, VOL. 43,NO.44 NEWSPAPER l BY A.D.BY QUIG . : PAGE Chicago’s 8 l ALL RIGHTSRESERVED l l COPYRIGHT2020CRAINCOMMUNICATIONSINC. Democratic kingmaker. not angling to usurp thespeaker as House races to Madigan shows he’s ment. Pritzker’s to leave decision his leadership ifheescapes indict- threat ofaninternal challenge to Democratic legislators reduces the him. Piling upmore IOUs from prosecutors appear circling to be hispower,boost even asfederal April 1to pass the“fairtax.” while spending $51.5millionsince ly keeping out oflegislative races, lionaire Gov. J.B. islarge- Pritzker Conservatives’ onoust- focus Speaker Madigan’s could money EQUITY: First specialsection: upinournew The businesscasefor diversity. CHICAGOBUSINESS.COM protect from themselves abig tax cle. donors to Better for GOP es asabad investment thiscy- legislative see rac-gests they the graduated income tax sug- omas Kilbrideand blocking ing Illinois Supreme Justice Court Michael Madigan Michael See See 40 UNDER NEXT WEEK: SPENDING | NOVEMBER 2,2020| NOVEMBER | CLASS OF THE 2020 COMING on Page 13 CONUNDRUM COVID fective COVID-19 vaccine. as anairtight supply chain—not to mention asafe andef- tion among numerous public and private entities, aswell facturers to people’s require will arms precise coordina- tion against COVID-19. But getting the shots from manu- lenge inthemidst ofapublic health crisis. 10 millionpeople? Is Illinoisprepared to vaccinate ILLINOIS IS GEARING UP ofsuch avaccination andscope urgency ecomplexity, issimple: egoal vaccinate 80percent ofthepopula-

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BLOOMBERG 2 NOVEMBER 2, 2020 • CRAIN’S CHICAGO BUSINESS Much is at stake up and down the Cook County ballot ome elections are about is- right-leaning Supreme Court terribly shattered and paranoid sues. Others are about per- judges, a shake-it-all-up attitude country together for the next Ssonalities, war and peace or that oozes out of every presiden- four years? Donald Trump or Joe some other big subject. tial pore. Biden? GREG HINZ This election is about some- If you’re a Democrat, you The same question of what ON POLITICS thing more basic and funda- point to a horrid mishandling kind of place we want to live in BY GREG HINZ mental: Who we are. What kind of the COVID-19 pandemic that also is on the ballot in the state’s of country, state and city do we has hobbled the economy, utter key race: whether to adopt or want to live in when the last vote disdain for curbing climate reject the proposed graduated Illinois already lived through crime and repeat violent offend- is counted? (Hopefully sooner change and the enormous debts income tax amendment. four years of crisis under former ers,” making neighborhoods rather than later.) those big tax cuts have left As I wrote a couple of weeks Gov. Bruce Rauner. Is that where unsafe, asserted Democratic Let me start with the office behind. ago, the campaign around this we want to live again? Committeeman and 42nd Ward we’re all voting on, whether Reasonable people can issue has been butt-ugly, filled Finally, the race for Cook Ald. Brendan Reilly in endorsing you live in Chicago or Oak Park, disagree about all of those— with distortions and misleading County state’s attorney. GOP candidate Pat O’Brien. and come up with twists. Foes make a credible We all want to live in a safe But I’m not totally convinced THIS ELECTION IS ABOUT SOMETHING workable solutions. argument against the proposal community, one in which you that electing O’Brien wouldn’t All-or-nothing stances when they assert that only its re- and yours can be safe at night represent a big step back to the MORE BASIC AND FUNDAMENTAL: are good in hockey jection will create the fiscal cri- wherever you are. We all also past. For instance, accepting championships, not sis needed to force lawmakers to want to live in a place where the a big campaign donation and WHO WE ARE. governance. But those slash unaffordable government law is truly colorblind, a place major help from the Fraternal workable solutions worker pensions and confront where police are respected and Order of Police comes with Matteson or Wheaton. That’s the will come about only if those political corruption. not feared by those they are baggage, lots of it. Whether presidency, where the vote, as involved are reasonable, only if But will it? Or will rejection sworn to protect. The question is O’Brien wants to admit it or not, is usual in such instances, has they’re willing to look beyond merely deny the state what it how to get there. FOP never saw an abusive cop turned into a referendum on the their own party and their own should have had long ago—a Incumbent Kim Foxx at times who needed more than a little incumbent. ego and get everyone talking more equitable tax system— seems more social worker than counseling or a law enforcement If you’re a conservative, you about a way out. while leading the Legislature to prosecutor. In her drive to keep problem that couldn’t be solved probably like much of what That’s the core issue in this instead hike the current flat tax minor offenders out of jail and by more arrests. Donald Trump has accom- presidential contest. Ask your- to a higher level next year. to not incarcerate a poor person Which of these contenders plished, even if you don’t like self a simple question: Who do I’ve never been much of a fan just because they’re poor, she’s will come closest to making this him: lower taxes and fewer you trust more, when the votes of governing by political crisis. “fail(ed) to aggressively and a better place to live? That’s the regulations, a new batch of are counted, to try to bring a Too many things can go wrong. consistently prosecute gun question for voters. What’s Griffin’s endgame in push against ‘fair tax’? hicago billionaire Ken Grif- who report making over a mil- income, of course. n has spent $53.75 million lion dollars a year. At that point, Gri n recently unleashed a rhe- to convince Illinoisans the entire tax bill is taxed at 7.99 torical fusillade on the “spineless” BY RICH MILLER Cto reject a proposed graduated percent. But those folks are not Pritzker in an internal memo to his RICH MILLER income tax this year. exactly hurting. employees, deriding Pritzker for Illinois currently has a at in- Gri n’s two publicly issued his inherited fortune and being a ON SPRINGFIELD come tax. Everyone pays the same statements since contributing his “shameless master of personal tax rate, rich or poor. Gov. J.B. Pritzker money mentioned outmigration avoidance.” at’s in the Pritzker campaigned heavily on increasing as one reason to be opposed to the family genes, by the way. ey’ve suer signicant political damage. So many questions, so few taxes on upper-income voters and new tax system, but most people long been infamous for coming up And being forced to raise taxes on answers. followed through by convincing who leave Illinois are not in the with ways to avoid paying taxes. everyone or make deep spending the General Assembly to put a upper brackets. ere’s no doubt that if the grad- cuts would only compound that Crain’s contributor Rich Miller constitutional amendment on the One of his statements and uated income tax doesn’t succeed damage. Is Gri n trying to weak- publishes Capitol Fax and Capitol- ballot. e billionaire Democrat several of the ads he’s funding at the ballot box then Pritzker will en the governor ahead of 2022? Fax.com. has since spent $56.5 million of talk about how more people will his own money to promote the eventually pay higher rates in the change. future. at could very well be. Pritzker is regularly asked about But I don’t know for sure, and his proposal, but aside from a neither does Gri n. couple of public statements, Grif- I really wanted to ask him about n has been quiet. So, I’ve been his endgame, though. asking for an interview for weeks, Gri n backed Gov. Bruce Raun- but to no avail. er to the hilt. Rauner’s plan was to At Wintrust, your banker knows you. Gri n’s apparently willing to let create a massive crisis in order to the ads he’s paying for speak for force serious structural change. themselves. So, is Gri n now trying to create Someone picks up the phone… a new crisis by shut- ASIDE FROM A COUPLE OF PUBLIC ting o a revenue stream? Is this a way whenever you call. STATEMENTS, GRIFFIN HAS BEEN QUIET. to starve the budget in order to force the Many of those ads feature Democratic-controlled General business owners fretting that they Assembly to address some sort of can’t aord a tax hike, especially new pension reforms? now during the economic devas- Always look at self-interest tation caused by the pandemic. when money is involved, so my But only taxable income above own suspicion about upper-in- $250,000 will be taxed at a higher come opponents as a whole is that rate. So, if you report $275,000 in they know a state income tax hike If I reach out in the evening, I taxable income, you’ll only pay a is coming one way or another so receive a response in the evening: trust higher rate on $25,000. It’s di cult they want to spread out the pain to see how this would apply to to everyone. A 1 percentage point me, there are no ‘banker hours.’ ...They businesses hard-hit by the pan- increase in the at tax would raise continually support the work we do in Start the conversation at demic, except for the accompany- about the same for the state as the community and beyond! ing higher corporate tax rate, but the proposed graduated income wintrust.com/meetus. most small businesses here don’t tax, which would hike the rate by – Nicole Murray, Will County Habitat for Humanity pay state corporate taxes anyway 3 percentage points on the very because income is passed through rich. One percent is a whole lot to their private bottom lines. less than 3 percent when you’re Banking products provided by Wintrust Financial Corp. banks. e rate is dierent for people talking about millions of dollars in CRAIN’S CHICAGO BUSINESS • NOVEMBER 2, 2020 3 United angles for

Katie Cummings is advantage the buyer at women’s boutique Jayne. Airline positions itself for fast start after pandemic BY JOHN PLETZ Even as the pandemic’s pum- meling of air travel intensi es, United Airlines’ post-COVID strategy is coming into view. CEO Scott Kirby aims to beat rivals out of the gate and recapture market share lost during the past decade. Kirby reached a deal with United’s pilots union to avoid fur- loughing yers until summer. He’s busy adding direct leisure ights in cities outside the carrier’s main hubs. Chicago-based United is once again out tting planes with business-class seating and planning a return to New York’s John F. Kennedy International Airport. “I think we’re going to make a decade’s worth of progress during the pandemic,” Kirby, who became CEO in May after nearly four years as president, told analysts Oct. 15. It’s a bold gamble during the worst downturn in aviation history. If Kirby’s plan works, he’ll NO PLAYBOOK leapfrog competitors, and one of Chicago’s largest employers will recover more quickly from a dev- astating slump that forced Unit- ed to make deep job cuts. If not, United will have wasted precious

FOR THIS HOLIDAY BOEHM R. JOHN resources, leaving the airline less able to jump on the rebound and Retailers brace for the season, largely guessing about sta ng and shoppers’ behavior BY ALLY MAROTTI more likely to lose market share. Kirby isn’t the only airline boss THE HOLIDAY SHOPPING SEASON, the busiest and ing to data from consulting rm PwC. Compe- THE SEASON looking to grow. Southwest Air- most lucrative time for retailers, has become tition for their business will be high, and experts lines CEO Gary Kelly is making an a giant question mark as a second COVID-19 say retailers must be careful not to blow it. “DETERMINES expansion play of his own, mov- wave pushes more consumers to the web. At Timeless Toys in the Lincoln Square ing in on United’s turf at O’Hare Much is on the line as local shops and big- neighborhood, the question of how to sta WHETHER OR NOT International Airport in Chicago box chains prepare for the unknown. for the holidays has been driving shopkeeper and Bush Intercontinental Airport Holiday retail sales totaled $730.2 billion last Scott Friedland nuts. e decisions he makes WE CAN KEEP OUR in Houston in hopes of winning year, according to the National Retail Federation, at the 27-year-old shop, from sta ng to inven- DOORS OPEN.” more corporate customers when and the pandemic-scarred retailers need every tory, are based on historical data. But there’s business travel picks up again. penny they can get. But 40 percent of consumers Scott Friedland, Timeless expect to spend less this year than last, accord- See RETAILERS on Page 23 Toys See UNITED on Page 7

Lake Forest’s real estate market was dead. Then came COVID. The very things holding the suburb back—big traditional homes far from the city—are now attractive during the pandemic

BY DENNIS RODKIN Hathaway HomeServices Chi- full time in an o ce again is an cago agent who was part of the open question. Few markets in In the fall of 2017, the real es- group that organized the “Wel- the Chicago area have felt the tate market in Lake Forest had come Home” campaign. shift as sharply as Lake Forest, been so slow for so long that of- A safe place to live is now “a which turned almost overnight cials launched an ad campaign big house on big property where from a moribund housing mar- that used such slogans as “Safe- you can safely social distance,” ket into one of the suburbs’ ty has found a home here.” Fischer says. “We have those.” most dynamic. At the time, that line was Widespread lifestyle changes More homes sold in the six meant to appeal to families who prompted by the pandemic— months just ended than in each were worried about rising gun working, schooling and getting of the four 12-month periods violence and other crime in recreation all at home—have before that. Midwest Real Estate Chicago, but three years later, lifted many real estate markets data reports 367 homes sold in there’s “a di erent kind of safe- this year as people trade up to the six-month period ended

ty people are looking for,” says larger spaces, commuting wor- BOEHM R. JOHN Deborah Fischer, a Berkshire ries behind them since working See LAKE FOREST on Page 18 Lake Forest home sales in August were double what they were a year before. 4 NOVEMBER 2, 2020 • CRAIN’S CHICAGO BUSINESS CHICAGO COMES BACK JOE CAHILL ON BUSINESS When leaders spar on COVID, we all lose Uni ed leadership and consis- Republican state legislators tent messaging from the top are joined the chorus of criticism. critical in a crisis. In a virtual news conference, When leaders openly disagree Illinois House Minority Leader on the right course of action, it’s Jim Durkin pointed to DuPage hard to rally the public behind County data showing that only 2 an eective response to a threat. percent of COVID outbreaks in Unfortunately, Americans have the county had been traced to been forced to navigate the worst “sit-down dining” at restaurants.

public health crisis in modern GOP Senate Leader Bill Brady BLOOMBERG times with conicting signals from questioned the data supporting those in charge. President Donald Pritzker’s action and demanded Trump persistently contradicts public hearings on the governor’s the edicts of public health author- handling of the crisis. Talking election without politics ities, governors and even his own “I’m calling for the Illinois coronavirus task force. Senate to hold a hearing and We’ve seen the results. invite sta from the governor’s How do business leaders acknowledge the election and its implications Mask-wearing—a proven tech- oce to come before legislators nique for reducing viral transmis- to share the data they are using without being political? These days, that’s a tall order. Now’s the time sion—is far from universal, despite when implementing these miti- to consider your day-after-Election-Day strategy. the urgings of medical experts and gation measures,” Brady wrote in government ocials across the a Crain’s op-ed. place of shared respect, calm and country. Social distancing require- Pritzker, for his part, has BY EMILY DRAKE AND TODD CONNOR civility before Election Day, then ments are similarly outed as highlighted gures from the Chicago Comes Back is a weekly series on ChicagoBusiness.com pro- there will be an appreciation for people continue gathering in large Illinois Department of Public viding leadership insights to help your business move forward, written what we choose to express after numbers. Is it any wonder the virus Health showing that restaurants by leadership consultants Emily Drake and Todd Connor. the election. is now surging toward new highs? and bars are the second-largest Drake and Connor facilitate Crain’s Leadership Academy. Drake is Some companies are openly At least state leaders in Illinois source of coronavirus cases, after a licensed therapist, owner of the Collective Academy and a leadership crafting rules of engagement for have mostly spoken with one “other,” a catch-all category that coach. Connor is the founder of Bunker Labs and the Collective Acade- respectful conversation—as a sort voice on COVID-19 mitigation appears to include the private my and is also a leadership consultant. of anchor to return to, in the event measures. Gov. J.B. Pritzker and gatherings Lightfoot referenced. Check out previous installments at ChicagoBusiness.com/comesback. colleagues get it wrong. As in many Chicago Mayor Lori Lightfoot It’s not surprising that restau- things, you cannot assume people have managed to suppress their rants have become a ashpoint. TODD CONNOR: It seems like a ward. Post-election stress disor- will know why talking politics or ey’re a major industry in nostalgic notion to think of a time der is, in fact, a real thing. politicking is not encouraged at UNITY AMONG HIGH LEVEL Chicago and across Illinois, when politics was something that work, so if that is the point of view, employing half a million didn’t consume our daily mind- TC: Many folks are struggling with then leaders need to explain that OFFICIALS IS STARTING TO FRAY. people. Many of those share. Mind you, I’m involved with fatigue from news consumption, position as to how it strengthens workers have lost their a number of campaigns and active as well. e Pew Research Center the culture. Many will appreciate personal tensions suciently to jobs as restaurants succumbed in a number of issues. But I also nds two-thirds of us are worn out the reprieve, perhaps, from the present a united front against a to the combined eects of dining work with professional organiza- from the news, and that exhaus- news, to be able to come to work virus that has killed nearly 10,000 room closures in the spring, tions where, historically, a healthy tion has held constant since 2018. and change the conversation. across the state, including more capacity limits in the summer and protection of the culture from So while politics might be out of than 3,000 in the city. Aside from generalized public fear of dining politics has existed. I still want to bounds for workplace discussions, ED: ere are other things organi- some grumbling about guberna- out during a pandemic. e protect certain spaces from being the implications are very real and zations can do as well, including torial overreach, top legislators in Illinois Restaurant Association political, but I’m not sure if that in will be present among colleagues supporting the mental health of Spring eld have largely acqui- has warned that as many as 40 and of itself is antiquated. From my showing up before and after this their employees. e election for esced in Pritzker’s strategy for percent of the state’s restaurants time in the U.S. Navy, you learn that upcoming election. some will have far more personal ghting COVID. may not survive the pandemic. polite conversation never involves consequences than for others, and Until now. e past few days Public ocials face the unenvi- politics, sex or religion. ere is lit- ED: And what that requires, there- it’s important not to assume what brought signs that unity among able task of weighing the economic eral guidance—the “Social Usage fore, in the context of coming back that means for people. For some high-level ocials is starting to devastation of restaurant restric- and Protocol Handbook”—that is an acknowledgment of those it’s just the “noise of the news,” fray, as Pritzker reimposed some tions against the life-or-death instructs on how to hold a pleasant facts and a strategy to deal with but for others, it could have impli- restrictions amid rising case challenges of a raging pandemic. conversation, among other things. it. Many companies are oer- cations for loved ones waiting for counts and positivity rates. Light- e seven-day average of daily I laugh thinking that it seemed so ing a civic day o to support the visas, deployment schedules for foot pushed back publicly when coronavirus cases in Illinois dou- ridiculous at the time but might election. Others are oering the loved ones serving on active duty, the governor reinstated a ban on bled to more than 4,300 in October, have been a prescient insight into day after the election as a day o health concerns over COVID, eco- indoor restaurant service in Chi- while the statewide seven-day times to come. in order for folks to process or to nomic concerns for when and how cago, as he had done throughout average positive test rate jumped to acknowledge that they may have the economy will come back, and the metropolitan area by the end 6.7 percent from 3.5 percent. EMILY DRAKE: We often say what been up late supporting the elec- whether and how the work around of the week. A successful response requires got us here won’t get us there, tion or campaigns. e real ques- racial progress continues. e an- In a nationally televised inter- widespread public support for and I think this is true when it tion for leaders is, how do you swer is to treat each other with view on “PBS NewsHour,” Lightfoot painful choices. And it’s hard comes to politics and work. Ev- acknowledge the election and the compassion, assume a diversity of questioned the role of restaurants to win public support when au- erything is on the table for explo- implications without being politi- experience, and support each oth- in spreading coronavirus in Chica- thority gures propose dierent ration right now—or not. Leaders cal? at’s a tall order, but our view er professionally and personally. go. “Two-thirds of the people that choices. Dicult as it may be, have a choice. In my limited lived is that ignoring it or pretending it are testing positive and are talking Pritzker, Lightfoot, Statehouse experience, I am often in an an- did not happen is problematic. TC: For employers, it’s a chance to to our case investigators are telling Republicans and others must put ticipatory place. e volume has arm a stabilizing force in their us that they got it from somebody aside power games and political been turned up, and politics and TC: I’ll oer some thoughts, and employees’ lives. Leaders who ex- that they knew, and that they got priorities to join forces against this election isn’t a footnote or would love yours, Emily, on strat- press a longer-term vision beyond it in a home or other social setting COVID-19. unspeakable. In fact, this elec- egies that can help manage the the next election will capture the that’s not in public,” Lightfoot said. Transparency on the data is tion is an event upon which many leadership challenge that peo- imagination of their employees. e mayor and governor also key to reaching such a consensus. leaders’ future plans hinge. I hear ple-leaders will have in support- e antidote to the 24-hour news traded jabs over who was respon- Everyone involved should be it described as people waiting to ing their employees and sustain- cycle is the 24-month news cycle, sible for an apparent breakdown willing to consider all relevant exhale after Election Day or want- ing their organizational culture. or the 24-year news cycle. Leaders in communication between their data and adjust their positions ing to return to some normalcy. First, talk about it in advance. who can help us see beyond this oces before Pritzker announced accordingly. A focus on the is election feels, for many, not Companies would do well to af- moment, create emotional safe- the restaurant closures. ey evolving facts of the pandemic as something that lives outside of rm their values as well as respect ty and continue to drive business reached a truce on Oct. 28, but will lead all fair-minded deci- us, but something that will have for colleagues before the challeng- results will earn their colleagues’ fault lines have been exposed. sion-makers to the best solutions. very personal and real implica- ing conversations arise. If leaders trust not just in this year but for tions for our own lives going for- arm that the company will be a years to come. Forward to a return from uncertainty

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20cb0468.pdf RunDate 9/28/20 FULL PAGE Color: 4/C 6 NOVEMBER 2, 2020 • CRAIN’S CHICAGO BUSINESS SHIRLEY RYAN ABILITYLAB SHIRLEY RYAN Dr. Leslie Rydberg, left, consults with a teammate and patient in the Shirley Ryan AbilityLab COVID Care Unit. Here’s how a rehab hospital is treating COVID ‘long-haulers’ Shirley Ryan AbilityLab in Chicago is learning new approaches to caring for patients who face long, di cult recoveries from the coronavirus BY JON ASPLUND muscle weakness and atrophy; large amounts of weight loss; mild As it became clear that some cognitive dysfunction; and severe COVID-19 survivors began to face impairments in endurance.” a unique, di cult path to recov- Given the wide range of possi- ery, physicians at Shirley Ryan ble responses to COVID, the reha- LUXURY HOME OF THE WEEK AbilityLab rehabilitation hospital bilitation process often requires in Chicago knew that they had to much more cross-collaboration Advertising Section take action, sometimes re-engi- among dierent disciplines in neering entire health care spaces. the facility. While non-COVID “Knowing patients were spend- patients normally come for one ing weeks in a hospital bed, on specic issue, the COVID unit had ventilators or often put into a to transform into a place where a prone position, I thought, ‘What variety of team members are in- ® happens next?’ and I wanted to be volved, given the myriad ways the involved,” says Dr. Leslie Rydberg, virus aects the body, says Shirley attending physician at the reha- Ryan AbilityLab CEO Dr. Joanne bilitation hospital’s COVID Care Smith. Unit. “e rst thing we needed “ey’re all things we’ve seen in to gure out is how to recong- dierent settings, but having them ure our system to this disease, to a all in the same unit presented a complete isolation unit.” big learning curve,” Rydberg adds. e problem is, isolating pa- “Addressing these challenges real- tients in acute care settings isn’t ly calls for collaboration with the conducive to rehabilitation and entire interdisciplinary rehabilita- “getting patients up and walking,” tion team.” says Rydberg. Among the 150 patients who’ve e Streeterville facility decid- already undergone intensive re- ed to block o a wing on the 20th habilitation in the unit, many are oor that includes a full rehabili- “seeing signicant recovery and tation gym in addition to patient functional improvement,” with rooms. others moving out of inpatient care to outpatient settings. e 30- PERSISTENT SYMPTOMS bed unit facility can be expanded e Centers for Disease Control and contracted as needed. Nearly 2,600 SF of interior space and a private ~450 SF wraparound terrace that & Prevention say a “prolonged ill- Doctors say that these JIEXYVIWE2ETSPIERKVMPP ƼVITMX7MKREXYVIFYMPHMRKWIVZMGIWMRGPYHIVSSQ ness” due to COVID-19 is “com- “long-haulers” show that more at- WIVZMGILSQIGPIERMRKGEVHIXEMPMRKMRYRMXTEGOEKIHIPMZIV]ERHLVGSRGMIVKI mon” in hospitalized adults, but tention should be paid to the long- it also can occur “even among term eects of COVID-19 and how 3TXMQE7MKREXYVIJIEXYVIWWUYEVIJIIXSJMRHSSVERHSYXHSSVEQIRMXMIW persons with milder outpatient it could transform approaches to MRGPYHMRKMRHSSVERHSYXHSSVLIEXIHTSSPWQYPXMTPIGYXXMRKIHKIƼXRIWWWTEGIW illness, including young adults.” medical care and research in the WXIEQVSSQWWEYREWWTEWXS[IPWIVZMGIKVMPPMRKEVIEWERHGEFEREWERHSRWMXI ese COVID “long-haulers” face future. SƾGIWYMXIW persistent symptoms and can “For instance, take COVID experience “prolonged absence pneumonia,” Rydberg says, refer- from work, studies, or other activ- ring to one of the potential com- Call for pricing ities,” according to the CDC. plications of COVID-19. “Now, Rydberg says the AbilityLab re- physiatrists are starting to partner 220 EAST ILLINOIS STREET CHICAGO, IL 60611 hab unit faced a wide variety of with pulmonologists in the out- ailments, including damage from patient setting to look at the long- OPTIMASIGNATURE.COM | (312) 606-7249 tracheostomy tube placement, term eects of these infections “severe swallowing dysfunction and to see what role exercise and k3TXMQE7MKREXYVI1EREKIHF]0MRGSPR4VSTIVX]6IWMHIRXMEP%VXMWXƅWGSRGITXMSRSJGSQTPIXIHVIWMHIRGI requiring feeding tube placement; supervised therapy can play in the large pressure ulcers; signicant ongoing recovery process.” CRAIN’S CHICAGO BUSINESS • NOVEMBER 2, 2020 7 United makes a bold gamble during the worst downturn in aviation history UNITED from Page 3 business. “It fits into our previous Pilots Association bars pilot lay- strategy of adding connectivity,” offs until June. United original- “Southwest always goes on of- Gupta says. ly planned to lay off 2,000 pilots fense when times are bad,” says The larger challenge is the after COVID reduced air travel Helane Becker, an analyst at pandemic itself, which has been more than 70 percent. American Cowen. “Here you have United longer and deeper than many an- Airlines has plans to cut 1,600 pi- trying to do the same thing.” ticipated. lots. Delta is negotiating with its Among the major carriers, “The big bet is what’s going pilots but could trim 1,900 jobs United is most dependent on to happen in summer 2021,” unless it reaches a deal Nov. 1. business and international travel, says Burkett Huey, an analyst which are the two weakest parts at Morningstar. “That’s going to LOWER LABOR COSTS of aviation and the ones likely depend on whether there’s a vac- United pilots accepted low- to recover most slowly from the cine, how distributed it is and er guaranteed monthly hours of pandemic. what happens to travel restric- flying, reducing the carrier’s la- For now, United is focusing on tions. Those are three big un- bor costs. United could have cut leisure travel, which has been knowns. He’s betting on all three deeper. But keeping pilots flying more resilient. It added 18 di- going right. If that happens, it will reduces retraining costs and al- rect flights from cities it already be a decent season and set them lows the airline to move fast if de-

serves, such as Pittsburgh and up well for 2022 and beyond.” mand rebounds. GETTY IMAGES If not, Kirby is In return, United agreed to re- United Airlines CEO Scott Kirby betting United has move six seats from 76-seat re- AMONG THE MAJOR CARRIERS, UNITED enough cushion to gional jets, tilting the economics tary leaves with 25 percent pay, Companies surveyed by the Uni- IS MOST DEPENDENT ON BUSINESS weather the storm. in favor of larger aircraft flown by which would allow them to be versity of Chicago said they’d cut e airline has raised its pilots rather than regional car- recalled quicker. their travel budgets 30 percent AND INTERNATIONAL TRAVEL. more than $22 billion riers. Management also agreed to The airline made the deepest from 2019 levels even after the from various sourc- return the ratio of narrow-body cuts in white-collar jobs, elimi- coronavirus subsides. Compa- Boston, to Florida and other lei- es, including mortgaging planes flights flown by United pilots ver- nating 24 percent of management nies also said they expected to sure destinations. It has adjust- and borrowing from the federal sus regionals to 1-to-1. and administrative roles, most of use videoconferencing for half ed schedules at some airports government. United has reduced “It was a mutually beneficial them permanently. their external meetings. to be more leisure-friendly, with its daily cash consumption to $25 agreement that gave flexibility to Without more government aid, Kirby is more bullish, but ac- departures at 10:30 a.m., rather million, but it won’t break even the company and benefits to pi- “no matter what Scott Kirby does knowledges it’s a long haul. “I than 8 a.m. “We’ll reorient that to until demand recovers. lots,” says ALPA spokesman and to try to manage through this cri- think business demand is going 8 a.m. for business customers in “We have $19 billion of avail- United pilot Jim Belton. “It’s the sis, the people of United are hurt- to come back,” although it might the future,” says Ankit Gupta, vice able liquidity and enough run- first time in 25 years, we’ve been ing, and that will be felt for a long not be until 2024, he told analysts. president for domestic planning. way to make sure that when the able to claw back (flying).” time to come,” says Sara Nelson, “I’ve been fond of saying: ‘ e United also has added service recovery begins, United is in a United also reached an agree- head of the Association of Flight rst time someone loses a sale to from hubs such as Houston to position of strength,” says United ment with the International As- Attendants. a competitor who showed up in smaller cities such as Abilene, President Brett Hart. sociation of Machinists, which Long term, United’s fate hinges person is the last time they try to Texas, in hopes of picking up new Kirby’s deal with the Air Line allowed workers to take volun- on the future of business travel. make a sales call on Zoom.’ ”

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708.831.7446 WeHaveIdeas.FirstMidwest.com 8 NOVEMBER 2, 2020 • CRAIN’S CHICAGO BUSINESS CRAIN’S LIST CHICAGO’S BIGGEST MINORITY-OWNED BUSINESSES Ranked by 2019 revenue. Crain’s estimates are in gray. Full-time local employees as of Total % minority-owned; 2019 revenue (millions); 12/31/19; minority group(s) Company % change from 2018 worldwide of ownership Majority owner(s) Type of business MAT HOLDINGS INC. $1,900.0 250 100% Steve W. Wang Manufacturer of automotive parts, power 1 6700 Wildlife Way, Long Grove 60047 5.6% 14,500 Asian Chairman, CEO equipment and lawn products 847-821-9630; MATHoldingsInc.com RAJA FOODS LLC PATEL BROTHERS $460.0 170 NA Patel family Retailer and importer of Indian foods 2 8110 N. St. Louis Ave., Skokie 60076 7.8% 750 Asian 847-675-4455; RajaFoods.com VISTEX INC. $278.3 302 75% Sanjay Shah Enterprise software and services provider 3 2300 Barrington Road, Ho man Estates 60169 12.4% 1,594 Asian Founder, CEO 847-490-0420; Vistex.com BALDWIN RICHARDSON FOODS CO. $272.0 22 100% Eric Johnson Manufacturer of sauces and condiments 4 1 Tower Lane, Oakbrook Terrace 60181 7.9% 360 Black/African American President, CEO 866-644-2732; BRFoods.com TYSON MOTOR LLC $240.1 151 100% Anthony H. Blake Auto dealerships and real estate 5 1 S.W. Frontage Road, Shorewood 60404 -2.4% 151 Hispanic/Latino President 815-741-5530; TysonMotor.com SUTTON AUTO TEAM $236.1 97 100% Nathaniel Sutton Auto dealerships 6 21315 Central Ave., Matteson 60443 3.2% 170 Black/African American President 708-720-8000; SuttonAutoTeam.com ADVANTAGE CHEVROLET OF HODGKINS $197.5 182 NA Desmond A. Roberts Auto dealerships 7 9510 W. Joliet Road, Hodgkins 60525 -2.4% 182 Black/African American President 708-231-4618; HodgkinsChevrolet.com CARDENAS MARKETING NETWORK INC. $162.5 57 100% Henry Cardenas Producer and promoter of concerts and soccer 8 1459 W. Hubbard St., Chicago 60642 14.5% 65 Hispanic/Latino CEO matches; experiential brand marketer 312-492-6424; CMNEvents.com POWERS & SONS CONSTRUCTION CO. $90.0 40 100% Claude Powers, president, General contracting, construction manage- 9 2636 W. 15th Ave., Gary 46404 -20.5% 70 Black/African American COO; Mamon Powers Jr., ment, design-build and owner’s rep rm 219-949-3100; PowersAndSons.com chairman, CEO LOOP CAPITAL MARKETS LLC $87.6 95 90% Multiple owners Investment banking, brokerage and advisory 10 111 W. Jackson Blvd., Chicago 60604 -3.4% 176 Black/African American; rm 312-913-4900; LoopCapital.com Asian; Hispanic/Latino ESD $82.0 293 71% Raj P. Gupta Consulting engineering rm 11 233 S. Wacker Drive, Suite 5300, Chicago 60606 13.9% 310 Asian Executive chairman 312-372-1200; ESDGlobal.com ARIEL INVESTMENTS LLC $77.4 80 82% Employee owners Investment management rm 12 200 E. Randolph St., Suite 2900, Chicago 60601 -4.2% 104 Black/African American; 312-726-0140; ArielInvestments.com Asian; Hispanic/Latino AGENCY EA LLC $71.0 126 51% Gabrielle Martinez Brand experience agency 13 311 W. Walton St., Chicago 60610 -1.3% 130 Hispanic/Latino Managing partner, 312-879-0186; AgencyEA.com cofounder LEVEL CONSTRUCTION INC. $68.0 30 100% T.J. Patel, president Commercial construction rm specializing in 14 4701 N. Ronald St., Harwood Heights 60706 23.6% 62 Asian Mitesh Patel, managing retail, medical, restaurant and industry 773-930-4695; LevelConstruction.net partner SCR MEDICAL TRANSPORTATION INC. $64.7 NA 100% Stanley C. Rakestraw, COO, Paratransit provider 15 8835 S. Greenwood Ave., Chicago 60619 -2.0% 850 Black/African American Pamela Rakestraw, CEO 773-768-7000; SCRTransport.com THE WILL GROUP $50.0 79 100% Stephen L. Davis Lighting, manufacturing and construction 16 5261 W. Harrison St., Chicago 60644 13.6% 79 Black/African American Chairman management rm 630-462-0230; TheWillGroup.com BOWA CONSTRUCTION $42.0 45 100% Nosa Ehimwenman General contractor and construction manage- 17 7050 S. Stony Island, Chicago 60649 20.0% 60 Black/African American President, CEO ment rm 312-238-9899; BowaConstruction.com AGEATIA GLOBAL SOLUTIONS $37.0 185 100% Chuck Srinivasan Information technology stang and employ- 18 949 N. Plum Grove Road, Schaumburg 60173 13.8% 415 Asian President ment services rm 847-517-8415; Ageatia.com ARDMORE RODERICK $36.0 156 100% Rashod R. Johnson Engineering design and construction manage- 19 1500 W. Carroll Ave., Chicago 60607 31.5% 184 Black/African American President, CEO ment rm 312-795-1400; ArdmoreRoderick.com MILHOUSE ENGINEERING & CONSTRUCTION INC. $34.2 255 85% Wilbur C. Milhouse III, chair- Interdisciplinary engineering/construction 20 333 S. Wabash Ave., Chicago 60604 2.5% 263 Black/African American man, CEO; Dolla Crater, COO, rm 312-987-0061; MilhouseInc.com president, business operations CLARITY PARTNERS LLC $30.0 116 51% David C. Namkung Management and technology consulting rm 21 20 N. Clark St., Chicago 60602 8.4% 150 Asian Managing partner 312-920-0550; ClarityPartners.com VALDES ENGINEERING CO. $29.0 200 100% NA Technical services for oil and gas, utilities, life 22 100 W. 22nd St., Lombard 60148 NA 200 Hispanic/Latino sciences and chemical industries 630-792-1886; ValdesEng.com AGB INNOVATIVE SECURITY SOLUTIONS $28.4 725 100% John Grin Jr. Security rm protecting people, property and 23 7545 S. Western Ave., Chicago 60620 17.1% 750 Black/African American Founder, CEO data 773-445-4300; AGBInvestigative.com PAGODA ELECTRIC AND CONSTRUCTION INC. $26.9 29 100% Martin Loredo Jr. Electrical and general contractors operating in 24 837 Oakton St., Elk Grove Village 60007 41.6% 29 Hispanic/Latino CEO the public sector 224-800-1554; PagodaElectric.com BURRELL COMMUNICATIONS GROUP LLC $25.0 115 51% McGhee Williams Osse Marketing and communications agency 25 233 N. Michigan Ave., Chicago 60601 4.2% 15 Black/African American Fay Ferguson 312-297-9600; Burrell.com Co-CEOs

Companies on this list must be at least 50% minority-owned and be headquartered in either Cook, DuPage, Kane, Lake (Ill.), Lake (Ind.), McHenry or Will counties. Crain’s estimates are in gray. NA: Not available. 1. 2% Asian-owned; 0.67% Latino/Hispanic- owned. 2. 5% Asian; 0.1% Hispanic/Latino. 3. Company estimate. 4. Fiscal year ends in April. 5. Fiscal year ends in September. Researched by Kasey Hariman, Sonya Hill and Chuck Soder ([email protected]) GET ALL 75 COMPANIES IN EXCEL FORMAT. BECOME A DATA MEMBER: CHICAGOBUSINESS.COM/DATA LISTS PRINTING SOLUTIONS THAT ATTRACT EYES LIKE A DEEP DISH PIZZA Our Print Team is here to help Chicago businesses attract more customers and #KeepBusinessGoing.

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20cb0527.pdf RunDate 10/26/20 FULL PAGE Color: 4/C 10 NOVEMBER 2, 2020 • CRAIN’S CHICAGO BUSINESS LETTERS TO THE EDITOR Fair pricing? Ask the chains.

I agree with the basic problem that professor Jean-Pierre Dubé posits in his Chica- EDITORIAL go Booth Insights article (“Is a fair price the same price for all?” Sept 18). He asks artis- anal food providers to modify their pricing to cater to low-income customers. Perhaps that is only an example he provides, but why What businesses need from our leaders now not ask the big chains (Mariano’s, Whole Foods, Amazon, et al.), who can make a et’s start with the things everyone Injury Disaster Loan program of millions as huge impact in food deserts and their citi- should be able to agree on. First, we the department gave out $10,000 grants to zens by providing such prices subsidized by all want life to get back to normal— almost anyone who asked. “I’ve never seen their pro ts in wealthier neighborhoods? or as close as it can ever be to normal Caption anything like it,” said an SBA customer-ser- ese neighborhoods and shoppers Lagain in a world where COVID-19 exists. vice representative who spoke to Bloomberg might actually be positively disposed to Second, we all want the economy to fully on the condition of anonymity. “I don’t think such a plan. An eort at scale by these recover, and quickly. e third thing—well, they had any processes in place. ey just companies could create a much greater so- unfortunately, this one has become conten- sent the money out.” cial impact than Dubé suggests, including tious, but it really shouldn’t be: We won’t get In many cases, the funding in these Items 1 and 2 on our wish list if we don’t get programs ran out before business owners the virus under control rst. who legitimately needed the help were “Under control” doesn’t necessari- able to get it. It’s little wonder, then, that ly mean eradication of COVID-19. Sadly, restaurant owners have lost faith in gov- we’re going to be living with this coro- ernment’s ability to do much more than President KC Crain navirus in some form for years to come, intensify their problems. at impression Group publisher Mary Kramer and, even if we’re lucky, living with it may wasn’t improved in late October when Publisher/executive editor Jim Kirk require yearly vaccinations or other sorts long-simmering tensions between Pritz- Associate publisher Kate Van Etten of remediation measures for some time. ker and Chicago Mayor Lori Lightfoot * * * No, “under control” in the long run means broke out into the open over the very Editor Ann Dwyer achieving immunity through mass vacci- issue of COVID clampdowns—not so Creative director Thomas J. Linden nations—and until that’s possible, it also much about the shape those clampdowns Assistant managing editor Jan Parr

means quicker, easier and cheaper testing, NEWSCOM should take but instead a bickering match Assistant managing editor/digital Ann R. Weiler well-funded contact tracing eorts that over who didn’t call whom before the Deputy digital editor Todd J. Behme lead to more eective quarantining, plus public and the health of the economy are level on down can best be described as a plans went public. Digital design editor Jason McGregor mask-wearing, social distancing and, di- expected to make decisions that none of patchwork, a confusing mishmash of hap- Now more than ever, we need our elected Senior art director Karen Freese Zane cult as it may be, limits on the kinds of gath- us would relish. Gov. J.B. Pritzker has re- hazardly administered and poorly commu- leaders to be working together at every level Copy chief Danielle Narcissé erings that fuel the spread of the disease. mained resolute: If clamping down on ac- nicated loans and tax credits, some of which not only to make the tough calls about which Deputy digital editor/ Sarah Zimmerman is last piece of the puzzle—limits on tivities like indoor dining is what his public have been scandalously abused. Companies businesses can operate safely in a pandemic audience and social media gatherings—has dealt a body blow to busi- health advisers say is necessary to curb the as large as Chicago’s own Potbelly Sandwich but, more important, what we all collectively Columnist/contributing editor Joe Cahill nesses that are all about the bringing to- spread of the disease, then he’s been will- Shop made headlines earlier this year when can do to help those businesses do the right Forum editor Cassandra West Political columnist Greg Hinz ing to do just that despite the quite under- they received funds through the federal Pay- thing for the common good without de- gether of people: airlines, restaurants, the Senior reporters Steve Daniels convention sector, entertainment venues standable blowback from restaurant own- roll Protection Program—money meant to stroying enterprises that often took several Alby Gallun and hotels, not to mention the myriad busi- ers who correctly worry their businesses shore up much smaller businesses. lifetimes to build. Illinois and Chicago, scal Lynne Marek nesses that service those industries, particu- won’t survive another closure. And as the New York Times reported in wrecks that they are, don’t have the where- John Pletz larly in a hospitality-intensive economy like We’re betting these business owners August, the Justice Department has made withal to write in nite checks to these busi- Reporters Danny Ecker Chicago’s. Along the way, tens of thousands would be more than willing to do what’s nec- at least 41 criminal complaints in federal ness owners. at means we need our local Stephanie Goldberg of people have lost their livelihoods. e re- essary to protect themselves, their workers court against nearly 60 people who col- leaders to cooperate with—and put pressure Wendell Hutson sulting economic slowdown is, in turn, un- and their patrons from a potentially deadly lectively took $62 million in PPP funds by on—the federal government to put aside Ally Marotti dercutting tax revenue at a time when the illness if government did more than issue using what law enforcement ocials said politics and get serious about delivering real A.D. Quig government services they nance are being orders and instead marshaled the nancial were forged documents, stolen identities relief to the front-line businesses that need it Dennis Rodkin stretched to the breaking point by this mas- resources needed to help keep them aoat and false certi cations. right now. We can’t aord to keep politiciz- Steven R. Strahler sive public health crisis. during the crisis. And yet, government at ev- And on Oct. 29, Bloomberg News detailed ing this pandemic. Too many lives and live- Copy editor Scott Williams Against this backdrop, the people we ery level has failed them utterly. e bailout how scammers drained the U.S. Small Busi- lihoods have already been lost—and thou- Contributing photographer John R. Boehm have elected to balance the health of the packages scraped together from the federal ness Administration’s COVID-19 Economic sands more are in the balance. Researcher Kasey Hariman * * * Director of digital strategy Frank Sennett Director of custom media Sarah Chow YOUR VIEW Associate director, Jaimee Holway events and marketing * * * Production manager David Adair Springfield should not be trusted with more taxes Account executives Aileen Elliott Claudia Hippel ifty years ago, 116 delegates trusted to keep its word that it Spring eld politicians are saying about it, particularly with individuals and small and Christine Rozmanich from 58 state senatorial dis- would limit the extent as to how those making promises today will not be midsize businesses that generate a lot of Bridget Sevcik Ftricts were elected to rep- many people a graduated tax the people in power tomorrow. much-needed income tax for Illinois. Illi- Laura Warren resent the citizens of Illinois to rate would aect. He reminded My grandpa wisely had reservations nois needs more taxpayers, not higher tax Courtney Rush draft a new state constitution. My people that the federal govern- about giving Spring eld too much taxing rates. For those who are on a xed income, Amy Skarnulis grandpa, Martin Ozinga Jr., was ment’s original income tax was power. He had a saying, “If the outgo ex- like many of our seniors, the prospect of People on the Move manager Debora Stein proud to be one of those dele- a single-digit percentage tax and ceeds the income, the upkeep will be your higher tax rates is especially concerning. Sales assistant Lauren Jackson gates. One important part of that the government gave assurances downfall.” e state of Project manager Joanna Metzger constitution was the language at the time that it wouldn’t ever Illinois has an “outgo” Event planner Katie Robinson limiting the power of the state be much more than that. We problem, and Spring- THE PROBLEM WITH HIGHER TAXES IS THAT PEOPLE Event manager Tenille Johnson Digital designer Christine Balch government to tax its citizens. Marty Ozinga is know how that worked out. He eld is trying to solve HAVE OPTIONS AS TO WHERE THEY CAN LIVE After much debate, the current president of Ozin- pointed out that government, it o the backs of an Crain Communications Inc. state income tax structure was ga Bros. a concrete left unchecked, would continue already overtaxed Keith E. Crain Mary Kay Crain adopted as part of the Illinois and construction to tax its citizens more and more. citizenry. We can’t expect our citizens to When it comes to voting this fall, I’m go- Chairman V ice chairman KC Crain Chris Crain Constitution, making it very dif- materials supplier Today, there are promises be- be positively impacted for generations to ing to stick with the wisdom of my grandpa President Senior executive vice president cult to change without the ap- based in Mokena. ing made that the so-called “fair come if the government keeps weighing and the others who wrote our state’s con- Lexie Crain Armstrong Robert Recchia proval of a signi cant majority of tax” will only aect a small num- them down with a heavier tax burden. stitution and keep the onus on Spring eld Secretary Chief nancial ocer the citizens of Illinois. is at tax structure ber of higher-income residents, that the e problem with higher taxes is that to solve its nancial issues by making the Veebha Mehta Chief marketing ocer has been in place ever since. e wisdom of middle class and lower-income earners people have options as to where they can state more attractive to live and do busi- * * * G.D. Crain Jr. Mrs. G.D. Crain Jr. that decision is on the ballot Nov. 3. will not be aected. e likelihood of this live. Illinois has already lost more residents ness here in conjunction with getting its Founder Chairman My grandpa made the argument from being true inde nitely is extremely low. than any other state in the country. is spending under control. I will vote “no” on (1885-1973) (1911-1996) the oor that government couldn’t be Even if you were inclined to trust what our amendment will only accelerate that trend, the proposed “fair tax” for Illinois. For subscription information and delivery concerns please email [email protected] or call 877-812-1590 (in the U.S. and Canada) or 313-446-0450 (all other locations). Write us: Crain’s welcomes responses from readers. Letters should be as brief as possible and may be edited. Send letters Sound o : Send a column for the Opinion page to editor@ to Crain’s Chicago Business, 150 N. Michigan Ave., Chicago, IL 60601, or email us at [email protected]. Please chicagobusiness.com. Please include a phone number for veri cation include your full name, the city from which you’re writing and a phone number for fact-checking purposes. purposes, and limit submissions to 425 words or fewer. CRAIN’S CHICAGO BUSINESS • NOVEMBER 2, 2020 11 LETTERS TO THE EDITOR

Fair pricing? Ask the chains. in educating consumers about the impor- couple with two children is probably pay- As an NFP, Northwestern and similarly tance of nutritional literacy. ing around $4,000. Who can fairly aord situated institutions are exempt from pay- I agree with the basic problem that pro- to pay more? ing property and income taxes. ey justify fessor Jean-Pierre Dubé posits in his Chica- NIK ROKOP When they start taxing retirement ben- their exorbitant costs for insured patients by EDITORIAL go Booth Insights article (“Is a fair price the Coleman Foundation clinical associate professor e ts at some level, I’ll start thinking about claiming that part of the cost is to subsidize same price for all?” Sept 18). He asks artis- of entrepreneurship, voting for a graduated income tax. the uninsured and underinsured. anal food providers to modify their pricing Illinois Institute of Technology’s Stuart School of PAUL PASKVAN Property taxes fund schools. So instead of to cater to low-income customers. Perhaps Business Orland Park improving our local public school system by that is only an example he provides, but why paying its fair share of property taxes, North- What businesses need from our leaders now not ask the big chains (Mariano’s, Whole western is paying executives enormous Foods, Amazon, et al.), who can make a Look at taxing retirement income Questioning hospital status compensation packages and apparently re- Injury Disaster Loan program of millions as huge impact in food deserts and their citi- I have been preparing income tax re- Very well written article (“Northwestern directing the uninsured and underinsured the department gave out $10,000 grants to zens by providing such prices subsidized by turns for a long time, and my idea of a and other big hospitals could save safety to lower-quality health care resources. almost anyone who asked. “I’ve never seen their pro ts in wealthier neighborhoods? “fairer” tax for Illinois residents is to start nets,” Sept. 15). It begs the question—why ese issues deserve a comprehensive anything like it,” said an SBA customer-ser- ese neighborhoods and shoppers taxing retirement income at some level is Northwestern Hospital a not-for-pro t look and the attention of local, state and vice representative who spoke to Bloomberg might actually be positively disposed to like other states do. It doesn’t seem fair entity? Crain’s has previously reported on federal government agencies. on the condition of anonymity. “I don’t think such a plan. An eort at scale by these to me that a retired couple with $80,000 the outrageous compensation levels of se- they had any processes in place. ey just companies could create a much greater so- in retirement income and Social Security nior executives. Where is the IRS in evalu- JERRY CAPELL sent the money out.” cial impact than Dubé suggests, including pays little or no state tax, but a working ating the NFP status? Chicago In many cases, the funding in these programs ran out before business owners who legitimately needed the help were able to get it. It’s little wonder, then, that restaurant owners have lost faith in government’s ability to do much more than President KC Crain intensify their problems. at impression Group publisher Mary Kramer wasn’t improved in late October when Publisher/executive editor Jim Kirk long-simmering tensions between Pritz- Associate publisher Kate Van Etten ker and Chicago Mayor Lori Lightfoot * * * broke out into the open over the very Editor Ann Dwyer issue of COVID clampdowns—not so Creative director Thomas J. Linden much about the shape those clampdowns Assistant managing editor Jan Parr ... should take but instead a bickering match Assistant managing editor/digital Ann R. Weiler over who didn’t call whom before the Deputy digital editor Todd J. Behme plans went public. Digital design editor Jason McGregor Now more than ever, we need our elected Senior art director Karen Freese Zane leaders to be working together at every level Copy chief Danielle Narcissé not only to make the tough calls about which Deputy digital editor/ Sarah Zimmerman businesses can operate safely in a pandemic audience and social media but, more important, what we all collectively Columnist/contributing editor Joe Cahill can do to help those businesses do the right Forum editor Cassandra West Political columnist Greg Hinz thing for the common good without de- Senior reporters Steve Daniels stroying enterprises that often took several Alby Gallun lifetimes to build. Illinois and Chicago, scal Lynne Marek wrecks that they are, don’t have the where- John Pletz withal to write in nite checks to these busi- Reporters Danny Ecker ness owners. at means we need our local Stephanie Goldberg leaders to cooperate with—and put pressure Wendell Hutson on—the federal government to put aside Ally Marotti politics and get serious about delivering real A.D. Quig relief to the front-line businesses that need it Dennis Rodkin right now. We can’t aord to keep politiciz- Steven R. Strahler ing this pandemic. Too many lives and live- Copy editor Scott Williams lihoods have already been lost—and thou- Contributing photographer John R. Boehm sands more are in the balance. Researcher Kasey Hariman * * * Director of digital strategy Frank Sennett Director of custom media Sarah Chow YOUR VIEW Associate director, Jaimee Holway events and marketing * * * Production manager David Adair Springfield should not be trusted with more taxes Account executives Aileen Elliott Claudia Hippel particularly with individuals and small and Christine Rozmanich midsize businesses that generate a lot of Bridget Sevcik much-needed income tax for Illinois. Illi- Laura Warren nois needs more taxpayers, not higher tax Courtney Rush rates. For those who are on a xed income, Amy Skarnulis like many of our seniors, the prospect of People on the Move manager Debora Stein higher tax rates is especially concerning. Sales assistant Lauren Jackson Project manager Joanna Metzger Event planner Katie Robinson THE PROBLEM WITH HIGHER TAXES IS THAT PEOPLE Event manager Tenille Johnson Digital designer Christine Balch

HAVE OPTIONS AS TO WHERE THEY CAN LIVE Crain Communications Inc. Keith E. Crain Mary Kay Crain When it comes to voting this fall, I’m go- Chairman V ice chairman KC Crain Chris Crain ing to stick with the wisdom of my grandpa President Senior executive vice president and the others who wrote our state’s con- Lexie Crain Armstrong Robert Recchia stitution and keep the onus on Spring eld Secretary Chief nancial ocer Centene Campus to solve its nancial issues by making the Veebha Mehta Chief marketing ocer Clayton, Missouri state more attractive to live and do busi- * * * G.D. Crain Jr. Mrs. G.D. Crain Jr. ness here in conjunction with getting its Founder Chairman spending under control. I will vote “no” on (1885-1973) (1911-1996) We see our work through the eyes of the people who will use them every day. Through their the proposed “fair tax” for Illinois. For subscription information and delivery concerns eyes, we see places of innovation, industry, technology, healing, research and entertainment. please email [email protected] or call 877-812-1590 (in the U.S. and Canada) The result? Powerful structures with impacts that reach far beyond these walls. or 313-446-0450 (all other locations). Sound o : Send a column for the Opinion page to editor@ claycorp.com chicagobusiness.com. Please include a phone number for veri cation purposes, and limit submissions to 425 words or fewer. 12 NOVEMBER 2, 2020 • CRAIN’S CHICAGO BUSINESS

Advertising Section NON-PROFIT Becker Friedman Institute PEOPLE ON THE MOVE for Economics / University of Chicago, Chicago To place your listing, visit www.chicagobusiness.com/peoplemoves or, for more information, contact Debora Stein at 917.226.5470 / [email protected] The Becker Friedman Institute for Economics at the University of ACCOUNTING / CONSULTING CLOUD-BASED SOFTWARE FINANCIAL SERVICES LAW FIRM Chicago is pleased to announce the CliftonLarsonAllen LLP, BenchPrep, Insight Financial Partners, LLC, King & Spalding, Chicago Chicago Chicago appointment of Crystal Lake Robert W. Doede CLA is a professional BenchPrep, an award- Tim FitzSimons to its Advisory Council. Doede, services firm delivering winning professional Insight Financial has joined the who holds an MA and PhD a wealth of services learning platform, Partners, LLC is Chicago office of (1967) in Economics from the globally. We are recently announced pleased to announce King & Spalding as a University of Chicago, is a retired pleased to announce the appointment of that Michael K. Smith, partner in the firm’s private investor whose career Sean Hastings has Kristen Shaheen as Managing Partner, Corporate, Finance spans more than 40 years in joined our Chicago its General Counsel. has been named and Investments the investment business. In practice in our Consulting and With over 20 years of extensive to the 2020 edition practice. He has advised on public July 2019, he retired after 15 Accounting Solutions (CAST) leadership and professional of the Financial Times 401 and private M&A transactions years as Chairman of the Board Team. In his new role, Sean will experience, both in-house and Top Retirement Plan Advisors. totaling more than US$200 of Directors of United Capital be expanding CLA’s project and in private practice, Ms. Shaheen Advisors are selected on DC billion. He represents directors Financial Partners (UCFP). interim accounting/consulting brings significant expertise assets under management in conflict of interest transactions footprint. Sean brings over 20 years providing legal guidance to the (AUM); DC AUM growth rate; and corporate governance and of experience delivering enterprise Board of Directors, CEO, and Specialization in DC plans: shareholder activism/takeover NON-PROFIT solutions and strengthens our executive team members. Years of experience; Advanced defense matters. He also team to create opportunities industry credentials; and represents private equity and Embarc, Chicago for our clients to succeed both Compliance record. Smith has 28 venture capital investors and Lindsey Mossman professionally and personally. years’ experience working with portfolio companies and financial Shaw, Head of small and mid-sized employer advisors in M&A transactions. Global Financial sponsored retirement plans. Crimes Compliance for Consumer and Community Banking LAW FIRM at JPMorgan Chase CONSTRUCTION has joined Embarc’s Board of BANKING King & Spalding, Chicago Directors. Lindsey will support Luse Contracting Group, Aurora Embarc in transforming First Bank of Highland Park, Amanda Sonneborn Chicago’s education system Northbrook Family-owned and has joined the into the most experiential in the operated since 1923, Chicago office of country. Previously, Lindsey held First Bank of Highland Luse Contracting King & Spalding financial crimes compliance roles Park, one of the five Group has been as a partner in the in New York with Kroll Advisory largest privately held INSURANCE providing specialty Corporate, Finance and Inc. and KPMG. Lindsey serves banks in Chicago, contracting services Investments practice. as the Chicago office chair proudly announces The Horton Group, Orland Park to the Chicagoland Hansen She advises and represents for JPMorgan Chase’s Risk & the promotion of construction market George Daly, clients across industries in Compliance Women on the Leo Mora to Loan for 97 years. We President of the strategic employment issues in Move global initiative. Operations Representative. In proudly announce Personal Lines Division the U.S., including employee this role, Leo is responsible for the promotion of Bill at The Horton Group benefits, labor relations, and supporting all areas of Loan REAL ESTATE Hansen to Senior in Orland Park, IL, has diversity. She has handled bet Operations. He joined the bank Project Manager. Bill been elected President the company litigation, labor in 2018 as a Banking Apprentice, Cawley Chicago has been a leader of the Independent organizing campaigns and collective working alongside our team of Oakbrook Terrace in our Mechanical Insurance Agents of Illinois (IIA bargaining, high level executive experienced bankers. Leo is a McGrath Insulation Division of IL), effective October 1, 2020, investigations, and projects relating Zach Pruitt adds recent graduate from Harper since joining in 2010. through September 30, 2021. As to workforce reorganizations and role of Managing College where he successfully He has profound technical President, Daly is responsible for diversity strategy. Director at Cawley completed the Banking expertise and a strong aptitude leading the six-person Executive Chicago’s city office, Apprenticeship program, earning for building trusted relationships, Committee of the IIA of IL Board located at 770 N a business degree. which has helped position our of Directors, managing general Halsted St. Pruitt will firm as an industry-leading leadership functions, and acting LAW FIRM take on additional contractor. as an official association delegate responsibilities: establishing Luse also announces the addition at state and national functions. Levenfeld Pearlstein, LLC, brand recognition in Chicago, of Jim McGrath as a Senior Chicago expanding the current team of BANKING / FINANCE Project Manager in our Asbestos brokers, and grow the individual Abatement Division. Jim is an Levenfeld Pearlstein, service levels. “I value the Prairie Capital Advisors, Inc. industry veteran with a depth of LLC has bolstered foundation that has been laid Oakbrook Terrace wisdom and experience which its experienced and before us, and recognize the will help our business reach new highly ranked Trusts & responsibility that comes with Prairie Capital heights. Estates Group with the leading an exceptionally strong Advisors, a leading addition of Suzanne Chicago team in where we go corporate advisory and Shier as Of Counsel Shier from here,” Pruitt says. investment banking and Stephanie Ross firm, has promoted LAW FIRM as an Associate. TECH / TELECOM Kamil Swierczek EXECUTIVE SEARCH Bringing decades of to Vice President. King & Spalding, Chicago experience both in UScellular, Chicago Mr. Swierczek has been with the Comhar Partners, Chicago private practice and, firm since 2012 and specializes Amy Garrigues most recently, leading Austin Summerford in advising middle-market Comhar Partners, a has joined the the Wealth Advisory has joined UScellular companies on various ownership recognized national Chicago office of and Planning Practice as vice president of Ross transition strategies including leader in retained King & Spalding as a at Northern Trust, business development mergers and acquisitions, executive search, is partner in the firm’s Suzanne advises high and partnerships. In employee stock ownership proud to announce Healthcare team. net worth individuals, families, this role, he leads plans (ESOPs) and other capital that veteran human Amy leads the firm’s executives and a broad range the evaluation of structuring engagements. capital consultant, healthcare-focused initiatives of private and public sector new lines of business, new Marc Detampel, has joined the in the Midwest and represents organizations in wealth, tax, markets, large investments, firm as Managing Director in regional and nationwide clients business, and philanthropic strategic partnerships and its Chicago office. Marc brings on a range of issues. Her practice planning. mergers/acquisitions. His work 25 years of consulting experience concentrates on healthcare law, Previously a VP in the Wealth also includes maximizing the advising on human capital strategy, representing clients including Advisory Practice at Northern company’s tower and intercarrier change management, leadership hospitals, health systems, Trust, Stephanie uses her advanced portfolios and overseeing academic medical centers, To order frames or plaques development, and organization knowledge of tax law to counsel enterprise risk management. private equity and investment of profiles contact design and development to Comhar individuals, families and closely Austin joins UScellular after management companies, ancillary Lauren Melesio at Partners. Marc will support the firm’s held businesses, helping them spending 18 years at AT&T, where service providers, and medical [email protected] or Professional Services Practice, along protect their wealth and efficiently he most recently served as vice device companies. 212-210-0707 with other industry segments. transfer their estates. president of corporate strategy. CRAIN’S CHICAGO BUSINESS • NOVEMBER 2, 2020 13

WHO’S SPENDING THE MOST ON ILLINOIS ELECTIONS? Total Kilbride ‘Fair tax’ Legislative (millions) Anti Pro Anti Pro races Ken Griffin $59.0 $4.5 $0.0 $53.8 $0.0 $0.6 J.B. Pritzker $51.9 $0.0 $0.0 $0.0 $51.5 $0.4 Democratic Party of Illinois $7.4 $0.0 $0.6 $0.0 $0.0 $5.8 Democratic Majority $7.0 $0.0 $0.0 $0.0 $0.0 $7.0 Illinois Republican Party $3.8 $0.0 $0.0 $0.0 $0.0 $3.7 Citizens for Durkin $3.5 $0.0 $0.0 $0.0 $0.0 $0.3 ISDF $2.4 $0.0 $0.0 $0.0 $0.0 $2.2 RSSCC $1.4 $0.0 $0.0 $0.0 $0.0 $1.4 Richard and Elizabeth Uihlein $1.2 $1.0 $0.0 $0.1 $0.0 $0.1 Source: Illinois State Note: Covers contributions between April 1, 2020, and Oct. 29, 2020. Total spending also Board of Elections includes spending on other categories and committees like PACs, mayoral or judicial races. Where the money is going in this year’s election

SPENDING from Page 1 $51.5 million he’s spent on his sig- nature “fair tax” ght in the same hike and attempt to ip a dierent span. branch of government that makes at’s a departure from former decisions aecting business. Gov. Bruce Rauner, who unsuc- Despite the federal spotlight, cessfully “tried to lean on mem- Madigan raised more cash than bers” by donating heavily to their ever in the run-up to this election. races, Wheeler notes. “Pritzker is Just two of the four committees he smarter than that, and Pritzker’s controls have spent $14.3 million agenda is pretty much in line with since April, nearly all to legislative what Democrats have favored.” candidates. at dwarfs the $9.7 Between that alignment and Madi- million laid out by four Republican gan’s fundraising prowess, there’s campaign committees. no need for him to spend more. “I’d say he’s just as powerful as Illinois’ wealthiest have likewise ever,” says Charles Wheeler, a for- largely ignored legislative races mer Statehouse reporter and di- (Citadel’s Ken Grin is the excep- rector of the public aairs report- tion. He donated $200,000 apiece ing program at the University of to vulnerable House Republicans Illinois at Springeld. Tom Morrison, Mark Batinick and Democrats already hold a 74-44 Deanne Mazzochi). ey’re con- House supermajority. If Madigan’s centrating their re on the grad- money helps them fend o down- uated income tax and Kilbride. If state challengers and ip more they manage to oust Kilbride, ll suburban seats, he’d grow even his seat with a Republican in 2022 stronger. His re-election as speak- and protect current Republican er in January would become more justices, they could end the Demo- secure (he needs 60 votes), and he cratic majority on the court for the could protect more Democrats by rst time since 1969. letting them vote against his po- Republicans “gure if they can sition on controversial measures get Kilbride out and put a Repub- when it helps them in their constit- lican in, then they’d have a 4-3 ma- BE WHERE uencies. jority on the court and be able to “Madigan has some real options rule in favor of business on a lot of for gaining seats this year. Demo- these narrow issues—maybe caps BUSINESS HAPPENS crats ipped eight House seats in on pain and suering awards, mak- 2018, and if they win every race ing it harder for injured employees where the Democratic challenger to sue, and medical malpractice,” has outraised the Republican in- Wheeler says. cumbent, they’ll ip eight more,” e anti-Kilbride Citizens for says Alisa Kaplan, executive direc- Judicial Fairness committee has tor of Reform for Illinois, a non- raised $6 million since September partisan research organization alone, including $4.5 million from that operates the Illinois Sunshine Grin and $1 million from Richard database, a campaign nance Uihlein. e Madigan-controlled tracker. Democratic Party of Illinois gave In his rst election cycle as state $550,000 to Kilbride on Oct. 16. Senate president, Don Harmon Kilbride’s committee still has $3.7 only has a small amount of room million cash on hand heading into to boost his 40-19 supermajority. Election Day, and he has biparti- He’s prioritizing three races—a san backing, including from for- potential ip of Republican Jim mer Republican justices like Bob Oberweis’ seat in the western omas. suburbs, defending Peoria in- But his Supreme Court district, cumbent Dave Koehler and keep- stretching across the state from ing the open 49th District seat Rock Island to Will County, is po- around Plaineld blue. Senate tentially ippable. Donald Trump committees—ISDF and the Illi- won 18 of the 21 counties in the dis- nois Democratic Heartland Com- trict in 2016, according to WBEZ. mittee—have spent $3.4 million Wealthy donors have thrown since April. Kaplan says it’s plau- even more cash against the gradu- sible Harmon is banking funds for ated income tax, which would cost BE IN THE BOOK 2022, when all Senate seats will be them millions in additional taxes. up for re-election. Grin has spent nearly $54 mil- Publishes Dec. 14 | Secure ad space by Nov. 5 lion on the eort. Sam Zell and his Contact Kate Van Etten at [email protected] PRITZKER’S PLAYBOOK trust have contributed $1.1 mil- Pritzker dropped only a fraction lion, Aon founder Patrick Ryan $1 of his campaign dollars—about million and Pritzker’s own cousin, $380,000—since April into legisla- Jennifer Pritzker, has contributed tive campaigns, compared to the $800,000. 14 NOVEMBER 2, 2020 • CRAIN’S CHICAGO BUSINESS

BEING SEEN: Employees need to be their authentic CRAIN’S CHICAGO BUSINESS selves at work. PAGE 16 REPRESENTATION MATTERS: Diversity of thought and experience is key. PAGE 16 Sharon Jones of Jones Diversity, a consulting rm with o ces in GOING FURTHER: A diverse workplace isn’t Chicago and New York. CRAIN’STHE INCLUSION CHICAGO BUFACTORSINESS necessarily inclusive. PAGE 17 “But when you focus on inclusion, you’re looking at workplace culture,” Jones says. “By that I mean it is a place where everyone feels respected, where they are engaged and they can be their authentic self.” If you have a workplace where only certain people feel engaged or feel like they belong, you won’t retain all that diversity you just hired. In some respects, it’s formulaic: part science and part art, Jones says. e rst step is making the commitment from the top that diversity and inclusion are important values and identifying what that means. e younger generation of talent (or those just coming out of school) are the most diverse adult generation in American history, at 44 percent minorities. ey expect diversity when they enter the workforce. But the older generation may not be as accepting, so for an inclusion policy to work, it must re ect everyone in the company, Jones says. “Use a broad inclusion statement: It’s race, gender identity, sexual orientation, age, veteran status, religion, disability status. Make it as broad as possible,” Jones says. “Everyone needs to see them- THE BUSINESS CASE FOR selves in it and believe it’s in their interest to help create the change.”

CREATING AN INCLUSIVE CULTURE Inclusive cultures aren’t created by accident, says Kim Schmidt, global leader of leadership, peo- DIVERSITY ple and culture at Chicago-based accounting rm Grant ornton. Becoming a fully inclusive company is not only the right Much of that work falls on management, so the rst hurdle is thing, it’s the pro table thing. | BY DANIELLE BRAFF leadership mindset. Johner “J.T.” Wilson III “Until leaders truly understand in their hearts and minds why in- JOHN R. BOEHM R. JOHN clusion matters and connect with it personally, it is going to be a Johner “J.T.” Wilson III’s ré- BY THE NUMBERS better the performance. Compa- president of talent management MORE THAN THE NUMBERS struggle to get them engaged in sumé was long and impressive e C-suite is nally woke— nies in the top quartile for ethnic and organization development at But that’s if you’re only looking the work,” Schmidt says. before he joined Chicago’s Dins- but becoming a fully inclusive and cultural diversity are 33 per- NorthShore University HealthSys- at the numbers, which don’t tell e next hurdle is unconscious more law rm in December. company takes more than hiring cent more likely to outperform tem, based in Evanston. the full story. bias, as it impacts every decision Wilson was highly experi- people of color. According to a on pro tability. One part of the diversity equa- Laurice Adegunwa, Chicago that’s made in a business, from enced with litigating employment recent Gallup poll, 45 percent of It all boils down to attracting tion is hiring people from di er- inclusion and diversity lead and recruitment to whom we social- claims on behalf of private and U.S. workers experienced some top talent and using that to bolster ent backgrounds and identities: organization e ectiveness consul- ize with among our co-workers. public companies, and he was a form of discrimination or harass- your company. If you’re only look- the data that companies seem to tant at Slalom, a business-focused Inclusion happens one person at lead trial counsel. He could have ment in the past year, and only ing at a fraction of the talent pool, pride themselves on displaying. consulting rm, compares the a time, and it’s an active decision had his pick of Big Law rms, but about half—or 55 percent—of you won’t be able to snag all the “But when we think about eq- situation to purchasing a state-of- each member of the organization he chose to accept a new position organizations have policies pro- best employees. Inclusive compa- uity, we also see that not every- the-art freezer and only using half needs to commit to in order to creat Dinsmore because he was at- moting diversity and inclusion. nies are able to draw from many one starts at the same starting of its capacity. ate an environment where inclu- tracted to the rm’s diversity and It’s important for companies to points of view that lead to better line,” Desai says. “How do we “You invest in phenomenal re- sion can live, Schmidt says. inclusion policies. be diverse and inclusive because and more relevant solutions, says reach out to help people move sources but don’t ensure the right ese include career advance- everyone deserves a right to Dwayne MacEwen, principal and along in their journey?” conditions for them to perform at ment programs, diversity com- work—but there’s also the busi- founder of Evanston-based DMAC NorthShore tries to do its part their best,” Adegunwa says. “Even “WE ARE A STRONGER TEAM WHEN mittees, initiative groups and ness part of the equation. Architecture, who adds that the via community outreach pro- smaller, everyday symptoms of WE ARE INCLUSIVE.” more to create and maintain a A new report by McKinsey, a rm is 40 percent culturally di- grams, investing in the commu- bigger problems, like covering workplace lled with diverse, tal- global management consulting verse. nity and helping the underserved and worrying about tting in, ented attorneys. rm, found that companies rank- It’s a win-win. So why are com- build professional skills. takes up signi cant energy—en- HELP FOR COMPANIES “ ere’s no perfect environ- ing in the top quarter for gender panies still lacking in diversity If inclusivity is a combination ergy that your people could be Fortunately, there’s lots of help ment, but there are strategic diversity on executive teams and inclusivity overall? of hiring those who are under- spending on innovation, creativi- available to create the inclusion steps that were implemented were 25 percent more likely to represented and bolstering the ty and collaboration.” mindset and to help train compa- that prepared Dinsmore to be experience above-average prof- THE HURDLES underserved so that everyone Most people simply look at the nies on how to incorporate inclu- a leader,” Wilson says. “I lead a itability than peer companies e rst hurdle is determining stands a fair chance, then cre- number of diverse people they’ve sive practices. Some companies very diverse team, and that’s in- without gender equality. e what exactly inclusivity and di- ating a truly diverse company hired, give themselves a pat on have hired in-house inclusion tentionally done.” higher the representation, the versity are, says Samir Desai, vice should be straightforward. the back and call it a day, says experts, while others seek out the help of consultants. SPONSORS Jones says that mandatory annual training for all businesses is necessary. Since many areas of the United States are racially segregated, there are people who grow up surrounded by people just like them. eir workplace may be the rst time CRAIN’S CHICAGO BUSINESS • NOVEMBER 2, 2020 15

CRAIN’S CHICAGO BUSINESS

Sharon Jones of Jones Diversity, LETTER FROM THE PUBLISHER a consulting rm with oces in w IT PAYS TO BE DIVERSE Chicago and New York. “But when you focus on inclu- Companies in the top quartile for racial and ethnic diversity are 35 percent more likely to sion, you’re looking at workplace have financial returns above their respective national industry mediums. culture,” Jones says. “By that I mean it is a place where everyone feels Welcome respected, where they are engaged For every 10 percent increase in racial and ethnic diversity on the senior-executive team, and they can be their authentic self.” earnings before interest and taxes rise 0.8 percent. If you have a workplace where to Equity only certain people feel engaged or Among companies with more than $750 million in revenues, cash flows were 2.3 times feel like they belong, you won’t re- higher per employee over a three-year period for those with a well-developed diversity and Over the past several tain all that diversity you just hired. inclusion plan compared with those without one. months, the widening wealth In some respects, it’s formulaic: part science and part art, Jones says. gap in America has drawn e rst step is making the commit- Smaller companies had 13 times higher mean cash flow from operations when compared more headlines than it has ment from the top that diversity and to peer organizations. in years. Certainly, we have inclusion are important values and COVID-19 to thank in large part for surfacing the is- identifying what that means. Highly inclusive organizations generate 1.4 times more revenue and are 120% more e younger generation of talent capable of meeting financial targets. sue as businesses shut down and a bright light shone (or those just coming out of school) on the economic ledge on which many people live. are the most diverse adult generation in American history, at 44 per- Firms in the top tier for diversity and inclusion are also 1.8 times more likely to be Nowhere is that gap wider than it is between cent minorities. ey expect diver- change-ready and 1.7 times more likely to be innovation leaders in their market. whites and people of color, especially Black people. sity when they enter the workforce. Sources: McKinsey, Bersin by Deloitte Thanks to a landmark Citigroup report in Sep- But the older generation may not be as accepting, so for an inclusion tember, we now can put a price tag on the costs of policy to work, it must reect ev- they experience people who are RESULTS SPEAK FOR THEMSELVES institutional racism that has held Black people back eryone in the company, Jones says. dierent, and they’ve already de- Some companies appear to for generations—$16 trillion since 2000 alone. That “Use a broad inclusion state- veloped negative stereotypes about have followed these suggestions. ment: It’s race, gender identity, them, Jones says. Even those who Agricultural processing giant lost opportunity in our economy is both stunning and sexual orientation, age, veteran grew up surrounded by minorities Archer Daniels Midland, based shameful. status, religion, disability status. may have stereotypes. in Chicago, realized that diversity In Chicago, we see it play Make it as broad as possible,” Jones A recent study by Baylor Univer- can’t be achieved without struc- says. “Everyone needs to see them- sity researchers of 900 white stu- tural focus at every level of the or- out in subtle and not-so-sub- “CRAIN’S selves in it and believe it’s in their dents from 27 American universi- ganization. So in 2019 it instituted tle ways. interest to help create the change.” ties found that the students tend procedures across recruitment, The city has moved WILL EXPLORE to rate Asian Americans—who are professional development, com- CREATING AN INCLUSIVE CULTURE seen as emotionally cold—higher pany culture and industry engage- backward when it comes to Inclusive cultures aren’t creat- than Latino and Black students ment to ensure equal opportu- the number of Black-owned THE WEALTH ed by accident, says Kim Schmidt, when it comes to competence. nities, says Jennifer Weber, chief businesses. Black unem- global leader of leadership, peo- ey also said that Latinos don’t human resources ocer. GAP ISSUE ple and culture at Chicago-based work hard enough to improve Some of the strategies includ- ployment is higher. Black accounting rm Grant ornton. their life circumstances. ed engaging in a global diversity homeownership also has IN DEPTH.” Much of that work falls on man- “It’s not so much that people council while ensuring visibility retreated. Against almost ev- agement, so the rst hurdle is of color are actually dierent, but and accountability through a ded- leadership mindset. you want to break down the stereo- icated corporate responsibility ery measure, Black wealth has decreased in the past “Until leaders truly understand types,” Jones says. If you have nega- committee at the board of directors quarter century while white wealth has increased in their hearts and minds why in- tive views of a group of people, she level; establishing regional diver- significantly. JOHN R. BOEHM R. JOHN clusion matters and connect with says, you wouldn’t want them on sity councils focused on advanc- it personally, it is going to be a your team. So even if your company ing diversity; creating mentorship Chicago should be more prosperous and would be MORE THAN THE NUMBERS struggle to get them engaged in is hiring a diverse crew, those new- programs aimed at career accel- if wealth-building opportunities were expanded. But that’s if you’re only looking the work,” Schmidt says. bies wouldn’t feel welcome and eration for female talent and other Starting today, Crain’s will explore the wealth gap at the numbers, which don’t tell e next hurdle is unconscious your retention rate would be low. underrepresented colleagues; and the full story. bias, as it impacts every decision Next there needs to be training providing bias and inclusion train- issue in-depth in a monthly print and digital special Laurice Adegunwa, Chicago that’s made in a business, from speci cally for upper manage- ing to all employees. section titled “Equity.” inclusion and diversity lead and recruitment to whom we social- ment that focuses on looking at Last year, ADM committed to We will expand our journalism to report on a broad organization eectiveness consul- ize with among our co-workers. how the entire operation may be reaching global gender parity in tant at Slalom, a business-focused Inclusion happens one person at unfair to people based on their senior leadership by 2030, and it range of topics including investment in minority consulting rm, compares the a time, and it’s an active decision race or gender, Jones says. For has already made signi cant prog- suppliers, corporate inclusion issues, diversity in the situation to purchasing a state-of- each member of the organization example, management should as- ress: Its C-suite consists of 38 per- C-suite and boardroom, business lending gaps and the-art freezer and only using half needs to commit to in order to cre- sign each person in the company cent ethnically diverse leaders, and of its capacity. ate an environment where inclu- a sponsor. women account for 45 percent of more. We will invite outside voices to help shape the “You invest in phenomenal re- sion can live, Schmidt says. “A sponsor is a person of power the top three levels of the compa- conversation around these topics. Like our beloved sources but don’t ensure the right and inuence who is in the ny’s senior leadership. Overall se- monthly public policy feature, Crain’s Forum, we will conditions for them to perform at room when decisions are nior leadership diversity increased their best,” Adegunwa says. “Even “WE ARE A STRONGER TEAM WHEN made who will advocate 23 percent from 2018 to 2019. make sure Crain’s Equity content is open and free for smaller, everyday symptoms of WE ARE INCLUSIVE.” for you,” Jones says, adding Wilson’s rm, Dinsmore, contin- all to read. bigger problems, like covering that, most likely, that per- ues to make strides with even more The opportunity to grow our coverage in this area and worrying about tting in, son will be white and male, initiatives since he arrived. Last takes up signi cant energy—en- HELP FOR COMPANIES as the sponsor should be in upper year, the rm established a schol- is only the beginning. We are committed to broaden- ergy that your people could be Fortunately, there’s lots of help management. arship to fund half the annual tui- ing our daily coverage, too, to bring in more diverse spending on innovation, creativi- available to create the inclusion Leadership also needs to exam- tion of a student at the University of voices and viewpoints and coverage of broader sec- ty and collaboration.” mindset and to help train compa- ine how work is assigned, speci - Louisville Brandeis School of Law Most people simply look at the nies on how to incorporate inclu- cally looking at the quantity and who identi es as LGBTQ+ or who tions of our marketplace as we have done with Crain’s number of diverse people they’ve sive practices. Some companies quality of assignments. has made signi cant contributions Forum. hired, give themselves a pat on have hired in-house inclusion “Often, especially in law rms, to the community. Dinsmore also As always, we welcome feedback on what we are the back and call it a day, says experts, while others seek out the lawyers of color have a hard time has three diversity-related groups, help of consultants. getting work the rst day,” Jones including for women, minorities doing. Please don’t hesitate to contact us directly or SPONSORS Jones says that mandatory an- says. “It’s because of the stereo- and LGBTQ+ people. through our social platforms. nual training for all businesses is types: If you believe they’re not e rm recently created a chief Most of all, thank you for your continued interest necessary. quali ed, you won’t put them on equity and inclusion position, and Since many areas of the United your projects.” that employee has been instru- in Crain’s Chicago Business. States are racially segregated, there e answer is setting up a sys- mental in implementing initia- are people who grow up surround- tem that doesn’t allow employees tives to combat racism. Jim Kirk ed by people just like them. eir to pick and choose who they will “We are a stronger team when workplace may be the rst time be working with at any given time. we’re more inclusive,” Wilson says. Publisher and executive editor 16 NOVEMBER 2, 2020 • CRAIN’S CHICAGO BUSINESS

CRAIN’S CHICAGO BUSINESS

COMMUNITY VOICES Employees need to be their authentic selves

y now, companies that have not 45 months longer in our rst jobs. Since jumped onto the train of diversi- 40 percent of the U.S. workforce growth Bty and inclusion might be feeling will come from our community, it is the heat. More than ever, people—par- key for companies to understand that ticularly young people—are watching, Latinos mean growth and that we are and they expect real action and change the largest and most protable cohort from companies, whether it is to hire of America. or promote people of color, conduct Yet 76 percent of Hispanics feel they unconscious bias training or invest in cannot be themselves at the workplace, the employees’ communities. according to a 2016 study by Harvard Claudia Romo No doubt the practice of diversity and Business Review. at means that if Edelman is inclusion is here to stay, but it has to you are Jorge, you have to pretend to founder of We really be inclusive. To attract a diverse be George and that you leave yourself Are All Human, a consumer base, you need a diverse at home to come to work as someone New York-based workforce. And your workforce ideally you don’t even know. at is a loss for nonpro t devoted will be representative of the population. everyone. Not only the revolving door to diversity and Chicago is 30 percent white, 30 percent that a disenfranchised employee base inclusion. Black and 30 percent Latino. It is a means, it is also a loss for a company balancing act. And it is important to be that is not maximizing the emotional smart from the start. engagement that Latinos bring to every- Hispanics, Latinos, Latinx are the thing we do. best-kept secret for many. ere is no Our hard work ethic and passion are put at the side and not used HERE ARE SOME BEST PRACTICES for your company. We work hard—that is what we do. GLEANED FROM THE COMPANIES THAT We don’t bark, we don’t bite. You need three Hispanics in HAVE SIGNED THE HISPANIC PROMISE. a corporate meeting for us to feel comfortable to speak up. way companies can hire or grow in the If you are an ally or a manager, that is next 40 years without our community. I precious information to have so that am not just saying that as a super-proud you can poke and enable your Latino cluding Mars, PepsiCo, Beam Suntory, retraining and upskilling are essential in order to shine. Latina—look at the numbers. employees to shine. Procter & Gamble and AT&T. in order to occupy senior posts in the w Celebrate employees by treating them We are many, we are young and we Creating inclusive environments is coming months. Latinos are loyal em- as stars, showcasing their contribution are loyal. Latinos number 60 million a goal for every company that wants to w To hire, look at places where Latinos ployees. We work hard and are emo- to American society and resisting the people in the U.S., 18.5 percent of the thrive. Whether you are a small compa- are highly concentrated—conduct tionally engaged, but we need to feel temptation to do a half-hour margarita population and growing. By 2050, 1 ny or a huge enterprise, there are some apprenticeship programs with city col- valued and appreciated. celebration to check the box until the in every 4 will be Hispanic: Hello-hel- best practices we have learned from leges, as well as paid internships. next year. lo-hello-hola. Not only are we many, we the 160 companies that have signed the w Regarding retention, have the un- are the youngest, an average age of 28 Hispanic Promise, the rst-of-its-kind w When looking at ways to promote comfortable conversation about what Diversity and inclusion are the next years—six years younger than the rest national corporate pledge to hire, pro- Hispanics, consider mentorship pro- makes your workforce feel they can’t be big ag that leaders across industries of the country. We are loyal as consum- mote, retain and celebrate Hispanics grams to boost role models among our their best selves. An employee survey is will have to wave, understand and act ers and as employees. Latinos stay 41 to in the workplace, with signatories in- community. During these trying times, a great tool to know what people need upon for the next decade. It will be what

COMMUNITY VOICES It’s simple: Representation matters

ompanies worldwide are clearly shows that companies with di- be, leadership needs to acknowledge inclusive workplace. It should guide creating diversity, equity and verse executive teams are 33 percent that inequities exist and recognize hiring, benets, customer service and Cinclusion, or DEI, strategies more likely to see better-than-average that their company may not have an company culture. Starting here is the following an awakening to racial prots, and at the board level that av- equal playing eld. ey also need rst step on the strategic journey. injustices and the uncertainties of our erage jumped to 43 percent, showing to reect deeply on the structures of current times. a strong correlation between diversity power and privilege and the realities Help is out there: e work is com- DEI has always been the right thing and performance. It’s important to of unconscious bias. Leaders need to plex and more than just hiring diver- to do, but many still struggle with note that nationally, only 4 percent of commit to investments of time and sity. It’s a holistic and transformation- the depth and breadth of under- Black and Brown people hold senior resources for a sustainable, respon- al change throughout an employee’s standing the acronym and how it executive positions. sible and measurable strategy, and journey with your company as well as Colleen Egan is helps humanity thrive. Simply stated, Protability is great, but people are personally commit to transformation. a deep dive into a company’s pur- director of people, representation matters. Diversity the beating hearts of our companies. pose, products, programs, technolo- culture and endless of thought and experience is key to Companies investing in DEI have Value of voices: Everyone seems to gies, vendors and more. DEI experts possibilities at innovation, and the most innovative higher employee retention rates; be taking hurried action on DEI, but in their areas are objective and bring Clarity Partners, companies are the most successful. employees are happier and healthier, one of the most powerful things you vast knowledge and best-practices a management When asked about the return on more engaged and empathetic, and can do is slow down and listen. Your experience. and technology investment of DEI, I ask in return, “How ultimately more productive. Customer employees will help guide you and consulting rm in do you measure a company’s character, attraction, engagement, trust and loy- then support you in creating lasting DEI is a journey. Author James Chicago. a human being’s purpose and the ben- alty grows. People, families and com- change. Trust in that process. Baldwin said it best: “A journey is et of belonging?” DEI is not just one munities thrive. Our country thrives. called that because you cannot know tidy initiative with quick returns, and for Where does a company start its DEI Start with a statement: A complete what you will discover on the journey, most companies it’s a complicated and journey? DEI strategy may be overwhelming what you will do, what you will nd long journey. DEI is a deeper invest- at rst, so start with a statement. nor what you nd will do to you.” ment, and the returns are powerful. Leadership leads: Investment in DEI Include all your employees’ voices in I wish us all well on this journey, rough decades of research, data starts at the top. As dicult as it may an authentic commitment to build an together. CRAIN’S CHICAGO BUSINESS • NOVEMBER 2, 2020 17

COMMUNITY VOICES A diverse workplace isn’t necessarily an inclusive one s our workplaces continue sented employees to help choreo- to grow increasingly diverse graph the dance of our organiza- Aand the business case for tions, we provide them with an retraining and upskilling are essential in order to shine. sustainability and purpose were 20 diversity, equity and inclusion opportunity to help contribute to in order to occupy senior posts in the w Celebrate employees by treating them years ago. Consumers and employees becomes undeniable, organizations the success of our businesses. coming months. Latinos are loyal em- as stars, showcasing their contribution are demanding to be in places where across industries are understanding Inviting talented employees of ployees. We work hard and are emo- to American society and resisting the they can be themselves, accepted and the importance of cultivating an diverse identities to contribute their tionally engaged, but we need to feel temptation to do a half-hour margarita respected, particularly after a year like inclusive workplace in which all ideas and insights helps pave a valued and appreciated. celebration to check the box until the this, where social injustice has opened employees feel welcomed, respect- path for them to secure a seat at the next year. up spaces for collective discussions and ed, supported and valued. decision-making table and works w Regarding retention, have the un- social awareness. Cindu Thomas- Diversity reporting has become a to create validation and recognition comfortable conversation about what Diversity and inclusion are the next With such a large Hispanic popula- George is the normative practice in organizations for employees who often go unrec- makes your workforce feel they can’t be big ag that leaders across industries tion in Chicago, this should be more founder and across many industries. However, ognized. their best selves. An employee survey is will have to wave, understand and act than a wake-up call for local compa- principal trainer these reports say little about an or- When employees don’t feel a great tool to know what people need upon for the next decade. It will be what nies. Vamos adelante. of Shakti Diversity ganization’s inclusiveness, because recognized or included, it dimin- & Equity Training a diverse workplace isn’t necessari- ishes their sense of belonging to the based in Chicago. ly an inclusive one. organization and discourages them While inclusion is a key ingre- from showing up to work as their dient to a successful business, it is true, authentic selves. is negatively not an automatic result of a diverse impacts their performance and com- workforce. Verna Myers, Net ix’s mitment to an organization, and of- vice president of inclusion strategy, tentimes leads to the revolving door, It’s simple: Representation matters helped drive this point home when which comes with not only a cost she famously stated that “diversity to company morale but also a hefty inclusive workplace. It should guide is being invited to the party (and) monetary cost to the organization. hiring, benets, customer service and inclusion is being asked to dance.” Empowering others with the company culture. Starting here is the is quote was instrumental in opportunity to help choreograph the rst step on the strategic journey. sparking the national conversation organizational design is an intention- about inclusion in the workplace, al act of inclusion that can result in a Help is out there: e work is com- but I think it’s time that we begin to renewed sense of commitment and plex and more than just hiring diver- think about inclusion beyond just belonging to the organization, work- sity. It’s a holistic and transformation- asking someone to dance. Because ing to ensure the retention of people al change throughout an employee’s when the song that you are dancing of color, women, LGBTQ+ and other journey with your company as well as to is over, typically that means that minoritized employees whom we a deep dive into a company’s pur- dance is over, too. value and worked hard to recruit. pose, products, programs, technolo- If our inclusion eorts stop at Intentional inclusivity is a key to gies, vendors and more. DEI experts asking someone to dance, then the success of our diverse workplac- in their areas are objective and bring we will fall short at creating an es. Business leaders who aspire to vast knowledge and best-practices inclusive environment in which be inclusive should be intentional experience. all employees, regardless of their about inviting their historically un- social and cultural identities, feel a derrepresented employees to con- DEI is a journey. Author James sense of belonging and feel valued tribute insights and experiences. Baldwin said it best: “A journey is enough to fully participate. An invitation to help choreograph called that because you cannot know I agree with Myers that diversity the “dance” of our businesses is not what you will discover on the journey, is being invited to the party, but only an act of empowerment, but what you will do, what you will nd inclusion is not just being asked it can also help ensure that diver- nor what you nd will do to you.” to dance—it is being asked to help sity, equity and inclusion is being I wish us all well on this journey, choreograph that dance. When we deliberately designed into the DNA together. invite our historically under-repre- of our organizations. 18 NOVEMBER 2, 2020 • CRAIN’S CHICAGO BUSINESS

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VIDEO SERVICES CAREER OPPORTUNITY GET THE VIDEO CONTENT YOU NEED TO TAKE YOUR BUSINESS TO THE NEXT LEVEL. TECHNOLOGY RESOURCE SOLUTIONS, Visit e Montaj Today! INC. DBA SYNERGIS seekS SENIOR SOFTWARE ENGINEER C#/SSIS¡ In Naperville, IL to create technical designs for AMI proj & mentor Jr dvlprs. Will rpt to BOEHM R. JOHN WWW.THEMONTAJ.COM co hq in Alpharetta, GA. Will wrk at various, Deborah Fischer of Berkshire Hathaway HomeServices Chicago helped organize Lake Forest’s “Welcome Home” campaign. unanticipated client sites throughout the US. Trvl reqd as nedd. Apply to www.jobpostingtoday.com, REFERENCE # 30554 for consideration. Winds shift in favor of Lake Forest housing market LAKE FOREST from Page 3 The 2.6-acre property includes With few people commuting AUCTIONS an outdoor pool, and it’s a few now and the possibility that the 1031 EXCHANGE OPPORTUNITY Oct. 25. Yearly average sales vol- blocks west of the town beach five-days-in-office workday may ume has averaged 320. and a few blocks east of the Me- be gone for good, “some say we advertising opportunities available “NNN” WALGREENS Lake Forest was among the tra station and Lake Forest’s gra- are not as far from Chicago as Orland Park, IL/13.75 yr. / $6.975M / 5.6% previously thought,” says Mona Cap / NNN / Strong Sales /Qualiﬁ ed Investors suburbs where Crain’s reported cious century-old Market Square Only / Brokers Welcome R. PETER GIADLA at sales in August were double what downtown center. Hellinga, a Berkshire Hathaway 3129611743/ [email protected] To advertise contact they’d been a year before, and e setting is reassuringly like HomeServices Chicago agent. in September sales were up 130 Lincoln Park, with the lakefront, Will the comeback in Lake Claudia Hippel percent: 60 homes sold, com- shopping, dining and CTA all Forest’s real estate market last? [email protected] pared to 26 in September 2019. close at hand. No one can say, but real estate Chicagoland’s latest A year ago, the inventory of While Lake Forest’s mansions agents are confident, in part be- business news and events. 312-659-0076 homes on the market in Lake used to feel too old, too big and cause “people are finding the ChicagoBusiness.com Forest could fuel 14 months of priced too high, a lot has changed value we always knew was here,” sales. Now there’s roughly three in the interim. Fischer says, and in part because months’ inventory. Too old? Not a problem. “When more pandemics and shutdowns “It’s been crazy,” says Corky you’re working from home, may lie ahead. Peterson, another Berkshire you don’t want that open plan,” OUR READERS ARE agent in Lake Forest. “The num- Fischer says. “You want libraries, ‘REFUGE’ 125% MORE LIKELY ber of people looking up here double libraries for him and her.” The $4 million buyers on West- from the city has skyrocketed.” Too big? Space is the primary minster, Peterson says, are keep- TO INFLUENCE “They’re coming from Chica- luxury in a year of shutdowns. ing their Lincoln Park home for go but from other suburbs, too,” Priced too high? Asking pric- weekends. Down the line, they OFFICE SPACE says Andra O’Neill, an @proper- es have dropped after years may move back there and make DECISIONS ties agent. The draw is the same of slow sales. Typical is the the Lake Forest house their wherever they come from, she 10,000-square-footer on Cir- weekender. says: “bigger space, bigger prop- cle Lane that came on the mar- “People who lived in the city erty, good prices and lower tax- ket in October 2015 at es.” The predominant property nearly $6.75 million tax rate in Lake Forest is 5.3 per- and lingered for years, “IT’S BEEN CRAZY. THE NUMBER OF cent, the lowest of any munici- with occasional price PEOPLE LOOKING UP HERE FROM THE pality in Lake or Cook County. cuts. In March 2020, the price came down CITY HAS SKYROCKETED.” CHICAGO BUYERS again, to just under Sales records don’t show $3.7 million, and in Au- Corky Peterson, Berkshire Hathaway HomeSer- where buyers come from. But gust it landed a buyer. vices Chicago Find your next Peterson and three other agents The sale closed in late all say much, but not all, of the October at the last asking price. don’t want to give that up, but corporate tenant or leaser. increased buying is by families e median price of a home this year they want refuge,” says moving from the city. sold in Lake Forest in the rst nine Kelly McInerney, an @properties Peterson represented buyers months of 2020 is about $740,000, agent. “I think some of the big- from Lincoln Park who paid $4 up 0.7 percent or essentially at ger Lake Forest homes that were million for a 19th-century colo- with the same period last year, bought this year will become sec- nial revival on Westminster Ave- according to monthly statistics ond homes” when life returns to nue in mid-October. He declines from the Chicago Association of normal. to name them, and county re- Realtors and MRED. In that, she says, “it would be cords don’t yet identify them, but Historically low interest rates, back to the old days,” when Lake Connect with Claudia Hippel at Peterson says the 10,800-square- while not unique to Lake Forest, Forest was a hub of country es- [email protected] for more information. foot home suits their need for are also giving buyers more bang tates and gentlemen’s farms for home offices and school space. for their buck in house shopping. the wealthy elite of Chicago. SPONSORED CONTENT

PANDEMIC DIVORCE FAMILY LAW IN THE TIME OF COVID As the pandemic continues, divorce rates are reportedly rising as couples deal with fallout from health crises, lockdowns, job losses, e-learning, nancial stress and more. Three local attorneys shared their current insights with Crain’s Content Studio, including how the crisis is rede ning the practice of marital and family law.

What’s the most common and the issues they might face. ere’s question or concern you’re also been an increase in lings. e hearing from clients who are unprecedented combination of health currently contemplating a and nancial uncertainty is taking a toll divorce? on family dynamics and relationships. is uncertainty, anxiety and fear are Jonathan Merel: People want driving some people to question where to know how the divorce process they are and who they’re with in their works in these unprecedented times. lives. is, in turn, fuels the increase in e COVID-19 pandemic has led to consultations and eventually, in many drastic changes in how divorces and instances, the lings. other domestic relations matters are proceeding. e days of litigating Sharma: While initial lings are in open court are gone, for now at greater, so are post-decree lings least, and all matters, contested or because parents are dealing with TIMOTHY M. DAW JONATHAN MEREL MOLSHREE “MOLLY” A. uncontested, are proceeding remotely. unique challenges, and their nancials Senior Partner Founder, Managing Principal SHARMA may have been greatly a ected. ere’s Schiller DuCanto & Fleck LLP Law Of ces of Jonathan Partner Molshree “Molly” A. Sharma: a lot of stress in homes. Children are at tdaw@sd aw.com Merel PC Feinberg Sharma PC Job insecurity is a major concern. If a home and having their own e-learning 630-784-7412 [email protected] [email protected] spouse believes they may be losing their challenges. Many parents are working 312-408-7000 312-236-7085 job, they’re more hesitant to commit remotely while simultaneously taking to spousal support. Similarly, a spouse care of their children. e increase

who previously would have agreed to a in alcohol consumption has added took hold. e virtual system works virtual proceedings dictated by the Sharma: By attending status meetings buyout or lump sum maintenance may to issues of domestic violence and well with routine court appearances issues in the case will be the new norm. online, lawyers save time and larger be less likely to do so in the current depression. and well-de ned non-complex issues. Many of us believe the virtual system bills since they don’t have to travel to environment because the amount of It doesn’t work well for the more will continue to increase, even post- court, or wait there once they arrive.

support may be based on an amount Merel: Whether it be new divorce complicated family law cases that pandemic, to take pressure o of the Between an uptick in domestic violence lower than the historical income, at lings, issues involving domestic require litigation and substantial court system, which was overwhelmed and child-related issues, court dockets least temporarily. If a spouse is carrying violence or post-decree modi cations evidentiary hearings. It’s anticipated even before COVID. We hope this will are overwhelmed by COVID-related insurance for the entire family and is of custody or support, the pandemic that at some point in the not-so-distant allow more time for those cases that emergencies. DuPage County is doing laid o , it creates issues. Other concerns has caused an increase in domestic future a combination of in-person and need the system’s help for resolution. some in-person hearings but at the include parenting time and travel, relations activity. It’s caused many " including for those whose children have families to spend most of their time been wrongfully taken by a parent to inside the home in what some might another country. Quarantine regulations view as a “pressure cooker.” Without the have prohibited le -behind parents from space that work and school provides for visitations with their children. couples and families on a daily basis, and given the nancial strain that many The Future of Family Law Since 1981. “ . . . THERE’S A LACK OF TOLERANCE IN THE COURT SYSTEM FOR PARENTS USING THE PANDEMIC TO TRY TO DENY ACCESS The best advice I can BETWEEN A CHILD AND THE OTHER PARENT.” give to clients is to TIMOTHY M. DAW, SCHILLER DUCANTO & FLECK LLP take a deep breath Timothy M. Daw: People are families may be experiencing from the trying to deal with great nancial and pandemic, the potential for tension at first. Then, let’s emotional uncertainty, much like what in the home has increased, leading to we saw in 2008 and 2009. Costs of a breakdowns in the family unit. divorce are of concern, as is the time the look at the case matter will be pending; in other words, What’s the biggest change how long their lives will remain in in how the court system is strategically and upheaval. People contemplating divorce currently handling divorces are searching for a sense of control over and related matters? plan how to get fromrom the process during this period of great uncertainty. Ultimately the clients are Merel: Instead of the traditional asking about and seeking alternatives to courtroom setting, judges now have point A to point B. limit the emotional and nancial costs virtual courtrooms which are accessed to the family. with a Zoom meeting ID and password. While many lawyers and judges view Has the pandemic affected the these changes as a breath of fresh air, number of divorce lings you’re many attorneys will always prefer the seeing? formal courtroom setting. Timothy Daw | Senior Partner Daw: ere’s been a signi cant Daw: Early in the pandemic, the court increase in people consulting with us to system was largely paralyzed. As a " [email protected] | 630.784.7412 gather information about the process result, the remote/virtual court system sdflaw.com

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same time it’s di cult to do safely whether a matter is heard electronically Daw: We have an obligation to not busy writing articles about practicing this di cult time, these circumstances and it increases the risk of exposure. or in person. Communication, with only safeguard our clients’ interests, law during the pandemic. have brought di ering viewpoints on Federal court completed an in-person certain exceptions, between an attorney but also the interests of the people who the virus to the forefront and children Hague child abduction case, but it was and client remains absolutely privileged work with us, as well as our families and Merel: While our o ces were vacant are o en unfortunately caught in the substantially delayed. and can only be waived by the client. ourselves. We’ve had the ability to work for several months at the outset of the middle. Whether it be issues related to remotely for some time, but not on the pandemic as everyone worked from travel with the children, interactions What impact has video Sharma: Clients and lawyers have to scale experienced earlier this year. An home, we’re now back in the o ce with friends, modi cation of parenting conferencing had on the work harder to communicate e ectively. even greater level of communication every day, practicing social distancing time due to exposure, involvement process, including the issue of It’s also di cult to build rapport with a has evolved in multiple formats with of course, and adapting to the new in activities or even exposure to attorney-client privilege? judge. A further challenge is if a client clients that we currently don’t regularly practice of law. e days of running parents and other family members, needs an interpreter. I had a hearing see in person. Video communications— around the courthouse every morning the COVID-19 pandemic has been a Daw: While simple technology issues that lasted several days because we instead of phone, emails and/or text are gone, for now at least, and our hot topic for parents in the midst of a can derail virtual court appearances, needed to nd an interpreter and add communications—has been very attorneys can be in multiple Zoom divorce, or in life a er divorce. had the court system not adopted these him to the Zoom attendees. ere are helpful for some clients who respond courtrooms across multiple counties technologies, the process would have challenges with connectivity and time better to a more personal visual and with the click of a button. e new era If an individual with a support ground to a halt and stayed grounded. delays. It’s di cult to maintain privilege auditory communication format. of “Zoom court” seems to be a well- obligation—child or spousal— Given health considerations, the current and also communicate with the client. Overall, the pandemic has made our received change among lawyers and has experienced a drop in virtual system is a necessary—but not Even though the host can put a client lawyers work di erently, and in many judges across Chicagoland, as the hustle their income as a result of ideal—tool to move cases forward, and lawyer in a breakout room, the host instances, harder to achieve results for and bustle of crowded courtrooms COVID-19, what steps can that provided the clients and attorneys could join at any time. And while there’s our clients. and travel to and from court feels like person take to modify their are motivated to reach conclusions. a chat feature, the host may have access a distant memory. Most judges I’ve support obligation? ese remote proceedings require to these chat messages. Inadvertent Sharma: I have fewer in-person spoken with seem to agree that the new additional preparation and planning. errors can occur where a person clicks meetings, and have several clients system has been an enlightenment of Sharma: A person with a support Unfortunately, some individuals take on a wrong button and ends up sending I’ve never met in person. At Feinberg sorts for the legal community, and the obligation must immediately le a these proceedings less seriously. Having a message for an unintended recipient. Sharma, we’re all working at our o ce changes we’ve all made in the wake of petition to modify or abate support based a witness sworn in person before most days. We take temperatures every COVID-19 are likely to remain in some on a signi cant decrease in income. a judge is a better option when it’s Are there other ways the morning; anyone feeling sick must form, even a er the pandemic. ere may also be a new calculation if possible to do so. As to attorney-client pandemic has impacted how go home. We wear masks and wipe the recipient’s income has gone down, privilege, the rules have not changed you operate your practice? down common surfaces. We believe How has COVID affected since child support is based on both there’s value for our clients when we parenting issues such as incomes and maintenance may have can consult with each other and have visitation, childcare, holidays been calculated based on two incomes. “A PERSON WITH A SUPPORT OBLIGATION resources on site. Our conference and travel? Retroactivity only begins from the date MUST IMMEDIATELY FILE A PETITION TO rooms have large-screen televisions for of ling. Zoom meetings and court. We’ve spent Sharma: During the lockdown, MODIFY OR ABATE SUPPORT BASED ON A considerable funds to be COVID- parents had to adapt and ultimately Merel: Under Illinois law, both ready, including a stellar internet agree or have court guidance on the child support and spousal support SIGNIFICANT DECREASE IN INCOME.” connection and air puri ers. We believe most routine issues, such as childcare obligations are generally modi able MOLSHREE “MOLLY” A. SHARMA, FEINBERG SHARMA PC information is key, so our lawyers are providers, tutors, social gatherings and upon a showing a “substantial change in in-person work attendance. As some circumstances.” e payor seeking the restrictions have eased, parents are modi cation will typically be required frequently in disagreement over travel. to substantiate the decrease in income For example, a client had planned a trip with nancial documentation, including to Mexico with his daughters, but the pay stubs, tax returns, bank statements daughters’ mother opposed it. e father and any other relevant evidence. In presented statistics to bolster his case the absence of an agreement reached and at the same time pointed out that the outside of court between the parties, a mother had already taken the children judge will ultimately rule on the request to Texas for a visit. Parents of children for the modi cation of support a er a abroad have little chance of seeing their hearing. children in person, making it attractive for parental abduction. Other challenges Daw: If there’s been a substantial include disputes over supervision around change in circumstances and a motion screen time and e-learning. is not led, the person obligated to pay the support will need to continue Daw: Judges want to make sure the regardless of the change. No one, parent-child relationship is protected especially the judge, knows how long and the safety of the child preserved, the economic uncertainty will last especially in these uncertain times. or what the economy will look like Having a parent drive instead of y to down the road. It’s essential to have see their child, expanding visitation documentation of the change as well as times but with less frequency combined any support for how long the change with more face time, video conferences may persist. If the change is believed and calls have been used by parents to be only temporary, in addition to separated by great distances from their ling something, it may make sense to children. My experience with these work with the other person to arrive issues has demonstrated that there’s a at a short-term solution and revisit the lack of tolerance in the court system support issue in the future. However, for parents using the pandemic to try any agreed-upon modi cation needs to deny access between a child and be in a court order—or incorporated by the other parent. At the same time, reference into an order—and approved the court system is also having issues by the court. with parents who lack the proper appreciation for the seriousness of the How has the pandemic current crisis by placing their families at impacted business valuations, additional risk. as they relate to divorce settlements? Merel: While the COVID-19 outbreak has caused many divorced couples to Merel: ough business valuations are come together to make appropriate proceeding and are usually necessary and well-reasoned decisions about the to resolve a dissolution of marriage well-being of their children during involving a business owner, determining

P019_021_CCB_20201102.indd 20 10/26/20 9:28 AM SPONSORED CONTENT

the value of a business in the midst of a person is entitled to safety and it’s still ABOUT THE PANELISTS global pandemic is di cult. Considering possible to get an order of protection the value of a business interest is o en and have the other spouse removed TIMOTHY M. DAW is a senior partner at Schiller DuCanto & one of an individual’s most valuable from the premises. Fleck LLP, a family law rm with of ces in Chicago, Lake Forest assets; this o en becomes a highly and Wheaton. He has more than 35 years of experience contested issue in divorce cases. Daw: For those who chose to le for litigating and negotiating complex family law cases, and dissolution of marriage at this time, has been recognized by his peers and the community for his Daw: Greater economic uncertainty avoid litigation if possible. Many cases trial and litigation skills. He has been listed among the Best for a business or business environment can be settled with good attorneys on Lawyers in America by Neifeh and Smith, is an Illinois Super tends to result in more conservative, each side, the sharing of the necessary Lawyer and a member of the Leading Lawyers Network. lower values. Uncertainty as to whether information and the willingness of prior earnings will continue or what the the parties to compromise and reach prospects are for future earnings creates agreements. For issues that can’t greater risk. Greater risk negatively be settled this way, I advise clients e ects value. Because of income and to consider an alternative dispute performance uncertainties, some resolution process. It requires a high JONATHAN MEREL is the founder and managing valuation professionals are being more degree of information sharing, a level of principal of the Law Of ces of Jonathan Merel PC, a conservative or opting to use an asset trust between the parties, and attorneys family law rm with of ces in Chicago, Highland Park and Skokie. His experience encompasses all aspects of family law, including high-net-worth and complex “WHILE DIVORCE IS NOT THE BEST OPTION divorces, child custody, support, paternity, orders of protection, prenuptial and postnuptial agreements, and post-dissolution enforcement FOR EVERYONE, IT CAN BE A PATHWAY TO cases. He has achieved favorable outcomes in high-con ict divorce cases, contested child custody PEACE FOR A FAMILY IN TURMOIL.” suits and disputes involving multimillion-dollar marital estates. JONATHAN MEREL, LAW OFFICES OF JONATHAN MEREL PC

approach—generally, the lowest form willing and able to facilitate the process. of value. While certain businesses are e emphasis in these scenarios is MOLSHREE “MOLLY” A. SHARMA is a partner at doing very well despite or because of the to try to avoid the uncertainty, time Feinberg Sharma PC, a family law rm with of ces pandemic, even in these instances, value and expenses inherent in litigation, in Chicago, Northbrook and Arlington Heights. can be negatively a ected because the especially in the current environment. She has extensive experience handling complex current successes of the business may not nancial issues such as business valuations be replicated going forward. What options are available to and income analysis, representing professionals as well as homemakers. Her expertise those who want to proceed includes international custody disputes and Hague convention cases. She is a four- time recipient of both the Illinois Super Lawyer Rising Star and the Leading Lawyers Emerging Lawyer Sharma: One of our clients owns with a divorce, but prefer not awards. She has appeared twice on Crain’s Notable Women in Law and Notable Minority Lawyers lists. an o ce supply business that’s faced a to litigate, and have those substantial decrease in sales since people options changed since the aren’t in o ces. On the other hand, pandemic began? bankruptcy lawyers and residential real estate brokers are reporting large Daw: e options have not changed increases in work. Because of the current dramatically. A starting place is to environment, the sale of a business may hire attorneys who will work with no longer be on the table. e parties may their respective clients and with each need to agree to wait a certain number of other to de ne and wherever possible years to value it, or just sit it out. resolve as many issues as possible. If A 2020 Best Lawyers® “Best Law Firm” • U.S. News, Chicago Family Law issues remain, some form of alternative What advice do you have dispute resolution such as mediation for someone considering a or collaboration may make sense. In divorce at this time? these situations, especially for more complicated cases, attorneys should Merel: e decision to proceed with participate and provide guidance to the a divorce is a very personal choice client. Attorneys bring value based on that must be made by every person on their experience with complex issues their own terms. As the COVID-19 and the ability to spot issues that aren’t pandemic has caused nancial strain being addressed. e decisions to be on many families, it’s also caused made are some of the most important emotional harm to families, leading in people’s lives—they need as much many to consider divorce during these support and guidance as possible. unprecedented times. e pressure of these circumstances o en leads those Merel: Regardless of the complexity, su ering to contemplate divorce in attorney-assisted mediation is a highly the hopes of healing their families. successful and cost-e ective approach While divorce is not the best option for to resolving most cases. Couples Jennifer S. Tier Joy M. Feinberg Molshree “Molly” A. Sharma Gia M. Conti everyone, it can be a pathway to peace who are committed to addressing Emerging Lawyer, Leading Lawyers, Listed in The Best Lawyers in Crain’s Chicago Rising Star, Super Lawyers, for a family in turmoil. their issues outside of court—with 2019 - 2020 America© 2021 Family Law Notable Women Lawyers, 2018, 2020 2018 – 2021 knowledgeable attorneys and an Sharma: ink it through thoroughly, experienced mediator—usually enjoy Eﬀective Results • Inspired Creativity • Astute Business Insight possibly with a counselor, to determine success that bene ts them emotionally if the marriage is really over or just and nancially. Thoughtful Planning • International Perspective under a lot of strain from the current pandemic. Know that the divorce Sharma: People who wish to avoid process may take longer than expected. litigation can divorce through the To learn more about us and our accomplishments, Watch household nancials closely collaborative or cooperative process. and be cognizant of changes in asset is is where each person has a visit fsfamlaw.com or call 312.376.8860. values or spending. If possible, consider lawyer, coach or coaches, and child mediation which, when successful, can and nancial experts as needed. e Feinberg Sharma is a renowned divorce and family law ﬁrm reduce costs signi cantly. Finally, if a process is intended for people to spouse is an alcoholic or abusive, know move away from positions and work serving Chicago, its suburbs, and surrounding counties. that even during the pandemic each together to consciously resolve issues.

P019_021_CCB_20201102.indd 21 10/26/20 9:28 AM 22 NOVEMBER 2, 2020 • CRAIN’S CHICAGO BUSINESS Illinois faces uniquely daunting challenges in vaccinating residents against COVID VACCINE from Page 1 complexity, with some COVID-19 paign would signicantly slow the nate large numbers of people while incredibly important in terms of e- vaccine candidates stored between spread of the virus, allowing normal maintaining social distancing. ciencies to the supply chain to limit campaign make this an e ort un- minus 76 and minus 112 degrees activities to resume and the econo- But before the vaccine can be ad- the amount of vaccines that get dis- like any other in history. Fahrenheit, compared with a range my to recover. Failure would allow ministered, a complex supply chain posed.” It will involve a series of hurdles, of 36 to 46 degrees Fahrenheit for the virus and its social and econom- orchestration must occur. Beyond a possible supply short- each uniquely daunting. the u vaccine. ic consequences to continue un- Big questions will need to be ad- ages and missing links in the cold Illinois needs to vaccinate at least And with many vaccines requir- checked. dressed: “Do we have the syringes chain, industry observers say bad 10 million people as quickly as pos- ing two doses administered at least Illinois recently unveiled a draft and the vials necessary to deliver weather could stall the vaccine roll- sible—a scale and pace far greater three weeks apart, Illinois must of its COVID-19 vaccination plan, these vaccines?” says Tarek Abdal- out if shipments don’t get to provid- than other vaccination campaigns. track who got which shot when. as required by the federal govern- lah, an assistant professor of oper- ers within the optimal timeframe. e state must monitor and en- On top of it all, the state will con- ment. At this point, state ocials ations at Northwestern University’s In the case of a transportation or force compliance with a strict pri- tinue managing COVID-19, which don’t know which vaccines will be Kellogg School of Management. “It security issue, the state says it’s pre- ority regime for the initial rollout, in has infected about 400,000 Illinois- distributed, or when they’ll be avail- becomes about the supporting kits. pared to call on the Illinois Depart- which health care workers, residents ans. able. Vaccines from Pzer and Mod- at’s not trivial, making sure we ment of Corrections, which main- and sta at long-term care and as- “All of that together makes for an erna are expected to have the safety have those numbers in place.” tains refrigerated eet vehicles to sisted-living facilities, and other unprecedented set of challenges for and ecacy data needed to ask the Vaccines and ancillary supplies— transport biologics, and the Illinois essential workers get vaccinated be- our health care system,” says Kath- U.S. Food & Drug Administration for such as needles, syringes and al- National Guard, as well as the Illi- fore a general population clamoring erine Baicker, dean of the University emergency use authorization this cohol prep pads—will be shipped nois Trucking Association. for shots. of Chicago Harris School of Public year. But experts doubt authoriza- directly to health care providers. With some vaccines requiring two Cold storage and handling re- Policy. tion will come before January. Orders will either come from med- doses roughly three weeks apart, quirements add another layer of A successful vaccination cam- “Vaccination will take place over ical and pharmaceutical supplies timing will be crucial. many months and may unfold in company McKesson, the federal “For most vaccines, an increase phases, as more vaccine becomes government’s main COVID-19 vac- in time between doses doesn’t available,” Illinois’ draft plan reads. cine distributor, or directly from mean you have to start the series Royal Bank offers commercial loans “Demand for the pandemic vac- vaccine manufacturers. It will be up over,” Robinson says. “However, cine will be high throughout the re- to health care providers to procure we don’t know what that will be for with attractive rates and terms. sponse.” their own sharps disposal contain- COVID yet. We have to wait until ere are many unknowns and ers, bandages and additional per- the vaccines are approved and we potential bottlenecks that could de- sonal protective equipment. receive further guidance from CDC Contact Andrew Morua, Senior Vice President rail the e ort. Making this particular endeavor on that.” even more challenging is the fact Providers in the state will use the 2IƓFHŘ0RELOH ‘A LOT OF HYPOTHETICALS’ that storage and handling require- existing Illinois Comprehensive Au- (PDLODPRUXD#UR\DOEDQNXV For starters, without an autho- ments will vary, with some vaccines tomated Immunization Registry Ex- %LOLQJXDOŧ(QJOLVKDQG6SDQLVK rized COVID-19 vaccine and de- needing to be refrigerated or frozen change, or I-CARE, to order vaccines Putting community first since 1887. tails from the federal government and others requiring ultracold tem- and track administration, ensuring around production and distribu- peratures. that each individual gets two doses tion, Illinois and Chicago won’t “Already our supply chains are of the same vaccine. royal-bank.us know how many doses they can strained because of COVID, and iel compares some aspects of expect to get during the initial now we need to use a subset of a the vaccine rollout to the handling Member FDIC /RFDWLRQVLQ&KLFDJR:HVWPRQWDQG1LOHV phase of the rollout. subset of our supply chain,” Abdal- of remdesivir. e antiviral drug, Without knowing “what that lah says. “It’s a very complicated which has been used to treat pa- viable vaccine is going to be, and supply chain, and you need a lot of tients hospitalized with COVID-19, what manufacturer is going to dis- things to work together for this to faced shortages in the spring be- DEVELOPMENT LYNWOOD, ILLINOIS tribute that rst vaccine, it’s really happen at a large scale.” fore drugmaker Gilead bumped up challenging to align a specic pro- Ultracold freezers aren’t com- production. Early on, remdesivir POTENTIAL BLOOM TOWNSHIP cess,” says Je iel, assistant vice mon outside large health systems was shipped in one of two formu- COOK COUNTY president of pharmacy services at and academic medical NorthShore University HealthSys- centers that use them tem. “ere are a lot of hypotheti- for research purposes. “IT’S A VERY COMPLICATED SUPPLY cals,” he says. While the city of Chica- Illinois intends to allocate doses go does have its own ul- CHAIN, AND YOU NEED A LOT OF to each public health jurisdiction tracold storage capac- THINGS TO WORK TOGETHER FOR THIS across the state based on popu- ity, with the ability to AUCTIONUCTION lation size, while factoring in hot house around 100,000 TO HAPPEN AT A LARGE SCALE.” A spots and health equity. For exam- doses, Robinson says ONLINE at halderman.com Tarek Abdallah, Northwestern University’s th ple, if the state gets 200,000 doses, it’ll work closely with OPENS: November 17 , 8:00 am CST Cook County would get approxi- health care provid- Kellogg School of Management ers to secure capacity. th CST mately 56,000, or 28 percent, since CLOSES: November 18 , 6:00 pm it’s home to 28 percent of Illinois’ e CDC has advised jurisdictions lations—a powder that providers population, the draft plan says. against purchasing ultracold storage reconstituted with saline and stored “Initially, when we anticipate equipment at this time. at room temperature or a refriger- +/- total supplies will be limited, the federal “Knowing that the rst wave of ated liquid version, iel says. “Of- government will actually allocate vaccines will be fairly limited, we tentimes we didn’t know which was 166.35 acre s doses to the di erent states and cer- denitely have the ability to store coming until it actually arrived at the tain local jurisdictions, so we will those on hand,” iel says. Still, hospital.” +/- +/- not be requesting a number,” says NorthShore is among health sys- As for the role of retail pharma- 140 Tillable . 14 Wooded Dr. Candice Robinson, medical di- tems looking to buy additional ul- cies, the Trump administration re- rector at the Chicago Department tracold freezers to expand storage cently announced agreements with of Public Health. “ey will just say, capacity. Many ultralow medical Walgreens and CVS to administer PROPERTY LOCATION: Along the north side of ‘You have this many doses.’ ” freezers that are about the size of COVID-19 vaccines at long-term Glenwood-Dyer Road and along the east side of Torrence Ave. During the rst phase, health care an average refrigerator cost at least care facilities nationwide. A repre- workers will get priority, followed by $10,000. sentative for Deereld-based Wal- residents and sta at long-term care Manufacturers plan to ship vac- greens did not respond to a question Jaret Wicker: 765.561.1737 and assisted-living facilities. e cines in coolers packed with dry about the pharmacy chain’s capaci- next group in line would be critical ice. e coolers should be repacked ty to administer COVID-19 vaccines John Bechman: 765.404.0396 workforce members. with dry ice within 24 hours of re- in stores. e vaccines will be allocated ceipt and repacked again within ve For now, the city and state are based on the state’s mapping of days, according to the CDC. working closely with local health priority populations. In its plan, care providers, including hospitals the state says public health depart- MORE UNCERTAINTIES and pharmacies, to esh out their ments should coordinate with local Some of the biggest uncertainties vaccination campaigns and prepare health care providers, emergency include how to supply rural areas for the challenge ahead. management and other partners to that don’t expect to vaccinate thou- “It’s a large undertaking to get 80 develop a list of entities serving pri- sands of people at a time, and what percent of the almost 3 million peo- 800.424.2324 | halderman.com ority groups and determine wheth- to do if people don’t show up. ple who live in Chicago vaccinated,” er to set up closed vaccination sites. “Let’s say we build the supply Robinson says. “It’s going to take all Auctioneer: Russell D. Harmeyer IL Auct. Lic. #441.002337, e city says it eventually plans chain and people don’t buy in— the planning from the city, close co- HRES IL Lic. #417.013288, HLS#JMW-12566 to use large indoor spaces at City they don’t want to take the vaccine ordination from all levels of govern- OWNER: FIRST BANK OF ILLINOIS Colleges, the largest community or they don’t trust the vaccine that’s ment and our partners, and utilizing college system in Illinois, to vacci- being delivered,” Abdallah says. “It’s all our resources to make it happen.” CRAIN’S CHICAGO BUSINESS • NOVEMBER 2, 2020 23 This year’s holiday shopping season a giant question mark for retailers RETAILERS from Page 3 from consulting rm Accenture. ing game with the hiring shifts, senior vice president of Chica- Still, customers nd them. If retailers fumble on order ful- says Steve Horwitz, an economics go-based outplacement rm Chal- Searching for, say, a Sorel boot that no historical data for a year like llment, they risk losing custom- professor at Ball State University’s lenger Gray & Christmas, which Nordstrom sold out of, they nd 2020. ers, says Lee Moore, Accenture’s Miller College of Business. ey has been tracking seasonal retail Jayne. Sales are down more than 30 Midwest market unit lead. must be ready to shift workers hiring. “If they don’t see a decent “We’re acquiring people strictly percent year-over-year. Friedland Consumers expect retailers to back to the registers if more people number of consumers in their based on the products we have,” says he hopes to close the gap be- have supply chains and delivery show up in stores than expected. stores, they might not be around Cummings says. “If that person tween anksgiving and Christ- capabilities gured out, he says. “We really are in uncharted territo- for another Christmas holiday.” likes the product that they get, likes mas, when Timeless Toys typically ey will not accept the kinds of ry here,” he says. “ e key is being Retailers that didn’t make a big the service that they receive from brings in one-third of its revenue. shipping delays faced in March exible.” enough investment in e-com- us, even if it is virtually, they will He expects online purchases to and April. Clothing retailer Gap is also fo- merce might have missed their come back.” surge to 50 percent of sales during “People were much more tol- cused on hiring seasonal workers chance, Challenger says. But it’s not just online ordering that time, up from just 1.5 percent erant then,” Moore says. With the to prepare orders for shipment and Women’s boutique Jayne that retailers have to get right. Half last year. holidays, “now I’ve got a deadline. run its curbside and in-store pick- launched its website last year, and of U.S. consumers are facing pan- “Generally, in retail you operate . . .I’m not really prepared to wait a up options, according to a news it came just in time, says buyer Ka- demic-altered income levels, says at a loss for most of the year any- long time. Or if the product comes release. tie Cummings. Dawn Eber, a partner at PwC. ey way,” he says. “What really makes and it’s not as described, then I’m Its situation could sum up this Jayne has four locations in the will be choosy about where they a dierence is what we can do this going to be much less tolerant and year’s holiday season in a nutshell: suburbs and one in Lake Geneva, shop; retailers must think carefully I just won’t go back to Gap acquired 3.5 million new cus- all of which closed for about 10 about how to capture their atten- “IT’S LIKE THE ALAMO. IT’S THE LAST this store.” tomers via online channels in the weeks during the state-mandated tion. Big-box retailers second quarter. Simultaneously, it shutdown this spring. Customers want stores that STAND.” including Walmart, is working to shutter 220 U.S. stores “We have a lot of ground to make have not only put measures by the end of 2023. It has closed in place to protect them from Andrew Challenger, Challenger Gray & Christmas Macy’s and Target say up,” Cummings says. “ ose 10 they are shifting hiring two Illinois locations since June. weeks were a good 10 weeks. It was COVID-19, but have shown they toward online order all of April and May. at’s your will protect workers as well. ey holiday season, because that de- fulllment. STORE CASUALTIES spring. So for sure, it’s very import- want contactless pickup and en- termines whether or not we can Target hired about 130,000 sea- U.S. retailers have announced ant that we perform this season.” forced mask policies, plus loyalty keep our doors open for the next sonal workers last year. e retailer more than 8,000 store closures this She expects the website to be programs, Eber says. ey want to y e a r.” expects this year’s numbers will be year, according to New York-based a crutch. E-commerce makes up shop local and will only choose a e toyshop is not alone. Six- similar, but teams supporting con- Coresight Research. at’s fewer about 20 percent of Jayne’s busi- few winners. According to PwC’s ty-one percent of people plan to tactless pickup options will double than last year at this time, when al- ness, Cummings says. Sourcing survey, 60 percent of consumers do the majority of their holiday in size. Target plans to train work- most 9,000 closures had been an- has been challenging during the said they were going to visit fewer shopping online this year, up from ers throughout its stores on how nounced. Experts say the holiday pandemic—certain brands have stores. 54 percent last year, according to to do those roles, as well, should season will determine how quickly slowed production, there hav- “ e browsing is gone,” Eber PwC. Additionally, 54 percent of the need arise, and it’s hiring more that number rises. en’t been trade shows to nd new says. “We’re going to go into the shoppers plan to ship gifts direct- people in its warehouses. “It’s like the Alamo. It’s the last product lines and demand is un- store that we know has a product ly to recipients, according to data Retailers are playing a guess- stand,” says Andrew Challenger, predictable. we want.” Northern Trust’s institutional asset custody business loses its competitive edge NORTHERN TRUST from Page 1 er Sandler in Chicago. these operating models need to itability. Not helping, at least in the PRICING POWER OUTAGE It wasn’t any better in 2019. be overhauled, we want to be (the) short term, is that Northern’s other last year. Northern’s custody fees grew 3 per- enterprise outsourcer that’s doing big business—wealth management Northern Trust has seen the assets But, in what one analyst dubbed cent as its assets under custody in- it for (clients), taking on as much for the nation’s most auent fami- it holds on behalf of investors grow “the world’s worst oligopoly” a few creased 19 percent. as we can of the front, middle and lies and households—isn’t growing substantially as markets have tended years ago, the fees Northern and Northern executives say they back oce,” State Street CEO Ron- robustly, either. to gain. But what those institutional its trust-bank peers, Boston-based measure the protability of the ald O’Hanley said on the bank’s rough nine months, wealth- investors pay for the service increas- State Street and New York-based custody business on revenues ver- Oct. 16 earnings call. management fees in 2020 are up 2 ingly isn’t keeping pace. Bank of New York Mellon, are paid sus costs. But they allow that fees Likewise, BNY Mellon. On the percent to $1.24 billion from $1.21 for the service aren’t coming close aren’t keeping up with assets. In bank’s Oct. 16 call, Mike Mayo, an billion in the same period last year. Northern Trust custody and fund to keeping pace with the growth in part, that’s because less than half analyst with Wells Fargo, asked In the central region, dominated administration fees the assets the companies are hus- of the bank’s custody fees are tied CEO omas Gibbons, “Can you by Northern’s Chicago home base, 2019 (first nine months) banding. directly to the level of assets these change your fee model or how you fees are actually down 2 percent $1.15 billion It’s one reason Northern’s stock days. (In response to a request for charge your customers? It seems in that time frame. at includes 2020 (first nine months) price is down 27 percent this year comment, a spokesman referred like your customers are getting the a third-quarter fee decline in the despite a relatively small lending to Northern’s recent earnings call better end of the arrangement.” Re- central region, which should have $1.17 billion operation that makes it less vulner- with analysts.) sponded Gibbons before launch- reected the stock market’s surge in able to the potential COVID-relat- “More and more, frankly, there’s ing into all the measures BNY Mel- the second quarter. Assets under custody/administration ed collapse of business borrowers going to be less of connectivity be- lon is taking to oset that, “Yeah, “We’ve had to shift our sales and Dec. 31, 2019 than commercial banks. Northern tween the asset level and revenue sometimes it feels (like) that.” new business strategy as a result (of $12.05 trillion isn’t alone; State Street and BNY level,” Chief Financial Ocer Jason COVID),” Northern CEO Michael Sept. 30, 2020 Mellon are down 26 percent and 32 Tyler said on Northern’s Oct. 21 CONSOLIDATION O’Grady said on the earnings call. $13.08 trillion percent, respectively. call. “And (in) a lot of the negotia- Adding pressure to fees is that “I’m very optimistic on the long- rough the rst nine months of tions to take place, we’re thinking asset managers who are the trust term prospects for that. . . .But Growth in custody/administration 2020, Northern has collected $1.17 about trying to include a more ho- banks’ clients are struggling with there’s some bumpiness that we’ve fees: billion in custody and fund ad- listic approach to the relationship.” fee pressures of their own and the had this year that we haven’t had in 2018 11% ministration fees, nearly the same at means Northern wants to need to cut costs. More are merg- previous years.” amount as the $1.15 billion it gen- provide additional services to cli- ing, with Morgan Stanley’s recent- Ultra-low interest rates will force 2019 3% erated over the same period last ents that now are just using the ly announced acquisition of Bos- Northern to waive fees normally year. at’s despite an improbably bank to hold their assets and move ton-based asset manager Eaton charged on its $288 billion in mon- Growth in assets under custody/ decent year for the markets that money around. ose include Vance capturing attention, as well ey-market funds in order to ensure administration has grown Northern’s assets under asset management, trading and as news that San Francisco-based investors don’t lose money on -6% custody and administration by 9 statement processing. e other Wells Fargo is open to selling its them. at could total $20 million 2018 percent, to $13.08 trillion at Sept. two trust banks, though, are trying wealth management arm. If a real to $25 million in the fourth quarter, 2019 19% 30 from $12.05 trillion at Dec. 31, to do the same thing, which poten- consolidation trend emerges, the CFO Tyler said. Source: Northern Trust disclosures/filings 2019. tially creates the same pricing pres- servicers like Northern could nd e good news for Northern? It’s It’s little better for State Street sures in those other service lines. themselves losing clients just due big enough to ward o would-be and BNY Mellon. eir custody “ ey’re all pursuing that, but to a transaction rather than compe- buyers, and its stock valuation com- to Northern’s smaller size. fees grew 2 percent each for the that’s probably not delivered as tition. pared to its larger rivals is higher. A But if those revenue ambitions same period. much as I would have thought,” ese dynamics put pressure on successful initiative to improve rev- zzle, the other option is cost-cut- “ at’s not fundamentally a Harte says. Northern, the smallest of the three enues will move the needle more ting. None of Northern’s thousands business dynamic you like to see,” “What we’re positioning our- trust banks, to accelerate protable for Northern than it likely would for of Chicago employees want to hear says Jeery Harte, an analyst at Pip- selves strategically for is that as growth or cut costs to improve prof- BNY Mellon or State Street, just due about that.

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