20140519-NEWS--0001-NAT-CCI-CD_-- 5/16/2014 6:17 PM Page 1 ® www.crainsdetroit.com Vol. 30, No. 20 MAY 19 – 25, 2014 $2 a copy; $59 a year ©Entire contents copyright 2014 by Crain Communications Inc. All rights reserved Page 3 THE TOP-COMPENSATED CEOS: 2013 Reviews on hese five CEOs rose to the top in an analysis of performance (the amount of net income returned as Meet 3 finalists who want to return on equity of the companies they run. a percentage of shareholder equity). Compensation drive new transit agency T According to figures tracked by Loomis Sayles figures include bonuses, stock awards and other via Thomson Reuters Baseline data, these five compensation. wage hike bill: companies in 2013 tracked the highest ROE Ⅲ See Page 25 for more data highlights. Too much, not enough BY CHRIS GAUTZ CAPITOL CORRESPONDENT Ziebart avoids getting rusty, Timothy Wadhams Rodney O’Neal Alan Mulally Prashant Ranade David Wathen adds products, franchises Masco Corp. Delphi Automotive Ford Motor Co. Syntel Inc. TriMas Corp. The state Senate worked in bipar- tisan fashion Thursday, approving a Change in substantial hike to the minimum Real estate movers do Change in compensation wage, but in a way that left many un- 50.8% 37% 49.8% compensation 32.5% 31.9% 18.4% from 2012 some moving of their own from 2012 10.7% 22% -7.0% happy and the bill’s fate uncertain. Senate Bill 934 would increase Company 12- Change in Company 12- -9.9% Company 12- Change in Company 12- Change in Company 12- month return compensation month return month return compensation month return compensation month return the minimum wage to $9.20 an hour, Health Care on equity from 2012 on equity on equity from 2012 on equity from 2012 on equity up from $7.40, by 2017. It raises the tipped mini- Doctors plug away at switch mum wage MAKING CENTS to e-records, Page 11 from $2.65 to $3.50 an hour. Can a new Highest-paid execs And it includes minimum wage This Just In stepped in- bill amend a law creases along that doesn’t Blaskiewicz to leave DDP the way begin- exist? Page 28 ning Sept. 1 and to focus on Invest Detroit ties future wage hikes to inflation. David Blaskiewicz is leaving earned their keep Most Republicans voted for the as president of the Downtown bill because doing so was seen as a Detroit Part- way to block a much larger in- crease contained in a proposed bal- nership. No BY TOM HENDERSON “The prime objective for execu- lot measure that seeks to raise the date has CRAIN’S DETROIT BUSINESS CRAIN’S LISTS tives at publicly traded companies been set, minimum and tipped minimum Top compensated is to deliver shareholder value, wages to $10.10 an hour. but he If bringing higher stock prices to CEOs, Page 23 hopes to both in near-term and long-term But they are now hearing from shareholders and outperforming Top compensated have a re- performance. And if compensation business groups who say the ver- the markets are key goals for com- non-CEO executives, sion approved Thursday is head- placement Page 24 is a byproduct of delivering share- pany CEOs, then the highest-paid ing in the wrong direction. for the eco- holder value, then these CEOs have nomic de- bosses in town have earned their “It goes too far, too fast,” said earned theirs,” said David Sowerby, chief velopment money. Rich Studley, president and CEO Blaskiewicz market strategist in the Bloomfield Hills of- of the Michigan Chamber of Com- nonprofit By all major metrics, the performance by in place by the end of June. fice of Loomis Sayles & Co. LP. merce. Eric Larson, who runs the CEOs in metro Detroit stood out in 2013, ac- eponymous Larson Realty cording to experts in executive compensation. See Execs, Page 25 See Wage, Page 28 Group in Bloomfield Hills, has been rumored as a possible re- placement but said: “I will not be replacing Dave. I enjoy what I’m doing now.” Blaskiewicz said he wants State’s solar surge powers Nova Consultants’ growth to devote more time to his other job as president of In- BY JAY GREENE terest to take on solar projects that were on the vest Detroit, an affiliate of CRAIN’S DETROIT BUSINESS cusp of exploding because of the new law. In Business Leaders for Michigan 2008, the state approved the renewable energy that provides funding for de- Sunil Agrawal, president of Novi-based engi- bill that required utilities, including DTE Energy velopment projects, includ- neering and environmental company Nova Con- Co. and Consumers Energy Co., to generate at least ing two investment funds for sultants Inc., saw a major opportunity to grow his 10 percent of their retail sales from renewable startups, the First Step Fund business in October 2008 when then-Gov. Jen- energy. Some 96 percent of renewable energy in and the Detroit Innovate Fund. nifer Granholm signed the state’s new renewable Michigan is supplied through wind power. “The real motivation for me energy bill. In 2009, Nova submitted an RFP for a DTE is this is a big moment in time Nova had been an engineering company with Energy solar project for 60 kilowatts in Scio for both the DDP and Invest $3 million in annual revenue that focused most- Township. Thirty-five companies submitted Detroit,” Blaskiewicz said. ly on environmental and construction manage- proposals, 10 were selected for review and Nova “They both need so much at- ROBERT CHASE ment services. Nova Consultants Inc. had $3 million in annual won the bid. tention, it’d be a disservice to But Agrawal, an immigrant from India who revenue when President Sunil Agrawal saw a future “DTE Energy gave us the opportunity and keep managing both.” in solar energy during the Granholm administration. came to Detroit via Canada in 1987, realized his — Tom Henderson Last year, Nova’s revenue totaled $12 million. company had the engineering expertise and in- See Nova, Page 26 CELEBRATE THE 2014 CLASS OF JUNE 12 THE GARDEN THEATER 20 IN THEIR 20s DETROIT • 5–9 P.M. NEWSPAPER Register at crainsdetroit.com/events or (313) 446-0300. 20140519-NEWS--0002-NAT-CCI-CD_-- 5/16/2014 2:23 PM Page 1 Page 2 CRAIN’S DETROIT BUSINESS May 19, 2014 MICHIGAN BRIEFS Too much Cherry Fest? Officials Ⅲ The state is seeking a sub- poena against AmeriGas Partners scale back on use of city park Benton Harbor as golf paradise: A path for Detroit? LP after consumer complaints Because some people in Traverse tied to pricing, the Traverse City City thought 17 days worth of the Benton Harbor’s emergency manager is gone, its banking on investment in a targeted area to revive Record-Eagle reported. Attorney National Cherry Festival is just too fes- budget is balanced, and the city of 10,000 is prepar- the city. General Bill Schuette said more tive, festival officials will trim two ing for the Senior PGA Championship on May 22-25 at The Harbor Shores plan features houses priced up than 400 complaints about high days off the time they were sched- its $60 million public golf course. As Detroit wres- to $1 million on a golf course with a spectacular propane prices have been made uled to use a popular park along tles with its bankruptcy, Benton Harbor totters into view of Lake Michigan. Parts of the sprawling statewide. Grand Traverse Bay. stability after four years of under its own emer- course — its 18 holes take seven miles to walk — Ⅲ Billy Sims, the former Detroit The Traverse City Record-Eagle gency manager. were built on polluted factory sites. A dowdy beach Lions running back who now runs reported that the decision comes Benton Harbor now has a streamlined government was overhauled with $2 million from Harbor Shores a chain of barbecue restaurants, is after some city commissioners under the watch of a state-appointed advisory board. Community Redevelopment, the developer. in talks with Bay County and state said this summer’s festival is too With a half-billion-dollar private development — an- “People who golf have money,” said Jeffrey Noel, officials to establish a milk pow- long, too expensive for the city and chored by the Harbor Shores golf course — plus cash president of Harbor Shores and spokesman for der processing plant that would an unnecessary infringement on from its largest business, Whirlpool Corp., the city Whirlpool. “People who have money talk to other ship to Asia, The Bay City Times hopes to overcome its reputation for haplessness. people who have money, who you hope, over time, city parks over the Fourth of July. reported. Benton Harbor mirrors Detroit’s decline from will invest in Benton Harbor. A golf course is a way Ⅲ Albion-based Caster Concepts The festival still will run July 5-12. might to blight. As with Detroit’s riverfront and of telling the story.” has purchased Rockford, Ill.-based Last year, the Traverse City City Midtown districts, Benton Harbor’s boosters are — Bloomberg News Modern Suspension Systems and will Commission approved a limit on the relocate operations to Michigan. number of summer festivals in an The company did not disclose the area of the city called “Open The TV schedule will be re- enjoyed job growth of 9.7 percent steel, plans to spend $16.1 million to purchase amount. Space.” The decision followed de- leased after the release of the AHL over the past five years. Ranking expand into Indiana, MLive.com re- Ⅲ Missy Langdon of Fruitport bate about whether festivals were schedule in August.