JOURNAL REPORT Follow The Experts An Online Conversation DETAILS, R2 Meeting in the Muddle At the annual meeting of The Wall Street Journal’s CEO Council, the disconnect between what’s going on in Washington and what corporate leaders are asking for was as sharp as ever BY JOHN BUSSEY and health insurance, among other things. Demo- tions with nations in Europe and Asia. And they crats and Republicans at the conference once again heard how innovation in online education is reach- decried a “failure of leadership”—by the other guy. ing thousands of new students. IF YOU NEEDED EVIDENCE of the disconnect be- President Barack Obama, speaking to the group, But the urgent need to find political compromise tween business and Washington, it was on display did make one overture. Breaking some news, he said seemed to hang over the two-day conference. The at the annual Wall Street Journal CEO Council last he’s willing to address immigration reform piece- CEOs even offered their own olive branch. After week. meal—an approach favored by many House Republi- breaking into task-force sessions to address key pol- In the business world, companies are growing cans—rather than as one sweeping plan, an ap- icy matters, they issued five top recommendations, again. Earnings are up, so too employment. proach the president has favored. Business wants including this one: But what the chief executives want, before they reform that lets more skilled workers into the U.S. “Business and government should build better flip the switch on more business investment, is pol- On other topics, like the Affordable Care Act, bridges to each other—rather than viewing each icy clarity: What will health-care costs be 12 months there was little consensus. That worried one CEO in other as adversaries—to advocate for free enter- from now, and tax rates, and borrowing costs? Will finance. “We’re just at the start of the problems prise and shared prosperity.” the country change its immigration policy? How will with the rollout,” he said. “They aren’t businesspeo- energy regulation affect supply? And will politi- ple. They don’t understand the bad effects down the Mr. Bussey is an assistant managing editor and cians tackle the long-term deficit problem? line of what they started.” executive business editor of The Wall Street Journal. But what they heard in Washington was more Of course, there was plenty of upbeat news, too. He can be reached at [email protected] or on stalemate—on the budget, the debt ceiling, taxes The CEOs were briefed on big new trade negotia- Twitter @johncbussey. ‘People like the idea of ‘Nobody in this city corporate tax reform talks to each other in theory.’ anymore.’ President Barack Obama Gov. Chris Christie ‘The president’s ‘The president’s agenda today is very budget is something much aligned with the he still sticks by.’ business Jacob Lew community’s.’ Penny Pritzker ‘If this becomes about ‘Growth creates a raising taxes, we’re not virtuous circle, which going to get anywhere.’ creates more growth.’ Rep. Paul Ryan Lawrence Summers Ralph Alswang/Dow Jones (6) INSIDE President Barack Obama Gov. Chris Christie on Rep. Paul Ryan on where Jacob Lew on how likely it Penny Pritzker on the Gen. Martin Dempsey on on the HealthCare.gov why both Republicans and the Republicans in is that meaningful priorities of the Obama the trouble spots in the rollout, the budget deficit, Democrats deserve a share Congress are willing to economic reform will take administration, and how Mideast—and what sets immigration reform and of the blame for the failure negotiate in the current place in China—as well as they are aligned with the military leaders apart from how to change the to get things done in round of budget talks—and the prospects for change in interests of the business leaders in the corporate corporate-tax code, R4 Washington, R6 where they aren’t, R6 the U.S., R7 community, R8 world, R8 Michael Froman on the Jim Yong Kim, Glenn Lawrence Summers on The CEOs list their top CEO Task Forces offer PLUS: Amy Gutmann, prospects for free-trade Hubbard and Stanley how Washington has to priorities for action on their top recommendations William E. Kirwan and agreements in Asia and Fischer on the economic stop focusing only on some of today’s most for action on health care, Daphne Koller on where Europe, and what outlook for emerging deficits, and start thinking pressing public policy and energy, cybersecurity, U.S. higher education is businesses might expect markets, Europe and about the power of business issues. No. 1: competitiveness and the heading, and the need for from those pacts, R9 elsewhere, R10 economic growth, R11 immigration reform, R2 future of capitalism, R4 innovation PLUS Flashbacks from Timothy Geithner, Rob Portman and José María Aznar at the 2012 CEO Council annual meeting R2 | Monday, November 25, 2013 THE WALL STREET JOURNAL. JOURNAL REPORT | CEO COUNCIL CEO COUNCIL MEMBERS The CEOs’ (Chief executives except as Brian P. Kelley, Paolo Scaroni, Eni noted) Green Mountain Coffee Mark Schneider, Roasters Inc. Fresenius Group Richard C. Adkerson, Declan Kelly, Teneo Holdings Mary Lee Schneider, Freeport-McMoRan Copper Christopher J. Klein, Follett Corp. Top Priorities &GoldInc. Fortune Brands Home & Stephen A. Schwarzman, Hamid Akhavan,Unify Inc. Security Inc. Blackstone Nicholas Akins, American Klaus Kleinfeld, Alcoa Inc. DavidT.Seaton, MORE THAN 100 CHIEF EXECUTIVES of large companies assembled at The Wall Street Electric Power Henry R. Kravis, Co-Chairman Fluor Corp. Journal’s annual CEO Council conference to discuss some of today’s most pressing public Joel T. Allison, Baylor Health and Co-CEO, KKR & Co. Gregg M. Sherrill, Care System T.K. Kurien, Wipro Ltd. Tenneco Inc. policy and business issues. Mukesh Dhirubhai Ambani, Marc B. Lautenbach, Pitney Ralph W. Shrader, Booz Allen The CEOs divided into five task forces and debated pri- Chairman and Managing Bowes Inc. Hamilton Inc. orities in the following areas: staying competitive, health- Director, Reliance Armand F. Lauzon Jr., Gary B. Smith, care innovation, the future of capitalism, cybersecurity Industries Ltd. Sequa Corp. Ciena Corp. George S. Barrett, Cardinal René Lerer, Frederick W. Smith, and energy. Each task force presented its recommenda- Health Inc. Executive Chairman, FedEx Corp. tions, and the full conference then voted these as the top Dominic Barton, Global Magellan Health Services Sir Martin S. Sorrell, five overall priorities: Managing Director, Richard I. Lesser, Boston Group CEO, WPP Group McKinsey & Co. Consulting Group Edward W. Stack, Dick’s JeffreyL.Bewkes,Time Michel M. Liès, Group CEO, Sporting Goods Inc. IMMIGRATION REFORM process, particularly at state perity. Ensure that experi- Warner Inc. Swiss Re AG John T. Standley, The U.S. needs immigra- and local levels, through enced businesspeople serve John P. Bilbrey, Hershey Co. Gerardo I. Lopez, AMC Rite Aid Corp. 1 Leon David Black, Apollo Entertainment Inc. Shivan S. Subramaniam, tion reform to retain tal- youth apprenticeships, tech- at top levels of government. Global Management LLC Peter S. Lowy, Co-CEO, FM Global ented foreign workers who nical training, STEM and Samir Y. Brikho, AMEC PLC Westfield Group Joseph R. Swedish, have been educated in the continuing education. FOCUS ON HEALTH- Glenn A. Britt, Time Warner Rob Lynch, VSP Global WellPoint Inc. U.S., attract talent to the CARE QUALITY Cable Inc. Ajit Manocha, Anthony R. Tersigni, 5 Lynn Britton, Mercy Health GlobalFoundries Inc. Ascension U.S., and allow a freer flow TAX REFORM Government and industry Kevin Burke, Consolidated Frank R. Martire, Tidjane C. Thiam, Group CEO, of people into and out of 3 The U.S. tax code should seek better health- Edison Inc. Fidelity National Prudential PLC the U.S. Immigration policy needs an overhaul; the cur- care outcomes, safety and Gregory W. Cappelli, Apollo Information Services Inc. Robert Thomson, News Corp should mirror labor needs. rent system hurts U.S. com- service and aim to reduce Group Inc. Timothy J. Mayopoulos, Adewale Tinubu, Group CEO, Gregory C. Case, Aon PLC Fannie Mae Oando PLC petitiveness and encourages error and harm. There Terrence W. Cavanaugh, Erie Liam E. McGee, Hartford Fredric J. Tomczyk, EDUCATION REFORM companies to move abroad. should be agreement on de- Insurance Group Financial Services Group TD Ameritrade Holding 2 The U.S. needs to in- Close loopholes and simplify sired-outcome metrics for R. Marcelo Claure, Larry J. Merlo, N.V. Tyagarajan, vest in education to train the system. quality and evidence-based Brightstar Corp. CVS Caremark Corp. Genpact Ltd. Peter John Coleman, Stephen D. Milligan, Western Bernard J. Tyson, Kaiser employable workers, starting practices. Government and Woodside Petroleum Ltd. Digital Corp. Permanente at the K-12 level, with a fo- BUSINESS- industry should eliminate Steven H. Collis, Wick Moorman, Norfolk Myron E. Ullman III, cus on and respect for mul- 4 GOVERNMENT waste—estimated at $765 AmerisourceBergen Corp. Southern Corp. J.C. Penney Co. tiple pathways. These in- COOPERATION billion annually—including Michael D. Connelly, Catholic Denise Morrison, Campbell Vincent R. Volpe Jr., Dresser- Health Partners Soup Co. Rand Group Inc. clude vocational training, Business and government unnecessary services and Roger W. Crandall, Rupert Murdoch, Executive Timothy R. Wallace, Trinity apprenticeships and com- should build better bridges administrative inefficiencies. Massachusetts Mutual Life Chairman, News Corp Industries Inc. munity college—not just to each other—rather than And both should employ a Insurance Co. Pierre Nanterme, Mark R. Walter, Guggenheim four-year university degrees. viewing each other as adver- national data network to Fred Crawford, AlixPartners Accenture PLC Capital LLC Kevin S. Crutchfield, Alpha Shantanu Narayen, Adobe Gregory D. Wasson, Businesses should actively saries—to advocate for free create transparency for con- Natural Resources Inc.