key themes summary executive summary sept...sarah k. williamson, chief executive officer, fclt...

KEY THEMES SUMMARY

Virtual Caucus | September 23, 2020

PRESENTING SPONSORS

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

EXECUTIVE SUMMARY

Virtual Caucus | September 23, 2020

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

EXECUTIVE SUMMARY

Washington, DC | March 13, 2018

PRESENTING SPONSORS

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

KEY THEMES SUMMARYVIRTUAL Yale CEO Caucus

September 23, 2020

© 2020 Chief Executive Leadership Institute. All rights reserved. 2

AgendaWelcome & Overview

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

Navigating a New Map for Global Diplomacy & Trade

Robert Lighthizer, United States Trade RepresentativeIntroduction by: David P. Abney, Executive Chairman, UPS

RESPONSESDavid P. Abney, Executive Chairman, UPSRichard Adkerson, Vice Chairman, President & CEO, Freeport-McMoRanArvind Krishna, Chief Executive Officer, IBM CorporationDoug Parker, Chairman & CEO, American Airlines GroupMaurice R. Greenberg, Chairman & CEO, CV Starr & Co.Neal Froneman, Chief Executive Officer, Sibanye-StillwaterDavid M. Cote, Retired Chairman & CEO, Honeywell InternationalMary T. Barra, Chair & CEO, General Motors CompanyD. James Umpleby III, Chairman & CEO, CaterpillarMark A. Weinberger, Former Global Chairman & CEO, EYCarla Hills, US Trade Representative (1989-1993); 5th US Secretary of Housing & Urban DevelopmentJ. Stapleton Roy, 5th US Ambassador to ChinaJohn Negroponte, US Deputy Secretaty of State (2007-2009); US Ambassador to the UN (2001-2004)Nicholas T. Pinchuk, Chairman & CEO, Snap-on IncorporatedMatthew S. Levatich, Former President & CEO, Harley-Davidson Inc.Tamara L. Lundgren, President & CEO, Schnitzer Steel IndustriesJohn Visentin, Vice Chairman & CEO, Xerox Holdings CorporationJoel Szabat, Under Secretary for Transportation Policy, US Department of TransportationEddie Tam, Chief Executive Officer, Central Asset InvestmentsR. Adam Norwitt, President & CEO, Amphenol CorporationHugh T. Dugan, Special Assistant to the President, The National Security Council

Jared Kushner, Senior Advisor, The White HouseIntroduction by: Stephen A. Schwarzman, Co-Founder, Chairman & CEO, Blackstone

RESPONSESArne M. Sorenson, President & CEO, Marriott InternationalKevin Sneader, Global Managing Partner, McKinsey & CompanyAlbert Bourla, Chairman & CEO, PfizerAlex Gorksy, Chairman & CEO, Johnson & JohnsonStefano Pessina, Executive Vice Chairman, Walgreens Boots AlliancePeter Orszag, CEO, Financial Advisory, Lazard; Former Director, US Office of Management and BudgetJames R. Clapper, Director (2010-2017), US National IntelligenceJoel N. Myers, Chairman & President, AccuWeatherA. Muskfiq Mobarak, Professor of Economics, Yale UniversityJames H. Rosen, President & CEO, Artizan BiosciencesDavid J. Shulkin, 9th Secretary, US Department of Veterans AffairsRich Lesser, President & CEO, Boston Consulting GroupSten H. Vermund, Dean, School of Public Health, Yale University



September 23, 2020

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

Richard W. Edelman, Chief Executive Officer, EdelmanKyle Dropp, Co-Founder, Morning ConsultSara Eisen, Co-Anchor, CNBCJerry Greenfield, Co-Founder, Ben & Jerry’s HomemadeRichard J. Kramer, Chairman, President & CEO, The Goodyear Tire & Rubber CompanyMargaret Keane, Chief Executive Officer, SynchronyJames P. Keane, President & CEO, SteelcaseStuart A. Miller, Executive Chairman, Lennar CorporationJonathan Greenblatt, CEO & National Director, Anti-Defamation LeagueDavid H. McCormick, Chief Executive Officer, Bridgewater AssociatesBob Diamond, Founder & CEO, Atlas Merchant CapitalJeffrey M. Solomon, Chairman & CEO, Cowen Inc.Anthony Scaramucci, Founder & Co-Managing Partner, SkyBridge CapitalThomas A. James, Chairman Emeritus, Raymond James FinancialHarold L. Yoh III, Chairman & CEO, Day & ZimmermannIvan G. Seidenberg, Retired Chairman & CEO, Verizon CommunicationsSarah K. Williamson, Chief Executive Officer, FCLT GlobalJames F. McCann, Founder & Chairman, 1-800-Flowers.comHelena Foulkes, Former Chief Executive Officer, Hudson’s Bay CompanyKay Koplovitz, Founder, USA Networks; Managing Partner, Springboard Growth CapitalMark Fields, Former President & CEO, Ford Motor CompanyPaul Polman, Co-Founder & Chair, Imagine; Retired CEO, Unilever PLCMaria Pope, President & CEO, Portland General ElectricMaggie Wilderotter, Chair & CEO, Grand Reserve InnSteve Case, Chairman & CEO, Revolution; Founder & Former CEO, America Online (AOL)Thomas J. Quinlan III, Chairman, President & CEO, LSC CommunicationsRichard H. Pildes, Professor of Constitutional Law, New York University

PRESENTATIONVirginia M. Rometty, Executive Chair, IBM CorporationAlex Gorsky, Chairman & CEO, Johnson & JohnsonAdam M. Aron, President & CEO, AMC Entertainment

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



September 23, 2020

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

According to Lighthizer, Trump wants a certain type of country and communities where families stay together, where children are proud of their parents for their work, and where parents have confidence and hope their children will do even better than them. This vision leads to a set of economic policies and trade policies that put America and its workers first, even if that slightly increases inefficiency and costs.

Lighthizer sees this vision coming to fruition through:

• The USMCA (US-Mexico-Canada Agreement), which affects $1.3 trillion in trade and is moving forward with implementation. It is a step forward for American workers and farmers.

• The China Phase 1 deal, which has several parts, including areas of tech transfer, intellectual property, and financial services, and includes purchasing requirements.

• A deal with Japan focused largely on agriculture and digital trade.

• A deal with South Korea that is being worked on.

Lighthizer asserted that the administration’s economic and trade policies have succeeded.

• Manufacturing jobs had increased by 500,000 through February of 2020.

• The median income for 2019 rose by 6.8%, representing more than $6,000 for many workers.

• The US trade deficit had declined in four of the previous five quarters.

• 75% of large companies are thinking about moving some of their operations out of China.

In the upcoming presidential election, CELI participants overwhelming prefer Joe Biden.

In a real-time poll of CELI participants, 77% plan to vote for Joe Biden in the upcoming presidential election, with 62% believing that Biden will win the election.

The Trump administration has very different trade objectives and policies.

United States Trade Representative Robert Lighthizer explained that historically, US trade policy has been driven by traditional economic ideas of free trade, efficiency, and lower prices for consumers. He termed these ideas “a noble ambition” but said that President Trump has a very different philosophy regarding the objectives of trade.

Survey QuestionDonald Trump

Joe Biden

Who will you be voting for in the presidential election?

23% 77%

Who do you think will win the presidential election?

38% 62%

Robert Lighthizer, United States Trade Representative

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

The Legend in Leadership Award was bestowed upon Arne Sorenson, President and CEO of Marriott International.



September 23, 2020

In addition to the trade war with China, US policy under the Trump administration has closed the country’s doors to immigrants. This has hindered the flow of creative, talented people to America’s universi-ties and companies, which could have a detrimental long-term impact on the US economy. Talented immigrants, who have started numer-ous companies in the US such as Google and Tesla, are likely to take their talents to other countries where they are more welcome.

Progress in the Middle East holds great potential for regional economic development. In Israel’s first 72 years the country entered into two peace agree-ments—with Egypt and Jordan. Then, over a period of 29 days the country had two more agreements, with the UAE and Bahrain, with others likely to follow in the near future. These achievements were led by Jared Kushner, based on a business plan he developed. This plan, which aims to improve the lives of Palestinians, intends to create one million new jobs, double the GDP in Palestine, and reduce the poverty rate by 15%.

Success to date has been based on thinking differently, taking risks, finding common interests, and bringing together the right people in the region.

“There are still governance and security issues, but there are a very ambitious set of leaders right now who want to bring new hope for their people . . . hopefully there’s much more to come.”

——Jared Kushner, Senior Advisor, The White House

“We have changed the way we think about trade, the way we think about its effect on working class people.”

——Robert Lighthizer, US Trade Representative

CEOs commended the Trump administration on the USMCA and agreed that the World Trade Organization (WTO) is broken and in need of repair. But participants challenged the administration on the importance of free global trade and on the need for increased focus on digital trade and US competitiveness in technology and the industries of the future.

A former long-term diplomat said the idea of “Put America first” is nothing new, as every American diplomat has always put American interests first, as foreign diplomats do for their country. However, this individual argued that the current administration is falling short by not working cooperatively with other countries and not joining to-gether on common interests, such as climate change and North Korea.

Lighthizer acknowledged that in changing the paradigm for trade policy there will undoubtedly be some tension along the way, but sees this as part of the process and believes the results are positive.

Americans want strong action against China, but busines leaders don’t agree with the action taken. Mark Penn shared data showing that 53% of Americans see China as an enemy and 70% believe that China is creating global tensions and instability. Many Americans believe that China is primarily respon-sible for the coronavirus pandemic (60%), the US-China trade war (46%), the crackdown on free speech in Hong Kong (67%), and hu-man rights abuses among Muslim Uighur minorities in China (60%). Kyle Dropp of polling company Morning Consult said these views of China are not limited to Americans, as citizens in most countries around the world hold a negative view of China.

Caucus participants share this criticism of China, with 62% say-ing their business has suffered due to unfair Chinese competitive practices.

In response, a majority of Americans want the US government to hold China accountable through diplomatic actions and economic sanctions. However, the majority of CEO Summit participants are not fans of the approach taken by the Trump administration or the results that have been achieved. Most say that businesses have suffered from the US-China trade war and Trump trade policies, believe the future outlook is worse, don’t support protectionist policies, and don’t un-derstand the status of a possible Phase 2 trade deal.

D. James Umpleby III, Chairman & CEO, Caterpillar

Arvind Krishna, Chief Executive Officer, IBM Corporation

Survey Question Yes No

Our business has suffered from the US-China trade war and other Trump trade policies.

61% 39%

Have US-China trade tensions weakened business confidence?

88% 12%

Has the Phase One US-China trade deal positively impacted your business?

21% 79%

Do you, as a business leader, understand where we are regarding a possible Phase 2 US-China trade deal and the future outlook for US-China relations?

6% 94%

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

43% 57%

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

78% 22%

Jared Kushner, Senior Advisor, The White House



September 23, 2020

In contrast to the government, the private sector has stepped up and moved incredibly quickly, with impressive results. Albert Bourla, CEO of Pfizer, said, “It is a question of when, rather than a ques-tion of if, we will have a vaccine.” He is hopeful that Pfizer’s vaccine candidate, for which about 34,000 people have already been enrolled in a phase 3 study, will yield results before the end of October, though approval and distribution will obviously take longer.

“Biology got us here and it’s going to take biology, great chemistry, great engineering to get us out. I’m very proud of the way the [pharmaceutical] industry has responded.”

——Alex Gorsky, CEO, Johnson & Johnson

As Sten Vermund, Dean of the School of Public Health at Yale, shared, there are currently:

• 487 drugs in preclinical studies, with 37 in phase 1, 67 in phase 2, and 22 in phase 3 trials.

• 92 vaccines in preclinical development, with 26 in phase 1, 14 in phase 2, and 10 in phase 3.

A year from now we will be in a very different place in terms of vac-cines and treatments. Until then, we are dependent on classic public health measures of masks and handwashing.

“I’ve never seen activity in both the public and private sectors for drug development and vaccine development that I’ve seen here.”

——Sten H. Vermund, Dean, School of Public Health, Yale University

The speed of the pharmaceutical industry is a result of significant long-term investments, an ongoing focus on safety and efficacy, and partnership among companies and between companies and entities such as the CDC, FDA, and NIH.

The partnership is seen through a joint pledge among multiple pharmaceutical companies emphasizing their commitment to conduct the necessary scientific studies thoroughly, completely, and safely. This unprecedented joint statement was issued to avoid politicization of the vaccine development process and to ensure public trust in the process. This was necessary in part because there has been a dramatic decline in the trust of public officials, confusion

A conference in Bahrain that at-tracted business leaders and investors from Israel, Arab countries, the US, and around the world has helped build momentum and support for the plan and is likely to produce considerable investment. This mo-mentum is occurring despite 63% of Caucus participants believing that new diplomatic accords have not received the attention they deserve.

“This region . . . could actually be the greatest emerging market if there was peace and stability . . . there is a huge opportunity to invest and particularly to invest in the women and young of the region.”

——Dina Powell McCormick, Member of the Management Committee, Goldman Sachs

While business leaders are disappointed with the government’s response to the pandemic, the private sector—particularly pharma—has stepped up.As of the Caucus, more than 200,000 people in the US had died from COVID-19, making it the third leading cause of death in 2020, after only heart disease and cancer. Caucus participants don’t believe that these results and the damage to businesses were inevitable. They rate President Trump poorly for his response to the COVID crisis and believe his poor response and that of the US government have cost lives and hurt businesses.

Stephen A. Schwarzman, Co-Founder, Chairman & CEO, Blackstone

Dina Powell McCormick, Member of the Management Committee, Goldman Sachs

Survey Question Grade %

President Trump said that he deserves an A+ for his leadership through the COVID crisis. What grade would you give him?

A/A+ 6%

B/B+ 9%

C/C+ 18%

D/D+ 12%

F 55%

Survey Question Yes No

Is the US performing worse than other industrialized nations in battling and containing COVID?

84% 16%

Could the 200,000 deaths in the US have been far less with a more vigorous government response?

86% 14%

On balance, has the Trump administration’s response to the COVID 19 crisis hurt your business?

84% 16%

Albert Bourla, Chairman & CEO, Pfizer Alex Gorsky, CEO, Johnson & Johnson

David J. Shulkin, 9th Secretary, US Department of Veterans Affairs



September 23, 2020

Businesses have a critical role to play in addressing systemic racism.Data shared by Richard Edelman highlights current attitudes toward race and the view of government and business. There is growing support among the public for protests and for Black Lives Matter. There is tremendous disappointment in government, with only 36% of individuals believing that government is ever going to do anything. There is a higher expectation (52%) that business will take action but there is a substantial gap in what people expect from business and what business is seen as delivering.

Currently, most individuals (71%) trust their own employer to respond to racism. When companies speak up about racism and take some type of action, they experience a tremendous gain in trust among all populations, especially Black Americans.

The power of business was shown through the Stop Hate for Profit campaign, organized this past summer by the ADL in conjunction with NAACP and several other organizations. The goal was to get Facebook and other social media platforms to stand up against racist content. Over 1,100 of the world’s most prominent brands participated in this effort.

“There’s an interesting conversation to have about the role of the private sector and businesses . . . in pushing these social media companies to abide by the same standards of decency that are expected of all other businesses today, particularly in the media space.”

——Jonathan Greenblatt, CEO and National Director, Anti-Defamation League

among the messages from public health officials, and a significant increase (about 15 percentage points) in the reputation of the top pharmaceutical companies.

In April 2020, about 75% of people said they would get a COVID-19 vaccine but currently fewer than 50% say they would do so. Current polls from Morning Consult show that the percentage of Democrats and Republicans who would not get a vaccine is now equal and only 31% of Black adults would get a vaccine.

Clearly, when an FDA-approved vaccine becomes available, com-munication, education, and outreach will be necessary, especially from trusted sources like doctors, with a consistent message. It may also be necessary to get buy-in from regulators in foreign countries, such as Germany, which are seen by many as more credible than US regulators. And, businesses have an important role to play in educat-ing employees about the importance of getting vaccinated as part of making society healthy.

The speed of response is not limited to the pharmaceutical industry. General Motors’ experience in mov-ing quickly to manufacture 30,000 ventilators—using its capabili-ties and those of its suppliers—is reflective of the rapid response of countless American manufacturing companies.

Mary T. Barra, Chair & CEO, General Motors Company

LEGEND IN LEADERSHIP AWARD

Arne M. Sorenson, President & CEO, Marriott International

Virginia Rometty, Alex Gorsky, and Adam Aron saluted Legend in Leadership Award recipient Arne Sorenson, President and CEO of Marriott International.

Arne was recognized for his tremendous business results at the helm of Marriott as well as for the acquisition of Starwood Hotels and Resorts. But beyond his business results, those who know Arne well commend him for his character, authenticity, values, inspiration, humility, people skills, and leadership. He is a great listener and has perpetuated a culture at Marriott of teamwork, collaboration, and deep respect.

In accepting this award, Arne noted that business is at an important cross-roads. Society has little faith in other institutions and has high expectations for business to solve problems. It is a time when businesses need to have purpose and transparency, and must treat employees and customers with respect each day.

Arne M. Sorenson, President & CEO, Marriott International

key themes summary executive summary sept...sarah k. williamson, chief executive officer, fclt...

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