Corporate America March 2015 by AI Global Media

LEADING FROM THE TOP + A BRIDGE TO GLOBAL CAPITAL

Corporate America MARCH 2015 â&#x20AC;˘ WWW.CORPORATEAMERICA-NEWS.COM

Due Process Why process discipline in delivering legal services matters to your company

PLUS: HITTING THE RIGHT NOTES

We take a look at the life and career of guitarist-turned-business leader, Henry Juszkiewicz, chairman and CEO of Gibson Guitar Corp.

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Contents 20

Feature

Leading from the Top

With recent research showing 81% of global executives report that external CEO engagement is now a mandate for building company reputation, we look at how business leaders can make sure they’ve got the company on their side.

8 Personnel Profile

Hitting the Right Notes

We take a look at the life and career of guitarist-turned-business leader, Henry Juszkiewicz, chairman and CEO of Gibson Guitar Corp.

Company Profile

A Bridge to Global Capital

Stonegate Global Fund Services, based in New York, offers global fund administration services coupled with a cost-effective pricing model to a wide range of funds. We caught up with John McCorvey, CEO, to find out more about the firm and its recent work.

4 News

24 Deals

30 30

Out of Office

Inspired Relaxation

Inspiring Rituals, at the Five-Star Spa at Mandarin Oriental, Miami, offers a selection of spa and wellness programs designed by The Spa’s expert team of therapists to improve mind, body and spirit.

Out of Office

Make a Fast Buck

The classic car experts, Hagerty, predict the most collectible 2015 model year cars.

Calendar/ Planner

On the Cover Feature Efficiency and the Knowledge Worker Adam Beschloss, Director, Client Solutions and Philip Algieri, Associate Vice President, Legal Services, at QuisLex, tell us why process discipline in delivering legal services matters

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News

Tech CFOs Counter Cybersecurity Threats In the last year many well-known organizations had to deal with cyberattacks and other data security issues, leaving many executives concerned about their own IT infrastructures and contingency plans. According to BDO USA, LLP’s annual survey of 100 U.S. technology CFOs, 67 percent have increased their spending on cybersecurity measures during the past year. Of those who have taken action, a vast majority (90 percent) has implemented new software security tools, 72 percent created a formal response plan for security breaches, 48 percent turned to an external security consultant and 30 percent hired a chief security officer. On the heels of recent security risks, companies are also on edge when it comes to protecting their intellectual property (IP). Forty-seven percent say foreign IP infringements has had the greatest impact on their IP security, followed by changes in patent law (24 percent) and patent trolls (20 percent). Online security challenges could also stem from geopolitical issues as countries, including the U.S., are prioritizing cybersecurity efforts to combat potential domestic and foreign hacking. In fact, 14 percent of CFOs believe global political issues will be the leading barrier to industry growth in 2015. Recent cyberattacks have even grabbed the attention of the White House with President Obama proposing a budget that would increase cybersecurity spending to $14 billion. “The threat assessments of likely cyberthreats from unknown entities is causing the tech industry to be on high alert,” said Aftab Jamil, partner and leader of the Technology and Life Sciences Practice at BDO USA, LLP. “In addition to navigating every day business challenges—both domestically and internationally, managing operations and maintaining compliance with regulatory requirements, U.S. companies will also need to implement or enhance their data privacy initiatives to mitigate any risks or vulnerabilities to their IT infrastructures, particularly with cyber capabilities evolving at rapid speed.”

Global Organizations Face Looming Crisis in Engagement and Retention of Employees Lack of employee engagement is the top issue currently facing 87 percent of HR and business leaders (up from 79 percent last year), according to Deloitte’s third annual “Global Human Capital Trends 2015: Leading in the New World of Work” report released today. Yet, the majority of organizations are still failing to take action to improve their culture, potentially jeopardizing future growth. The survey was conducted among more than 3,300 HR and business leaders in 106 countries, and is one of the largest global studies of talent, leadership and HR challenges. The number of HR and business leaders who cited engagement as being “very important” doubled from 26 percent last year to 50 percent this year. Sixty percent of HR and business leaders surveyed said they do not have an adequate program to measure and improve engagement, indicating a lack of preparedness for addressing this issue. Only 12 percent of HR and business leaders have a program in place to define and build a strong culture; while only 7 percent rated themselves as excellent at measuring, driving, and improving engagement and retention. “As demand for talent picks up, the balance of power in business is rapidly shifting from the employer to the employee,” said Josh Bersin, principal and founder of Bersin by Deloitte, Deloitte Consulting LLP. “Moreover, workers are becoming more mobile, contingent and autonomous, and as a result, harder to manage and engage. In this new world of work, organizations need to re-imagine the way they manage people and come up with new, out-of-the-box ideas to make themselves relevant.” Leadership, learning, and skills gap take center stage Leadership gaps – last year’s most critical issue – continued to be top of mind for HR and business leaders, 86 percent of whom cited it as a top issue this year. However, the number of respondents who said this was a “very important” issue jumped from 38 percent last year, to 50 percent this year. Interestingly, according to the “Deloitte Business Confidence Report 2014,” only 49 percent of C-level executives surveyed indicate that they are committed to developing leadership skills at all levels of the organization. Recognizing the fact that a general lack of skills is likely to impede business growth, 85 percent of HR and business leaders ranked learning and development as a top issue, compared to 70 percent last year, making this the third most critical issue in this year’s survey. Meanwhile, 80 percent of respondents cited workforce skills as a top issue (up from 75 percent last year), and 35 percent rated the lack of skills in HR as a “very important” problem, up from 25 percent last year. “There are significant shifts happening in the global workplace that business must actively manage,” said Brett Walsh, global human capital practice leader, Deloitte Touche Tohmatsu Limited. “In addition to workers’ changing expectations of employers, skills needed on the job are changing faster than ever. Organizations are quickly falling behind on developing the right skills across all levels. There’s an urgent need for organizations to re-evaluate their learning programs and treat leadership development as a long term investment, rather than a discretionary training spend item when times are favorable.” Businesses are struggling to simplify the workplace In addition to the challenges of employee engagement and leadership, the Deloitte report shows that companies are struggling to decrease workplace stress, simplify business processes, and reduce complexity. In fact, 66 percent of respondents believe their employees are “overwhelmed” by today’s work environment; and 74 percent cite workplace complexity as a significant problem. While more than half of the surveyed organizations have some type of simplification program, 25 percent have no plans to implement a program. “Simplification is a new theme emerging from this research,” said Bersin. “Engaging and supporting employees today requires fresh design thinking about how work gets done.” Organizations are missing the growth opportunities presented by analytics The Deloitte report reveals that analytics is one of the areas where organizations face a significant capability gapi. Three quarters (75 percent) of respondents cited talent analytics as an important issue, but just 8 percent believe their organization is “strong” in this area—almost exactly the same as in 2014. “HR and people analytics has the potential to transform the way we hire, develop and manage our people,” said Jason Geller, principal, Deloitte Consulting LLP, and national managing director of the U.S. human capital practice. “Leading organizations are already using talent analytics to understand what motivates employees and what makes them stay or leave. These insights help drive increased returns from talent investments, with huge consequences for the business as a whole.” Deloitte research shows that it will take several years for businesses to develop and absorb talent analytics technology, and “the sooner HR teams start working on building this capability, the better positioned they will be to address future talent issues,” concluded Geller.

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News

U.S. businesses show little progress in advancing women during past decade

The number of women in senior management roles in the United States has increased by just 1 percent during the past 10 years, according to new research from the Grant Thornton International Business Report (IBR), a survey of more than 5,400 business leaders in 36 economies. Only 21 percent of senior business roles in the United States are occupied by women, a decrease from the previous year (22 percent) and a minute increase of just 1 percent from 2004 (20 percent). The research also reveals that of the U.S. women in senior management roles, just 6 percent are chief executive officers. The majority of female senior business leaders serve in a human resources capacity (44 percent), as corporate controller (20 percent) or as chief marketing officer (19 percent). “The lack of significant progress during the past decade for U.S. women in senior management is disappointing. Companies have been talking the talk on gender equality for decades, but still too few are walking the walk,” said Erica O’Malley, Grant Thornton LLP’s national managing partner of Diversity & Inclusion. “U.S. businesses must take steps now to eradicate gender bias and shift expectations around the role of women, which have contributed to success in other economies when it comes to advancing women.” Globally, 22 percent of senior roles are held by women — a 3 percent increase from 2004 (19 percent), but down from 24 percent last year, indicating broad stagnation. Japan remains at the bottom of the list with just 8 percent of senior roles held by women, followed by Germany (14 percent) and India and Brazil (15 percent). There have been pockets of improvement, however, with 26 percent of senior roles in the European Union now occupied by women — an all-time high. At the same time, the number in Latin America has fallen to 18 percent — an all-time low. Interestingly, Russia has the highest percentage of women in senior business roles in the world at 40 percent. The next top five countries on the list are all in Eastern Europe: Georgia (38 percent), Poland (37 percent), Latvia (36 percent), Estonia (35 percent) and Lithuania (33 percent). Grant Thornton’s research also reveals increasing support among business leaders for the introduction of gender quotas. In the United States, more than half (56 percent) of both male and female senior managers now support quotas to get women on the boards of large listed companies, a significant increase from 30 percent in 2014. Globally, 47 percent of business leaders support implementing quotas. Across industries, the number of women in senior management roles worldwide has decreased or stagnated since 2013. Notably, the clean technology sector saw a 13 percent drop in the number of female senior leaders in just two years, from 33 percent in 2013 to 20 percent in 2015. In the manufacturing sector, the percentage of women in senior management dropped slightly from 20 percent in 2013 to 19 percent in 2015.

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News

Wall Street’s Message to CEOs: Start Spending That Cash Convergex, an agency-focused global brokerage and trading related services provider, has released the results of its Corporate Cash Survey, quantifying financial industry sentiment about current elevated levels of corporate cash holdings. Conducted from February 10 to February 12, 2015, the results reveal an investment community that overwhelmingly believes large publicly owned U.S. corporations currently hold too much cash on their balance sheets. Respondents to the survey emphatically say that companies are holding excess funds: nearly three-quarters (72%) said “too much cash” or “way too much cash” is currently on the books. Specific industries were singled out in the results, with the Technology sector definitively identified as the greatest offender. Seventy-three percent (73%) of investment professionals said technology companies are holding too much cash, followed by the Financial sector (43%) and Industrials (26%).

investors said that they themselves have more wealth kept in cash than before the financial crisis, with almost half (49%) saying they hold “more” or “much more” now, compared with only sixteen percent (16%) who said “less” or “much less.” “Despite these rationales, our survey shows that investors want corporate leaders to open up the checkbook,” said Nicholas Colas, Convergex chief market strategist. “And while the loudest voices may be calling for return of capital to investors, our respondents were decidedly against the conventional wisdom, instead calling for spending aimed at growth. Almost two-thirds (61%) named Capital Expenditure, Incremental Hiring or Acquisitions as their preferred use of excess cash, while just thirty-nine percent (39%) chose Dividends or Buybacks.”

Asked why corporations are reluctant to spend, financial professionals identified Economic Uncertainty (37%) as the top reason, followed by Regulatory Uncertainty (27%) and Uncertainty Over Central Bank Policy (10%). In a similar vein,

New Survey Finds Most Financial Advisors Don’t Understand Life Settlements Following a detailed research project held in conjunction with Penton’s WealthManagement. com, the Lifeline Program recently released a white paper, The Real Story About Life Settlements, which illustrates that a vast majority of financial advisors do not understand life settlements. The Lifeline Program and WealthManagement. com recently surveyed financial advisors about life settlements, and more than 40% of respondents were either unfamiliar or had only “heard of” life settlements. While nearly half of respondents were aware of life settlements, only 11% had either recommended a life settlement or assisted a client with a transaction. “The overall results surprised us, but we also discovered a significant disconnect in the mindset of many advisors,” said Wm. Scott Page, president and CEO of the Lifeline Program. “Many financial advisors are seeking-out liquidity events, or ‘money in motion,’ for their clients but few have realized that life settlements create an actionable liquidity event.” The survey found that 70% of advisors actively look for liquidity events as part of their marketing strategy. Yet this group has failed to capitalize on

an opportunity to put money in motion using life settlements, as only 18% of those surveyed cited life settlements as a strategy to provide clients with revenue for new investment opportunities. Nearly half of advisors surveyed believe that clients who plan to let coverage lapse should consider selling their life insurance policy. The same proportion of advisors also said life settlements are a viable option for clients with unneeded or unwanted life insurance. Financial advisors are also largely unaware of the life settlement regulatory environment as more than 80% admitted that they didn’t understand that the transactions are safe and monitored under the umbrella of state insurance commissioners. The survey also found that many advisors still believe that life settlements are only for the terminally ill, and others believe the transactions are “morbid” and “creepy.” “We are still combatting misconceptions which first appeared more than 20 years ago,” said Stephen E. Terrell, executive vice president of The Lifeline Program. “We now have a better understanding of the market and that we have to keep educating advisors that life settlements can help their clients and create liquidity events.”

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Personnel Profile

Hitting the Right Notes We take a look at the life and career of guitarist-turned-business leader, Henry Juszkiewicz, chairman and CEO of Gibson Guitar Corp

8 â&#x20AC;˘ CorporateAmerica â&#x20AC;˘ March 2015

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Personnel Profile

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Personnel Profile Henry Juszkiewicz, Chairman and CEO of Gibson Guitar Corp., grew up in Rochester, NY. With a passion for music and superior academic skills, he enrolled at the General Motors Institute in Flint, MI, a five year co-op engineering college. Sponsored by GM’s Delco division, he gained experience in a variety of different jobs at Delco’s 6,000-employee electronic components plant in Rochester. Putting his musical skills to work, he worked his way through school playing guitar - a Gibson, of course - in various rock bands playing for parties and weddings. After graduating with honors, he worked at Delco Products for two years as product manager while studying for an MBA in night school at the University of Rochester. He completed his MBA at Harvard University on a General Motors Fellowship. Juszkiewicz then joined the New York firm of Neiderhoffer, Cross and Zeckhauser, Inc., a pioneer in the area of middle-market deals, where he rose to the position of executive vice president of mergers and acquisitions. He left the firm in 1981 and, with two former Harvard classmates (David Berryman and Gary Zebrowski), acquired Phi Technologies of Oklahoma City. Within one month he turned the struggling technology firm into a highly profitable company. In 1986, Juszkiewicz and his partners acquired the faltering Gibson guitar operation from the Norlin corporation. Juszkiewicz’s aggressive management style again effected an immediate turnaround, and Gibson became profitable within a month’s time. With creative and innovative marketing tactics he concentrated on the consumer rather than the retailer - a reflection of his personal experience as a guitar player. Refocusing the company on achieving the highest possible standards of quality and customer service, he drove Gibson from the brink of closing to a company that has regained worldwide respect with annual average growth of 20 percent over the last decade. Juszkiewicz is a committed supporter of The Rainforest Alliance and conservation. A member of the Society of International Business Fellows and others, Juszkiewicz continues his commitment to a better world through his active participation in organizations such as Nordoff-Robbins, which provides music therapy for severely handicapped children, to the T.J. Martell Fund for Leukemia Research, The Environmental Defense Fund, Teenage Cancer Trust and leads numerous philanthropic endeavors under the Gibson Foundation banner. He is a board member of the Country Music Hall of Fame, a board member of the Rock and Roll Hall of Fame and Museum, a board member of the Rainforest Alliance and a board member of the We Are Family Foundation. He is a co-founder of Music Rising, a campaign to help aid musicians, schools and churches of the Gulf Coast and is active in the Clinton Global Initiative and numerous environmental causes. He is the recipient of numerous awards, honors and extensive media coverage. Juszkiewicz began fulfilling his vision of Gibson as a full-line, global musical instrument company by acquiring other instrument companies, establishing a Gibson-owned European distribution center with joint-venture distributors, and acquiring manufacturing facilities in China. He dedicated a standalone division to R&D, resulting in the introduction of the worlds first digital guitar, the HD.6X Pro and most recently, the Gibson Robot Guitar, both which represent the biggest advance in guitar technology since the invention of the electric guitar over 70 years ago. He continues to expand the company worldwide with new consumer electronics accessories, the acquisition of the Wurlitzer Jukebox company and several other facilities in China. Gibson is known worldwide for producing classic models in every major style of fretted instrument, including acoustic and electric guitars, mandolins, and banjos. Founded in 1894 in Kalamazoo, Michigan, and headquartered in Nashville since 1984, Gibson Guitar Corp.s family of brands now includes Epiphone, Dobro, Maestro, Kramer, Steinberger, Tobias, Echoplex, Electar, Flatiron, Slingerland, Valley Arts, Maestro, Oberheim, Sunshine Piano, Take Anywhere Technology, Baldwin, J&C Fischer, Chickering, Hamilton, and Wurlitzer.

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Juszkiewicz’s aggressive management style again effected an immediate turnaround, and Gibson became profitable within a month’s time

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Personnel Profile

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Company Profile

A Bridge to Global Capital Stonegate Global Fund Services, based in New York, offers global fund administration services coupled with a cost-effective pricing model to hedge funds, venture capital funds, private equity funds, fund of funds, real estate funds, REIT funds, ABL funds and oil and gas funds. We caught up with John McCorvey, CEO, to find out more about the firm and its recent work

Stonegate Global Fund Services is an offshore and domestic alternative investment fund services business focusing on fund formation, fund administration, prime services and capital introduction. The firm specialises in hedge funds, venture capital funds, private equity funds, oil and gas funds, fund of funds, insurance dedicated funds (IDFs), real estate funds, private REIT funds and ABL funds. Stonegate Global works with family offices, traders, and other institutional clients who are interested in forming hedge funds and other alternative investment fund products, and the firm also services existing alternative investment funds and fund managers to provide fund administration and other institutional services. The firm provides full domestic and offshore fund formation and administrative services in numerous offshore jurisdictions across the globe, including Guernsey, Jersey, Cayman Islands, Ireland, Bermuda, BVI, Isle of Man, and Luxembourg. The current business environment in the alternative investments industry is very exciting, says John McCorvey, Chief Executive Officer at Stonegate Global Fund Services. “The industry is evolving in many ways as technology advancements continue to have an impact: the prime brokerage business continues to change with price compression, lower commissions, liquidity pool and dark pool access; technology and innovation are assisting service providers such as Stonegate Global in streamlining processes, such as consolidated prime brokerage, fund formation and fund administration, and subsequently passing along significant cost savings to its clients.”

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Company Profile

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Company Profile Stonegate has changed the way traders, family offices and investment managers create and run hedge funds and other alternative investment vehicles in the investment management businesses, says McCorvey. “At Stonegate, we provide an efficient, streamlined and cost effective approach to starting a hedge fund or other investment fund vehicle through our Hedge Fund In A BoxSM product and our Innovative Alternative Fund SolutionsSM,” he says. “Our comprehensive solutions place the responsibility of ‘quarterbacking’ the fund formation and set-up process with Stonegate, and allows the fund manager to focus on their key responsibilities, such as raising capital. “Additionally, our relationship with BlueFlame Global Wealth Management, which runs a multi-strategy, multi-manager platform, allows for a “plug and play” approach to establishing, launching, managing and marketing a hedge fund or other alternative investment fund.” Stonegate Global excels in providing its comprehensive solution to alternative investment fund managers. The firm has invested heavily in world-class technology and possesses some of the industry’s most experienced senior management and staff members, he adds. A truly global firm Stonegate services a global client base, and sees opportunities across the globe in the alternative investments industry. “We have noted an increased regulatory environment in the United States over the past few years. However, the United States is still one of the most advanced and strongest alternative investment fund markets in the world, and it has a very healthy supply of talented fund managers with innovative ideas,” McCorvey says. As a global firm, which routinely works through challenges and issues in various countries and jurisdictions on behalf of its clients, it’s vital that Stonegate stays on top of the latest regulatory changes around the world, says McCorvey. “We have noted a trend in the United States’ alternative investment industry becoming more and more regulated. Stonegate remains current on regulatory and tax changes, as our clients often seek us for advice as to how the changes affect fund managers.” A growing industry The hedge fund industry has often, in recent years, found itself painted in a negative light, particularly by the media. But despite public outrage at the numerous negative stories concerning hedge fund managers, McCorvey says the industry is maturing. “As is in most situations, the public tends to mainly remember negative news more so than they remember positive news. Given the publicity surrounding major hedge fund fraud cases and large compensation packages for hedge fund managers, the public perception of hedge fund managers is in a fairly negative state. Having said that, the institutionalisation of the hedge fund industry continues. The industry is primarily filled with professionals of great character and integrity and we at Stonegate Global are committed to furthering these values in this burgeoning industry.” Recent successes, and the future Asked about recent projects that illustrate what is special about Stonegate, McCorvey points to the firm’s recent work with a prominent northeast US-based family office that has an extensive history of investing in energy and oil and gas projects on a global basis. “The family office was looking to start an alternative investment fund through a joint venture with a team of geology experts,” he says. “The fund would further allow other wealthy families and large accredited investors to co-invest in the oil, gas and mineral rights opportunities. Stonegate Global created a complex offshore and domestic fund structure that allows both US and foreign investors to participate in the fund. The proprietary structure developed by Stonegate captured various dynamics for the benefit of the private equity fund’s investors regarding expense pass-throughs, fee sharing, distribution rights, as well as significant tax advantages. The family office is now well positioned to market and deploy its innovative investment strategy.” As for the future, Stonegate plans to continue to provide world-class services, technology and client assistance through its streamlined and cost-effective solutions, McCorvey says.

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Stonegate services a global client base, and sees opportunities across the globe in the alternative investments industry

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Company Profile

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Feature

Efficiency

and the

Knowledge Worker

Adam Beschloss, Director, Client Solutions and Philip Algieri, Associate Vice President, Legal Services, at QuisLex, tell us why process discipline in delivering legal services matters – and how legal outsourcing can help

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Feature

Highly trained professionals such as lawyers do not tend to view their work in terms of efficiency. The focus is on effectiveness – outcomes. Attorneys are not typically appraised on the processes that produce those outcomes. It can even be a particularly distasteful concept to the specialist. The individual who through years of specialized study, practice, and experience compiles a curriculum vitae that demonstrates notable achievement and success – how does one value such expertise? Certainly not in six minute increments. Efficiency, then, is thought to be the province of labor, supply chains, manufacturing, and assembly lines; of rote repetitive work that does not require solving the complex problems legal counsel must master to properly advise their clients and effectively mitigate risks that involve threats to reputation, finance, and even survivability. So how can legal advisors look to concepts such as process efficiency to meet the challenges of a legal market that has become cost conscious, but is unwilling to sacrifice quality results? Does efficiency matter in the realm of legal advice? Even a good legal outcome, if executed poorly, carries costs that can have negative impacts. The imputed cost of a service delivered inefficiently is tantamount to a hidden cost that in today’s economy and scale is no longer hidden. Legal actions that involve e-discovery, M&A due diligence, large scale response to regulatory requests, or managing the compliance and business risk inherent in inefficient contracting schema for example, have amplified and spotlighted this effect. Process discipline in delivering legal services matters. While expert legal advice is not a function of efficiency per se, the effective delivery of that advice is dependent on myriad functions and operations that benefit from efficiency. And cost matters.

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Feature How Legal Outsourcing Can Help Delivery models that do not optimally organize intellectual capital, time, and resources create challenges (whether involving efficiency or effectiveness) that will assert themselves, particularly as a function of scale and increasingly unhappy CFOs. Inefficient systems do not scale well. The tendency is to address these issues when and where they become apparent. We fix them at the point they become visible, rather than addressing the systemic failure – the root cause. This effect is clearly seen in legal services as the attempt to drive down costs through methods such as alternative fee arrangements, fixed fees, or simply heavily negotiated discounts continue to frustrate providers and clients alike, much as budget cutting and headcount constraints have impacted corporate legal departments. In the end, no one is happy: clients still pay “too much,” staff are overworked, and client satisfaction falls. As a result, it is not enough to just lower the unit costs (e.g., hourly rates). The increasing volume of transactions for a global business, and the enormity of data involved in litigations and investigations far outpace the reduction in billable hours or other volume-based costs. New models are required to create a sustainable and positive cost/benefit equation. A process-driven perspective leveraging technology (not merely applying new technology to current methods) can lead to new models that do more than lower cost; they can improve services, enable new opportunities and create value. Outsourcing, while commonplace in the business world, is a relatively new model for legal services. It has demonstrated an ability to not only reduce cost through wage arbitrage, but to significantly improve legal functions that rely on operational expertise. These include M&A due diligence, contract lifecycle management, compliance, and eDiscovery, among other functions. Legal Process Outsourcing (“LPO”) firms have successfully applied the concept of process improvement to legal services for more than a decade using the well-proven methods of Lean (process efficiency) and Six Sigma (process effectiveness) to reduce cost and improve quality. While both have their roots in manufacturing, they have been widely used in many service sectors, and more recently have gained traction in corporate legal departments. There are many benefits to utilizing these disciplines – reduced error rates, faster cycle times, and better management of resources to name a few. The compelling proposition of all successful outsourcing engagements, however, whether it is the delivery of legal services or the manufacturing of widgets, is the improved alignment, allocation, and use of resources that leads to delivering higher quality services at reduced cost. The unique benefit of LPOs is that with a deep expertise in process discipline and extensive legal knowledge, they are well positioned to help corporate legal departments improve operationally and law firms manage for the price competitiveness that has entered the legal market with ferocity. The emphasis on efficiency and effectiveness enables a solution for legal services delivery in a market where conditions continue to, in the case of law firms, push operational cost back to the firm, and in the case of corporate legal departments, demand “doing more with less.” Outsourcing legal services has proven to be effective in optimizing resources and rationalizing budgets for corporate legal departments and law firms that have chosen to outsource legal work that benefits from process expertise, improving their competitive positioning, and allowing counsel to focus on the higher value strategic work for which clients (internal and external) gladly pay.

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LPOs are well positioned to help corporate legal departments improve operationally and law firms manage for the price competitiveness that has entered the legal market with ferocity

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Feature

Leading from the Top With recent research showing 81% of global executives report that external CEO engagement is now a mandate for building company reputation, we look at how business leaders can make sure they’ve got the company on their side

New research from leading global public relations firm Weber Shandwick identifies that chief executive officer engagement and visibility is recognized as particularly critical to company reputation, according to 81 percent of senior executives worldwide. This new model of building CEO reputation is driven by the high demand for content and by the numerous platforms on which leaders can engage with stakeholders in today’s digital era. “Years ago, CEOs and those around them confused CEO visibility with CEO celebrity. Today, it is not about CEO celebrity, but CEO credibility that can be 20 • CorporateAmerica • March 2015

built through multiple channels that add value inside and outside the organization,” according to Leslie Gaines-Ross, Weber Shandwick’s chief reputation strategist. “Today, CEO visibility means having a greater presence with greater purpose and in more ways than one.” Conducted by Weber Shandwick with KRC Research, The CEO Reputation Premium: Gaining Advantage in the Engagement Era, is based on an online survey of more than 1,700 senior executives across 19 countries in North America, Europe, Asia Pacific and Latin America.

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Feature Why CEO Reputation Matters

Regional Differences

It’s undeniable that CEO reputation matters to an organization’s success and is one of its most valuable and competitive assets. Global executives in our survey agree: on average, they attribute nearly half (45 percent) of their company’s reputation to the reputation of their CEO. This inextricable link between CEO and corporate reputation is only expected to strengthen, as 50 percent of executives expect that CEO reputation will matter even more to company reputation in the next few years.

Our research revealed several differences around the globe, some of which are:

CEO reputation matters to the bottom line, too. Executives estimate that 44 percent of their company’s market value is attributable to the reputation of their CEO. Strong CEO reputation also attracts and retains employees (77 percent and 70 percent, respectively). “CEO engagement has become an important driver of company value,” said Micho Spring, Weber Shandwick’s Global Corporate practice chair. “Our research shows that there is a new breed of CEOs who not only recognize this, but are embracing opportunities to tell their companies’ narratives and engage in new ways with audiences inside and outside their organizations.” CEO Humility has its Rewards

● Compared to European, Asia Pacific and Latin American executives, North American executives perceive their leaders to be better communicators, both internally and externally. ● North American executives are significantly more likely than those in other regions to say that their CEOs are comfortable talking to the news media. However, these regions may soon catch up: Four in 10 European executives (41 percent) and approximately half of Asia Pacific executives (49 percent) and Latin American executives (49 percent) report that their CEOs are more willing to talk with the news media today than they were several years ago. ● Canadian executives are the most likely to say their company has a very strong reputation (63 percent). ● Indonesian and Chinese executives are particularly optimistic that CEO reputation will rise in importance over the next few years (87 percent and 79 percent, respectively).

Despite the growth in importance of CEO reputation, building it is not about enhancing egos or celebrity. In fact, a Weber Shandwick media search found that 2014 was a record year for coverage related to CEO humility. “Humility is now the new green among chief executives,” according to Gaines-Ross. Indeed, executives with highly-regarded CEOs in our study are nearly six times as likely as those with less highly-regarded CEOs to say that their CEO is humble (34 percent vs. 6 percent, respectively).

The CEO’s 12-Step Guide to Reputation and Engagement

CEO Public Engagement is the New Mandate

2. Develop the CEO’s “equity” statement

There is a close tie between reputation and external relations. Admired CEOs are four times more likely to be seen as being good at engaging the public than those with less admired status (50 percent vs. 13 percent, respectively). The question is: Which of the many available platforms are mission critical for CEOs when their time is so limited and they are understandably risk-averse? The majority of global executives (82 percent) consider speaking engagements job number one for engaging with external stakeholders, but there are many other important external CEO responsibilities as well:

3. Identify and develop the CEO’s story on behalf of the company

Weber Shandwick recommends that business leaders and their companies consider the following strategies to bolster CEO engagement. These recommendations are described in detail in our report. 1. Assess the CEO’s reputation premium

4. Be an industry champion by having a visible and involved industry presence 5. Leverage the senior management team, in addition to the CEO 6. Bulk up on media training 7. Carefully evaluate the CEO’s stance on public policy

External visibility activities that are important for CEOs to do

Percent of Global Executives

Speak at events (industry and non-industry)

82%

9. Develop a solid social media strategy

Be accessible to the news media

10. Keep reputation drivers at the top of the to-do list

Be visible on the company website

11. Bolster CEO reputation among employees

Share new insights and trends with the public

Be active in the local community

Be visible on the corporate video channel

Hold positions of leadership outside the company

Publicly take positions on issues that affect society at large

Participate in social media

Publicly take positions on policy and political issues

With the high demand for CEOs to narrate their companies’ purpose and what they stand for, it is good to know that the number and types of communications activities are plentiful, offering a variety of strategic options for CEOs to use.

22 • CorporateAmerica • March 2015

8. Decide which venue is right for the CEO

12. Don’t view CEO humility as a weakness Spring adds, “Given the pervasive nature of the Internet and social media, there is no longer a clear line between internal and external CEO communications, which is why CEOs and their teams must build integrated engagement plans that recognize that we are all now public figures.”

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Feature

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Despite the growth in importance of CEO reputation, building it is not about enhancing egos or celebrity

“

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www.corporateamerica-news.com

Corporate America /Deals

Deals

24 • CorporateAmerica • January 2015

Here at Corporate America, we like to keep you up to date with what’s happening in your industry, giving you the lowdown on the need-to-know sales, mergers and acquisitions taking place across the US. Which is why we’d like to welcome you to our regular monthly roundup of the biggest, most newsworthy deals from the past month.

www.corporateamerica-news.com

Corporate America /Deals Healthcare/Acquisition

Performant Financial Corporation to Acquire Premier Healthcare Exchange, Inc. The numbers: $130m

Performant Financial Corporation announced that it has entered into an agreement to acquire Premier Healthcare Exchange, Inc. for $130m. The transaction consideration consists of $108m in cash, subject to certain adjustments contemplated by the merger agreement, and $22m of Performant common stock to be issued to key PHX stockholders. Based in Bedminster, New Jersey, privately-held PHX is a leading provider of healthcare cost management solutions for more than 200 commercial health plans and third party administrators (TPAs). PHX’s pre-payment audit and network management capabilities will provide a strong complement to Performant’s existing post-payment audit, proprietary analytics and recovery capabilities.

ing to The Journal of the American Medical Association. Controlling waste has become more complex and difficult to manage. As a result, payors are developing end-to-end cost management strategies that include a full spectrum of pre- and post-payment solutions. Together, Performant and PHX will provide a powerful, comprehensive cost management solution. PHX’s group health expertise combined with Performant’s Medicare and commercial experience is expected to accelerate growth by diversifying revenue, allowing entry into new markets, adding new customers and leveraging the combined company’s existing audit and recovery infrastructure.

Nationally, over $2.9tn dollars were spent across government and commercial health plans, with error rates ranging from 4-10%, accord-

Energy & Resources/IPO

Healthcare/Acquisition

eASIC Files Registration Statement for Proposed IPO

Valeant to Acquire Salix Pharmaceuticals for $158.00 per Share in Cash

eASIC Corporation announced that it has publicly filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission (SEC) relating to a proposed initial public offering of its common stock.

Valeant Pharmaceuticals International, Inc. and Salix Pharmaceuticals, Ltd. announced that they have entered into a definitive agreement under which Valeant will acquire all of the outstanding common stock of Salix for $158.00 per share in cash, or a total enterprise value of approximately $14.5bn.

The numbers: undisclosed

The number of shares to be offered and the price range for the proposed offering have not been determined. eASIC intends to apply to list its common stock on the Nasdaq Global Select Market under the ticker symbol “EASI”. Morgan Stanley & Co. LLC and Deutsche Bank Securities Inc. will act as joint book-running managers for the offering. Raymond James & Associates, Inc., Robert W. Baird & Co. Incorporated, William Blair & Company, L.L.C., Roth Capital Partners, LLC and Northland Securities, Inc. will act as co-managers.

The numbers: $14.5bn

The transaction was approved by the Boards of Directors of both companies. Salix Pharmaceuticals is a widely recognized gastrointestinal market leader with a portfolio of 22 total products, including well-known prescription brands Xifaxan, Uceris, Relistor, and Apriso, as well as a strong nearterm pipeline of innovative, new assets.

J. Michael Pearson, Valeant’s chairman and CEO, said:”The growing GI market has attractive fundamentals, and Salix has a portfolio of terrific products that are outpacing the market in terms of volume growth and a promising nearterm pipeline of innovative products. With strong brand recognition among specialist GI prescribers, a highly rated specialty sales force, and a significant product and commercial presence across the undertreated and underserved gastrointestinal market, this acquisition offers a compelling opportunity for Valeant to create a strong platform for growth and business development.”

January 2015 • CorporateAmerica • 25

www.corporateamerica-news.com

Corporate America /Deals Industrials/Acquisition

Polypore Signs Definitive Sale Agreements The numbers: $1bn Polypore International, Inc. announces that it has signed definitive agreements for the sale of the Company. In the merger agreement, Asahi Kasei Corporation (“Asahi Kasei,” TSE1:3407), through a U.S. subsidiary, will purchase the Company for $60.50 per share in cash. As an integrated step in this transaction, immediately prior to Asahi Kasei’s acquisition of Polypore, 3M Company will acquire the assets of Polypore’s Separations Media segment for approximately $1.0 billion and Asahi Kasei will receive the cash proceeds from the asset sale. The definitive agreements require that the sale of the Company and the integrated sale of the Separations Media segment close after closing conditions for both transactions have been satisfied and that the closings of the transactions are conditioned upon one another.

Robert B. Toth, Polypore’s President and CEO, said:

“The combination of our Energy Storage business with Asahi Kasei and our Separations Media business with 3M are excellent strategic fits, which we believe create value for our people, customers and shareholders. When you combine our technology, process capabilities, and material science expertise with their technology, global reach and broader resources, there’s a great opportunity to accelerate growth going forward.”

Consumer/Acquisition

Industrials/Acquisition

Staples, Inc. Announces Acquisition of Office Depot, Inc.

Coeur Acquires Wharf Gold Mine

Staples, Inc. and Office Depot, Inc. announced that the companies have entered into a definitive agreement under which Staples will acquire all of the outstanding shares of Office Depot.

Coeur Mining, Inc. announced the completion of its acquisition of the Wharf gold mine from Goldcorp, Inc. pursuant to the previously announced agreement. Under the terms of the agreement, Coeur purchased all of the issued and outstanding shares of the common stock of Wharf

The numbers: $6.3bn

Under the terms of the agreement, Office Depot shareholders will receive, for each Office Depot share, $7.25 in cash and 0.2188 of a share in Staples stock at closing. Based on Staples closing share price on February 2, 2015, the last trading day prior to initial media speculation around a possible transaction, the transaction values Office Depot at $11.00 per share. This represents a premium of 44 percent over the closing price of Office Depot shares as of February 2, 2015, and a premium of 65 percent over the 90-day average closing price of Office Depot shares as of February 2, 2015. The transaction values Office Depot at an equity value of $6.3bn.

26 • CorporateAmerica • January 2015

The numbers: $105m

from a subsidiary of Goldcorp in exchange for $105m in cash, subject to customary post-closing working capital adjustments. Wharf is expected to produce 74,000 – 78,000 gold ounces for the remainder of 2015 at a cost applicable to sales per gold equivalent ounce of $750 - $825.

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Corporate America /Deals Support Services/Fund raising

TMT/Acquisition

Panasonic Acquires Video Insight to Strengthen North America Education Market Solution Business The numbers: undisclosed

Panasonic Corporation of North America announced that it has entered into an agreement to acquire all shares of Houston, TXbased Video Insight, Inc., a leading developer of video management software, as part of its strategy to expand business opportunities for both companies in the education market in North America. Founded in 2002, Video Insight provides enterprise-class video management solutions for security systems to over 25,000 customers in the financial, government, retail and transportation sectors as well as 6,500 K-12 school and college customers. Panasonic Group has set a clear target of reaching 10 trillion yen in sales by 2018, and B2B solutions, including security systems and video surveillance, will play an important part in achieving this high growth globally. As customer needs in the video surveillance market become more

diversified, video management software with the ability to easily integrate multiple devices will become even more important. Adding Video Insight to the Panasonic Group enhances the Panasonic portfolio and broadens its reach into education.

Chief Executive Officer, J. Robert Shaw said:

“We’re excited and honored to partner with the Panasonic Group. We believe this partnership will help us accelerate innovation, enhance product development and allow us to provide our customers with better security solutions for years to come.”

Momentum Funding scores $30m from VPC The numbers: $30m

Momentum Funding LLC, a premier legal finance company specializing in non-recourse funding to personal injury plaintiffs, has announced the completion of a $30m round of financing by Victory Park Capital. Investment proceeds will allow Momentum Funding to meet the underserved needs of clients experiencing financial hardships while pursuing a personal injury claim. Founded in 2015 by Pekin and Co-founder Elisa Moss, Momentum Funding is headquartered in Boca Raton, Fla., with regional offices in Clearwater, Fla., and Chicago, Ill. The two female entrepreneurs founded the company to help plaintiffs secure funding via a product that is easy to understand with proceeds that are available in as little as 24 hours.

Elizabeth Pekin, Esq., Co-founder and President, Momentum Funding, said:

“Momentum Funding is fortunate Victory Park recognizes and shares our vision of helping personal injury clients move their cases, and their lives, forward. The available capital will allow Momentum to grow and expand our legal funding network nationwide.”

Energy & Resources/Acquisition

PE-backed AssuredPartners buys Amtech Insurance Brokers The numbers: undisclosed

AssuredPartners Inc., one of the fastest growing independent insurance agencies in the nation, announces the acquisition of Amtech Insurance Brokers, headquartered in Latham, New York. Amtech has been providing full-service commercial insurance and risk management solutions for businesses of all types for the past 22 years. Its industry specialties include construction, welding supply and compressed gas. In addition, the agency has a custom-tailored Drillers Insurance Program for a variety of contractor clients, from water well to environmental to geothermal drillers. The $2m dollar revenue agency will continue to operate from its current location under the local leadership of President and Founder Paul Andrews and Vice President Chris McMahon. It will report through Assured SKCG insurance and risk management advisory firm, an As-

suredPartners platform company in the Northeast, serving commercial and private clients throughout the United States and overseas.

Assured SKCG Chairman and CEO Tom Kozera said:

“Amtech’s leadership team and its client service staff are experienced insurance professionals who have designed national programs and are extremely knowledgeable about their clients’ operations in the field and the issues they face. We are excited to welcome Amtech’s employees and clients to the Northeast region and AssuredPartners family.”

January 2015 • CorporateAmerica • 27

www.corporateamerica-news.com

Corporate America /Deals Financial Services/Fund raising

Consumer/Acquisition

Aequitas Capital-backed CarePayment inks $100m from Wells Fargo The numbers: $100m

Aequitas Capital announced that it has reached an agreement with Wells Fargo to provide $100 million in additional financing to support the fast-growing demand for CarePayment® and its patient financial engagement programs. This new commitment supplements a $60m financing agreement with Bank of America Merrill Lynch executed this past May, thereby increasing Aequitas Capital’s funding of CarePayment to $200m of senior debt. CarePayment is one of several Aequitas portfolio companies which benefits from the Aequitas finance and operating platform. CarePayment partners with healthcare organizations across the United States to remove financial barriers to care by featuring payment options at 0.00% APR for the life of the account and with no impact on credit reports.

Bob Jesenik, Aequitas CEO, said:

“Almost half of all Americans say that basic medical costs are a hardship and far too many don’t seek the help they need. CarePayment provides patient financing solutions so that people don’t have to forgo medical treatment because they can’t afford it. Aequitas is committed to providing all the financial and other resources its portfolio companies need to succeed. Securing this financing through Aequitas will allow CarePayment to expand its efforts to make healthcare more affordable and accessible.”

Support Services/Acquisition

The GEO Group Closes Acquisition of Eight Correctional and Detention Facilities The numbers: $307m

The GEO Group, Inc., a fully-integrated equity real estate investment trust specializing in the financing, development, ownership, and operation of diversified correctional, detention, and community reentry facilities around the globe, announced the closing of its previously announced acquisition of eight correctional and detention facilities totaling more than 6,500 beds from LCS Corrections Services, Inc., a privately-held owner and operator of correctional and detention facilities in the United States, and its affiliates. The LCS transaction was structured as an asset purchase. GEO acquired the LCS Facilities for approximately $307m, or approximately $47,000 per bed, in an all cash transaction, excluding transaction related expenses. Additionally, LCS has the opportunity to receive an additional payment if the Facilities exceed certain performance targets over a period of approximately 18 months. The aggregate 28 • CorporateAmerica • January 2015

amount of the purchase price paid at closing and the Earnout Payment, if achieved, will not exceed $350m. LCS will use the proceeds to repay approximately $298m in outstanding net debt. GEO did not assume any debt as a result of the transaction. GEO financed the acquisition of the LCS Facilities with borrowings under its $700m Revolving Credit Facility. Following the LCS transaction, GEO has approximately $260m in available borrowing capacity under its Revolving Credit Facility.

Halitron, Inc. acquires iDealFurniture, LLC The numbers: undisclosed

Halitron, Inc. announces the acquisition of iDealFurniture, LLC., a national network of independent furniture brokers, leveraging online websites through the acquisition of web properties including www.iDealFurniture.org, www.bigticketbroker.com, www.kozyart.com, www. kozyfurniture.com, www.kozypatio. com, www.KozySofa.com, www.iDealFurniture.info, www.MemoryZzz. com, and www.perfectdreamer.com. The Company currently has setup 17 Regional Market Developers, 45 Distribution Centers and over 250 Brokers, with initial sales in 2014 totaling $800,000.

Larry Kozin, the Founder of iDealFurniture, said:

”The acquisition by Halitron, Inc. will enable iDealFurniture to begin to acquire and convert the struggling Mom & Pop stores that are on the verge of closing their doors. The Company hopes that this strategy will enable iDealFurniture to become a recognizable name in the United States by the end of the decade.”

www.corporateamerica-news.com

Corporate America /Deals Financial Services/Acquisition

TMT/Acquisition

Greenhill Expands Capital Advisory Capabilities through Acquisition of Cogent Partners The numbers: $97.6m

Greenhill & Co., Inc., a leading independent investment bank, announced that it has signed a definitive agreement to acquire Cogent Partners, LP, the leading global financial advisor to pension funds, endowments and other institutional investors on the secondary market for alternative assets. Cogent advises such institutions on sales of interests in private equity and similar funds, as well as providing restructuring, financing, valuation and related advisory services. Cogent has advised on transactions involving thousands of limited partnership interests since its founding in 2002, and had revenues of approximately $45.8m (unaudited) in 2014. The acquisition advances Greenhill’s ambition to create the leading independent global financial advisory firm, with capabilities to advise clients on mergers, acquisitions, restructurings, financing and capital

raising across industry sectors and in all regions. Following completion of the transaction, the combined firm’s advisory activities for institutional investors in relation to the secondary market for alternative assets will operate under the name Greenhill Cogent.

Robert F. Greenhill, Chairman of Greenhill, said:

“The acquisition of Cogent is an opportunity to become a market leader in a distinct and important segment of advice that we believe has significant growth potential, to further diversify our sources of revenue, and to deepen our relationships with a broad range of important institutions globally.”

WPP to buy stake in comScore The numbers: $244.54m

UK-based marketing communications group WPP has agreed to acquire a 15.5 per cent interest in US Internet audience measurement company comScore for around $44.54m. The London-headquartered buyer is pricing the tender offer at $46.13, representing a 6.9 per cent premium over the target’s close of $43.16 on 11th February, the last trading day prior to the announcement. WPP has entered into a strategic global alliance with comScore via its data investment arm Kantar. The partnership covers territories outside the US and is designed to deliver world class crossmedia audience and campaign measurement capabilities by bringing together products, technology, data assets and research panels from both groups.

ComScore has agreed to bid a further 4.5 per cent stake by issuing new shares that will count as payment for the Kantar European internet spectator measurement assets, and may place more stocks depending on the outcome of the tender offer. The acquisition is subject to regulatory approvals and is expected to complete in the second half of 2015. WPP will own a total stake of between 15.5 and 19.9 per cent, following the closing of both transactions. The 15.5 per cent interest can be estimated at 5.30 million stocks based on comScore’s outstanding capital of 34.20 million scrips.

Real Estate/Acquisition

Zillow Completes $2.5bn Acquisition of Trulia The numbers: $2.5bn

Zillow announced it has completed its previously announced acquisition of Trulia, Inc. for $2.5bn in a stock-for-stock transaction, and formed Zillow Group, Inc, which houses a portfolio of the largest and most vibrant U.S. real estate and home-related brands on mobile and the Web. In addition to Zillow and Trulia, Zillow Group’s consumer brand portfolio includes StreetEasy, New York City’s leading real estate marketplace, and rental search brand HotPads. Paul Levine, previously Trulia’s chief operating officer, has been named president of Trulia, reporting to Rascoff. Pete Flint, co-founder and former CEO of Trulia, has joined the Zillow Group board of directors, as has former Trulia board member Greg Waldorf. Zillow Group is expected to begin trading on Nasdaq on Feb. 18, 2015, under the ticker symbol “Z” and will inherit the trading history of Zillow Inc., which also traded under the ticker symbol “Z”.

Spencer Rascoff, CEO of Zillow Group, said:

”This is a pivotal day in online real estate and we couldn’t be more excited to welcome Trulia to Zillow Group. Each of our brands share a consumer-first philosophy, and our powerful combination of insights and expertise will drive even greater innovation for consumers, empowering them with essential information they need to make critical financial decisions. Our combination will also enable real estate professionals to more efficiently and easily reach the nation’s largest audience of engaged buyers, sellers and homeowners, and extract even more value from their advertising.”

January 2015 • CorporateAmerica • 29

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Out of Office

Inspired Relaxation

Inspiring Rituals, at the Five-Star Spa at Mandarin Oriental, Miami, offers a selection of spa and wellness programs designed by The Spa’s expert team of therapists to improve mind, body and spirit

30 • CorporateAmerica • March 2015

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Out of Office

The Five-Star Spa at Mandarin Oriental, Miami has launched Inspiring Rituals, a selection of spa and wellness programs designed by The Spa’s expert team of therapists to improve mind, body and spirit. Each monthly ritual focuses on a different inspiring theme from Connect and Strengthen to Uplift, Exotic and Revive and includes two hours of spa treatments, an inspirational fortune cookie, spa gift and aftercare and at home spa tips. “Our therapy team is always seeking opportunities to better serve and educate our spa guests,” says Osa Mallo, Spa Director. “Inspiring Rituals allows our spa therapists to give personalized experiences and offer recommended products, overall benefits and expert advice that result in a total well-being for our guests with lasting results.” The rituals are available from February through December and are priced from $335 to $380. The Connect ritual begins in February and focuses on reserving “Time” rather than selecting a specific treatment, for a tailor-made experience. The therapist assesses what is best for each guest to restore a natural state of balance. With the arrival of spring, guests can enjoy March’s Strengthen ritual, which is designed to increase mental March 2015 • CorporateAmerica • 31

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Out of Office

32 • CorporateAmerica • March 2015

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Out of Office

and physical energy through effective treatments including a Therapeutic Massage to dissolve aches and strains. Guests will also receive a Fitness Body Oil to use at home. The Uplift program for April encourages spa goers to find balance with an invigorating scrub, Aromatherapy Facial and Mandarin Oriental Manicure. Guests will depart with an Oriental Wisdom CD prepared exclusively for Mandarin Oriental Spas with inspirational music. Inspired by Beauty by Mandarin Oriental treatments and products, the Beautify ritual in May features the Opulent Rejuvenesence results-oriented facial using products by famed Brazilian surgeon Dr. Ivo Pitanguy. Guests will receive the facial in The Spa’s exclusive Beauty Room. In the summer, spa guests can enjoy a Spiritual ritual available in June offering the two-hour Kundalini Journey using a variety of advanced massage techniques with

aromatherapy, color, gemstone and sound therapy. While in July the focus is Revive and includes a Calm Mind Massage, Thai Foot Massage and Time Renewal Facial. Guests will embark on an Exotic journey in August with the Ayurvedic Holistic Body Treatment incorporating a foot treatment, full body massage, facial cleanse and scalp massage. Designed to guide spa guests toward a state of inner peace and physical balance, the Ground program in September uses hot stones with an aromatherapy massage. In October, the theme is Unplug and incorporates the Inner Strength body oil throughout the massage to enhance relaxation. To offer thanks in November, guests are encouraged to extend the Give ritual to friends and family members featuring the ESPA Advanced Skin Radiance Facial to restore skin’s vitality and the new Lighter Leg Massage to soothe aches and pains. Indulge is the theme for December showcasing the Spa’s signature Oriental Harmony, where two therapists glide in harmony with soothing massage movements for two hours.

March 2015 • CorporateAmerica • 33

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Make a Fast Buck

The classic car experts, Hagerty, predict the most collectible 2015 model year cars

Enthusiasts often wonder what they can buy today that will become collectible in the future. With a deep understanding of the market, the collector car experts at Hagerty released their annual list of vehicles that stand out as likely being collectible within the next 25 years. In order to be considered for the “Hagerty Hot List,” the vehicle must be produced within the 2015 model year with an MSRP of less than $100,000. Special consideration was given to newly launched versions not appearing on previous Hagerty Hot Lists. “We hear a lot of chatter about how cars made today are boring,” said McKeel Hagerty, CEO of Hagerty. “The cars that made this list prove there are still cars to be excited about. They are true drivers’ cars that are definitely enjoyable now, but each one that made the list has that special something that will make it a collectible in the years to come.” 34 • CorporateAmerica • March 2015

www.corporateamerica-news.com

March 2015 • CorporateAmerica • 35

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“

Higher tax rates, the new Obama-care surcharges, personal exemption phase-outs, and itemised deduction reductions are being felt in the pocketbooks of most all professional athletes.

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36 • CorporateAmerica • March 2015

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The 2015 Hagerty Hot List (along with base price): 1. Alfa Romeo 4C Launch Edition ($69,685) – Alfa Romeo returns to America after a twenty year absence with a junior supercar that boasts an impressive 0-60 time of 4.1 seconds, and a carbon fiber chassis. It oozes Italianness from every single carbon fiber making it perhaps the hottest car on a very hot Hot List. 2. BMW M4 Convertible ($73,450) – The M3 and M5 have been the go-to cars for BMW Motorsports junkies since the late 1980s. The M4 offers those fans the silky torque of a twin turbo, inline-six engine, but, perhaps more importantly, it’s the only M-car, other than the pricey M6, that can be had as a convertible. 3. Chevrolet Camaro Z/28 ($75,000) - The ultimate road course ready Camaro. Boasting a weight loss of 300 pounds and the LS7 V8 with 505 horsepower and 481 pound feet of torque, Chevrolet let the engineers out to play and they created a monster. Anyone who isn’t aware that we’re living in a new golden age of automotive performance has been clogging up the left lane for too long. 4. Chevrolet Corvette Z06 ($78,995) - Bang for your buck is an understatement for the supercharged Z06, which may well be the all-time performance for the dollar champion. The Corvette has now entered supercar territory at a fraction of the price of the competition from Germany and Italy. 5. Dodge Challenger Hellcat ($58,295) – It feels like the 1960s again. The Cold War is back and so are the muscle car horsepower wars and Dodge just exercised the nuclear option with this beast. Limited production and 707 horsepower means that the Hellcat earns its moniker. Clearly the Challenger Hellcat is here to turn fuel into noise and rubber into dust and little else. 6. Ford Mustang GT Performance Package ($37,125) – Although the 50th anniversary edition will be produced in far less numbers, we at Hagerty think the GT performance package is the true driver’s car. Ford had a tough job following up the 2005-14 Mustang but they’ve done it very well (better perhaps than in 1967 when the Mustang was re-designed for the first time). Here’s to another fifty years. 7. Mazda MX-5 Miata 25th Anniversary Edition ($33,000) – The popularity of Japanese collector cars is on the rise and the Miata has established itself as the quintessential modern roadster. With this special edition also the last of its generation, it is already sealed as a collectible with only 100 models making the trip to North America. 8. MINI John Cooper Works Hardtop ($24,950) – New for 2015, the 2 door hardtop John Cooper Works MINI is the most powerful MINI ever produced. The performance specs are impressive, but what will have collectors drooling in the future is the attention paid to the MINI’s design concept. 9. Subaru WRX STI Launch Edition ($38,190) – With a stiffer body, advanced suspension and a turbocharged Boxer four cylinder the STI is quite literally a factory built rally car that you can drive off the showroom floor. The smile inducing acceleration is simply intoxicating, and the very limited release Launch Edition will be loved by collectors and rally fans for years to come. 10. Volkswagen Golf R ($36,595) – “4Motion” all-wheel drive, 292 horsepower, 0-60 mph in 4.9 seconds and a top speed of 155 mph make the all new VW Golf the most powerful VW hatchback to date. With a 2.0L turbocharged inline 4 this VW is bound to excite collectors now and in the future. It’s the Golf that GTI fan boys and girls have been begging VW to build.

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April 2015 / Planner

April 2015 / Planner 4 5 6

April Fool’s Day

Good Friday

Thomas Jefferson’s Birthday

7 8 9 10 11 12

14 15

20 21

Emancipation Day (Washington, D.C.)

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Tax Day

Patriot’s Day (ME, MA)