Crain's New York Business by crains-new-york-business

ASKED & ANSWERED Building relationships to head off supply-chain woes PAGE 5

CRAINSNEWYORK.COM

FEMALE FUNDING Women-led startups see record venture capital investment PAGE 3

NOVEMBER 15, 2021

STATE OF HEALTH CARE

THE REAL COST OF CARE New York hospitals charge patients wildly different amounts for the same procedures, a Crain’s analysis finds

BY AMANDA GLODOWSKI AND MAYA KAUFMAN

FRANCESCO CICCOLELLA

ankings tout the best hospitals to receive cancer care or treatment of a heart attack. They recommend where to go for a hip or a knee replacement. But tools are scarce for patients who want to choose a hospital based on costs. A federal rule that went into effect Jan. 1 was intended to provide just that. Enacted by the Trump administration, it requires hospitals to disclose their cash prices, or the costs of procedures without health insurance, and the rates they negotiate with insurance companies for all their services. In New York City the result has been haphazard at best INSIDE and defiantly noncompliant at worst. For facilities that THE LIST have shared at least some of the figures, the files are difThe area’s largest ficult or impossible to navigate without tech savvy, physician groups dogged determination and advanced data skills. PAGE 29 But the patchwork of information that can be extracted shows that local hospitals charge patients wildly difRising labor costs ferent amounts for the same few common procedures— and health-tech with variations at times exceeding $10,000, according to unicorns to watch a Crain’s analysis undertaken in partnership with TurPAGE 34 quoise Health, a health-tech company that built a machine-learning algorithm to parse the pricing data. An MRI scan of the brain, for example, costs $446 without insurance at a See COSTS on page 32

IN THE MARKETS

A favorite play on Wall Street hits IRS crosshairs Stock buybacks face 1% tax bite as other cherished loopholes survive

NEWSPAPER

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BY AARON ELSTEIN

early all of the finance community’s most cherished tax loopholes survived as Washington hunted for revenue to pay for the Biden administration’s $1.9 trillion social spending and cli-

mate package. But the cost for one of Wall Street’s favorite pastimes stands to get more expensive. A 1% excise tax on corporate stock buybacks survived all the wheeling and dealing. It will raise $124 billion in revenue over time, assuming Congress passes Presi-

dent Joe Biden’s Build Back Better plan after members return Nov. 15. The new excise tax is part of a broader plan that includes a new minimum 15% tax on corporate profits, an expansion of taxes on overseas earnings of U.S. companies, and surcharges on households

earning at least $10 million a year. Stock buybacks are popular with companies and institutional investors because earnings get distributed over fewer shares. Such repurchases were illegal until 1982 See BILL on page 35

GOTHAM GIGS

RESIDENTIAL SPOTLIGHT

CBD BUSINESS OWNER HAS HIGH HOPES

Next act for a Victorian-era firehouse

PAGE 39

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TECHNOLOGY

Firms could face fines in city crackdown on bias in automated hiring software BY RYAN DEFFENBAUGH

mployers will soon face stricter rules for when they can use résumé-scanning software and other automated hiring tools. The City Council’s Committee on Technology last Wednesday approved a bill that would bar employers from using automated hiring tools unless the software has undergone an independent audit for racial and gender biases, and the business notifies candidates that automated tools are being used. The bill was approved by the full City Council later that afternoon. Violations could result in a $500 fine for any type of business using software that has not been audited. New York City is the first municipal-

ity to regulate the use of such tools, which are used near-universally by major employers, a recent study found.

An ‘opaque’ process “A job advertised online today attracts dozens to hundreds to thousands of applications, mainly due to the amplifying effect of the internet,” said Laurie Cumbo, Democratic majority leader of the council and sponsor of the bill. In response, she said, employers have adopted software that sifts through applications rapidly and makes recommendations through an “opaque” process. “My bill will require audits that will clear the fog around these processes and help limit implicit bias and discrimination in the hiring process,” Cumbo said.

CORRECTION ■ A Notable Veteran Executives profile of Krystyna Blakeslee, partner at Willkie Farr & Gallagher, published Nov. 8, contained incorrect data. An updated profile can be found at CrainsNewYork.com.

Harvard Business School surveyed 2,250 executives earlier this year and found that 90% of companies were using software to screen applicants, even as a majority of those firms admitted that the screening process eliminated qualified candidates. That happens for

ple in 2018, Amazon shut down a résumé-scanning tool after it found the system gave male candidates an advantage. This is an issue the federal government is watching as well. The U.S. Equal Employment Opportunity Commission said last month that it would launch a working group, among other initiatives, to study how artificial intelligence is being used in hiring. “We support the bill and worked closely with the council on it,” said Laura Feyer, a spokeswoman for Mayor Bill de Blasio. The mayor issued a “message of necessity” in support of the bill. The council also held a hearing on the bill in November 2020. It had since been amended to add a requirement that employers ensure the software they are using has been audited. ■

BUSINESSES HAVE ADOPTED THE TOOLS TO HANDLE A DELUGE OF APPLICATIONS reasons beyond gender or racial discrimination, the report noted. Sometimes résumés leave off details and keywords employers search for or job listings cast too wide a net. But there is evidence that automated tools—which are programmed by humans who arguably carry their own biases—can reinforce discrimination in the hiring process. In one high-profile exam-

WEBCAST CALLOUT

DEC. 15 A FAIR ROLLOUT FOR RECREATIONAL MARIJUANA With New York’s legalization of adultuse marijuana expected to be up and running by late 2022, the industry could generate north of $4 billion in overall sales. This translates to $350 million in tax revenue. How can the state ensure that communities that historically had been criminalized by marijuana laws have an opportunity to do business in the emerging industry?

VIRTUAL EVENT Time: 4 to 5 p.m. CrainsNewYork.com/ DecBizForum

Vol. 37, No. 41, November 15, 2021—Crain’s New York Business (ISSN 8756-789X) is published weekly,except for a combined issue on 1/4/21 and 1/11/21, 6/28/21 and 7/5/21, 7/12/21 and 7/19/21, 7/26/21 and 8/2/21, 8/9/21 and 8/16/21 and the last issue in December. Crain Communications Inc., 685 Third Ave., New York, NY 10017. Periodicals postage paid at New York, NY, and additional mailing offices. Postmaster: Send address changes to: Crain’s New York Business, Circulation Department, PO Box 433279, Palm Coast, FL 32143-9681. For subscriber service: call 877-824-9379; fax 313-446-6777. $140.00 per year. (GST No. 13676-0444-RT) ©Entire contents copyright 2021 by Crain Communications Inc. All rights reserved.

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2 | CRAIN’S NEW YORK BUSINESS | NOVEMBER 15, 2021

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TECHNOLOGY

VCs invest record $6.7B in local tech startups founded by women More female general partners at VC firms help drive gains; investments still badly lag parity with male-led firms BY RYAN DEFFENBAUGH

enture capital investment in startups founded by women is at record levels this year, helped by the growing number of women at VC firms and a surge in high-value deals. Startups with at least one woman co-founder raised $40.4 billion in the U.S. across about 2,700 deals through September, already surpassing the $23.7 billion raised in 2019 and $23.1 billion last year, according to a new report by investment research firm PitchBook. In the New York metropolitan area, startups founded by women raised $6.7 billion through September, compared with $3.2 billion for all of last year.

“WE HAVEN’T SEEN THIS TYPE OF MOMENTUM SINCE I STARTED THIS FUND.” “We have not seen this type of momentum since I started this fund eight years ago,” said Anu Duggal, founding partner of the Female Founders Fund, a Manhattan concern that invests in seed rounds of companies founded by women.

Founder’s perspective

(ABOVE) NISHA DUA’S BBG VENTURES raised a $50 million fund in March; Rent the Runway CEO Jennifer Hyman led the first all-woman C-suite to take a company public.

NEWSCOM

One such company to raise funds is the Vendry, a startup in Gowanus that helps corporate event planners source vendors online. The startup closed a $6.5 million seed funding round in September, led by Brooklyn investment firm Stellation Capital. Founder and CEO Daphne Hoppenot, a former Yext executive, launched the company in 2018 to address what she saw as an imbalance in the market. There were tons of online tools for planning weddings and other social gatherings but little help for corporate event organizers. In response to the PitchBook report, Hoppenot cited her own experience raising funds in the spring, which took place solely through meetings on Zoom. One day filled up with 11 videoconferences. There were advantages to that setup, Hoppenot said. She was five months pregnant when she began the process, with a 2-year-old at home. Before the Covid-19 pandemic, raising funds could have required her to travel to pitch meetings in Boston, Miami and San Francisco. See STARTUPS on page 38

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TRANSPORTATION

Washington’s long-promised $1.2T infrastructure bill boosts at least 5 city transportation projects PENN STATION

Gateway Tunnel project The long-delayed $12.3 billion Gateway Tunnel Project is expected to fulfill construction plans now. Funding had been tied up by bureaucratic infighting between the Trump administration in Washington and the former Cuomo administration in Albany. “There’s no question it moves Gateway forward,” said Nicole Gelinas, a senior fellow at the Manhattan Institute, a think tank. “This is a project Schumer has been championing for 10 years.” The Gateway project will rehabilitate Hudson River tunnels damaged by Superstorm Sandy and add train tunnels to connect New York

AMTRAK

BLOOMBERG

ew York City’s aging transit network better get ready for an avalanche of federal spending. That’s the message from transportation experts after Congress passed President Joe Biden’s $1.2 trillion bipartisan infrastructure bill earlier this month. Multiple projects unique to the five boroughs will receive an unprecedented amount in federal money—“tens of billions of dollars,” Senate Majority Leader Chuck Schumer’s office said. The bill includes $10 billion alone for the Metropolitan Transportation Authority and nearly $60 billion for regional Amtrak. While none of the money has been earmarked yet to specific capital needs, the infrastructure bill provides the state with a huge pool of federal funding to dip into and broad parameters on how to spend it. “A bunch of projects will see either improved prospects of getting completed or clear funding that’s going into a pipeline that’s already moving,” said Brian Fritsch, manager of advocacy campaigns at the Regional Plan Association, an urban

ing it a “record deal” and a “once-in-a-generation investment in New York infrastructure." The last federal infrastructure bill, the 2015 FAST Act, allocated $48.9 billion nationally for transit projects, according to Schumer’s office, while this bill spends $89.9 billion. Here are details about five specific transit and capital needs projects across the metropolitan region that will likely see massive new streams of funding through the landmark bill.

New York, with $59 billion in funding. That includes $24 billion in grants to modernize different projects identified by the 15-year Connect NEC 2035 plan, such as the Portal North Bridge over the Hudson River. Fritsch called the Northeast Corridor “the artery for the mega-region that accounts for 20% of the nation’s GDP,” and emphasized that the new federal dollars allocated here are “a historic investment” in Amtrak. “There’s a little something for everyone in this bill,” he said, noting the spending parameters are still loose. “There’s a number of key initiatives along New York, New Jersey and up through Connecticut that should see funds to move their projects along.”

BLOOMBERG

Penn Station access

planning nonprofit. “There’s also funding coming through pipelines that didn’t exist prior to Friday.” Much of the money will go toward projects that were underway or were approved years ago and have yet to get off the ground.

THEY INCLUDE: ● The Gateway Tunnel work between New York and New Jersey. ● Amtrak’s Northeast Corridor between Washington and Boston. ● Penn Station access for Metro-North stations in the Bronx. ● Second Avenue subway extension to Upper Manhattan and East Harlem. ● East River tunnel repair for rail transit, including the Long Island Rail Road. “It’s an evolutionary bill, not a revolutionary bill,” said Danny Pearlstein, policy and communications director of the Riders Alliance, a transit advocacy group. “It’s money to do a bunch of different, existing things, not new things.” Schumer was more upbeat, call-

and New Jersey through NJ Transit lines and the northeast region’s Amtrak routes. The project will double the existing two-track rail line—which is 111 years old—and allow for more streamlined travel between Washington and New York. Before to the pandemic, more than 200,000 people traveled on these existing train lines each day. The new tunnels are expected to have a $19 billion impact on the region’s economy and create 70,000 jobs, the Regional Plan Association said. “It’s the busiest stretch of rail in North America, and without it, if it were to have a partial shutdown, it would cost the nation’s economy $16 billion,” Fritsch said. “It needs a massive overhaul.”

Amtrak Northeast Corridor The federal infrastructure bill also provides Amtrak’s massive Northeast Corridor routes,which stretch from Washington to Boston and include multiple lines out of

The MTA’s $1.6 billion Penn Station Access calls for four new Metro-North train stations in the Bronx. The stations will connect riders to Penn Station and link the East Bronx with New Haven and other parts of Connecticut. “[This infrastructure bill] will definitely help give Penn Access the additional push it needs,” said Lisa Daglian, executive director of the Permanent Citizens Advisory Committee to the MTA. “It’s going to benefit so many people and reduce the time of their commute so substantially.” Right now, heavily populated Bronx locales such as Co-Op City, Morris Park, Parkchester, Van Nest and Hunts Point lack any access to Metro-North. “It’s an unprecedented investment from the federal government in public transit in New York City,” Pearlstein said. “It expands the system to help commuters far from that system reach trains in East Harlem and the East Bronx.”

Second Avenue subway extension Phase 1 of the Second Avenue subway opened in 2017 and connected four stations between 63rd

Street and 96th Street. Phase 2 will add three new stations to Upper Manhattan and East Harlem—125th Street, 116th Street and 106th Street—and serve 300,000 additional daily riders. Work has been delayed since Phase 1’s opening and is expected to cost more than $6 billion. “If the eventual goal is to get it up to the East Bronx, then this gets you part of the way there,” Gelinas said. “There’s no reason to abruptly stop doing it.” Some transportation experts criticize this extension project and ar-

ey they’re spending on the Second Avenue subway—it will only benefit a fraction.”

East River tunnels Federal funds are expected to rehabilitate four tubes under the East River that carry the lion’s share of Long Island Rail Road passengers and some Amtrak passengers to and from the city. These tunnels opened in 1910, and transportation experts say they need repairs. “They are another critical piece of the Northeast Corridor,” said Fritsch. “They’re in better shape than the Hudson tunnels, but there’s going to be some work done on those too.” As with the Second Avenue subway extension, transit advocates question the need to build more capacity under the East River as opposed to pressing needs elsewhere. How the federal money will affect existing budgeting is another concern. “There’s still going to be a question of how we prioritize this money, especially if it pushes up the cost of the other projects,” Gelinas said. “There’s no cost transparency and the risk is that it becomes inflationary.” ■

THE BILL PROVIDES A POOL OF FUNDING AND BROAD PARAMETERS ON SPENDING. gue the MTA would be better off spending the federal money on improving faulty signals and investing in track and system repairs. “That money would be better spent upgrading pre-World War IIera antiquated signal systems,” said Larry Penner, a transportation historian and former Federal Transit Administration official. “Imagine how many subway lines around the city could have their signal lines upgraded with the amount of mon-

SECOND AVENUE SUBWAY

BUCK ENNIS

BY BRIAN PASCUS

4 | CRAIN’S NEW YORK BUSINESS | NOVEMBER 15, 2021

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ASKED & ANSWERED Eataly North America

WHO HE IS CEO, Eataly North America AGE 34

INTERVIEW BY CARA EISENPRESS

GREW UP Torino, Italy

ataly operates two enormous food and beverage stores in New York City. Its North American CEO, Raffaele Piarulli, a native of Italy, had to lead the retailer through two types of pivots during the last year and a half. On the one hand, he pushed the stores to increase the number of products in their grocery areas, which stayed open as essential businesses. On the other, he had to shut down all of Eataly’s restaurants, which used to account for 60% of the profit, for a long period. But since the beginning of the year, business at the company’s Flatiron District location has grown steadily, and its seven other North American stores have also found their way. At last a return to normal seems to be in Piarulli’s view.

Businesses are worried about getting items they need, thanks to supply-chain disruptions. How do you deal with that when planning for the coming months?

Our vendors are people that we know. It’s a person-toperson relationship. When you know a person, it’s human nature to work through problems together, to pick up the phone and try to solve problems. There should always be a mutual benefit in the relationship—not just that the client meets the vendor’s demands. Like, our vendor might have an issue where they overorder a Parmigiano

RESIDES Upper West Side EDUCATION Degree in physical engineering, Politecnico di Torino SUMMER JOB Piarulli started as a cashier at Eataly in Italy, his summer job. Later he helped open the New York store, and after that he knew there was no going back. “The day we opened changed my life,” he said. SIGNS OF TOURISM Eataly’s staff will know the tourists are truly back when sales begin to skew from ingredients bought by locals to cook at home back to prepared foods and restaurant meals. HOLIDAY HOPE Piarulli said his buyers are outdoing themselves for the holidays, with 30% more holiday giftable items than in previous years. The focus will be on panettone, a sweet Italian cake that Eataly has become the U.S. leader in distributing.

wheel and they have too many. We talk and figure out a way to help, like having a Parmigiano week. It’s in our interest that the vendor does well because it’s in both our interests that we continue to sell Parmigiano.

What steps can other companies take in setting up these kinds of relationships? A little bit of differentiation. For example,

when we have to select what milk to carry to use to make gelato or cappuccino, we don’t use the same everywhere. Because in every city, there is someone near us who is doing an amazing job with their little dairy farm, and we want them to be honored by Eataly. And we won’t run out of milk because if one farm has an issue, we can pick up the phone and see if another provider can help.

Your store is known to be mobbed, especially on weekends. How can city businesses find a balance between bringing in crowds and making sure that everyone feels safe?

There is a lot of talk now about to what degree crisis compromises are acceptable, like hotels that shut down their lobbies, entertainment parks that shut down their bus service from the parking lot. From the start we have been trying to go in the opposite direction, not compromise on what we offer to the guest. That way, what they get is positive and doesn’t remind them of the crisis.

What lessons did you learn from operating during the pandemic?

Not being able to travel to other Eatalys was hard. But it turned out to be an advantage—being forced to follow how a multitude of different environments were dealing with the same problem gives you a lot of perspective. You try to get the best practices of each example. ■

BUCK ENNIS

RAFFAELE PIARULLI

DOSSIER

Wednesday, December 15 | 4-5 p.m.

A FAIR ROLLOUT FOR RECREATIONAL MARIJUANA With New York’s legalization of adult-use marijuana expected to be up and running by late 2022, how can state officials ensure that communities historically criminalized by marijuana laws have an equitable opportunity to do business in this new industry? Join us for an exciting conversation on this emerging industry with experts in the field. Featured Speakers:

Melissa Moore Director, Civil Systems Reform Drug Policy Alliance

Khadijah Tribble VP of Corporate Social Responsibility Curaleaf

Moderator:

Tunisha W. Walker-Miller Principal Capalino

Shuan Sim Reporter Crain’s New York Business

RESERVE YOUR SPACE TODAY: CrainsNewYork.com/DecBizForum For event questions: Ana Jimenez | crainsevents@crainsnewyork.com

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chief executive officer K.C. Crain senior executive vice president Chris Crain group publisher Jim Kirk

EDITORIAL

publisher/executive editor

The government must clarify then enforce hospital price transparency rules amounts for the same common procedures. An MRI scan of the brain, for example, costs an average of $446 without insurance at a Mount Sinai Health System– run hospital but an average of $7,356 at a New York-Presbyterian system hospital. When it comes to publicly reporting pricing structures, hospitals can use disparate naming conventions that can complicate efforts to compare and contrast fees. Many use technical medical billing codes to identify services. If a patient were to figure out the right code for the service they need, they’d still have to go through rows and rows of data to make a comparison. And because it can be so complicated for patients to learn about pricing at top-rated facilities before they have a procedure done, most either will settle for the neighborhood institution, at which they might not be quite comfortable, or forgo the service entirely. The federal government enacted a price-transparency rule in an effort to help patients make smart choices, but it failed to provide clear guidance about what exactly hospitals are on the hook to

PATIENTS HAVE A RIGHT TO KNOW HOW MUCH A PROCEDURE WILL COST their name alone, can charge almost double for procedures than other hospitals, leaving many New Yorkers feeling stuck when it comes to their health care choices. As Amanda Glodowski and Maya Kaufman detailed in this week’s cover story, local hospitals charge patients wildly different

EDITORIAL editor-in-chief Cory Schouten,

cory.schouten@crainsnewyork.com managing editor Telisha Bryan assistant managing editor Anne Michaud deputy digital editor, audience & analytics

Jennifer Samuels art director Carolyn McClain photographer Buck Ennis data editor Amanda Glodowski senior reporters Cara Eisenpress,

Aaron Elstein, Eddie Small reporters Ryan Deffenbaugh, Maya Kaufman,

Brian Pascus, Natalie Sachmechi, Shuan Sim oped editor Jan Parr,

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ne of the most glaring lessons of the pandemic has been that there are inequalities in the health care system. During the early days of the crisis, New Yorkers quickly learned that hospitals in lower-income neighborhoods were overburdened and understaffed in fighting the virus. And residents of those communities had worse health outcomes than those in more affluent areas. One largely unspoken sentiment is that even if you would prefer to head to a hospital in another area with more available beds and better reported outcomes, that might not be within reach. Certain facilities, based on the cachet of

Frederick P. Gabriel Jr.

publish and in what format. Maybe because of this, hospitals have been lax in their response. The government has announced plans to increase penalties for noncompliance to as much as $5,500 per day, or more than $2 million per year, starting next year. The government must give hospitals clear instructions, then take a hard line when it comes to enforcement. Patients have a right to know how much a procedure will cost before they walk through the door, and they should be able

to shop around to weigh where they would like to be seen. Not only will patients be given more choices, but more competition across facilities could also drive up quality across facilities. No one should feel trapped by their health care options. New York’s hospitals should ensure everyone can choose the best facility for them, no matter what neighborhood they’re from. Enforced price transparency is a major step toward health care equity. ■

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jessica.botos@crainsnewyork.com manager of conferences & events

OP-ED

Legislation to protect renters sets aside rights of small landlords

Ana Jimenez, ajimenez@crainsnewyork.com REPRINTS director, reprints & licensing Lauren Melesio,

212.210.0707, lmelesio@crain.com PRODUCTION production and pre-press director

Simone Pryce

BY PAM HELMING

ov. Kathy Hochul recently signed into law two bills that seek to increase protections for tenants in New York. There continues to be a lot of talk in Albany about protecting tenants. Certainly, no one wants to see tenants who are genuinely struggling lose their homes. But there is little talk in Albany about protecting small mom-andpop property owners who have been hit hard by the state’s misguided eviction moratorium and delayed rental assistance programs. We need to support small-business landlords if we want to preserve quality, locally owned housing and ensure residents have safe and reliable places to live. This is as true for upstate as it is for downstate. In the press release announcing the new laws, one Democratic senator from New York City said, “Bad

landlords, beware …” And therein lies part of the problem. Instead of being recognized for providing secure housing throughout the state, landlords are being made to be the “bad guys” by some elected officials and advocate groups.

Housing stock at risk We need to turn this thinking around and acknowledge the hard work of small landlords. Without their commitment to maintaining neighborhoods through the preservation of their rental properties, we risk losing valuable housing stock and the unique character of our communities. No one wants to see locally owned properties forced to be sold to out-of-state investment firms. Or brownstones and walk-ups torn down and rebuilt as standard-issue government housing. Imagine what our cities would look like. In New York City, small-proper-

ty owners provide more than 50% of the rent-regulated apartments. Recently I met with members of the city-based Small Property Owners of New York. Many of them own properties that have been in their family for generations. They include women and minority small-business owners. They have deep connections to the neighborhoods where their buildings are. Many have gone months without being paid. Yet they still have to pay for their own obligations, including property taxes and mortgage payments. The eviction moratorium has diminished their life savings and the equity they’ve worked hard to build. A small-property owner from Chinatown said: “We are humans in the care of humans, but we are not magicians. We need to be stable and made whole, but time is running out for us. We’re hardworking small-business owners who have our own bills to pay, and

we struggle in tough economic times just like everyone else.” A small-property owner downstate added: “Gov. Hochul says the eviction moratorium has been a lifeline for those put in impossible financial situations due to Covid, but she only means renters. The same concern does not apply to owners, especially those that had cases that predated the pandemic.” Small landlords are simply asking to be treated fairly; they deserve to be heard. From Buffalo to the Bronx, we need small-property owners to help meet the state’s long-term housing needs. The landlords are not the bad guys, and neither are the tenants. We need both to have thriving neighborhoods and communities. ■ Pam Helming is a state senator from the 54th District and the ranking Republican on the Senate Committee on Housing, Construction and Community Development.

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OP-ED

For years we had a plan for affordable housing that worked well, and it could work again today

n 1983 New York City municipal employee pension funds made the historic decision to commit 2% of their assets for the rehabilitation and construction of affordable housing. These were known as economically targeted investments. During the following 10 years that each of us served as New York City comptroller, we used this funding commitment as a powerful tool to build and upgrade tens of thousands of units of affordable hous-

in helping address the overwhelming need for decent and affordable housing. Unfortunately, changes to the program in the past decade have diminished its effectiveness.

A little history The 1983 initiative was originated by one of us, Jay Goldin, the city comptroller from 1974 to 1989, in response to the housing abandonment crisis of the 1970s. As the funds’ assets grew, this 2% commitment was continued, and the program was enlarged and enhanced by another of us, Elizabeth Holtzman, the city comptroller from 1990 to 1994, to provide increased amounts of funding to take on a widening range of chronic affordable housing needs. The pension fund initiative, as detailed in an article by Michael Lappin, former president of the Community Preservation Corporation, was designed to provide 30-year fixed-rate mortgages for the renovation of deteriorated apartment buildings. Each mortgage was to be

CHANGES TO THE PROGRAM IN THE PAST DECADE HAVE DIMINISHED ITS EFFECTIVENESS ing. The pension funds’ investments in renovating rental housing created jobs, rescued some of the city’s most dilapidated neighborhoods and supported both small for-profit and not-for-profit owners. This initiative, successful for decades, can play a similar role today

insured for 100% of its principal amount by the State of New York Mortgage Agency. The program succeeded brilliantly. Deteriorated apartments were renovated, and new ones were built from empty shells—about 45,000 in all. The pension funds enjoyed a safe, market rate of return on their investment. Losses were negligible (and fully insured). Thousands of jobs were created. Starting in 2012, changes to the program effectively undermined its usefulness. A minimum interest rate was imposed for pension fund mortgages, which, when insurance and servicing fees were added, resulted in a rate of 5.25% on the property, approximately 20% above the original market-based formula that had worked well for 28 years. Duplicative and time-consuming bureaucratic processes were also added, increasing costs to borrowers and narrowing the universe of affordable projects that could benefit from the program. Restoring the program’s original terms could once again enable it to play an important role in addressing the city’s affordable housing needs. Pension fund investments,

coupled with city subsidy programs (such as real estate tax incentives), secondary 1% city mortgage money and possibly Covid-19 relief funds, could restore these buildings’ physical and financial health. Similarly, the program could finance building new affordable housing units, particularly housing on vacant or underbuilt sites in residentially zoned neighborhoods.

BLOOMBERG

BY HARRISON J. GOLDIN AND ELIZABETH HOLTZMAN

Simplify the funding process We hope Mayor-elect Eric Adams and Comptroller-elect Brad Lander will restore this program to its full potential. Doing so could provide $5 billion, which is now 2% of the funds’ $250 billion in assets, to preserve vulnerable existing housing, create new affordable housing and reduce homelessness while providing a much-needed stimulus to the city’s economy.

For the program to have the greatest impact, the funding process has to be simplified to be easy to use by small for-profit and notfor-profit owners. Coordinating pension fund investments with city, state and federal subsidies, as well as with commitments from private lenders, is not simple, but it’s been done before. ■ Harrison J. Goldin and Elizabeth Holtzman are former New York City comptrollers.

NOVEMBER 15, 2021 | CRAIN’S NEW YORK BUSINESS | 7

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RESIDENTIAL SPOTLIGHT

Does curtain call await Victorian-era firehouse? Harlem property, listed for $11 million, includes former Hook & Ladder Co. 40, built in 1909, and a vacant lot

Victorian-era firehouse in Harlem that’s also done duty as a church, a dance theater and a home may go up in smoke as a development site. The former Hook & Ladder Co. 40, a four-level 1909 structure at 6 Hancock Place that was listed last month along with a vacant adjacent lot, can fit a 31,000-squarefoot project, according to marketing materials. Its asking price is $11 million. But a renovation of the non-landmark building at West 124th Street, which features a stage, studios and stained-glass windows, is not out of the question, said Joao Gomes of JRGomes Properties, the brokerage handling the listing. “The condo market has been a bit slow,” Gomes said. “But I think this whole area is about to take off.” Originally built to house horsedrawn fire-fighting equipment inside its 28-foot width, the structure nevertheless adapted to the modern age, enduring as a firehouse into the 1960s. But firefighters weren’t based inside for much longer; the city sold the vacant structure to a local nonprofit for $50,000 in 1983. The Bethelite Community Baptist Church took occupancy afterward. Years later the building, which has an arched, limestone facade, caught the eye of George W. Faison, a dancer and choreographer who won a Tony award for The Wiz, the all-Black Broadway version of The Wizard of Oz. In the 1970s

$600K

PRICE IN 2000 that dancer and choreographer George F. Faison paid for the former firehouse

Faison produced concerts for Roberta Flack, Stevie Wonder and Earth, Wind and Fire. In 2000 Faison bought the building for $600,000, according to a deed. Providing dance classes for Harlem children was one function of his Faison Firehouse Theater, which includes a mirror-lined dance studio, an auditorium and a basement cafeteria as well as lavishly decorated living spaces, among them a bookshelf-lined den with a chandelier and double-height ceiling.

Other firehouse homes If developers want an example of an effort to make condos out of a similar property, they need only look across the street. Eleven Hancock, a 12-story, 71-unit condo from Nortco Development, stands on the site of the longtime Lagree Baptist Church. Nortco snapped up the church building for $28.5 million in 2016, property records show, before acquiring unused development rights, or air rights, from nearby properties for $10.2 million. But sales at Eleven Hancock have seemed slow since marketing began in August 2019; two years later several sponsor units remain unsold. In early November its least-expensive apartment was a

STREETEASY.COM

BY C. J. HUGHES

THE NON-LANDMARKED BUILDING at West 124th Street features a stage, studios and stained-glass windows. studio, for $630,000, while the priciest, a three-bedroom penthouse, was nearly $2.3 million, according to StreetEasy. Six Hancock is hardly the only firehouse to find a new lease on life as a residence. A 5-story 1864 version at 78 Morton St. in the West

Village evolved into a luxury townhouse, which sold for almost $20 million in September 2020. A similar-age property at 323 W. 21st St. in Chelsea today serves as a threeunit walk-up rental; during the summer a one-bedroom with exposed brick walls there rented for

REAL ESTATE

CRAIN’S HOSTS LIVE REAL ESTATE PANEL

Firms expect to use less office space BY AARON ELSTEIN

NEARLY 100 GUESTS joined Crain's New York Business at our first live event since 2020, where real estate reporter Natalie Sachmechi led a panel discussion on the post-Covid future of the real estate industry with Ken Fisher of Fisher Bros., Sarah Hawkins of Hines, and Jeffrey Roseman of Newmark. Tenants are actively seeking high-quality, newly designed office spaces, Hawkins said. Smart landlords are working with their tenants to keep them in business, Fisher added. Meantime, the return of all those office workers is critical to the success of surrounding retail, Roseman said. The evening continued with networking between the city’s real estate dealmakers, many of whom haven’t attended a networking event since the pandemic began. Look for details to come on the next Crain’s real estate happy hour event, set for February 16.

BUCK ENNIS

O REAL ESTATE’S POST-COVID OUTLOOK: Sachmechi talks with Fisher, Hawkins and Roseman.

$4,500 a month, listings show. A 1906 edition at 84 W. Third St. in Greenwich Village became the home of CNN anchor Anderson Cooper, who bought the property for $4.3 million in 2009. Cooper reportedly retained the firehouse’s original brass fire pole. ■

ne-third of New York employers expect to rent less office space in the next five years, according to the Partnership for New York City. The business group’s latest survey of the city’s largest companies showed that only 28% of Manhattan office workers are in the office on an average weekday, compared with 23% in August. The partnership also said 13% of firms surveyed anticipate hiring fewer people. Losses are expected to be highest in financial services, a key part of the local tax base with Wall Street accounting for just 5% of jobs but a fifth of all wages paid. “Employers have realized they can be more profitable running their businesses remotely,” said partnership CEO Kathy Wylde. “There’s got to be a clear signal

from the government that New York will reduce the cost of operating.” The partnership, a group that includes the city’s leading financial institutions, developers and law firms, said employers expect nearly half of workers to return to the office by January while 21% remain fully remote. Many employees now prefer working from home, with 33% of companies describing that as a “primary driver.” Last year several of New York’s largest employers shrank their office footprints, including JPMorgan Chase and Interpublic Group. More appear to be on the way, with the partnership reporting that 38% of tech firms and 86% of accounting firms say they expect to reduce their office-space requirements in the next five years. “Finance and tech are the city’s future,” Wylde said. “If they’re shrinking, it’s a problem.” ■

8 | CRAIN’S NEW YORK BUSINESS | NOVEMBER 15, 2021

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TD’s One Vanderbilt store team led by Regional President Andrew Bregenzer (back right) and Retail Market President Alan Nossen (back left) participated in the TD Five Boro Bike Tour. important market for TD,” Braca says. “One Vanderbilt truly symbolizes the strides TD has made in the community over the past 20 years and our evolution of growth. We look forward to continuing to help our customers achieve their financial goals for the next 20 and beyond.”

A bank that’s part of the community Even as the organization reinvents the inperson banking experience, TD Bank continues to ensure that it has a presence in the wider community. Community involvement in all its locations has always been central to TD Bank’s mission and integral to its success; one of the

of people with disabilities through athletic programs and social connection. Yet TD Bank’s community support extends beyond these kinds of banner events. To fulfill a commitment to giving back to the communities it serves, TD Bank uses its business resources, philanthropy and human capital as levers of change. Through the TD Charitable Foundation and the TD Ready Commitment, the Bank’s corporate citizenship platform targeting $775 million by 2030 towards community giving, TD supports community organizations across four interconnected drivers of change critical to helping people feel confident about their

New York City’s past and future. What’s more, it represents TD Bank’s innovative approach to supporting customers and the community. Looking ahead, its roots in New York will help TD Bank continue its pursuit of meeting customers’ evolving financial needs while the bank itself remains an integral part of the most dynamic city in the world.

11/11/21 12:12 PM

PEOPLE ON THE MOVE

Advertising Section To place your listing, visit www.crainsnewyork.com/people-on-the-move or, for more information, contact Debora Stein at 917.226.5470 / dstein@crain.com

CONSTRUCTION

FINANCIAL SERVICES

LAW

NONPROFIT

REAL ESTATE

Suffolk

Popular Bank

Dentons

Partnership with Children

BKM Capital Partners

Suffolk hired Gerald Bianco as Vice President of Operations in New York to focus on building its residential high-rise development presence in the growing NYC market. Mr. Bianco has 30 years of experience in the industry. Prior to joining Suffolk, he worked with Lendlease for more than 20 years overseeing large-scale and multi-family residential and mixed-use projects including prominent projects such as 56 Leonard in Tribeca, Time Warner Center and 520 Park Ave.

Popular Bank, a subsidiary of Popular, Inc. (NASDAQ: BPOP) has appointed Tony Jao to the role of Vice President and Mortgage Loan Officer, serving clients in the New York Metro area. In his role, Mr. Jao will oversee the loan origination process and work closely with a network of real estate and business professionals to meet the needs of Popular Bank mortgage clients. Mr. Jao brings more than 23 years of experience in the banking and mortgage industry and specializes in residential lending.

Tomasita Sherer has joined Dentons in New York as a partner in the Commercial Litigation practice. Tomasita has over 20 years’ experience helping global companies resolve their business disputes through litigation, arbitration, mediation or other cost-effective methods. A proactive and empathetic leader and a champion of diversity, she develops innovative solutions to complex problems and energizes crosscultural teams.

Angela Jefferson is named Chief Program Officer at Partnership with Children. Previously VP of Programs, Jefferson now oversees all of PWC’s mental health, counseling and community school programs for over 30,000 students across NYC. She brings robust experience in clinical supervision, social-emotional learning, and trauma-informed care, and a strong commitment to equity. Her 20 years of experience include senior roles at the Family Health Centers at NYU Langone and Harlem RBI/ DREAM.

FINANCIAL / TECHNOLOGY

LAW

Grata

Foley & Lardner LLP

Grata, the leading private company intelligence engine, announces the hires of Ruchira Agrawal as vice president of Agrawal engineering and John Fitzgerald as vice president of sales. Agrawal will lead the engineering team in its delivery of an informational Fitzgerald edge for customers. She has significant leadership experience, most recently at Compass where she helped take the real estate tech company public. Fitzgerald brings over 30 years of sales leadership experience in financial services, including the ability to scale Series A SaaS startups. Prior to Grata, Fitzgerald was global head of account management at Third Bridge, an investment research firm. Agrawal and Fitzgerald will play integral roles in the continued expansion and growth of Grata.

Anne B. Sekel has been named managing partner of Foley & Lardner LLP’s New York office, effective on November 1, 2021. As office managing partner, Sekel will be responsible for the more than 70 lawyers and professional staff in New York. She will focus on strategically growing the New York office, expanding Foley’s presence locally, and continuing to steward community involvement. Sekel is a member of the firm’s Business Litigation & Dispute Resolution and Labor & Employment Practice Groups.

BKM Capital Partners has named Bill Galipeau its CFO & Harry B. Hedison its SMD of Capital Markets & Investor Galipeau Relations. Galipeau is a veteran financial and investment management leader who most recently served at PIMCO. Hedison He will be critical to the execution of BKM’s nearterm business plan and the long-term creation of enterprise value for the expanding real estate fund manager. Hedison is BKM’s first in-house, principallevel leader focused on raising capital. Hedison comes to BKM from Mercury Capital with 30+ years experience and a proven track record of real estate capital raising. Newport Beach, CAbased BKM focuses on multitenant, light industrial properties and has built an industry-leading operating platform for this asset class.

CONSULTING ENGINEERING

Goldman Copeland Jonah Allaben has joined Goldman Copeland as a Senior Associate, augmenting its extensive expertise in energy services. He is a Professional Engineer, Certified Energy Manager, and LEED Accredited Professional. He brings 14 years’ experience as an MEP manager and HVAC engineer to Goldman Copeland, which has completed energy audits and retro-commissioning projects for over 50 million sq. ft. of properties. He holds bachelor’s and master’s degrees in Mechanical Engineering from Cornell University.

FINANCE

River Capital Group Jeff Kaplan will lead RCG Ventures’ active investments strategy, helping small and midsize companies scale and bring innovations in blockchain, extended reality, AI, big data, IoT, and workforce services to market. In addition to funding, RCGV blankets partners with ops, sales, and marketing support, access to a global business development pipeline, hands-on guidance from an elite leadership team, and other resources to ensure success. RCGV invests in the people building tomorrow’s tech, today.

PROMOTE. Why not?

CRAINSNEWYORK.COM I OCTOBER 26, 2020 I

ASKED & ANSWERED Few qualities are more vital to the health of any business than financial experts in tax regulation, audit, estate administration, forensic accounting, organizational transformation, advisory services, fundraising and business equilibrium and organizational efficiency. Rarely has the value of both been more strongly felt than in recent structure. They represent an extraordinary group of professionals from months. From stress-tested balance sheets to fast-changing regulations, firms of varying size and renown. To find these honorees, Crain’s consulted with trusted sources in the and reconfigured supply chains to “new normal” working arrangements, the Covid-19 pandemic has challenged even the strongest of businesses. business world in general and in the accounting and consulting realms in Standing tall within this chaotic breach are the foot soldiers of profes- particular. The nominations submitted by individuals and firms in the New Few qualities are more vital to the health of any business than financial experts in tax regulation, audit, estate administration, forensic accounting, York metropolitan area were rigorously vetted. Ultimately, each of the acsional service firms, led by accountants and management consultants. organizational transformation, advisory services, fundraising and business equilibrium and organizational efficiency. In selecting the 86 honorees for this year’s list of Notable Women in counting and consulting notables was chosen for her career achievements Rarely has the value of both been more strongly felt than in recent structure. They represent an extraordinary group of professionals from Accounting and Consulting, Crain’s sought to spotlight the accomplished and involvement in industry and community organizations—and at times and renown. months. From stress-tested balance sheets to fast-changing regulations, firms of varyingI size 28, 2020 I to help New York rebound SEPTEMBER from the coronavirus. metropolitan area professionals and problem-solvers who keep business- her effortsCRAINSNEWYORK.COM To find these honorees, Crain’s consulted with trusted sources in the and reconfigured supply chains to “new normal” working arrangements, Read their biographies and learn how the members of this remarkable es churning. The talented individuals presented here are a diverse group, the Covid-19 pandemic has challenged even the strongest of businesses. business world in general and in the accounting and consulting realms in skilled at resourceful innovation and disruptive thinking. These women are cohort keep the gears of business whirling. The nominations by individuals andadministration, firms in the New Standing tall withinFew thisqualities chaoticare breach soldiersofofanyprofesexperts insubmitted tax regulation, audit, estate forensic accounting, moreare vitalthetofoot the health businessparticular. than financial York metropolitan organizational area were rigorously vetted. Ultimately, each of the acsional service firms, led by accountants and management transformation, advisory services, fundraising and business equilibrium and organizational efficiency.consultants. counting and consulting notables chosenan forextraordinary her career achievements In selecting the 86 honorees for this list been of Notable structure. They was represent group of professionals from Rarely has the valueyear’s of both more Women stronglyinfelt than in recent andregulations, involvement infirms industry and community organizations—and at times Accounting and Consulting, Crain’s sought to spotlight the accomplished of varying size and renown. months. From stress-tested balance sheets to fast-changing efforts to help New from theCrain’s coronavirus. metropolitan area and professionals andsupply problem-solvers businessTo York find rebound these honorees, consulted with trusted sources in the reconfigured chains to who “newkeep normal” working her arrangements, Read their biographies learn how theand members this remarkable es churning. The talented individuals presented here are aeven diverse group, of businesses. businessand world in general in the of accounting and consulting realms in the Covid-19 pandemic has challenged the strongest cohort the gears of business whirling. submitted by individuals and firms in the New skilled at resourcefulStanding innovationtalland disruptive thinking. Theseare women aresoldiers particular. The nominations within this chaotic breach the foot of keep professional service firms, led by accountants and management consultants. In selecting the 86 honorees for this year’s list of Notable Women in Accounting and Consulting, Crain’s sought to spotlight the accomplished metropolitan area professionals and problem-solvers who keep businesses churning. The talented individuals presented here are a diverse group, skilled at resourceful innovation and disruptive thinking. These women are

LAURA PETERSON

York metropolitan area were rigorously vetted. Ultimately, each of the accounting and consulting notables was chosen for her career achievements and involvement in industry and community organizations—and at times her efforts to help New York rebound from the coronavirus. Read their biographies and learn how the members of this remarkable cohort keep the gears of business whirling.

Managing Director and Communications, Media and Technology Northeast Business Leader Accenture

LAURA PETERSON

Laura Peterson’s résumé lists a whopping 10 positions she’s held at the multinational professional services company Managing Director and Communications, Media and Technology Northeast Business Leader Accenture since joining the firm in 2000. In her current role as Accenture the Northeast business lead for communications, media and technology, the enterprising ladder climber presides over a team Laura Peterson’s résumé lists a whopping 10 positions she’s of 3,000 professionals. Peterson is charged with managing a $750 held at the multinational professional services company andinCommunications, Media and Technology Northeast Business Leader million profit-and-lossManaging statementDirector for clients the Accenture since joining the firm in 2000. In her current role as aforementioned sectors as well as the high tech sector. Peterson Accenture the Northeast business lead for communications, media and works with key business leaders among more than 40 clients and technology, the enterprising ladder climber presides over a team Laura Peterson’sstructure. résumé lists a whopping within Accenture’s global management Since 2017, she 10 positions she’s of 3,000 professionals. Peterson is charged with managing a $750 held the multinational professional company has been a board adviser to at Fairygodboss, an online platformservices that million profit-and-loss statement for clients in the since joining the firm in 2000. In her current role as seeks to elevate womenAccenture in the workplace. aforementioned sectors as well as the high tech sector. Peterson the Northeast business lead for communications, media and works with key business leaders among more than 40 clients and technology, the enterprising ladder climber presides over a team within Accenture’s global management structure. Since 2017, she of 3,000 professionals. Peterson is charged with managing a $750 has been a board adviser to Fairygodboss, an online platform that million profit-and-loss statement for clients in the seeks to elevate women in the workplace. aforementioned sectors as well as the high tech sector. Peterson works with key business leaders among more than 40 clients and within Accenture’s global management structure. Since 2017, she has been a board adviser to Fairygodboss, an online platform that seeks to elevate women in the workplace.

LAURA PETERSON

PAT WANG Healthfirst

INTERVIEW BY JENNIFER HENDERSON

at Wang, president and CEO of Healthfirst, a nonprofit insurer formed by a group of health care systems, had been working to advance value-based care long before the pandemic. The concept involves paying hospitals and physicians based on their patients’ outcomes rather than on the volume of services they provide. Now, as health care providers face unprecedented financial strain due to the Covid-19 crisis, Wang says such payment arrangements are more critical than ever. Not only do they improve the quality of care for patients—including the 1.5 million plan members Healthfirst serves throughout the city, Long Island and surrounding areas—but they also generate fiscal benefit for the facilities, practices and health centers that serve them. How does Healthfirst contribute to value-based care? What you understand as profit in another health insurance company’s balance sheet at Healthfirst is contractually-driven surplus that goes back to the delivery system. Eighty percent of the premiums we get for medical services flows through value-based payment arrangements, which means that providers benefit when there is a surplus in the premium. If less money is spent on fee-for-service claims, the surplus is part of the contractually-obligated payment stream. What has that meant during the pandemic? For April through June, we are distributing $250 million in those surpluses [about double that of the same period last year], and we’ve expedited the calculation and reconciliation of those amounts to get them out the door faster because the delivery system really needs it. Why are value-based payments vital now and in normal times? In the best of times, we have always been trying to push for this model because it aligns the incentives around trying to keep people healthy and avoiding unnecessary care. The providers are aligned with that goal because they benefit from it if they can reduce avoidable care. Consider Covid-19 to be like a war. In war times, the model has been a lifesaver because there is this artificial depression of utilization, and that’s why the providers have lost so much money—their revenue has dried up. But because we have these risk contracts, the surplus that is there, that’s what has gone out the door to them.

DOSSIER WHO SHE IS President and CEO, Healthfirst AGE 66 BORN Jersey City RESIDES Manhattan EDUCATION Bachelor’s in history and East Asian studies, Princeton University; J.D., New York University School of Law FAMILY MATTERS Wang is married and has one son who lives in Brooklyn. GLOBAL TIES She has lived in Croatia, Taiwan as well as China, where she had more than 20 first cousins. FLARE FOR FOOD Wang has become reacquainted with the joy of cooking as a result of the pandemic. EYE ON MEDICAID About three-quarters of Healthfirst’s members are Medicaid beneficiaries. The insurer’s initial response to the crisis included having its care managers make sure members had medicine and durable medical equipment to stay at home safely. BUDGET CUTS Wang says the magnitude of the state’s Medicaid cuts—instituted to pare back on spending growth—is devastating. “Cuts to us as a Medicaid plan are cuts to hospitals.”

What happens when patients again begin seeking services? We do see utilization coming back, and we have been encouraging our members to get needed care because people have put a lot of stuff off. We have to see whether the bounce back is gigantic or it just brings things back to a steady state. If we go back to a more normal utilization pattern, then the regular incentives of trying to align around good preventive care and avoiding unnecessary care, they just kick in. How can the city safely bounce back from the pandemic? Continue doubling down on the public health measures already in place: wearing masks, social distancing and hand sanitation. We know what to do. But I think a singular focus on getting the schools open for full learning should top the list of what we are aiming for. We should measure our success against that goal. As an employer, I can tell you that we will not be able to get fully back to work until the thousands of employees with school-age children can get their kids back into school. It’s of course better for all children and particularly critical for poorer children. The city’s economic recovery is going to hinge on how quickly and how well we can get that done so that parents can resume their normal lives too. As a longtime resident of the city who has watched us recover from recession, 9/11 and Hurricane Sandy, I believe in the city’s ability to bounce back against the odds. But this time is going test all of us, and we should be sober about the need for everyone to contribute to the solution. What challenges face the broader insurance industry? Balancing the needs and expectations of consumers who need and deserve good health care coverage, expanding access however we can and doing it within an increasingly constrained economic environment. This is especially true with Medicaid, where the state’s budget situation is dire at the same time as people’s needs are increasing. Given that Healthfirst has over 1 million Medicaid members, the potential impact of the state’s budget is especially concerning. For me, our priority has to be enabling as many people as possible to have full access to high-quality care, and it’s going to be a challenge to figure out how to do that in this economic environment. Insurers also need to be mindful of the hurt being experienced by so much of the provider delivery system. The value of our products relies on having strong doctors, hospitals and community resources. Balancing all of this in a financially viable way is going to be a challenge. ■ Reprinted with permission from Crain’s New York Business. © 2020 Crain Communications Inc. All rights reserved. Further duplication without permission is prohibited. #NB20080

For more information contact: Lauren Melesio Director, Reprints & Licensing lmelesio@crain.com • (212) 210-0707

NONPROFIT

Brooklyn Community Foundation Brooklyn Community Foundation is excited to announce Dr. Jocelynne Rainey as the new President and CEO. Dr. Rainey brings extensive experience in nonprofit leadership, having served as President and CEO of Getting Out & Staying Out and EVP and Chief Administrative Officer of the Brooklyn Navy Yard Development Corporation. Under Dr. Rainey’s leadership, the Foundation is poised to build on its nationally-recognized commitment to racial justice and community-led grantmaking.

ANNOUNCE

YOUR BIG NEWS IN CRAIN’S!

PUBLIC RELATIONS

Weber Shandwick Weber Shandwick chairman Jack Leslie announced his retirement after a 45-year career in communications, political consulting and international development. He will become a senior advisor at Weber Shandwick in March 2022. Leslie is a longtime activist for development and humanitarian causes, previously serving as chair of the board for USAID’s ACVFA and USA for UNHCR and currently serving as chair of the board for the USADF and the Elizabeth Glaser Pediatric AIDS Foundation.

TECHNOLOGY

yellow.ai Yellow.ai is excited to welcome veteran sales professional, Kevin Gori, Area Vice President Of Sales to our team in the New York area . Kevin brings years of experience building and leading world class sales teams at companies such as Oracle. With Kevin’s leadership he will help build out our US Sales team and continue to make Yellow.ai the ‘next big thing’ in CAIP.

INDUSTRY ACHIEVERS ADVANCING THEIR CAREERS Recognize them in Crain’s

For listing opportunities, contact Debora Stein at dstein@crain.com or submit directly to

CRAINSNEWYORK.COM/PEOPLEMOVES

12 | CRAIN’S NEW YORK BUSINESS | NOVEMBER 15, 2021

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CIO OF THE YEAR

AWARDS

NEWYORKCIO

A Special section in partnership with NewYorkCIO

The annual New York CIO of the Year® ORBIE® Awards program honors chief information ofﬁcers who have demonstrated excellence in technology leadership. Winners in the Super Global, Global, Large Enterprise, Enterprise, Corporate and Healthcare categories will be announced November 19 at a virtual Awards ceremony.

FROM OUR CHAIR STEW GIBSON

KEYNOTE SPEAKER RAGHU RAGHURAM

LEADERSHIP AWARD LORI BEER

PAGE S3 NewYorkCIO Chair Stew Gibson discusses the elevated role of CIO post pandemic

PAGE S4 A conversation with VMWare CEO Raghu Raghuram

PAGE S5 Lori Beer shares about keeping a strong pipeline of talent

SPONSORED CONTENT FOR CRAIN'S NEW YORK BUSINESS | S1 P013_028_CNY_20201115.indd 13

11/10/21 11:11 AM

CONGRATULATIONS 2021 NEWYORKCIO AWARDS NOMINEES PARAG AGRAWAL Chobani

DR. SAM AMIRFAR

The Brooklyn Hospital Center

SCOT BARNES

SPARC Group LLC

ROBERT BASTIAN Prudential

SUVAJIT BASU Goya Foods Inc

RAMIN BEHESHTI Dow Jones & CO

ARUN BHATIA

Brighton Health Plan Solutions

LYNN BISHOP

Depository Trust & Clearing Corporation

SCOTT BLANDFORD TIAA

JOHN BOSCO

Northwell Health

LANCE BRAUNSTEIN BlackRock

MONA BREED

Equitable

Becton Dickinson

JERRY FLASZ

JOHN KEHOE Xylem

Hospital for Special Surgery

CHRIS COLLA

LIDIA FONSECA

MICHELE NORIN

B&G Foods

Pfizer Inc.

DR. LARS KIELHORN

NICK COUSSOULE

DEXTER FRYE

MICHAEL KINGSTON

ERIC COLBY

Horizon Blue Cross Blue Shield of New Jersey

L’Oreal USA

Bunge

The Port Authority of NY & NJ

ERIC CRAIG

MICHAEL GIOJA

Fareportal

Paychex

RYAN CROSBY

STACEY GOODMAN

ICON International, Inc.

BRIAN CUNNINGHAM Bloomberg

CRAIG CUYAR Omnicom Group

SUNIL DADLANI

Atlantic Health System

NICHOLAS DAFFAN

DAVID KLINE

ROBERT GALVIN

LYNN COX Verizon

Dorilton Capital

Prudential

KK GUPTA Barclays

SUHIT GUPTA General Atlantic

VIVEK GURUMURTHY

News Corporation

MARY KOTCH

Core Specialty Insurance

SEAN LENNON Medtronic

CHARLIE LICKFOLD

Catalent Pharma Solutions

GASPARE LODUCA Columbia University

MICHAEL LYSAGHT Weight Watchers

Verizon

SEAN MACK

FAZIL HABIBULLA

Verisk

Natixis North America

John Wiley & Sons

PRITESH DAVDA

JON HARDING

EILEEN MAHONEY

L’Oreal USA

DEAN DEL VECCHIO

PVH

Conair LLC

DAVID HAYES

DR. KIM MENDEZ

JAMIE NELSON

Rutgers, The State University of New Jersey

PAUL O’BRIEN Marcum LLP

EMMANUEL OFFIONG Capital One

NICHOLAS PARROTTA HARMAN International

JASON PELKEY

Gilbane Building Company

BRADLEY PETERSON Nasdaq

NATHAN POTTER Amplify

WILLIAM PRATT Sirius XM

STEVE RANDICH

MICHAEL HEALY

RAHUL MERCHANT

Selective Insurance

Wegmans Food Markets

AXA US

TIAA

MARK BRUBAKER

PHILLIP DUNDAS

BESS HEALY

DEBASISH MISHRA

Point72

PGIM Fixed Income

Synchrony

The WNET Group

St. Joseph’s Healthcare System

ERIC BRUNNETT

MAHENDRA DURAI

HERB HOFMANN

MIKE MORRIS

Hearst

Loews

Legends

JOHN REPKO

KALICHARAN DURGAMPUDI

GERARD INSALL

Zelis Healthcare

Avis Budget Group

RALPH MUNSEN

Warner Music Group

PAMELA DYSON

BOB IRWIN

JIM MURRY

Terex Corporation

PAUL CAPIZZI Fox Corporation

Federal Reserve Bank of New York

DR. MARC CHASIN

MARK EIMER

Westchester Health Network

Hackensack Meridian Health

HAN CHIU

BRIDGET ENGLE

Click Therapeutics

BNY Mellon

RWJBarnabas Health

DR. CLAUS JENSEN Teladoc Health

LARRY JONES

Johnson & Johnson

OUTFRONT Media

MICHAEL SMITH Estee Lauder

JAMES SOKOL

Organon (Merck & Co.)

Tapestry, Inc.

DAVID DELAUS

ANDREW CAMPBELL

LOWELL SIMPSON

ASHISH PARMAR

JOHN BRESNEY

The Trump Organization

DANIEL SHMITT

The Walt Disney Company

The Segal Company

Hallmark Cards

Moody’s Corporation

NYC Health & Hospitals

BioReference Laboratories

PETER OPALKA

Guardian Life Insurance Company of America

Englert Inc

RICHARD SCHWABACHER

FINRA

ANNA RANSLEY Heineken

LINDA REED

AIG

ATEFEH RIAZI

Memorial Sloan Kettering Cancer Center

RACHEL STAHLER JOHN STECHER Blackstone

SCOTT STRICKLAND

Wyndham Hotels & Resorts

G.T. SWEENEY Healthfirst

SAVIO THATTIL Capital One

SAULUS VAN BEURDEN Wells Fargo & Co.

VIC VERMA

International Flavors & Frangrances

PAWAN VERMA MetLife

PAUL VON AUTENRIED Bristol-Myers Squibb

DAVE WILLIAMS Merck & Co.

PAUL WILNER Pall Corporation

MICHAEL WISLER

Catholic Health Services of Long Island

ANGELO RIDDICK State of New York

M&T Bank Corporation

KRISTIN MYERS

BRIAN SALUZZO

GABRIELLE WOLFSON

VIPUL NAGRATH

JIM SCHOLEFIELD

DEMETRY ZILBERG

Mount Sinai Health System

ADP, Inc.

American Express

Marriot International

Quest Diagnostics

FactSet

Guardian celebrates

CIO and Chief of Operations Dean Del Vecchio on his nomination for the 2021 New York CIO ORBIE Award, and congratulates all of the finalists for their demonstrated excellence in technology leadership. The Guardian Life Insurance Company of America | guardianlife.com Guardian® is a registered trademark of The Guardian Life Insurance Company of America. © Copyright 2021 The Guardian Life Insurance Company of America 2021-129430 (Exp. 11/23) | New York, NY

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PANDEMIC ELEVATES CIOS STRATEGIC ROLE IN 2021

ince March of 2020 Chief Information Officers everywhere have supported the largest workfrom-home experiment in the history of the world. Thanks to these innovative technology leaders, most organizations have managed to continue operating through this pandemic disruption. Technology has enabled our new virtual lives; provided access to entertainment, food, and products delivered to our homes; and connected us with colleagues, friends and loved ones. Technology has helped us adapt, adjust, and survive our new abnormal. Without the leadership, planning, and foresight of CIOs, conducting business would be impossible under these circumstances.

2021 CIO CHAIR STEW GIBSON SVP&CIO USI

NewYorkCIO brings together leading CIOs of Greater New York’s largest organizations to help CIOs maximize their leadership effectiveness, create value, reduce risk and share success. Through member-led, non-commercial programs, CIOs build meaningful professional relationships with colleagues facing similar challenges, solving problems and avoiding pitfalls.

Throughout this crisis, NewYorkCIO members have collaborated locally and nationally with CIOs from across industries. In any gathering of CIOs, the answer is in the room. The challenge one CIO is facing has likely been solved by another CIO. What was their experience? What did they learn? What would they do differently? How could other CIOs benefit from sharing their experiences? There is no textbook for how to be a great CIO. The best way to sharpen your leadership acumen is to join a peer leadership network with other leaders working on solving similar challenges. The industries and size may be different, but winning approaches to effective leadership and problem solving are transferrable. Every leader’s perspective is valuable and contributes to the conversation - and everyone wins when leaders engage, share ideas, experiences and best practices. For over twenty years, InspireCIO has been inspiring CIO success through the annual CIO of the Year ORBIE Awards – but this is just the tip of the iceberg.

CIO OF THE YEAR

AWARDS By joining NewYorkCIO, technology executives take their leadership to the next level through year-round, memberled programs and interaction. The power of CIOs working together – across public and private business, government, education, healthcare and nonprofit organizations – creates enormous value for everyone. Together, we are transforming our organizations with technology and enriching our region and our world. On behalf of NewYorkCIO, congratulations to the nominees and finalists on their accomplishments and thank you to the sponsors, underwriters and staff who make the ORBIE Awards possible. Sincerely,

Stew Gibson 2021 Chair, NewYorkCIO

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role in steering the company’s strategy and technology evolution since then.

CIO OF THE YEAR

In 2016 Raghuram became chief operating officer, and in May of this year he became CEO. Earlier, he was executive vice president and general manager of cloud infrastructure and management and, later, he held those positions in the software-defined data center division. Raghuram, the company’s fourth CEO, succeeded Pat Gelsinger, who went on to head Intel.

AWARDS

ith the labor shortage hitting the technology industry hard, VMWare, a global provider of multi-cloud services with 34,000 employees, has an edge in attracting top talent: Raghu Raghuram. Raghuram, VMWare’s chief executive officer, has always been a believer in servant leadership—a philosophy that puts employees front and center. “My ultimate goal as a leader is to serve,” he says. “This is different from traditional leadership, where the leader’s main focus is the thriving of their company or organizations. A servant leader shares power, puts the needs of employees first, and helps people develop and perform to the highest level possible.” Raghuram, this year’s keynote speaker, joined VMWare in 2003 as director of project management. In that position he oversaw one of VMWare’s most visible products, vSphere, a cloud computing visualization platform. He was part of the leadership team that took the company through its initial public offering in August 2007, and he has played a key

Along the way, Raghuram has become a thought leader in the industry. At a time when many of the company’s customers depend on at least two public clouds, he has championed a “cloud-agnostic” approach to technology.

“My ultimate goal as a leader is to serve.” In keeping with this mindset, at the recent virtual conference VMWorld 2021, VMWare unveiled VMWare Cross-Cloud services, designed to help clients manage a multicloud environment. The company also has introduced VMWare Tanzu, which allows developers to build and deploy apps on a variety of clouds. “It’s no longer about a cloud-first approach,” Raghuram said at the conference, sify.com reported. “It’s about being cloud-smart. Organizations should be free to choose the right cloud, based on their strategic business goals.”

Raghuram will guide VMWare through its spinoff from Dell Technologies in November. Dell Technologies owned 81% of VMWare as of October, a result of its purchase of the data storage company EMC in 2016. Following the spinoff, Michael Dell, founder and CEO of Dell, will own 41% of both VMWare and EMC and continue to be chairman of both. VMWare, founded in 1998 by five technologists who wanted to create a better way to commute, is known as a leading provider of multi-cloud services for all apps. The company modernizes app development to accelerate digital innovation; enables clients to build, run, manage, connect and protect its apps on any cloud; and connects and secures apps and data, regardless of where they run. It also provides infrastructure security, digital workspaces and a cloud for telcos. VMWare is headquartered in Palo Alto, Calif. Before joining VMWare, Raghuram worked in project management and marketing at AOL, Bang Networks and Netscape. He received his master’s in business administration from the Wharton School of Business and a master’s degree in electrical engineering from the Indian Institute of Technology in Mumbai. Raghuram grew up in India. “Most of my childhood was spent playing cricket and studying,” he recalls. As a boy during the early days of space exploration in India, he took an interest in rockets and space. “That led me to science,” he recalls. Raghuram says a guiding principle of his career has been to look at every problem as an opportunity.

KEYNOTE SPEAKER

RAGHU RAGHURAM CEO VMWare

His advice to the next generation of information technology leaders: Think more like business technology consultants, “with a fundamental understanding of business needs and how to provide solutions for those needs to ultimately provide new business opportunities.”

INSPIRE YOUR TEAM Great CIOs attract & develop talent. Enrolling your high potential leaders in NGL communicates your appreciation, develops essential leadership skills and produces high engagement and loyalty to you and your organization.

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hen the pandemic struck, Lori Beer, the chief information officer of JPMorgan Chase & Co. since 2017, had to lead her team in transforming—almost overnight—a massive, 200-year-old institution with 250,000 employees into one that could perform many of its operations remotely. Some leaders might find that a daunting challenge, given that the bank supports 50% of U.S. households and 80% of the Fortune 500 corporations, but Beer found it exciting. “I sleep pretty well, because I have so much confidence in my team,” she says. Beer, the recipient of this year’s Leadership Award, says tech is critical to the underpinning of the business, and to delivering the bank’s core products and services.

science and upon graduation, she took a deep dive into work at a nuclear facility and, later, at companies in telecommunications and health care. With those companies, she had to balance her employers’ technological needs with compliance. “I always worked in regulated industries,” she says. Beer’s first CIO position was at Wellpoint, now known as Anthem, where she helped to lead its technology team through the period of health care reform ushered in by the Affordable Care Act. Under the ACA, insurers had to transition to selling policies on health care exchanges. “Pretty much all of our products had to change because of the requirements,” she recalls.

“We have such an incredible legacy,” she says. Beer, whose father was a chemist, was interested in science and math from an early age. When she entered the University of Dayton in Ohio, she intended to major in electrical engineering. But after taking a class on programming in Fortran, she recalls, “a lightbulb came on for me.” She changed her major to computer science and learned how to build an operating system and a network and to program in Cobol and C++. “I realized the passion I have for writing programs, solving problems and seeing the outcomes,” she says. Women were underrepresented in the field at the time and, since then, she notes, “it hasn’t changed much.” But she loved computer

One of Beer’s greatest concerns at the moment is keeping a strong pipeline of talent— “This is the hottest tech market we’ve ever seen,” she says. That situation isn’t likely to abate soon, with many companies investing heavily in tech transformation as the country emerges from the pandemic. “The premium being paid for top tech talent, the amount of talent needed—across industries—has increased massively, very rapidly,” she reports. To Beer, one answer to winning the war for talent is reaching out to students earlier in their academic career. “If we’re reaching kids in high school,” the mother of three grown children has found, “we’re already too late.” To that end, JPMorgan Chase supports Code for Good, an event in which young people work alongside its technology experts to help solve problems for nonprofits. In addition, the company is re-examining its requirements for technology jobs to include qualified candidates who may not have a four-year degree but demonstrate an aptitude for coding.

“I sleep pretty well, because I have so much confidence in my team.” As part of her responsibilities, Beer had to reduce costs. “I went from chief information officer to chief operating officer with a very aggressive approach to the question of ‘How do we get our cost structure, technology and operations right to support the company in a post-health-care-reform world?’” she says. She soon found herself managing a business with a $10 billion in profit and loss.

LEADERSHIP AWARD RECIPENT

“High demand for talent is going to drive more innovative thinking on how you get topquality skills,” Beer says. She’s willing to put in the work to keep modernizing the bank’s systems. “The world is going faster,” she says. “We have to speed up.”

LORI BEER Global chief information officer JPMorgan Chase & Co. Beer, who lives in New York City with her husband, Bill, says she manages to do it all with the support of her family. With one of her daughters due to have a baby in December, the CIO will soon be a first-time grandmother. “My family really grounds me,” she says.

T:8.5"

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CIO OF THE YEAR

SUPER GLOBAL FINALISTS

Over $10 billion annual revenue & multi-national operations DEAN DEL VECCHIO EVP, COO & CIO The Guardian Life Insurance Company of America

AWARDS NewYorkCIO is the preeminent peer leadership network of Greater New York’s chief information officers. NewYorkCIO is one of 21 chapters in the InspireCIO Leadership Network, a national membership organization comprised exclusively of CIOs from public and private business, government, education, healthcare, and nonprofit institutions.

Dean Del Vecchio has leadership experience using innovative solutions to drive strategic growth across the banking, health care and news media industries. At Guardian, he is responsible for defining and implementing a technology vision that aligns with the company’s long-term growth initiatives and ongoing business objectives. He also provides strategic oversight for the company’s shared services organization in India, and its real estate, facilities, physical security, office services and enterprise imaging. Prior to this, he was SVP, CIO and global head of IT Shared Services at News Corp. and Dow Jones, where he created new and distinctive platforms for news and information delivery.

Larry Jones is a purposedriven leader who delivers transformational change with key principles of business process integration and next-generation technology. He is CIO for one of the largest medical device companies in the world. During his 30-year tenure at Johnson & Johnson, he has led projects and programs across pharmaceuticals and hospital medical devices. A member of the $27B medical device senior leadership team, he has led initiatives to drive lean business processes, cloud-based solutions and integrated insights. Currently, he is focused on driving digital surgery IOT connectivity solutions for the company’s surgical robotics and machine-learning platforms in oncology, orthopedics and general surgery.

“Years of planning and investment in making Guardian agile and flexible has enabled us to support employees and serve customers while maintaining productivity, development cycle times and innovation. We’ve evolved from place-based work to hybrid working in the cloud, supported by modern workspaces, creating a cultural and operational environment for us to quickly meet demands. We’ve accelerated the adoption of cloudfirst, digital experiences to change how we interact and interface with customers and plan holders. We’re faster at decision-making, breaking down hierarchy around identifying and resolving issues. We understand that technology upskilling, culture and collaboration are key for engagement and productivity.”

“Fascinated with the opportunity of transforming lives in health care through next-generation technology, Larry Jones has served as a health care advisory council member for Microsoft and Verizon. In addition to his efforts on nonprofit boards, he is an engaged member of the Executive Leadership Council. He also serves as 2020 chairperson for BETF\BDPA Board of Directors. Since 2018 he remains a current trustee and board member at Parker Life: one of the largest, innovative nonprofit aging-services facilities in New Jersey. At Johnson & Johnson, his leadership teams have driven consistently high employee engagement results and technology execution.”

EILEEN MAHONEY EVP & CIO PVH

SEAN LENNON CIO Medtronic Sean Lennon is a leading CIO in the biopharmaceutical and health care industries, who has been delivering transformative results across multibillion-dollar organizations for nearly 30 years. He currently serves as the global CIO for Medtronic, where he has spearheaded a multi-year strategic program to transform the operating model, modernize systems, improve foundational services and deliver digital differentiation across the business. Prior to Medtronic, he held leadership positions at multiple, global pharmaceutical companies including Watson / Actavis, Novartis and Schering-Plough and Allergan. Throughout his career, he has established IT as a critical driver of business performance through the application of data, insights and technology. “Before I arrived, when most of the 90,000 employees at Medtronic thought about IT, they immediately thought of the team that “kept the lights on.” IT staffed the help desk or kept the payroll systems going. In the two years I’ve been with the company, I transformed not only the organization itself, but the way Medtronic thinks about the value IT brings. We are a truly trusted strategic business partner. The work done to restructure, reframe and refocus the IT organization, has enabled Medtronic to more effectively deliver on our mission to alleviate pain, restore health and extend life.”

LARRY JONES VP Group CIO Johnson & Johnson Medical Devices

Eileen Mahoney is executive vice president and CIO of PVH, one of the most admired fashion and lifestyle companies in the world, where she is responsible for developing the strategic direction of its technology and systems solutions, infrastructure, business process, as well as project and portfolio management. Eileen oversees more than 600 associates across North America, South America and Asia IT areas.

“Being one of the first apparel company CIO’s to implement SAP S/4 Fashion across multiple brands and businesses, and moving forward even during the pandemic is one of the accomplishments I am most proud of during my time as EVP and CIO at PVH. SAP S/4 Fashion is significant, as it will become our enterprise-wide platform across all regions. The multiyear deployment represents PVH’s largest-ever technology investment and aligns with our Strategic Priority to: ‘Invest in and evolve how we operate.’”

SAULUS VAN BEURDEN Sr. EVP / Head of Technology Wells Fargo & Company Saulus Van Beurden is the head of technology at Wells Fargo. He leads a team of more than 40,000 IT and security professionals who help keep Wells Fargo at the forefront of America’s diversified financial services industry. Under his leadership, Wells Fargo Technology is executing an IT strategy to deliver stable, secure, scalable and innovative services to global customers, including ‘round-theclock’ banking access through in-store, online, ATM and other channels. Prior to joining Wells in 2019, he was CIO of consumer and community banking at JPMorgan Chase and has served in technology leadership roles at Marsh & McLennan, ING Group and others. “My success has been in transforming a large technology organization to become a platformbased, digital-first bank by being engineering-led, more diverse, agile with more velocity and quality (proven and measured), multi-cloud, end-to-end automated, more stable and secured, while solving for large regulatory commitments at the same time. It's the combination of two important streams that makes this notable: combining the "mustdo" work with the work that we do to be digital-first and the employer of choice in the banking industry.”

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Congratulations to the 2021 New York CIO of the Year Award Winners and Nominees

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GLOBAL FINALISTS

Over $2 billion annual revenue & multi-national operations

MONA BREED CIO Moody’s Corporation

JON HARDING Global CIO Conair

DAVID KLINE EVP & CTO News Corp

Mona Breed is the CIO of Moody’s Corporation, overseeing all global enterprise technology programs and activities. She joined Moody’s in 2018 after nearly 30 years of diverse experience across all dimensions of technology, finance and large-scale project management/system implementation. Mona came to Moody’s from OppenheimerFunds, where she served as Head of Infrastructure, Enterprise Applications, IT Strategy and Transformation. Prior to joining Oppenheimer in 2013, she held a range of senior technology and finance leadership roles at Apollo and PricewaterhouseCoopers. Mona currently serves as the Treasurer for the Skating Club of New York. She is a graduate of Emory University.

Jon Harding is the global CIO of Conair, a multibillion dollar consumer products company. Jon has worldwide responsibility for the company's IT and digital services in support of daily business operations and future growth. Under his leadership, the IT team has completed: global rollout and several upgrades of a single set of SAP systems, global business integration and cybersecurity risk mitigation, seamless integration of acquired businesses and a recent transition from family ownership to P/E ownership. The company doubled revenue and increased global reach multiple times during this period. Before joining Conair, Jon was divisional CIO for the U.S. Snacks Division of Kellogg.

David Kline joined News Corp in 2020 from Viacom where he served as EVP of technology and chief technology and information officer since 2010. In this role, he led the strategy and execution of all technology functions for Viacom across the Americas, Europe and Asia Pacific. Prior to Viacom, he served as EVP and CIO for Discovery Communications. Previously, as SVP and CIO for AMC Networks, a subsidiary of Cablevision's Systems Corporation, he oversaw the company’s technology functions, facilities and real estate management. In addition, he has held leadership positions at Integrated Systems Group and Northwell Health Systems.

“Shortly after I became CIO, we had a major system outage. I had to lead a new team through a significant crisis without ‘institutional’ knowledge, unsure if we could properly recover. Partnering with the business, we were back online over the weekend and fully restored over the next several weeks. Support from across the firm was incredible and the incident drew on every bit of accountability, transparency, resourcefulness and humility I could muster. In the spirit of never letting a crisis go to waste, the restoration efforts later allowed us to perform flawlessly when the pandemic sent us ‘home,’ globally.”

“Throughout my current CIO role, I have ensured a single set of enterprise business applications globally. This has enabled consistent visibility of business performance across all businesses worldwide. Acquired businesses have been integrated quickly (3-9 months) to ensure compliance and integration into management reporting processes. This strategy has reduced IT costs while meeting business needs to below 1% of revenue and IT is viewed as a good steward of company resources. All of these achievements have been made possible by the hard work and dedication of the global IT team I am honored to lead.”

“Since joining News Corp, I am proud to have created a culture of empathy and collaboration within the organization and developed a collective understanding that each business or shared service group needs to partner to deliver end-to-end service, drive innovation and underpin News Corp’s success. Under this philosophy and operating structure, our global technology workforce has reduced costs, shared consumer-facing technology, and learned to share data and insights across our numerous business units and brands. It is an honor to lead a team of some of the most talented technologists across the globe.”

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NICHOLAS PARROTTA CDO & CIO Harman International

ASHISH PARMAR SVP & CIO Tapestry, Inc. Ashish Parmar has more than 20 years of leadership experience across luxury retail and consumer electronics. He currently serves as Tapestry’s senior vice president and CIO. As CIO for the house of modern luxury lifestyle brands, he is responsible for leading technology strategy, information security and technology operations, powering the 17,000plus associates across 1,500 stores globally. He started his career at Tapestry with Coach, as a systems analyst, and progressively took on broader leadership roles. Prior to this role, he served as SVP of global enterprise solutions, and was the IT leader for Tapestry’s 2020 transformation program.

“We successfully established a digital core by taking advantage of cloud computing’s flexibility and ability to scale, giving our brands deeper data insights to support sales growth and welcome new customers through our e-commerce channels. Embracing an API first strategy, migrating to a cloud-native enterprise data platform, and laying the foundation for a multi-cloud operating model, we adopted new ways of working with a test and learn approach. We were one of the first global retail organization of our scale and size to successfully migrate SAP S/4 HANA ecosystem to the Google Cloud Platform in a record under 6-month timeline.”

Nicholas Parrotta is chief digital and information officer at Harman International, a wholly-owned subsidiary of Samsung Electronics Co. He is responsible for building diverse digital talent, driving strategic vision, speed of innovation, operational excellence, benefits realization and cyber protection across the company. He reports to the CEO and is a member of the Senior Leadership Committee. He joined Harman in 2017 with over 20 years of digital leadership experience, including with General Electric Company, Kaiser Permanente, IBM and PricewaterhouseCoopers. A strong supporter in all areas of diversity and inclusion, he was recently recognized as one of the Nation’s Top 50 CIO/CTO by the National Diversity Council. “I am extremely proud of our digital organization and their tireless support during this pandemic. Keeping our employees safe is our top priority. Clear communications, coordination and daily reviews supported by AccuAlertMe contact-tracing app. Also, unified collaboration, including a 10x increase of WebEx; business continuity — delivering on commitments — over 600+ engineers utilized Citrix virtual desktops to maintain on-time program delivery; virtual events, such as the International Auto Show and Consumer Electronics Show, demonstrating products when we can’t physically be together; and virtual deskside support for virtual onboarding and other support."

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LARGE ENTERPRISE FINALISTS PAMELA DYSON CIO Federal Reserve Bank of New York

Over $4 billion annual revenue ROBERT GALVIN CTO The Port Authority of New York & New Jersey

Pamela Dyson is executive vice president, CIO and head of the Technology Group at the Federal Reserve Bank of New York, where she is responsible for the strategic planning and governance of the Bank’s IT, and the provisioning and delivery of technology services to the Bank. She is also on the Bank’s Executive Committee. She also contributes to advancing technology thinking, strategy and execution across the Federal Reserve System. Previously, she was the CIO and director of the Office of Information Technology at the Securities and Exchange Commission and has more than 30 years of experience in IT.

Robert Galvin is the chief technology officer for the Port Authority of New York and New Jersey, which builds, operates and maintains the airports, rail, bridges and tunnels between the two states, as well as seaport facilities and the 16acre World Trade Center site. He also serves on the board of OmniAir Consortium. While at the Port, Robert has deployed mobile apps for PATH, the Port Authority Bus Terminal and mobile websites for JFK, LaGuardia and Newark airports. He also worked with the chief security office to develop and implement an agency-wide cybersecurity program and moved the organization toward a secured cloud environment.

“Technology fundamentally defines the work of the New York Fed. As chief information officer, I launched a new strategy, called TechForward, to evolve our approach to and use of technology in support of business areas across the organization. This transformation is tremendously significant because we directly support the Bank’s complex operations. Every mission-critical aspect of the Bank’s work – whether it’s executing monetary policy, supervising financial institutions or facilitating payments – relies on technology. And the strategy goes far beyond my group; we aim to set the standard for technology and innovation across the Federal Reserve System and for central banking broadly.”

“I’m most proud of creating a team that works together to solve the business problems facing the organization. It sounds simple, but learning what motivates people and bringing them together involves countless small decisions and conversations. But it’s the reason we’ve been able to accomplish everything we have done. By connecting the department with what the business needs, we have worked together to define our values, our strategy, and focused on providing solutions that matter to our customers: delivering customer-facing technology such as mobile apps, websites with real-time train arrival information and taxi and security wait times at the airports.”

MICHAEL GIOJA SVP, IT and Product Development Paychex Michael Gioja is senior vice president of IT and product development at Paychex. He leads the development of all Paychex applications including the company’s full-scale human capital management offering, Paychex Flex. He also oversees all internal corporate applications, IT projects and security processes and has more than 35 years experience in product management, strategy, software and IT. Combining innovative SaaS technology and mobile-first design with Paycheck’s strong service culture, he looks to empower businesses with solutions that help them do what they want — when, where and how they want. Previously, he held leadership positions at IBM, American Express, Fidelity, SAP and PeopleSoft. “I’ve never been prouder of Paychex PD&IT than I have of our COVID-19 response. We implemented a well-tested BCP, migrating 15K employees to remote in five days; we added 200 servers and 400 services in four days to spin-up a solution to automate the Paycheck Protection Program application process for customers; we created COVID-19 content for our in-app Help Center. Because of all of this, Paychex has helped customers secure $65B in PPP funds and $4B in tax credits. PD&IT withstood these challenges because we had the people, infrastructure and buy-in already in place to handle anything – including a global pandemic.”

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Congratulations VMware congratulates the New York CIO of the Year® ORBIE® Award winners and nominees. We are pleased to honor these individuals who have demonstrated excellence in technology leadership.

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RALPH MUNSEN EVP & CIO Warner Music Group Ralph Munsen is the executive vice president and CIO at Warner Music Group. In his role, he provides leadership for all aspects of the company's worldwide technology operations including, strategy, information security, infrastructure engineering and operations. He also oversees development of innovative and secure application solutions, systems and platforms that serve the creative and commercial needs of WMG’s record labels, divisions, artists and business partners. He joined WMG in 2016 with over 20 years of media and entertainment experience, including senior roles at Accenture, EMI Music, Clear Channel/ iHeartMedia, Hachette Book Group, and, most recently, global managing partner of delivery for GroupM. “My greatest accomplishment was enabling the technology innovation that was core to the value proposition for our IPO in June 2020. Historically, IT was focused on operational activities. We had a disparate set of legacy systems, redundant capabilities, an inconsistent tech stack and various inefficiencies resulting in high run costs. We reinvented our architecture and infrastructure, rationalized our applications, built a cybersecurity function, and migrated to an agile delivery model to enable faster delivery. Since our IPO, WMG has seen 13% year-over-year revenue growth, and 27% revenue growth as of Q3 2021, enabled in large part by technology innovation.”

MICHELE NORIN SVP & CIO Rutgers, The State University of New Jersey Michele Norin is the senior vice president and CIO at Rutgers, the State University of New Jersey. As the institutional leader for technology in a highly complex environment, her primary responsibility is to provide leadership in the strategic adoption and use of IT in support of the University's vision for excellence in research, teaching, outreach and lifelong learning. She also defines and communicates a campus-wide vision for technology and provides campus-wide oversight for IT-related issues and strategic planning. She also works closely with Big Ten Academic Alliance peer institutions and partners with CIO’s within the northeast region to achieve synergies in IT. “It has been exceptionally gratifying to work with the central IT division in expanding our value proposition to the institution. The IT division, in partnership with administrative and academic colleagues, has accomplished so much in the last 5 years as we embarked on a comprehensive modernization and digital transformation initiative. I have the best leadership team. We work as a team in defining our strategy, working with colleagues on campus, and making sure we're all moving in the same direction. They are responsible for executing on our goals and working with their teams to ensure day-today operations run smoothly.”

CIO of the Year Awards finalists and winners are selected through a rigorous, independent judging process led by prior ORBIE winners. Since inception of the first awards in 1998, over 1,800 CIOs have been honored as finalists and over 400 CIO of the Year winners have received the prestigious ORBIE Award.

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ENTERPRISE FINALISTS

Over $1.5 billion annual revenue

RYAN CROSBY CIO ICON International Inc.

PARAG AGRAWAL CIO Chobani

SUVAJIT BASU CIO Goya Foods, Inc.

Ryan Crosby joined Icon as CIO in 2017 with 20 years of industry experience. In this role, he implements strategies to help the company, its clients and partners function more efficiently — and helps drive profitability with the latest technology solutions. He started his career in IT as a senior project manager at Morgan Stanley in 1998. There he helped lead the IT strategy through Y2K and the financial crisis of 2007-08. While other global banks were losing clients and revenue rapidly, Morgan Stanley was taking on new clients and creating new revenue streams as a result of the strategies and solutions he implemented.

Parag Agrawal is the CIO of Chobani, food-focused wellness company. In this role, Parag is responsible for leading all aspects of technology across all geographies and functions. He is also responsible for enabling the industry best practices through technology to drive efficiency and standardization across processes at Chobani. He has about 25 years of IT experience, mainly in the CPG industry, helping organizations drive competitive advantage through the effective use of technology. Prior to joining Chobani in 2014, he was the Head of IT for Materne Foods and held various IT leadership positions at Avon Cosmetics, and American Promotional Events.

Suvajit Basu leads the IT group at Goya Foods where he drives modernization and transformational projects for supply chain, enterprise resource planning (ERP) and analytics, resulting in significant ROI. Over his 10 years at Goya, he has led several innovative, industry-leading projects that have improved supply chain efficiency, real-time demand creation and sales systems to drive profits and customer satisfaction. Prior to Goya, he founded an integrated ERP software company for the cable industry, with clients such as ESPN, Fox News, MSNBC , MLB and the NBA. He went on to build an analytics and business intelligence enterprise for the cable space.

“Out of all the innovative solutions and strategies that were implemented here at Icon with huge success, my greatest accomplishment and success story has to be how we have turned the perception of IT around. We have created such a family atmosphere within IT — we all have mutual respect for each other and respect our opinions and ideas professionally. That helps with our partnerships with the business — changing the perception of being business partners and being approached daily on new ideas on how to help the business be more successful and drive revenue generation and client retention initiatives.”

“We have been on a business transformation journey for the last 3 years. We have completely transformed our business processes, our front-end and back-end systems, using the modern technologies. As part of our transformation journey, we have optimized and standardized our business processes across all sites. Over the last couple of years and thru the pandemic, our business has grown and we have ventured into four new categories. With the business growth, the complexity has also gone up. However, with our new technology platforms, we are able to scale and manage the complexity, without any concerns.

“In his 10-plus years at Goya, Suvajit Basu’s greatest accomplishment is leading the Goya IT department in its technology modernization and digital transformation efforts. Several industry-leading, manufacturing and supply chain-oriented projects have resulted in 10 times ROI, and has returned millions of dollars in shareholder value. With good cybersecurity, modern systems and almost no downtime, he enjoys uninterrupted growth. By taking a long-term, human-oriented approach of the Gran Familia Goya, the IT team enjoys near-zero attrition, and customers enjoy almost 100% order fulfillment efficiency. Every day we live by our credo: “If its Goya, It has to be good!”

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“ f m a s w c t c c a c t

CORPORATE FINALISTS MARY KOTCH EVP CIO Core Specialty

KALICHARAN DURGAMPUDI CTO Zelis Healthcare

Up to $1.5 billion annual revenue DAVID HAYES CIO Englert Inc

Mary Kotch serves as CIO of Core Specialty Insurance. Her key strength is her ability to identify and deliver innovation opportunities to both empower business users and increase market differentiation amongst competitors. Previously, she was a VP of technology at MetLife Investments, responsible for technology vision, innovation and architecture strategy. As a leader, she strongly believes communication skills such as active listening and questioning are necessary at every level, making her a frequently requested keynote speaker and board member. A former adjunct professor, Mary is passionate about building up IT talent and works with schools to enhance their technology curriculum.

Kalicharan Durgampudi is chief technology officer at Zelis, providing strategic leadership for IT application development, software engineering and technology innovations across all business units. He is a recognized leader in health care information technology for innovation and organizational excellence. He has extensive experience delivering highly complex, enterprise-class products and solutions. Prior to Zelis, he served as CIO at Greenway Health and has held executive roles at Nuance and Eclipsys. He serves on the international board of CHIME Foundation and is a member of the Forbes Technology Council. He is an advisory board member at Tampa Bay Tech, Genzeon, Zinnov and Prolify Health.

David Hayes is an executive level IT and project professional with over 20 years of experience in multiple industries, spanning various-sized organizations and specializing in the cultivation of processes and people, bringing value to organizations. He has proven and consistent experience in the delivery of organizational change, combining analytical and problem-solving skills with concepts and methodologies to maximize technological solutions to drive cost savings and organizational alignment. He is continually developing skills in strategic planning, performance and process optimization through the effective cultivation of internal and external relationships amongst stakeholders, while maintaining high levels of business and customer engagement.

“I have been blessed to achieve success and learn from failure, but the successes that give me the most satisfaction come from working with others and watching them develop. My favorite talent success story involves a high school student I worked with during a STEM program. His mom could not afford college, and I spent time with him to get into Penn State University. He interned for my company for four years. He currently is a successful cybersecurity threat analyst! Kindness can change a life, and to me, that defines success.”

“Being a leader is more than solely driving a team to success, it also requires a keen awareness and understanding of people, process and technology, and a combined purpose towards innovation. Since joining Zelis, my goal has been to instill motivation in discovering new and innovative ideas to solve complicated engineering problems. Building a community at Zelis that felt empowered to innovate and collaborate in a trusted environment has been my greatest accomplishment thus far. I’m looking forward to replicating the effort across other Zelis businesses.”

“At Elm, we have successfully achieved a complete cultural change and digital transformation. This includes new facilities and technologies coupled with standardizations, and a complete infrastructure rebuild as well as a new software stack, based on the latest cloud technologies. We have changed the face of the organization as well as brought new value streams. Couple this with our rapid growth and we are poised to continue our journey and sustain us well into the future.”

ANNA RANSLEY CIO & VP, Digital & Technology Heineken Anna Ransley is a business-minded technology executive recognized for partnering with company leaders to bring digital to life and drive technology-enabled transformation with measurable results, growing revenue, profitability and customer loyalty. She is known for being a passionate advocate of technology’s potential and for creating a culture of accountability, curiosity and agility, while creatively solving business challenges through connecting people, resources and concepts to reach optimal outcomes. A dynamic and resourceful leader, she is also a strategic thinker with a well-rounded career at various company sizes — from small enterprises to multinationals — and industries — including CPG, pharmaceutical, health care, insurance, financial services, retail, software and consulting. “I am proud of leading a digital transformation over the past four years and accomplishing measurable benefits in IT's throughput, value and reputation, enabling the company to weather any storms through resilient technology and to quickly take advantage of opportunities to get ahead of the competition through solid foundation, flexible architecture and by sensing and reacting to culture. This was achieved by developing an agile mindset and culture, re-imagining the business partnership dynamic, systemically modernizing platforms, driving the cloud transformation and partnering with others to accelerate innovation and bring to life ideas that set us apart from the competition.”

DEBASISH MISHRA CTO The WNET Group

Debasish Mishra is CTO for the WNET Group. In this role, he oversees and advances the technology that supports and enhances the mission of WNET, including content delivery for broadcast, cable and web, IT and new media applications. In addition to leading a team of technology professionals, he oversees innovation and strategy for future technological developments. Previously, he served as VP and chief architect for NBC Universal, during which time he received a Stevie Award for Cloud Innovation from the American Business Association. He has also previously held technology strategy and transformation roles at Corning, Microsoft and Merck & Co.

“The most common theme I heard when joining the WNET Group was how slow and difficult change was at the 70-year-old company. By listening to stakeholders, creating a sense of urgency around the threat posed by technology entrants to the marketplace, building credibility through small wins and creating an inspiring vision for a new role for public media, I’ve landed WNET on a transformation strategy to put us on a more sustainable future in a hyper-competitive media landscape. Moreover, as the flagship public media company, our strategy could impact the rest of public media throughout the country.”

RICHARD SCHWABACHER SVP & CDO BioReference Laboratories Richard Schwabacher is the senior vice president and chief digital officer of BioReference Laboratories, the largest full-service specialty laboratory in the U.S. There he oversees customer digital solutions, direct-to-consumer solutions, telehealth and patient empowerment, and has pioneered a novel diagnostics model with the launch of Scarlet Health program. He has improved access to health care nationwide by offering in-home testing services, aligned with telemedicine virtual care delivery. A dynamic and patient-centered executive with extensive experience expanding market share and access to care, he has spearheaded multimilliondollar programs that transformed the consumer experience for leading organizations, including Quest Diagnostics and Pfizer. “As the chief digital officer at BioReference, I spearhead the implementation of humancentered designs and customized solutions that support scalable business growth while leading a company-wide digital transformation. As part of the company’s growth strategy, the Digital team launched Scarlet Health, an innovative onlocation, digital platform that provides access to on-demand diagnostic services. Scarlet’s advanced digital solutions seamlessly integrate with existing clinical systems and improve workflows for medical providers. Scarlet creates a differential advantage in the market by offering convenient on-location lab services and is a much-needed solution that closes the gap between telehealth services and necessary laboratory diagnostics.”

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HEALTHCARE FINALISTS

Hospitals & healthcare organizations SUNIL DADLANI CIO Atlantic Health Systems

The ORBIE Award is synonymous with the excellence the Award represents, meticulously handcrafted from steel and crystal - symbols of honor and achievement. The ORBIE signifies exceptional leadership, innovation, and vision; representing the characteristics and qualities that inspire others to achieve their potential.

DR. CLAUS TORP JENSEN Chief Innovation Officer Teledoc Health Claus Jensen is a change agent with a record of bringing together ideas, people and technology. As CIO for Teladoc Health, he oversees technology, product design and management, product engineering, data science and analytics. He also leads innovation that will deliver a new category of care to consumers with guided choice and the ability to interact with health care resources where, when and how they want it. Working closely with leaders across Teladoc, he optimizes solutions that benefit patients, clinicians and administrators. His background spans 20 years of leadership roles at Danske Bank, IBM, CVS Health/Aetna and CDO and MSK Cancer Center. “The current health care ecosystem is, while highly capable, fragmented and lacks the emotional connection and contextual understanding good village doctors had in the early 1900's. Treating disease is no longer the only thing to strive for. The future care model will be based on a powerful integration of technology, proven clinical programs, partnerships and support services, increasing reach and effectiveness of every health care institution. Creating a better health care model through the fusion of clinical and digital science. Turning this vision into tangible action is my greatest accomplishment. Leaving behind a better team, a better institution and ultimately a better world.”

Sunil Dadlani was appointed vice president and CIO in 2020 and oversees IT for Atlantic Health System. In this role, he continues to advance the system’s use of IT strategies and platforms to help support the delivery of excellent patient care and team member experiences. One particular focus is the management and continued growth and development of the system’s electronic medical record, Epic. Prior to AHS, he was CIO for the New York State Department of Health. While there, he successfully led the largest public sector digital business technology transformation, delivering digital health care services to 19 million New Yorkers.

“I have been very fortunate to work in private sector for Fortune 500 companies, government and not-for-profit global organizations across multiple industry verticals and across five continents. My global diverse professional experience has given me great opportunities to work with diverse and very talented global workforces, clients, business technology vendors, and consulting companies leveraging cutting-edge technologies and solving real world challenges, and to pursue opportunities to make an meaningful impact in people's life we have touched.”

JAMIE NELSON SVP & CIO Hospital for Special Surgery Jamie Nelson is senior vice president and CIO at Hospital for Special Surgery in New York City. In her 9-year tenure there, she rebuilt the IT function, doubling the number of staff and creating key positions including CMIO, CTO, CISO and VP Applications and AVP business intelligence and analytics. Another accomplishment was the re-architecting of HSS’s technical and security infrastructure, including a new data network, establishing a network operations center, moving to an off-site data center and implementing a state-of-the-art cybersecurity program. Her professional employment includes Norwalk Hospital, New York Presbyterian Hospital, MSK Cancer Center, First Consulting Group, Ernst & Young and Innovatix. “As CIO, my greatest accomplishment has been the opportunity to completely rebuild our IT department and capabilities from the ground up. We needed world class information technology to serve our world class clinicians. I was able to create and fill key leadership positions, double staffing, rebuild infrastructure and implement a best-in-class electronic medical record system. These IT updates paved the way for HSS to be named one of the “World’s Best Smart Hospitals 2021” acknowledging digital surgery, digital imaging, artificial intelligence, telehealth and electronic medical records. Truly at testament to our clinicians, and our world class IT Department."

MARK EIMER SVP CTO & Interim Co-CIO Hackensack Meridian Health Mark Eimer serves as senior vice president, CTO and co-interim CIO at Hackensack Meridian Health, where he is accountable for the totality of IT infrastructure and operations across New Jersey’s largest, most comprehensive and truly integrated health care network. He is responsible for implementing nextgeneration information technology infrastructure and world class delivery of all third-party and internally managed information technology infrastructure used for all processes across the network. A member of the IT community for over 30 years, his main focus for over 18 years has been delivering technology thought leadership for health in both an operational and strategic capacity. “During my tenure at Hackensack Meridian Health, I’ve had the privilege to work with dedicated, best-in-class team members and clinicians. We have collectively led the organization through a major IT transformation, creating a secure, reliable IT architecture that scales to meet our clinician and patient needs. Our initial conversion from Microsoft Office 365 to Google Workspace is the first step towards our reimagined HMH cloudbased architecture representing one of the largest transformational changes for HMH in its history. The organization now has the ability to collaborate, automate and simplify workflows while ensuring security through a zero-trust model.”

ATEFEH RIAZI Interim CDO & CIO Memorial Sloan Kettering Cancer Center, DigITas Atefeh (Atti) Riazi is a senior executive and philanthropist. As interim CDO at Memorial Sloan Kettering, she oversees the integration of data and technology and is developing the digital platforms that will enable MSK to meet critical patient care and research objectives. Prior to this, she held the post of assistant secretary‐general and chief IT officer of the U.N., was EVP and CIO of the NYC Housing Authority, and served as global CIO of Ogilvy & Mather. While VP and CIO of the MTA, she implemented the $2B MetroCard system. She is also executive director of the nonprofit CIOs Without Borders.

“Earlier this year, I was tapped to serve as interim chief digital officer (CDO) for MSK’s entire digital enterprise, while still presiding as CIO of the Technology Division. This appointment has challenged me to deliver on center-wide commitments made by my predecessor in addition to the initiatives that I as CIO promised to accomplish in 2021. Through this experience, I’ve learned that transparency, trustworthiness and kindness are paramount as a leader. Meanwhile, I’ve striven to be a beacon of stability for my staff during these tumultuous times, demonstrating how innovation can continue—and even thrive—under immense pressure.”

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WHO'S WHO?

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AWARDS CHAIR

Claus Jensen Teladoc Health

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Christopher Beck Harry's

John Bresney Selective Insurance

Lookman Fazal NJ Transit

Michael Gioja Paychex

Eileen Mahoney PVH Corp

Ralph Munsen Warner Music Group

Andy Rhodes* UNICEF

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Atti Riazi Memorial Sloan Kettering Cancer Center

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Pam Dyson Federal Reserve Bank of NY

Peter Scavuzzo Marcum LLP

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The pandemic provides one positive outcome. Employers offer better health care options.

any health care organizations pivoted quickly to delivering virtual care when the pandemic struck. As providers--from behavioral health to dentistry—embraced virtual options and perfected their strategies for using them, many employers discovered that their employees liked these virtual options and in some cases were more likely to use them than traditional ones. As a result, behavioral health providers continue to offer and improve them.

Crain’s Content Studio spoke recently with W. Clayton Davis, behavioral client strategist at Cigna, for insight into the trends.

W. CLAYTON DAVIS

Behavioral clinical account manager Cigna

CRAIN’S: Virtual care for behavioral health was not the norm before Covid-19. How has that changed during the pandemic? What have we learned from clinicians’ experiences with offering virtual care during Covid-19? W. CLAYTON DAVIS: Just before Covid-19 affected the country in January 2020, virtual sessions made up about 2% of all outpatient office visits, with this number rising to 60% by June 20201. Clinicians have noted that patients are more likely to keep virtual appointments, with a 35% jump in retention. In 39% of the cases, the clinicians found that people disclose more information within the virtual setting, compared to traditional face-toface sessions. The bottom line is that virtual care will not be going away soon. Seventy percent of behavioral health providers say they intend to continue offering virtual options post-pandemic. CRAIN’S: How does virtual care compare to in-person care for behavioral health, in terms of what services can be offered and the outcomes? DAVIS: The fundamental process of talking with a therapist is unchanged. A typical face-to-

face session does not require physical contact, so behavioral health treatment pivoted to virtual services more easily than other types of care did during 2020. When lab work is needed to check medication levels and/ or tests, the services are still performed in an outside lab, as they were before 2020. The provider may lose some ability to see all of the person’s body language—like a frantically tapping foot when anxious that is off camera—but gain a closer visual of the facial expressions to sense a person’s emotional state while processing issues and coping skills for them. CRAIN’S: How does virtual behavioral care fit into companies’ total health care and benefits packages today? Is it generally offered in addition to other behavioral health services, or is it provided as a standalone benefit—or both? What factors are employers evaluating as they decide whether to include it in their benefits package?

those held in person.3 The infrastructure for virtual behavioral health existed before 2020 to minimize the impact of the industrywide shortage of mental health providers in most of the U.S. The past 18 months just accelerated the rollout of these options. CRAIN’S: Some employers are offering virtual care for employees’ wellness screenings. Is there any evidence that this affects the number of employees who are signing up for wellness screenings, in that people who might not have time to go to the doctor will set up a virtual appointment?

DAVIS: No more than in-person care. The services are still offered by licensed professionals using evidence-based therapy. Providers are expected to use computer protocols and encryption to protect patients’ privacy, much as in-person locations use physical locks and procedures to accomplish the same goal. In the case of events with acute psychosis, suicidal thoughts or other dangers escalating, the provider would use emergency response services in the same manner but have the first responders go to a different facility. Acute levels of mental health services requiring 24hour monitoring would continue

to require treatment within the appropriate facilities.

1. State of Nation’s Mental Health Inaugural Report, May 2021. 2. Cigna provides access to virtual care through participating in-network providers. Not all providers have virtual capabilities. Cigna also provides access to virtual care through national telehealth providers as part of your plan. This service is separate from your health plan’s network and may not be available in all areas. 3. Program services are provided by independent companies/entities and not by Cigna. Programs and services are subject to all applicable program terms and conditions. Program availability is subject to change. 4. Cigna Behavioral Operations report, July 2021.

DAVIS: There are improvements in people engaging in Wellness Screenings within the virtual option. Within Cigna’s book of business, the portion of members age 25 through 44 who had a Wellness Screening increased to 68% through use of the virtual option4. We also found that of the members

“The fundamental process of talking with a therapist is unchanged.”

DAVIS: Virtual behavioral health is just one feature offered by in-network therapists. Virtual behavioral claims within Cigna use the same processes and rates as in-person sessions2. There are, however, new providers outside of brick-and-mortar settings offering additional services beyond traditional counseling. They include services such as mental health coaching by Ginger, a digital health and well-being platform, and the text-messaging sessions that TalkSpace, an online and mobile therapy provider, offers. From an employer-cost perspective, virtual sessions are no different from

using the virtual Wellness Screening, 78% did not have a primary care physician identified. As the effects of the pandemic lessen, it will be worth noting any trends that emerge. We will need to track whether increased virtual wellness screenings lead to more doctor follow-ups, while taking into account a potential spike in people seeking appointments after holding off nonessential visits during Covid-19. CRAIN’S: Are there any risks to virtual behavioral care that don’t exist with in-person care?

Together, all the way." All Cigna products and services are provided exclusively by or through operating subsidiaries of Cigna Corporation, including Cigna Health and Life Insurance Company, Evernorth Care Solutions, Inc., and Evernorth Behavioral Health, Inc.. The Cigna name, logo, and other Cigna marks are owned by Cigna Intellectual Property, Inc. 959697 11/21 © 2021 Cigna.

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STATE OF HEALTH CARE

“THIS IS THE FIRST TIME HOSPITALS ARE TAKING A WHACK AT THIS DATA” cial coverage—more than double the $895 rate without insurance. Brian Walsh, client success leader at Turquoise Health, said Crain’s findings fit into a national trend of volatility in hospital pricing. “Overall, this is par for the course,” he said.

Pulling back the curtain The federal government’s price-transparency rule promised for the first time to pull back the curtain on one of the most opaque corners of health care: negotiations between insurance companies and hospitals. The rule mandates that hospitals publish the prices they have agreed

Average cash prices charged across hospital systems

Kidney function blood-test panel

Ultrasound of abdomen

$433

$216

$132

$292

$181

$11

n/d

$33

n/d

n/d Diagnostic colonoscopy

$534

$748

$1,017

$644

60-minute new patient visit

New York-Presbyterian Healthcare System

$2,238

New York City Health + Hospitals Corp.

$1,786

Mount Sinai Health System

$1,122

Montefiore Health System

$345

Mount Sinai Health System–run hospital but an average of $7,356 at a New York-Presbyterian system hospital—more than 16 times as much. There were substantial price differences even between hospitals owned by the same health system. A patient who gets a CT pelvic scan at Montefiore Health System’s Nyack Hospital will be charged $220 without insurance. If that patient were instead to go to Montefiore’s White Plains Hospital, just a 20-minute drive away, the cash price would almost quadruple, to $848. Adding insurance into the mix points to seemingly arbitrary differences in rates between plans, with negotiated fees sometimes even exceeding the price a patient would pay without insurance. A colonoscopy at NYC Health + Hospitals/Elmhurst, part of the city’s public hospital system, costs about $318 with a Healthfirst plan, $1,200 with a MetroPlus Medicaid plan and nearly $2,200 with Aetna commer-

PRICING FOR STANDARD PROCEDURES VARIES GREATLY

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upon with each of the health plans they accept. Unlike cash prices, which the U.S. Centers for Medicare and Medicaid Services started requiring hospitals to disclose in 2019, these are the numbers that often have the most bearing on what a patient actually owes for hospital care. (The vast majority of New Yorkers are insured either privately or through Medicare or Medicaid.) The reality is much less clear. Each hospital uses disparate naming conventions that can complicate efforts to compare and contrast prices. Many use highly technical medical billing codes to identify services. If a patient were to figure out the right code for the service they need, they’d still have to go through tens of thousands of rows of data to make a comparison. Some systems, such as Mount Sinai, break out the cost of service by insurance, while Montefiore’s 50,000 rows of data disclose only cash prices—which few patients actually pay. “The data isn’t exactly perfect, and this is the first time hospitals are taking a whack at putting this data together,” said Walsh. Hospitals are not entirely to blame. The price-transparency legislation offered limited guidance on what exactly facilities need to provide and in which format, which ultimately poses a hurdle for patients trying to make sense of the numbers. Some procedures, for example, are commonly priced as part of a bundle of services, noted Elisabeth R. Wynn, executive vice president of health economics and finance for the Greater New York Hospital Association. Facilities also sometimes tack on additional charges based on quality metrics, further complicating matters. The U.S. Centers for Medicare and Medicaid Services said that, as of the end of October, it had issued 329 warning letters to hospitals for noncompliance and requested 76

$290

COSTS

CT scan, pelvis, with contrast

SOURCE: Turquoise Health and Crain's analysis; n/d: not disclosed

corrective action plans from those that had not yet corrected deficiencies. The agency has repeatedly declined to name the scofflaws and would not disclose New York–specific figures. Fines for noncompliance were originally set at just $300 a day. The government has since announced plans to raise the penalties to as much as $5,500 per day, or more than $2 million per year, starting next year. The enlarged fines still may not be enough to coax data disclosures from giant health systems, which report billions of dollars in revenue per year—and have an incentive to keep their rates under wraps.

Bargaining power In 2016, years before the federal price-transparency rule was instituted, a group of experts got an initial glimpse at the rates New York hospitals and insurers had long kept quiet. The New York State Health Foundation, a Midtown-based grantmaking organization, had commissioned an actuarial firm to study hospital pricing in three regions of the state. The study’s authors obtained what was then unprecedented access to contracts between hospitals and insurance companies

from the state Department of Financial Services, which regulates insurers. The 151-page report included pricing and reimbursement data from more than 100 hospitals—including 75 in downstate New York—and nine commercial insurers. It found that market leverage, or bargaining power, rather than quality, was key to the prices that hospitals charged for privately-insured patients. Hospitals with the biggest market share, such as those in the New York-Presbyterian, Northwell Health and Montefiore systems, tended to charge higher prices. And the difference was significant, the researchers found: The highest-priced hospitals downstate were 2.2 to 2.7 times more expensive than the region’s lowest-priced facilities. Prices were also higher at downstate hospitals that serve smaller shares of Medicare and Medicaid patients, countering “a widely held belief that a hospital negotiates for higher commercial prices to offset lower reimbursements received for their publicly insured patients,” the authors wrote. “Hospital prices are not transparent, and perhaps if they were, we wouldn’t see this much variation," Bela Gorman, the study’s project

lead, told Crain’s at the time. The 2016 study was the most comprehensive attempt at transparency until now. Dr. Mark Zezza, director of policy and research at the New York State Health Foundation, said Crain’s findings indicate the same patterns in hospital pricing have persisted in the years since.

Importance of transparency Transparency alone will not lower the cost of care, experts say, but it is an important precursor. The new Coalition for Affordable Hospitals, convened by Local 32BJ of the Service Employees International Union, is pushing state lawmakers to pass a bill during the next legislative session, in 2022, that would prohibit certain anti-competitive contracting provisions between hospitals and insurers. Among the provisions cited in the bill, called the Hospital Equity and Affordability Law, or HEAL, is an all-or-nothing clause that requires payers to contract with all facilities in a health system if they want to include any in their health plan. Other advocates tout the New York Health Act, which would switch the state to a single-payer system, as the only real solution to procuring lower prices. ■

$446

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THE CO scan witST of an MRI b a Moun hout insurancerain t Sinai h ospital at PHOTOGRAPHY BUCK ENNIS, ISTOCK

32 | CRAIN’S NEW YORK BUSINESS | NOVEMBER 15, 2021

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STATE OF HEALTH CARE

Costs of attracting and retaining workers are raising expenses for hospitals, physician practices

ew York hospitals and physician practices have noted upticks in expenses in recent months, largely led by staffing challenges, stakeholders say. According to the latest reports from Kaufman Hall, a Chicago-based hospital and higher education consultancy firm, total expenses for hospitals in the Northeast increased by more than 7% in September, compared to the same month last year. In its physi-

and retaining workers. “The main cost concern we’ve heard from our members of late is staffing agency costs,” he said. “And labor costs in general are always an issue, especially downstate.” Competition for clerical and support staff has been fierce, said Dr. Thomas Madejski, past president of the Medical Society of the State of New York. As workers left his upstate practice, lured away by higher wages elsewhere, his group has had to increase compensation by up to 10% to retain staff and use expensive temporary workers, he said. “Our practice will pay a 50% premium [for temps] over what we’d normally pay our staff, and that has created animosity within those who are getting normal pay,” Madejski said. “It’s been challenging on our morale and on our margins.”

“WE’RE REALLY GOING TO HAVE TO THINK ABOUT WHAT WE’RE OFFERING” cian report, although a regional breakdown was not available, overall expenses nationwide for practices went up more than 13% in the third quarter, compared to the same quarter last year. A spokesman from the Greater New York Hospital Association said that, for hospitals, the issue lies with prices associated with hiring

Reexamining benefits For local players trying to attract staff, some say they are reexamining their wage and benefit offerings. “At our practice, we’re generous

prise service line lead with Kaufman Hall. “Even fast food restaurants are upping their salaries to attract workers,” he said. “That couple of dollars more per hour could be what compels people to stay, and that could be a new cost reality for medical offices.”

Supply-chain issues

ISTOCK

BY SHUAN SIM

on benefits but not so much salary, and new hires aren’t as interested in that,” said Dr. Charles Rothberg, also a past president of MSSNY; he runs an independent practice in Suffolk County. He said that offering retirement benefits isn’t bringing younger workers through the door, and his practice is considering increasing the salary of open positions instead. There are, however, limits to how much more a practice can offer,

Madejski said. Labor accounts for 80% of practice costs, leaving slim margins to play with, he noted. “We’re really going to have to think about what we’re offering to remain competitive,” he said, “but our hands are tied.” Especially for clerical and support staff, medical offices will have to compete with other industries on the wage front to attract and keep workers, said Matthew Bates, managing director and physician enter-

Although labor cost concerns remain top of mind, stakeholders said they are keeping abreast of the recent supply-chain bottlenecks. Their equipment stockpiles have not been significantly affected, although that could change should supply chains remain disrupted over a prolonged time, they said. Rothberg said nonessential supplies, such as tissue paper, for his practice have certainly gotten more expensive. He noted that prices, especially for items sourced on Amazon, have risen about 30% in recent months. “Right now it might be too early to say all of these increased costs are due to supply-chain issues,” he said, “but I’m certainly not impressed, and I’m keeping a close watch on things.” ■

Five local health-tech unicorns putting patients first BY JUDY MESSINA

BRILLMAN

for 2020. “The ones we typically consider smart money health care investors are pushing the environment forward and investing in companies that are demonstrating that, through digital technology, they can deliver higher-quality care at lower cost,” said Marissa Schlueter, managing analyst for health care at CBInsights. Putting patients in the driver’s

KINARIWALA

seat appears to be the impetus for virtually every health-tech player in the city. In the case of Garment District–based Capsule, that means replacing the pharmacy system founder Eric Kinariwala calls “offline and archaic” with an app-based service that streamlines drug delivery—and provides continuing information to both patients and doctors. Capsule receives prescriptions from physicians digitally; patients log in to check the price and arrange same-day delivery. “Pharmacy is the best-positioned place in the health care system to build longlived, high-trust relationships with consumers,” said Kinariwala. Launched in 2015, Capsule today has 1,200 employees and operates in 20 cities across the country. It had raised $570 million as of April and is reportedly valued north of $1 billion. For Dan Brillman, co-founder and CEO of Lower Manhattan’s Unite Us, a disconnect showed up when he tried to help veterans like

INVESTORS ARE FOCUSED ON FIRMS THAT DELIVER QUALITY CARE AT A LOW COST

MICHELLE SUCONICK

UNITE US

artially thanks to the explosion of remote therapies and virtual doctor visits that became necessary during the early days of the pandemic, health care is undergoing a major transformation as startups enlist technology for everything from drug delivery to physician-patient interactions. Attracted by the firms’ rapid growth and positive results, investors are piling on, pushing a few to become unicorns, or venture-backed companies valued at $1 billion or more. A July report by CBInsights found that global health care deals in the third quarter were the highest on record, up 15% from the previous quarter, and the number of $100 million–plus mega rounds is already ahead of the figure

RO FOUNDERS Rob Schutz, Saman Rahmanian and Zachariah Reitano himself access health care and social services—and couldn’t gain ground with any of the providers he called. “I had to tell the story over and over again to each organization,” he said. He wrote a paper about his experience for a class at Columbia Business School. A venture capitalist saw it and thus was born Unite Us, a platform for government officials, health care providers and insurers to collaborate and connect patients to social services. Founded in 2013, the company operates in 43 states and, Brillman predicts, will have a network in every county in the country by the end of next year. It had raised $195 million as of March and is reportedly valued at more than $1.6 billion. Chelsea-based startup Ro touts its consumer-driven mission, offering direct-to-patient care, including lab tests, diagnostics and pharmacy services. Offering treatment for 20 conditions, Ro connects patients with

physicians via telehealth or, if necessary, can provide services and testing at home using its software platform WorkPath. Ro doesn’t accept insurance, and patients pay cash— $15 for an online visit. Today the company operates in every county in the U.S. and has 10 fulfillment pharmacy centers around the country. Last year the company generated just over $200 million in revenue and in 2021 has already surpassed $300 million. The firm had raised $876 million as of March and is reportedly valued at $5 billion. A few blocks north, Thirty Madison, founded in 2017, focuses on four conditions: men’s hair loss, allergies, gastrointestinal issues and migraine headaches. The subscription-based business provides patients with online access to specialists and personalized treatments. With its telemedicine service available in more than 40 states and pharmacy products available

throughout the country, its first-quarter sales this year reportedly exceeded an annual run rate of $100 million. The company had raised $210 million as of June, and its reported value is above $1 billion. Another local unicorn, Noom (moon spelled backwards), was founded in 2008 as a digital platform to help people manage their weight. Its app-based service uses a psychology-based approach to help users build healthy habits, addressing conditions including diabetes, hypertension, and stress and anxiety. Today it has more than 300 employees in its New York City headquarters. Its subscription service, which costs $59 per month on average, has reportedly been downloaded as many as 4 million times in the past year in the United States alone and generated $400 million in sales for the company in 2020, a 68% increase over 2019’s $237 million. It had raised $657.3 million as of May and has a reported valuation of $3.7 billion.

Spotlight on efficiency Though the city’s health tech unicorns have different models, they share common themes. “They are either making processes more efficient or making better use of larger sets of data or, for tech-enabled providers, they’re actually the ones that are producing clinical outcomes, showing measurable improvements,” said CBInsights’ Schlueter. ■

34 | CRAIN’S NEW YORK BUSINESS | NOVEMBER 15, 2021

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FROM PAGE 1

that “corporate executives too often use [buybacks] to enrich themselves rather than investing in workers and growing their businesses.”

because the government considered them a form of market manipulation, but those misgivings are Up for interpretation long gone. So far this year, compaCorporate America isn’t pleased nies have dipped into the market to be presented with a new tax bill. and bought back $552 billion worth “The definition of ‘repurchase’ is of their shares, according extremely broad, the list to S&P Global, putting of exceptions is fairly nar2018’s record of $806 bilrow, and Treasury would lion in jeopardy. That rebe given broad latitude to cord was set after the determine other ‘ecoTrump administration nomically similar’ transslashed corporate tax actions that would be rates to 21% from 35%. subject to the excise tax,” But economists and poaccounting giant EY told litical leaders have long clients. questioned how producAttorneys at Skadden tive share repurchases COLUMNIST Arps Slate Meagher & are. The excise-tax idea AARON ELSTEIN Flom warned that excise was first advanced in Septaxes could be triggered tember by Democratic Sens. Sher- in unexpected situations, such as rod Brown and Ron Wyden, who when one company acquires anwanted a 2% rate. other. “Large corporations buy back “Payments of cash to the target’s shareholders would likely be viewed as repurchases to the extent those payments are funded out of the target’s existing cash resources or with the stock using the capital that could be proceeds of debt that is incurred or used to make investments, create assumed by the target in the transnew jobs and raise wages,” Brown action,” the law firm warned. Assuming the tax is approved, it’s said. Singing from the same hymnal, possible companies will dial back the White House said last month share repurchases and return ex-

MOST BUYBACK ACTIVITY COMES FROM A FEW ENORMOUS FIRMS.

BE WHERE

IF BIDEN signs the bill, corporate leaders may think twice before launching stock buybacks.

AP PHOTO

BILL

cess cash to investors through dividends instead. But one reason buybacks are so popular is they can be done quietly, whenever market conditions are deemed ripe, and taxes from gains on appreciated stock are paid only when shares are sold. Dividends are taxed soon after they’re paid out, and a company that raised them only to pull back quickly would quickly irritate shareholders. Most buyback activity comes from a few enormous firms. Apple bought back $86 billion worth of

shares in fiscal 2021—four times more than spent on research and development, according to its annual report. In 2014 billionaire activist investor Carl Icahn demanded Apple buy back shares to help make his $5.3 billion stake worth more. Apple complied, and Icahn sold his position in 2016 for a $2 billion gain.

Rush ahead? Facebook has bought back $26 billion worth of shares this year and last month authorized an addition-

al $50 billion. JPMorgan Chase has bought back $16 billion worth this year, and Bank of America $18 billion. So what’s next? Probably more buybacks, at least in the near-term, because companies will race to repurchase shares before the excise tax takes effect. “Any significant or serious buyback tax consideration in Washington could bring accelerated buying near year-end 2021,” S&P analyst Howard Silverblatt said in a report last month. ■

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PUBLIC & LEGAL NOTICES Notice of Qualification of Mami Pi, LLC. Authority filed with Secy. of State of NY (SSNY) on 09/09/21. Office location: NY County. LLC formed in Delaware (DE) on 09/03/21. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to: c/o Steve Bills, 16633 Ventura Blvd., Ste. 815, Encino, CA 91436. Address to be maintained in DE: 1013 Centre Rd., Ste. 403S, Wilmington, DE 19805. Arts of Org. filed with the Secy. of State, 401 Federal St., Ste. 4, Dover, DE 19901. Purpose: any lawful activities. Notice of Qualification of CityRock Venture Partners II, L.P. Appl. for Auth. filed with Secy. of State of NY (SSNY) on 10/04/21. Office location: NY County. LP formed in Delaware (DE) on 07/16/21. Duration of LP is Perpetual. SSNY designated as agent of LP upon whom process against it may be served. SSNY shall mail process to Corporation Service Co., 80 State St., Albany, NY 12207-2543. Name and addr. of each general partner are available from SSNY. DE addr. of LP: 251 Little Falls Dr., Wilmington, DE 19808. Cert. of LP filed with Secy. of State of the State of DE, 401 Federal St., Ste. 4, Dover, DE 19901. Purpose: Any lawful activity. NOTICE OF FORMATION of NYCNCC SUB-CDE 15, LLC ( the “LLC”) filed with the Secretary of State of the State of New York (“SSNY”) on 07/ 16/2021. Office location: New York County. The principal business address of the LLC is: One Liberty Plaza, New York, New York 10006. SSNY has been designated as the agent of the LLC upon whom process against it may be served. SSNY shall mail service of process to c/o New York City Economic Development Corporation, One Liberty Plaza, New York, New York 10006, Attention: General Counsel. Purpose: any lawful purpose.

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Notice of Formation of FIVE IRON GOLF SEATTLE LLC. Arts. of Org. filed with Secy. of State of NY (SSNY) on 5/28/2021. Office location: New York County. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to: 883 AVENUE OF THE AMERICAS, Fl 3, NEW YORK, NY 10001 Purpose: Any lawful activity.

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Notice of Formation of FRANK ROMOFF PARTNERS LLCArts. of Org. filed with Secy. of State of NY (SSNY) on 08/02/21. Office location: NY County. Princ. office of LLC: 77 Charlton St., Ste. 10E, NY, NY 10014. SSNY designated as agent of LLC upon whom process against it may be served. SSNY shall mail process to Lawrence Spielman, SKP, LLP, 1675 Broadway, 20th Fl., NY, NY 10019. Purpose: Investment rental property.

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Notice is hereby given that a license number 1338550 for a beer, wine and liquor license has been applied SPEAKEASY101 LLC. DBA TIPSY MONK to sell beer, wine and liquor at retail in a restaurant under the Alcoholic Beverage Control law at 42-44 CRESCENT ST., LONG ISLAND CITY, NY 11101 for on-premises consumption.

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Notice of formation of Manhattan Pain Medicine Provider, PLLC. Arts. of Org. filed w/ Secy. of State of NY (SSNY) on 08/02/2021. Off. loc.: New York Cnty. SSNY designated as agent upon whom process may be served. SSNY shall mail process to: 2 Fifth Ave., Ste 7 , New York, NY 10011. Purpose: Any lawful activity.

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VC FUNDING SURGES FOR STARTUPS FOUNDED BY WOMEN

FROM PAGE 3

US venture capital deal flow by female (co-)founded companies in the Greater-NY MSA

“I still would have done it, but it could have been a huge burden on my life, and now it seems that is an unnecessary way to go about it,” she said. “Even though I consider myself a confident presenter,” she added, “the truth is that standing in a room of men pitching your business while also feeling physically large and uncomfortable might have affected my delivery and/or their subconscious analysis of the opportunity.” In that sense, she said, the virtual business meetings that have become commonplace in the past 18 months could be helping to level the playing field for lots of different company founders including parents.

$4,000M

Big returns The past year has been a “banner” one, PitchBook’s report found, for exits by woman-led startups. (Exit is the term for a startup that returns money to investors when it is either acquired or goes public.) Startups founded by women raised $60 billion through acquisitions and initial public offerings through September, according to PitchBook—more than double the total for all of last year. Brooklyn-based Rent the Runway made history last week as the first company to go public with a C-suite made up sole-

Capital invested (in millions)

Deal count

152

160

$3,500M

140

$3,000M

120

$2,500M

100

$3,700M

Q3 ’21

Q2 ’21

Q1 ’21

Q4 ’20

Q3 ’20

Q2 ’20

Q1 ’20

Q3 ’19

Q2 ’19

Q1 ’19

Q4 ’18

Q2 ’18

Q3 ’18

Q1 ’18

Q4 ’17

Q3 ’17

Q2 ’17

Q1 ’17

Q4 ’16

20 Q3 ’16

$500M

Q2 ’16

Q1 ’16

$1,000M

Q4 ’15

Q3 ’15

$1,500M

Q2 ’15

Q1 ’15

$2,000M

Q4 ’19

STARTUPS

SOURCE: Pitchbook

ups with all-male founding teams, the report said. The new figures represent a turnaround in recent trends. During the early lockdowns between March and June 2020, companies founded by women received 28% fewer S investments, compared with a 5% decrease for men. Despite the increase in Founders Fund raised $60 million total dollars this year, however, startups with at least one female for new investments in July. Startups led by women also pro- co-founder still collected just 18% vide returns to investors about a of all U.S. venture capital investyear quicker, on average, than start- ment. Companies founded solely ly of women, led by co-founder and CEO Jennifer Hyman. “These examples of success are really the best way to move forward,” said Duggal, whose Female

“WE’RE SEEING EXCITEMENT AROUND BACKING VC WHO LOOK DIFFERENT.”

by women received just 2% of all venture capital investment, Pitchbook found. “The trends are going in the right direction, but this is still a number that is way too small,” said Julie Samuels, executive director of industry group Tech:NYC.

Who is writing the check? Still, there is reason for optimism, Samuels said. PitchBook’s report noted that about 17% of general partners at New York City VC firms were women as of September, compared with 12% at the end of last year. “When there are more female

general partners, more investment flows to female founders,” said Nisha Dua, managing partner and co-founder of Manhattan investment firm BBG Ventures. “That work has been going on in earnest really since tech’s MeToo movement. It has been happening at larger funds and with new funds founded by women.” The MeToo movement prompted conversations about sexism in the technology industry, where women are paid less and underrepresented in the workforce. The number of female angel investors who focus on funding woman-led startups has nearly doubled since 2017, according to the PitchBook report, with the companies’ report calling the MeToo movement a “pivot point” for the increase. BBG Ventures, launched in 2013, invests in seed and early-stage companies that have at least one female co-founder. The firm closed a $50 million new fund in March. Dua said attitudes are changing at the institutions, known as limited partnerships, that invest in venture capital firms. “Young women are often early adopters of technology, and you add to that the data on what Gen Z looks like—a majority nonwhite, 22% children of immigrants—and LPs are really having to acknowledge this changing world composition,” Dua said. “We are starting to see a lot of excitement around backing VCs who look different.” ■

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MINORITY EXECUTIVES IN COMMERCIAL BANKING

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GOTHAM GIGS

BUCK ENNIS

PHAN looks to boost Come Back Daily’s trade.

STEVEN PHAN AGE 31

High hopes for legal weed

BORN San Francisco

A CBD entrepreneur works to enter NY’s recreational marijuana market

RESIDES Bedford-Stuyvesant, Brooklyn

BY EDDIE SMALL

EDUCATION St. Paul’s Preparatory Academy INITIAL CONCERNS Phan struggled with alcohol when he was a teenager, and his parents were initially very upset when he started using marijuana after coming out of rehab. They ultimately came to accept his decision, however, and the family dynamic is in a much better place today. “We have a very close relationship,” he said. EAGER CUSTOMERS Phan is not the only person looking forward to New York’s completion of the setup of its legal marijuana program. “A lot of customers come in, and they’re like, ‘Oh, can we just buy weed from you now?’ ” he said. “We’re like, ‘No, no, no, no, no. Not yet.’ ”

hen New York finishes rolling out its hotly anticipated legal recreational marijuana program, Brooklyn-based entrepreneur Steven Phan is hopeful that it will open up a new line of business for him. Phan is the co-owner and co-founder of Come Back Daily, a CBD shop at 516 E. 11th St. in the East Village. He hopes to get a license from the state to sell marijuana once the recreational program is fully up and running, but he recognizes that the process will be very competitive and is prepared for the possibility that his application will not be successful. “It’s an application process, so I wouldn’t say it’s guaranteed, but we do have our eyes set on it,” he said. “That’s the grand prize for us.” Phan is particularly concerned about competition from applicants

returning to the East Coast who already have practice selling THC products in states such as Washington and California, which moved much faster on setting up legal pot programs than their counterparts on the Atlantic Seaboard. “You have not only those of us like me that have popped up businesses here and have some experience under their belt, but you also have people originally from here that gained a much more in-depth experience on the West Coast in a legal market,” he said. Phan opened his first CBD store in SoHo in 2018 and followed that with his East Village location, which launched in May 2019. He had locations in Harlem and Columbus Circle, but he closed down all of his stores except the East Village location during the pandemic. Come Back Daily operates from noon to 6 p.m. Monday through Saturday, and Phan works there with the store’s three other owners.

Despite the problems that the pandemic created for his locations, and the retail industry in general, the stress and anxiety sparked by Covid-19 made people enthusiastic about using CBD products to calm down, Phan said. “People were very, very thankful that we were open or willing to deliver their products to them,” he said. “They were like, ‘I need this. I really need this.’ ” Regardless of whether his attempt to become a licensed marijuana retailer pans out, he remains a big fan of cannabidiol, which he described as a much tamer substance. “CBD was special because I’ve been talking about this plant for half my life now,” he said. “You can say to someone, ‘Hey, if you have some issues that you’re dealing with, you should give this a shot. You might think it’s from pot, but it’s actually not, and you can’t even get high from it.’ ”■

“PEOPLE WERE VERY, VERY THANKFUL THAT WE WERE OPEN. THEY WERE LIKE, ‘I NEED THIS’ ”

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marijuana expected to be up and running by late 2022, how can state officials ensure that communities historically criminalized by marijuana laws have an equitable opportunity to do business in this new industry? Join us for an exciting conversation on this emerging industry with experts in the field.

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