Crain's Cleveland Business

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VOL. 36, NO. 42

OCTOBER 19-25, 2015

35th Anniversary

CLOSER LOOK: Supply chains How the aerospace industry soars P. 3

Business of Life: Source Lunch Get the inside scoop on Browns’ foundation

LONG SHOT: Jock tax City’s appeal seems far-fetched

P. 36-37

P. 4

THE DISH: Help wanted

CLEVELAND BUSINESS

Restaurants seeking quality additions P. 6-7

Legislation is likely for Uber, Lyft State’s involvement would mean strict regulation

BY JAY MILLER jmiller@crain.com @MillerJH

It appears likely that Ohio will start legislating on-demand car services like Uber and Lyft at the state level, and, perhaps down the road, could take the regulation of taxicabs away from cities.

The Ohio House of Representatives has approved and passed along to the Senate HB 237, a bill to regulate what it calls “transportation network companies” or TNCs. The legislation would put the Public Utilities Commission of Ohio in charge of licensing the transportation companies.

The legislation requires the companies to conduct background checks on drivers; to ensure that drivers and their vehicles are properly licensed and carry basic personal insurance; to provide insurance coverage for the drivers and their vehicles while operating commercially; to provide passengers with estimated rates in advance of rides; and to ensure that passengers get a photo of the TNC driver and the vehicle’s license plate before pickup.

By legislating the responsibility for regulating the TNCs to the PUCO, though, the legislation cuts cities — which continue to regulate traditional ride-for-hire services like taxicabs — out of the regulatory process.

dshingler@crain.com @DanShingler

The Cleveland Host Committee still needs a little more than 5,000 volunteers to meet its commitment to provide help for the 2016 Republican National Convention, and it’s about to turn to the business community to help meet that goal.

If 5,000 people sounds like a lot, it

Entire contents © 2015 by Crain Communications Inc.

SEE HELP PAGE 8

P. 39

connection

SEE UBER, PAGE 38

is. But considering that nearly 3,000 people already have signed up to help, the effort is already off to a roiling start.

“I’m very, very pleased. It’s very exciting to see the excitement and the enthusiasm of the community,” said Sharon Richman, volunteer manager for the Host Committee.

“We have not started our formal recruitment yet.”

So far, a little more than 2,700 people have signed up to work the event, Richman said. Each will be

Highest-paid chief financial officers

The Columbus

Host Committee is seeking good help

BY DAN SHINGLER

The List

State capital is coveted partner for Cleveland teams

BY KEVIN KLEPS kkleps@crain.com @KevinKleps

John Davidson sat in the top row of bleachers during the first of two recent Columbus Blue Jackets practices at IceLand USA in Strongsville.

After a brief lunch event, the NHL team’s president of hockey operations went back in the stands to watch the Lake Erie Monsters, who are in their first season as the Blue Jackets’ top affiliate, take their turn on the ice. It was

a convenient, and productive, day for the Hockey Hall of Famer — checking up on the NHL club, followed by some in-person scouting of the Blue Jackets’ best prospects.

“I don’t know of a negative. I really don’t,” Davidson said of the Columbus-Cleveland hockey partnership, which was made official in April.

Five days after Columbus’ NHL club completed two days of workouts in Northeast Ohio, the Cleveland Cavaliers drew more than 18,000 fans for a preseason game at Ohio State University — the organization’s 10th SEE COLUMBUS, PAGE 34

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Small Business Matters i Want more information and resources on this week's topics, ideas and events? Go to www.cose.org/smallbizmatters.

PRESENTED BY

52 TIPS FOR YOUR BUSINESS

#41 – Retain Your Clients Year After Year The key to a successful business is building relationships that go beyond onetime projects and provide ongoing value to retain clients year after year. You want [V ILJVTL H ]HS\LK WHY[ULY PU H JSPLU[»Z enterprise and someone they grow to value today and for years to come and make sure they see you as more than just a vendor or supplier. You want to show your client they are more than just a revenue stream. The more you identify with them as the person and the company they are, the stronger the bond.

“Your word is part of that bond, so always follow through on your commitments” says Paul Kithcart, President of Group Transportation Services. “This shows your dedication and frees your client of worry.”

That freedom from worry builds trust and clients prefer sticking with a business

they can trust, rather than rebuilding with another vendor.

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October 19

By The Numbers

34 Paul Kithcart, President, GTS

Cleveland was ranked by NerdWallet as being the 34th most entrepreneurial friendly city in the world. Access to capital, networking and training opportunities were among the drivers boosting entrepreneurs in Cleveland, according to the study.

SOURCE: NERDWALLET

KEEPING ENERGY COSTS DOWN In recognition of National Energy Awareness Month, each week in October, Small Business Matters will publish an energy tip to help you be PRUH HĴ FLHQW LQ \RXU HQHUJ\ XVDJH 7RGD\ŖV WLS

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10,000 SMALL BUSINESSES

Goldman Sachs 10,000 Small Businesses Program at Tri-C Spurs Both Revenue and Job Creation Northeast Ohio entrepreneurs who completed the Goldman Sachs 10,000 Small Businesses program at Cuyahoga Community College (Tri-C®) outperformed the broader economy while exceeding national averages in revenue growth and job creation.

Nearly two of three participants in the 10,000 Small Businesses program at Tri-C reported increased revenue at their JVTWHUPLZ PU [OL Ä YZ[ ZP_ TVU[OZ HM[LY graduation, and more than 40 percent hired more employees.

By comparison, less than half of smallbusiness owners nationally saw revenue growth while only 22 percent added jobs, according to a survey by the National Small Businesses Association.

“The 10,000 Small Businesses program at Cuyahoga Community College has delivered on its goal to strengthen local companies and grow the regional economy,” said Alex Johnson, president of Tri-C. “With every graduate and success story, we build toward a better tomorrow in Northeast Ohio.”

The results at Tri-C mirror those detailed in a study released today by Babson College.

The report “Stimulating Small Business Growth: Progress Report on Goldman Sachs 10,000 Small Businesses” details the progress of the thousands of entrepreneurs who have completed the program.

The roll call of graduates includes Randy Golenberg, owner of Spark Your Brand, a product marketing and merchandising company based in Chagrin Falls. He said the time spent in 10,000 Small Businesses created a foundation to build his business. ¸0[ HSSV^LK TL [V ^VYR ºVU» [OL I\ZPULZZ PUZ[LHK VM ºPU» [OL I\ZPULZZ ¹ .VSLUILYN ZHPK ¸@V\ SVVR H[ [OPUNZ PU H KP LYLU[ ^H` HUK Members of the ninth graduating class of the [OH[»Z PU]HS\HISL ¹ Goldman Sachs 10,000 Small Businesses program gather at the completion of their program.

To be accepted into the program, PHOTO COURTESY OF CUYAHOGA COMMUNITY COLLEGE participants must demonstrate a ¸;OL YLZ\S[Z JVUÄ YT [OH[ ZTHSS I\ZPULZZLZ commitment to growing their businesses continue to play a central role in spurring and creating jobs within their community. economic growth and job creation in their Each spends 12 weeks at Tri-C studying communities and nationwide, and we are a business and management curriculum so pleased to see how this program has designed by Babson College, a top-ranked contributed to their success,” said Dina school for entrepreneurial education and Habib Powell, president of the Goldman the academic partner of 10,000 Small :HJOZ -V\UKH[PVU HUK OLHK VM [OL Ä YT»Z Businesses.

Impact Inventing business.

Tri-C faculty customize the curriculum, 10,000 Small Businesses is a $500-million which covers topics such as accounting, initiative to unlock the growth and job human resources, negotiation and creation potential of small businesses across marketing. The program also includes onethe United States by providing better access on-one business advising, accounting [V I\ZPULZZ LK\JH[PVU Ä UHUJPHS JHWP[HS HUK workshops and advice from Goldman Sachs business support services. professionals.

The program debuted at Cuyahoga The application deadline for the next Community College in May 2012. The alumni session of 10,000 Small Businesses is Oct. list recently surpassed 300 business owners 22. Another cohort will begin in early 2016. and entrepreneurs representing a wide i Visit www.tri-c.edu/10ksb or call variety of industries.

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Public Auditorium and Conference Center 500 Lakeside Ave., Cleveland Tickets: $159 for members and co-presenting organizations and chambers of commerce; $310 for non-members

Register now: smallbizconvention.com

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CRAIN’S CLEVELAND BUSINESS z OCTOBER 19 - 25, 2015 z PAGE 3

Ohio’s shale industry isn’t about to crack

BY DAN SHINGLER dshingler@crain.com @DanShingler

It’s tough times in the oil and gas business.

Prices are down and have been for a while, drillers have dramatically slowed the rate at which they’re drilling in Ohio and many energy companies invested in the Utica Shale have cut costs and laid off employees.

But Ohio still has a great chance to not only continue to cash in on the Utica shale’s natural gas, but also to capitalize on its ethane by building an ethylene processing and plastics industry around the shale play, says a national expert on the petrochemical industry.

Tom Gellrich, a noted expert on ethane and the related chemical industry gave that upbeat message to an audience of about 150 people at the Utica III conference, held by the Canton Regional Chamber of Commerce on Oct. 13 at Kent State University’s Stark County campus.

Gellrich is one of the best experts to hear from when it comes to the ramifications of Ohio’s ethane, said David Kaminski, vice president for public policy and energy for the Canton Chamber and the man most responsible for its Utica summits.

Gellrich not only follows ethane production, but has close ties to chemical companies that are the end market for ethane-related products — which has made him a sought-after speaker at events like the one in North Canton. Gellrich is also particularly interested in whether the Ohio region gets a new cracker, just as local economic developers are, Kaminski said. And Gellrich had some favorable predictions on that front.

“I think by the end of 2020, we’ll probably have three or four” ethane crackers in the region, predicted Gellrich, founder of Philadelphiabased TopLine Analytics. He’s a former chemical engineer who now follows the ethane industry and consults for major U.S. chemical companies.

Get cracking Crackers are processing plants, usually big, multi-billion-dollar endeavors, that take ethane and “crack” it to produce ethylene — the chief feedstock from which polyethylene and related products, like plastics, are derived.

If he’s right, it would be a big deal for not only Ohio, but the entire region. In fact, as Gellrich was speaking in Canton, officials from Ohio, Pennsylvania and West Virginia were meeting at a separate conference to discuss how their states could become ethane processing centers, rather than becoming merely drill sites with extractive economies.

Gellrich predicts that one of the largest crackers proposed for the region — Shell’s big $4 billion project in Beaver, Pa., just across the Ohio River — actually has the best chance of getting built.

While Shell has not given the project a formal green light for completion, it has already spent more than $100 million on the project, mostly on engineering work, Gellrich said. Shell

also recently agreed to pay nearly $70 million to move some water supplies in the area to help facilitate the project too, according to recent media reports out of Pennsylvania.

What might be more telling, however, is that Shell has cancelled other large projects, but not the Pennsylvania cracker, Gellrich said. That includes its proposed drilling in the Arctic, offshore drilling in South America, a project in Qatar and a gas-to-liquids project in Louisiana.

“Shell is not shy about pulling out of projects. ... They’re continuing with their project here in the Appalachian basin, though,” Gellrich said.

Other projects that have been announced are less likely to proceed, but some will and others will be announced, Gellrich predicts.

For example, Gellrich believes the Appalachian Resins cracker initially planned for Munroe County won’t get built. That facility, which is tiny compared to the crackers proposed

by Shell and others, was recently put on hold by its Texas developers — not because it was a bad idea eco-

nomically, but because its investors feared it could not compete with other larger projects for labor and other resources.

Other larger projects proposed by international firms, such as the $5 billion cracker proposed by Odebrecht of Brazil in Parkersburg, W.Va., or the $5.7 billion Belmont County cracker proposed by Thailand’s PTT Global Chemical, have a better chance, he said.

The Odebrecht plant will likely be slowed by political and legal issues in Brazil — where its CEO is currently jailed and involved in a major corruption case — but the incentives are too great for international chemical companies not to build here, Gellrich contends.

That’s because ethane, which crackers use to make chemical feedstocks like polyethylene, costs half as much in the United States as it does in China or even in places like the Middle East, where ethane is made from naphtha at much higher costs.

With most of the U.S. supply of natural gas and ethane now coming from SEE SHALE, PAGE 8

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z OCTOBER 19 - 25, 2015 z CRAIN’S CLEVELAND BUSINESS

City’s appeal of jock tax is a Hail Mary

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to the members of the inaugural Tailgate Starting Lineup! This group consisted of Team CF’s finest philanthropic “players”; all of whom worked together to fundraise in support of the Cystic Fibrosis Foundation’s important mission. These outstanding individuals collectively raised over $39,000 of the $62,000 brought in through the event and their extraordinary efforts will help us to make CF one day stand for Cure Found.

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“If I were a justice at the U.S. Supreme Court, I would not vote to take this case.”

— J. Donald Mottley, of counsel Taft Stettinus & Hollister LLP “If I were a justice at the U.S. Supreme Court, I would not vote to take this case,” Mottley said. “(If the case were heard) I also probably would not find that the Ohio Supreme Court decision was incorrect.”

In the meantime, nothing actually changes. The city still is collecting taxes in the same way and no tax refunds have been issued, said Daniel Ball, Cleveland’s assistant director of media relations.

The result could have big implications, though, for the city, other taxing authorities, professional athletes and even workers in other industries, including entertainers and real estate agents.

Living on a prayer If the appeal is successful, Cleveland will continue to collect jock taxes based on the method that’s been in place since 1991.

If the Ohio court’s ruling is upheld, the city will have to revamp its tax code, but it’s not a given that will go right to the duty-days formula.

Ball, the city’s spokesman, said the matter will be reviewed at the end of the appeal process.

According to 2013 documents from the Central Collection Agency, applying that duty-days formula to the tax could result in an estimated $1 million of lost revenue to the city.

And then there are the tax refunds, which could add up fast.

“My guess is there are some refund claims pending, and part of the reason they appealed could be to delay paying those,” Mottley said.

There were two separate but related cases addressed by the Ohio Supreme Court that are at play that involve one-time NFL players Hunter Hillenmeyer, a former linebacker for the Chicago Bears, and Jeff Saturday, a former center for the Indianapolis Colts.

Hillenmeyer’s case argues he was taxed improperly for games played.

Saturday’s case is about how he was taxed by Cleveland when the Colts played against the Cleveland Browns in 2008, but he was injured and recovering in Indiana at the time.

“How in the world can you say you’re going to tax … a person who you say was in your jurisdiction but wasn’t? A player who never set foot in the city should not be taxed by (Cleveland),” Mottley said regarding Saturday’s suit.

The former players are seeking refunds of $5,062 and $3,294, respectively, plus interest based on the difference from what they would’ve been paid under the duty-days model.

Both players were represented in the Ohio court by Stephen Kidder, a partner and tax lawyer with Bostonbased Hemenway & Barnes LLP. He said if the appeal fails, there is a “significant number” of refunds that could come in. Claims could be made for up to the past three years by any nonresident professional athlete who played a game here.

Kidder said attorneys met with the city on the issue back in 2007, but Cleveland “simply refused” to change their method. The cases by his clients are more about principle than money, he said.

“We are not surprised that Cleveland is appealing. It is certainly the city’s right to do so,” Kidder said, adding that he doesn’t think the city has made a strong enough argument for the U.S. Supreme Court to agree to review the case.

“The city has fought these cases for seven years, but we think the Ohio Supreme Court’s decisions are well reasoned and very persuasive,” he said. “We are confident the decisions will be upheld, and we look forward to securing the refunds to which so many players are entitled.”

Shane Kerr Ohio Lift Truck Sam Miller Representing the Miller family Mary Ogrinc Lake Health Julie Waring KeyBanc Capital Markets

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Cleveland’s last-ditch effort to preserve its method for taxing nonresident professional athletes is a deep ball that some experts say probably won’t connect.

The city has petitioned the U.S. Supreme Court to review an April 30 decision by the Ohio Supreme Court that ruled its method for assessing income an athlete is taxed on, which calculates an individual’s income tax based on the total number of games played in a season, referred to as the “games-played formula,” as unconstitutional because it violates players’ due process rights.

The court said the city could keep its so-called jock tax if it applies the duty-days formula, which includes days players practice, travel and have meetings, among other things, as days worked. “The games-played method, on the other hand, recognizes what the professional athlete is hired to do — play in games,” wrote the city in its brief.

The city also argues the federal court provides certain leeway in applying tax policies as long as they’re deemed “reasonable” methods.

So what is reasonable and what isn’t? For Cleveland, that’s literally the million-dollar question.

What the case largely boils down to is whether the games-played formula results in taxing an individual unfairly — for income that was actually earned outside of the city itself, said Mary Jo Dolson, a partner with the state and local tax group for Skoda Minotti.

Cleveland is the only city in Ohio, and possibly the country, to use the games-played formula. Other Ohio cities with professional sports teams, including Columbus and Cincinnati, apply the much more common duty-days formula.

Because of the inconsistency with how Cleveland assesses the tax versus other Ohio cities, there’s the possibility an athlete may be double taxed.

“It just seems fairer to me to look at all the days versus game days,” Dolson said. “It’ll be interesting to see what the U.S. Supreme Court does with this.”

Yet, Taft Stettinius & Hollister LLP of counsel J. Donald Mottley, a Columbus-based state and local tax attorney, said it’s unlikely the Supreme Court will even take the

case. Mottley is a former Ohio House representative who sponsored legislation that established exceptions in the tax law for athletes and entertainers in the early 2000s.

The odds do seem to stack against the city: The Supreme Court only takes somewhere around 5% of its discretionary appeals, Mottley points out. And it could take several months before justices even decide on considering the appeal.

Molly Wright Representing the Wright Family

CORRECTIONS An Oct. 12, Page 5 story misstated the amount that Tech Elevator charges students who sign up for its software development training program. The 14-week course costs $12,000. Also, one student’s name was misspelled in a photo caption. The correct spelling of his name is Seth Pinckney.

Due to incorrect information provided to Crain’s, the wrong organization was identified in a photo caption that appeared with an Oct. 5 story about United Way’s financial literacy strategy. The photo was of a financial education workshop run by the group Empowering and Strengthening Ohio’s People, or ESOP.

Volume 36, Number 42 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly at 700 West St. Clair Ave., Suite 310, Cleveland, OH 44113-1230. Copyright © 2015

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CRAIN’S CLEVELAND BUSINESS z OCTOBER 19 - 25, 2015 z PAGE 5

The Week

CLEVELAND BUSINESS 700 W. St. Clair Ave., Suite 310, Cleveland, OH 44113-1 1230; Phone: (216) 522-1 1383; www.crainscleveland.com

THE BIG STORY

A NEW CHAPTER

The Townsend Group, a Clevelandbased provider of global investment management and advisory services focused exclusively on real estate and real assets, was sold for $380 million to NorthStar Asset Management Group, a publicly traded real estate asset management firm. The seller was GTCR, a Chicago private equity firm. New York-based NorthStar is acquiring an 85% interest in Townsend.

When the deal closes in early 2016, Townsend’s management team will own the remainder of the business and will continue to direct day-to-day operations.

Well-known former Tremont retailer David Ferrante, who operated Visible Voice Books until he shut it last year, heads a limited liability company that acquired a former funeral home building in the same neighborhood.

Through Professor Properties LLC, Ferrante paid $455,000 for the justclosed Tremont location of Komorowski Funeral Home, 2258 Professor St. Ferrante said he’s not certain how he will use the property.

He also doesn’t know whether he might rent it to a single or multiple users. The only thing he rules out is a residential use.

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HOLD ON Cuyahoga County Executive Armond Budish proposed a two-year budget that holds the line on health and human services spending while investing “in things that will build and grow our region over the long term.” It’s a budget though that, Budish said, is hobbled by an inability to issue any new debt.

“Our credit card is maxed out,” he told county council. “The borrowing well is dry.” Despite some belt-tightening, Budish said he will go ahead with two new economic development programs: one designed to create jobs, and the other to improve the quality of the workforce. The budget grows slightly in the 2016-2017 budget cycle, to $2.85 billion from $2.77 billion in 2014-2015.

UNIFYING A GLOBAL NETWORK WITH ONE BRAND. McGladrey is changing its name to RSM.

JUSTICE IS SERVED Barbara Byrd-Bennett, the Chicago public schools CEO who used to run the Cleveland Metropolitan School District, pleaded guilty for her role in an intricate kickback scheme. ByrdBennett, 66, faces 7½ years in prison.

The judge in the case is not expected to sentence Byrd-Bennett until early next year. Byrd-Bennett was part of a scheme to steer $23 million in contracts to her former employers in exchange for bribes and kickbacks that netted her more than $2 million. The money was steered to two Chicagoarea executive education training firms where she had worked as a consultant.

SEEKING A TRANSFORMATION Cleveland Clinic and the Hebrew University of Jerusalem announced a joint effort to raise at least $15 million over the next five years to develop a global Center for Transformative Nanomedicine. The virtual effort is designed to advance research in the emerging field of nanotechnology, which uses nanoparticles invisible to the naked eye to create new drug delivery systems and other medical technologies that could save lives.

END OF AN ERA Longtime Lorain County Community College president Roy A. Church announced he will retire on June 30, 2016. Church has served in the role since 1987. The college plans to launch a national search for his replacement — a process that could take six to eight months. LCCC hired The Association of Governing Boards, a Washington, D.C.-based firm, to conduct the search. During Church’s tenure, enrollment at the community college has increased from about 9,000 students to more than 15,000 today.

Since 1926 McGladrey has been a champion for growing businesses. That continues today with our team of audit, tax and consulting advisors dedicated to taking the middle market to the global market. And now our expansive network, with firms in over 110 countries, is unifying as one brand.

On October 26 we are coming together as RSM to take you to even greater heights.

Visit rsm us.com to learn more.

On October 26, 2015, McGladrey LLP, the U.S. member of RSM International, is changing its name to RSM US LLP. Visit rsmus.com for more information regarding RSM US LLP and RSM International.

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z OCTOBER 19 - 25, 2015 z CRAIN’S CLEVELAND BUSINESS

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Area restaurants desperate Dan Bryan has a goal of one day owning his own food truck. Yet for now, the 22-year-old Lakewood resident works as a line cook at Butcher and the Brewer on East 4th Street and takes classes at Cuyahoga Community College’s Hospitality Management Center.

Bryan’s hectic schedule has him getting up early to take RTA’s Red Line to Public Square, taking classes all day and working at night. Sometimes, he only gets a few hours of sleep before he has to turn around and do it all over again.

Lee Chilcote Chilcote is a freelance writer and editor who has written for Vanity Fair, Next City, Belt and other publications. He is managing editor of Fresh Water Cleveland.

Yet he believes his hard work will pay off, in part because he loves what he does and he could have his pick of jobs in Cleveland’s growing food scene.

“It’s hard to find good quality cooks that have a passion for the industry,” he said of the worker shortage affecting Northeast Ohio restaurants. “That’s a lot of what we’re doing here — creating better restaurants, making the culinary scene more like New York or San Francisco or other big cities.”

As Cleveland’s restaurant scene continues to heat up, it’s creating more competition for highly sought skilled labor. Moreover, with expectations running high thanks to trend-setting venues like Michael Symon’s Lola and Jonathon Sawyer’s The Greenhouse Tavern, as well as a proliferation of new restaurants, the skill sets expected of workers have also risen. That’s created a hiring crunch unlike anything seen

in years, and pretty much every chef is talking about it.

Eddie Tancredi, executive chef at Adega at The 9 downtown, agreed that well-trained cooks like Bryan are as good as gold these days. Tancredi is hiring workers on the spot who have a strong work ethic and the right mentality, even if he doesn’t have a job for them. Chances are, a position will open up within a week or two and he’ll be able to bring them on full-time.

“Our population is not growing, but there are a lot of restaurants opening up at a very rapid pace,” he said. “There are a lot of jobs out there, but there aren’t enough people to sustain the jobs. It’s not just finding talented people — it’s finding anybody.”

Karen Monath, associate dean of Tri-C’s Hospitality Management Center, gets calls daily from desperate chefs. “Culinary is a specific skill set,” she explained. “It’s easier for someone in the industry to train on customer service if they have the personality. But the skill set required for culinary arts is much more involved. If we can bring them a student who has good knife skills and a great work ethic, they are so happy.”

Tri-C has about 500 students enrolled in its program and turns out about 150 graduates per year.

Monath lamented that she doesn’t have more. “I wish we had 1,000 students,” she said. “The demand is out there — we could get them jobs.”

Courtney Bonning, owner of Bon Bon Pastry and Café in Ohio City, said that although she’s had low turnover among her staff, the industry is experiencing major growing pains.

“It’s a complete issue,” she said.

“When Punch Bowl Social in the Flats has to hire 250 people to staff their operations, where are you going to get those people? They’re going to come from other restaurants.”

The term for servers who flit from restaurant to restaurant within the

industry is “restaurant jumpers.”

Chefs have developed their own solution to this problem.

“The number one thing I look at on a resume is past jobs,” said Brandt Evans, chef at Pura Vida at Public Square, which has an ongoing partnership with Tri-C. “I look at calendar dates. If you’re a jumper, I don’t waste my time. I won’t even call references. I’m going to find someone who wants to make this their home.”

Tancredi said the worker shortage increases the cost of doing business.

Many owners are overstaffing to make sure they have enough workers and control for high turnover rates. “Then your labor costs go out of control,” he says. “When you hire a new person, there’s paperwork, training and you’ve got to put two people on a station where you’d normally have one.”

With demand for workers exceeding supply, wages are also trending up. Tancredi pays the Metropolitan’s standard rate of $12-$16 per hour, yet he knows of independent restaurants paying $18 per hour for skilled cooks.

He has been able to retain 70% of his original staff by promoting from within. He tries to create a positive environment where employees have work-life balance. Restaurant managers typically work 12-13 hour days five days a week, but Tancredi tries to give them two full days off.

“I treat people with respect — I’m not a yeller,” he said of the stereotype of chefs who berate their employees. “I tend to praise in public and discipline behind closed doors.

I try to work on people’s strengths.”

Evans said that chefs must treat employees well if they want to stay in business. “The old days of chefs running around screaming … if you want to lose your employees, you can act like that,” he said. “When these new places open up, you have to convince them that the grass isn’t greener somewhere else. It’s greener if you stay with me.”

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CRAIN’S CLEVELAND BUSINESS z OCTOBER 19 - 25, 2015 z PAGE 7

“It’s hard to find good quality cooks that have a passion for the industry.

That’s a lot of what we’re doing here — creating better restaurants, making the culinary scene more like New York or San Francisco or other big cities.�

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— Dan Bryan, left, who is taking classes at Tri-C’s Hospitality Management Center while working as a line cook at Butcher and the Brewer.

(LEE CHILCOTE)

e for skilled help Teri Agosta, general manager of the new downtown Hilton, said that good training programs are key to success. Hilton has a customized program used to train new employees on everything from pouring an espresso to setting a table. When the new hotel opens in April, Hilton will need 150 employees for the restaurant alone. “There are challenges everywhere you go to finding the right people,� she said. “You can find many people who want to work, but you need to find people who are committed to presenting the level of service you want to present. We think we’re going to be able to do that. We know it’s going to be a challenge.�

Hilton is working with Tri-C and other organizations to identify workers eligible for these jobs and offer them the training they need.

IN MIDTOWN

“The question is, how do you make a seamless transition?� said Monath, describing the partnership between Tri-C and the hospitality industry. “We want to be able to get workers with no skills into jobs at the hotels. Then they’ll come back to us for training, and then go back to work at the hotels.�

Monath hopes that Tri-C’s partnerships with community-based organizations will increase the pool of skilled labor in Cleveland’s restaurant industry. “There’s long-term demand for these jobs,� she said. “Cleveland is being established as a foodie town.�

To contact Lee, email clbfreelancer@crain.com. You also can follow him on Twitter @LeeChilcote.

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HELP

CONTINUED FROM PAGE 1

trained by the Host Committee and must commit to working at least three, four-hour shifts helping visitors to find venues, hotels and restaurants; greeting them at hotels and airports; providing some transportation and working essentially as community goodwill ambassadors throughout the event.

There will be some opportunities to work ahead of the event — mostly on area cleanup and beautification projects — but the bulk of the volunteers are needed to work during the convention itself.

They will all be in uniform — the design for those has not been determined — and will be working not only in downtown Cleveland, but across the region at hotels, transportation venues and meeting places.

“Volunteers will definitely be in uniform,” Richman said. “Many of the volunteers will be downtown because that’s the center of activity as far as the convention itself goes. But we’re also very happy to have volunteers at more than 100 hotels in the area.”

And yes, volunteers will get to keep the uniforms, which will be provided for free. “I can assure you are not the first person who has asked that question,” laughed Richman, who said

SHALE many volunteers have asked if they could keep their uniforms as a historical keepsake.

“Not only will you be able to participate in history, but you’ll have a nice souvenir,” she promises them.

The training that volunteers receive will be a mix of general training on customer service, highlights of Cleveland and the surrounding region and some general procedures, coupled with site-specific training for specific venues and events, Richman said. So far, all of the volunteers that have signed up have been individuals, but that will change as the Host Committee begins to call for groups of 25 or more volunteers in the next few months. For those groups, the Host Committee will provide on-site training whenever possible.

Richman said she’s confident that the Host Committee will meet its volunteer goal and that area organizations will solidly support the effort to raise more volunteers.

“We have a lot of corporate interest and even from other groups — civic and service organizations,” Richman said. “We have a high confidence that they’re going to follow through.”

Many area corporations are eagerly awaiting the convention and plan to hold events and to provide addi-

tional volunteers and support, but most have not yet gotten to the point of putting together groups.

“We are actively looking at ways we can support the Host Committee efforts, including potentially engaging our employees as volunteers, but we haven’t made any formal decisions yet on how that will look,” said Kelly Amen, a spokeswoman for PNC Bank in downtown Cleveland and one of the city’s largest employers.

For now, those interested in volunteering can do so online, at www.2016cle.com/volunteer, but Richman said that right now that’s just for a general signup. Sometime in the spring, the site will be updated to allow volunteers to register for specific time slots and locations, Richman said, including at venues or locations that might be closer to their homes than downtown Cleveland.

Volunteers will get a chance to help Cleveland put its best foot forward and to shine with many visitors who have never been to Cleveland before.

But there is one perk they won’t get — access to the floor of the convention itself.

That will take place inside Quicken Arena, and the Republican Party’s Committee on Arrangements will provide the staff for that venue, Richman said.

CONTINUED FROM PAGE 3

the Appalachian basin, there’s a local glut of ethane that is too big for the petrochemical industry to ignore.

“There’s plenty of room for many more plants — maybe as many as a dozen or more. … Ethane availability is a non-issue,” Gellrich said.

Currently, natural gas processors in the Utica region say that enough ethane is already being “rejected” — sent into the pipeline with methane to be burned as fuel — to supply several crackers. More will be rejected as drilling proceeds, until a cracker is built in the region, they say.

One word: plastics Gellrich says the U.S. ethane glut is a game changer for nearly the entire nation’s industrial base. The shale boom has already resulted in more than $125 billion in investments in U.S. chemical facilities, he said, with more on the way. If a cracker is built in or near Ohio, it will only attract more of those investments to the region, Gellrich and other industry proponents contend. Currently, most of the ethane processed in the U.S. is handled on the Gulf Coast, but bottlenecks are developing there, and there’s a big cost savings to processing it close to the source in Ap-

palachia, Gellrich said.

“There are hundreds of millions of dollars in potential saved transportation costs,” he said, both from being close to the gas wells and close to the U.S. plastics industry that uses the crackers’ products.

“Customers for the end products are local. Akron and the Canton area is the birthplace of the U.S. plastics/polymer industry, which came from the tire and rubber industry.

Within a 250 mile radius, still, 50% of the North American plastics processing exists,” Gellrich added.

Ultimately, he predicts, plastics will become so cheap that they will replace other materials. They’re already to the point that things like composite decking materials are becoming cheaper to use than real wood. In five years, consumers will find very little in terms of glass or metal packaging, including bottles and cans in the grocery store, he said.

That’s pretty much the message that economic developers in northern Ohio want to hear.

While there’s little to no shale drilling done in the far northern part of the state, there is ample industry that officials hope will benefit from cheaper natural gas and related feedstocks.

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CRAIN’S CLEVELAND BUSINESS

Opinion From the Publisher

Cyber hackers think big, and so should you

Editorial

Answering bell Ohio legislators didn’t waste a lot of time swapping stories about what they did on their summer vacation.

Instead, they reconvened on Sept. 30 and got down to business.

A week later, they passed legislation that has a good chance of bringing much-needed transparency and accountability to Ohio’s broken and rightfully ridiculed charter school system.

We’ll resist the urge to ask what took so long. Instead, we’ll congratulate the General Assembly for finally putting the needs of Ohio’s children before those of some deep-pocketed charter school operators who have had their way in Columbus for far too long. The future of our state and a desperately needed educated workforce depends on forward-thinking lawmakers willing to set aside their own self-interests.

The legislation, which is waiting Gov. John Kasich’s expected signature, was passed in a nearly unanimous vote. Credit goes to the bipartisan conference committee that actually improved the revisions that the Ohio Senate made to House Bill 2 earlier this year.

Rep. Teresa Fedor of Toledo, the ranking Democrat on the House Education Committee and a charter school critic, praised the effort. “I believe that this bill is moving in the right direction to begin to prevent the waste, fraud and abuse that we’ve seen in the past,” she told the Associated Press.

It isn’t perfect. But the bill moves Ohio’s education system in the right direction because it would: Stop sponsors consistently rated as ineffective from overseeing charter schools

Require accurate attendance reporting Demand transparency about who sits on community schools’ boards Prohibit charter operators from keeping property paid for by taxpayers after the operator has closed a school Prevent “sponsor shopping,” where schools in poor standing try to skirt performance standards by finding a new backer Restrict conflicts of interest for operators, board members and vendors Require more public reporting on charter schools’ performance and spending

The key to the law’s success will be enforcement, and that’s where the Ohio Department of Education will need to step up its oversight of the state’s charter school system, which receives $1 billion annually in public funding to serve roughly 120,000 students. There’s real reason for concern. This summer the department’s charter schools chief resigned after admitting to scrubbing data to make online schools look better. And soon, $71 million in grant money from the U.S. Department of Education will be flowing through the Ohio Department of Education to expand charter schools in Ohio.

This law, and active enforcement, will help ensure those new schools do the job they are intended to do.

Due diligence has never been more important. That money must benefit the intended target — Ohio’s children — rather than opportunists looking to enrich themselves.

PUBLISHER: John Campanelli (jcampanelli@crain.com) EDITOR: Elizabeth McIntyre (emcintyre@crain.com)

CLEVELAND BUSINESS

MANAGING EDITOR: Scott Suttell (ssuttell@crain.com)

Credit card numbers are small potatoes.

Big-time computer hackers are after proprietary information: source code, pharmaceutical research, legal documents, chemical formulas, blueprints, product designs and other trade secrets that can be sold on the black market for huge profits.

The tactics hackers are using to sneak into business and government networks should curl the hair of any business leader. A few months back, Symantic released a disturbing report on “Butterfly,” a mysterious and sophisticated group of hackers that it described as “highly capable, professional attackers who perform John corporate espionage with a laser-like foCampanelli cus on operational security. The team is a major threat to organizations that have large volumes of proprietary intellectual property, all of which is at risk of being stolen by this group for monetary gain.”

Last week, Ron Taton, president of Cleveland-based IntelliNet Corp., told me about a real-life incident he’d learned about from a security-software vendor. Here’s a version of how it went down, and it’s right out of a spy novel: You’re a chemical engineer at a large company that’s working on something special, let’s say new battery technology that will triple the range of electric cars. It could mean billions in revenue and freedom from Mideast oil.

You’re proud of your work — you should be — and you include your employer info on your Facebook page. And like most guys (yes, it’s a man in this example), you’re competitive, so you make sure to post photos and updates from your victories at Tuesday night trivia at the local sports bar.

One night, as you wait for a pitcher to be filled at the bar, a beautiful woman two stools down says hello. You look to the left, then the right and realize she is talking to you. You say hello back, and a conversation begins.

She becomes even more attractive when she talks about technology and lets it slip that she works for IBM. You tell her you’re an engineer and love tech. She offers to pay for your pitcher. You forget all about trivia night as she discusses her work and gives you a business card with the iconic blue IBM logo. “I have some swag in my car,” she says. “Give me a second.” As she heads out to the parking lot, you pop a breath mint and pinch yourself.

“Merry Christmas,” she says when she returns, placing on the bar an IBM coffee mug, T-shirt, mouse pad and 8-gig flash drive. The next morning at work, the coffee tastes extra rich in the new mug, the mouse moves so smoothly on the new pad, and with a new confidence, you push the thumb drive into your computer.

Within seconds, the company’s entire email network is compromised, and hackers begin work scraping messages, documents, attachments and images.

The most sophisticated hackers may “clean up” after they’re done, removing traces of the breach and making it even more difficult for companies to know they’ve been violated — until a competitor in Russia or China unveils a product developed with stolen intelligence.

“Everything is hackable,” says IntelliNet’s Taton. “Assume you are going to be hacked. There is no such thing as a trench around a network. It doesn’t exist.”

Instead, he says, companies need to be able to be ready to respond, mitigate and play defense.

And skip trivia night.

WRITE US: Crain’s welcomes responses from readers. Letters should be as brief as possible and may be edited. Send letters to Crain’s Cleveland Business, 700 West St. Clair Ave., Suite 310, Cleveland, OH., 44113, or by emailing letters@crain.com. Please include your complete name and city from which you are writing, and a telephone number for fact-checking purposes.

SOUND OFF: Send a Personal View for the opinion page to emcintyre@crain.com. Please include a telephone number for verification purposes.

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CRAIN’S CLEVELAND BUSINESS z OCTOBER 19 - 25, 2015 z PAGE 11

Web Talk Re: Tech Elevator’s software bootcamp This is exactly the model being pursued in other parts of the country with great success.

Cost is only relevant if graduates are indebted and can’t find good work.

Sounds like there’s a guarantee that students will find work. So far, community and technical colleges have proven unable/unwilling to address this specific need — and to build the right relationships with employers.

— Paul Allen $12,000 for a 14-week program??? Ummm, seems kind of pricey considering community colleges charge about $60 per credit hour.

— Joe

Re: Slavic Village’s revival I love my neighborhood; it’s not a comeback. We have ALWAYS been on a path of perfection.

— Barbara Anderson

Re: Rock Hall nominations I have zero respect for the Rock Hall nomination committee when disco bands like Chic can be up for induction, yet real rock bands like Bad Company, Steppenwolf and The Moody Blues can’t even get nominated. It is no wonder why real rock bands like Mötley Crüe snub the Rock Hall.

— TruthHurts2013

Personal View

Levy is wise investment

BY SCOTT MUELLER Cuyahoga County has so much to offer individuals, families or businesses considering relocating to the North Coast. Our lakefront, low cost of living, short commute times and access to exceptional health care all help make the sale, but there’s one other factor that stands out in attracting top employees to our region — our world-class arts and culture.

Those of us who live here too often take the quality and breadth of our arts and culture for granted. But give a potential recruit the opportunity to listen to one of the world’s greatest orchestras, to experience one of the nation’s best art museums and to be entertained at the country’s largest performing arts center outside of New York City, and you’ll see what a valuable rarity we have in our arts and culture sector. And that’s just the beginning.

Fortunately, Cuyahoga County voters realize the high value of our arts and culture sector. In 2006, they made a valuable public investment by overwhelmingly passing a penny-and-a-half per cigarette tax to support our arts and culture. As we all know, large civic ideas can sometimes fail to meet expectations.

But the arts and culture levy has proven to be one of the most successful and impactful initiatives in our region’s history.

Since 2007, a public agency called Cuyahoga Arts and Culture has conducted transparent, competitive grant processes to distribute levy funds. In the years since, they have awarded more than 1,000 grants throughout Cuyahoga County totaling more than $125 million. Projects and programs funded by the levy take place in every community in this county.

The immensely successful arts and culture levy is set to expire in 2017, which is why a 10-year renewal, Issue 8, is being sought on the November ballot. Even for those Cuyahoga County residents who aren’t patrons of the arts, Issue 8 — which is not a tax increase — represents an excellent investment in our collective future. Issue 8 makes economic sense: Arts and culture support thousands of local jobs and generate hundreds of millions of dollars in direct annual economic activity. Issue 8 enhances education: The arts and culture levy helps to pay for numerous, diverse educational programs throughout Cuyahoga County. In 2013, for example, organizations that received funding from the levy provided a wide range of educational programs for children in the county, including more than 21,000 classes and workshops, nearly 19,000 field trips and hundreds of internships and apprenticeships.

As Cleveland’s revitalization is being noticed nationally, having such a notable and vibrant arts community greatly complements the city’s resurgence.

First-time visitors to Cleveland are frequently dazzled by many aspects of what we have to offer. But this can’t continue without your help. A vote for Issue 8 will help ensure that our healthy commitment to the arts will continue. It became apparent years ago that the cultural offerings as we know them could not continue at the same high level without some kind of public support. While private gifts to the arts in Cuyahoga County continue to be very significant, this small tax on cigarettes provides a vital supplement.

I am proud to support Issue 8, because the arts and culture levy works. I respectfully ask that Cuyahoga County residents join me in voting for Issue 8 this fall. It has worked for our economy, for our children and for our wellfounded civic pride.

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HOW BAD IS THAT LEAK?

New Day Ketterer CEO will have a wide-ranging role

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Call it a sign of the times.

Canton-founded law firm Day Ketterer recently created a CEO position to help lighten the managerial load shouldered by managing partner Rob Roland and help carry firmwide objectives through to new leadership when Roland eventually moves on, which he has no immediate plans for.

The role recently was filled by Jennifer Novotny. She’s not an attorney, but she’s no stranger to the firm, which she served for about two years as the director of client services and development before taking a position of managing client events with KeyCorp. She returned to Day Ketterer for the new role. “(Roland) needed something more than just a director of administration. He and the executive committee have this vision of short- and long-term goals and still need to

Jennifer Novotny practice law,� Novotny said of her new role. “There’s still that level of day-to-day administration that needs to be taken care of, but now Roland and the executive committee can look to me to help drive some larger initiatives.�

While Roland says the position’s duties will evolve with time, the CEO generally will focus on core management functions, including human resources, marketing (which is

Novotny’s background), branding, client development, facilities, equipment, productivity and information technology.

The person also takes on the duties of representing the firm in the community — not unlike the publisher of a newspaper.

The CEO also will serve as an adviser to the managing partner while additionally providing an outside perspective to the executive committee. Besides injecting a fresh viewpoint, Roland said the position is intended to help carry long-term goals throughout the firm itself. “What I’m trying to do is provide a sense of continuity between managing attorneys over time, so basically what I put in place will not disappear, and we won’t step backward in the future,� Roland said.

The CEO position is not unheard of, though it tends to be more common with particularly large firms.

Day Ketterer has grown in recent years, but with 50 attorneys and five offices in Northeast Ohio, it’s just SEE DAY KETTERER, PAGE 16

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AllianceBernstein doubles down on Cleveland

BY JEREMY NOBILE jnobile@crain.com @JeremyNobile

Global asset manager AllianceBernstein sees big potential in the Cleveland region.

The firm’s private wealth management division, rebranded this year as AB Bernstein (formerly Bernstein Global Wealth Management), has grown into one of Northeast Ohio’s largest money managers since breaking into the market

through acquisition 40 years ago with about $40 million in assets under management. Today, the Cleveland office in Key Tower manages roughly $4.5 billion — a sizable chunk of the near half-trillion the parent company manages worldwide. Those total local dollars rank the firm third in Northeast Ohio, according to Crain’s list of largest money managers, published March 30.

Cleveland managing director Shane Bigelow likes to call it the biggest firm no one’s ever heard of.

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While growth has ebbed and flowed through the years, those assets under management mark about a 13% annualized growth rate. So it’s fair to say the word is out to some degree. Yet, the firm is doubling down on the Cleveland market by bolstering its bench of advisers and punctuating its presence in the community in hopes of capitalizing on the surge of money and transition of wealth it sees potential in here amidst the area’s veritable renaissance.

“We’ve refocused the firm on a lot of core strengths and gotten away from trying to be everything to everybody and are focusing more on where we’re headed,” Bigelow said.

“We see other firms not executing correctly on their Ohio strategies in general, and we see Cleveland and frankly Columbus as great opportunities to grow the business.”

Cleveland, though, is the star in this show.

“The reason we see so much potential here is because there’s a real growth story in Cleveland,” he said.

Reaching out Bigelow, who’s been with the firm for the past decade, came to the Cleveland office from New York two years ago with the goal of growing this market. He said he has quickly grown both fond of, and bullish on, the region. Among his first goals was attracting new, local advisers. He has doubled that headcount to eight from four, recruiting folks like recently appointed vice president Kara Lewis, who came to the firm from Beachwood’s Winslow Asset Management just last month.

Part of the strategy to grow the business, Lewis said, is somewhat obvious: convincing new potential

independence

Shane Bigelow clients that the firm is as plugged in locally as smaller, local competitors while promoting a message of value.

The minimum investing amount is $500,000, and fees range from about 1.25% for smaller clients to 30 basis points for the largest, according to the firm’s investment adviser brochure filed with the U.S. Securities and Exchange Commission.

That push is no accident, though.

The name change to AllianceBernstein came with the first of the year and is part of the company’s strategy to craft its image as a premium money manager. The firm traditionally had been more commonly associated with research in the investing world, its executives say.

“The Bernstein people associate us with is in sell-side research and maybe (offered) a handful of products. That’s not what Bernstein is today,” Lewis said. “With both growing internal teams and acquiring other managers from the outside, we have a lot more reach.”

The firm’s focus is its Dynamic Asset Allocation model — an approach

researched heavily through the 2000s and implemented in 2009 that has created stability in portfolios and helped the firm make some smart investment decisions in recent years.

Bigelow said that while he laments the model wasn’t finished before the recession hit, its application today has created steady returns over the past five years while movement in portfolios has shrunk by about 10% overall.

But how does an already large player continue its growth trajectory? The key is targeting potential new clients. And in the eyes of Bernstein execs, Cleveland is ripe for the picking, and they’re positioning themselves to grab the fruit.

Cleveland’s revitalization and the economic recovery means more money is floating around. Couple that with a generational shift in wealth and a paradigm shift in the minds of rich people — who are becoming increasingly affluent at younger ages — and the firm is confident it can draw new clients.

Younger affluent investors and businesspeople are gravitating slightly more toward partnering with money managers like Bernstein today, Bigelow believes, as opposed to the large banks and trust companies their parents and grandparents invested with.

It also helps the firm is doubling its local charitable contributions and considering advertising to get its name in front of potential clients.

“If you see the rebirth of an area from a demographic standpoint, which (Cleveland) is certainly going through, and you see the multigenerational shifts in wealth coming here,” Bigelow said, “it’s a great time for a firm like us and others to become a larger player here.”

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the 20th-largest law firm in Northeast Ohio, according to Crain’s 2015 law firms list.

And it’s also not uncommon for the C-suite positions to be filled by individuals with non-legal backgrounds. After all, they take different skill sets, though the most business savvy lawyers typically grow into managing partner roles.

But the embrace of the non-lawyer CEO is something that’s becoming increasingly common in the wake of the last recession, the ripples of which have forced the legal industry to evolve as the overall spending for legal services constricts compared with the levels seen even 10 years ago.

The change at Day Ketterer does partly underscore that shift in the business model.

“There is a general trend toward realizing that to efficiently run a business, which law firms still are, you really need skills that are often very different from what it takes to run a case or do a corporate deal,” said Craig Boise, dean of the ClevelandMarshall College of Law. “And it is in the interest of the firm, particularly a firm that’s a little smaller, to keep those firms doing what they do best and delegating aspects of firm management to people who do that best.”

He added that it’s likely that more law firms could add other similar executives to their business models over time like others have.

As is the case with other firms with CEOs, Novotny’s efforts will expect-

edly enable lawyers, including Roland himself, to focus on legal work and client development.

“This is really an opportunity to have a professional be able to step up out and carry on those initiatives on behalf of those attorneys,” Novotny said.

Since just taking the job in late summer, some of those objectives haven’t been laid out yet. However, she is working on updating the outdated employee manual now, for example — a significant priority, Roland said, that simply took time that’s hard to find for other execs.

While the CEO still answers to Roland and the executive committee, intuitively, it’s possible that lawyers might be resistant to a nonlawyer directing their priorities.

“I think that while I might’ve had a bit of trepidation, that hasn’t been the case internally,” Novotny said.

“It’s been a very smooth transition and well received.”

However, on the flip side, the CEO position itself gives not only attorneys but all staff included someone to approach with thoughts or concerns as opposed to going right to the managing partner, which could be intimidating in some cases. And it helps that Novotny is already a familiar face.

“Internally, she is able to interact with all the staff in a way I can’t,” Roland said. “Now, we have this CEO who is not intimidating, and she will bring information to us. Her touch can be better than mine.”

Gong xi.

Félicitations.

Glückwünsche.

Congratulazioni.

Congrats.

No matter how you say it, here’s to a job well done.

CONGRATULATIONS TO THE CRAIN’S CFO OF THE YEAR 2015 CLASS

We are proud to recognize Eric Rychel, for his exceptional leadership and dedication to the growth of Aleris. Your vision has, and will continue to allow us to THINK BEYOND.

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Focus CFO OF THE YEAR

For the ninth year in a row, Crain’s is honoring the region’s top fiscal officers. These men and women are much more than number crunchers. They are strategic thinkers and trusted advisers. And while it’s often the top executives that get all the press, the CFOs are doing much of the work behind the scenes.

Also, the Golden Ledger Award — which this year is being presented posthumously — honors one CFO who, throughout his or her career, has honorably represented an organization with exemplary performance, including leadership, market and monetary growth, strategy, integrity and contributions to the overall financial industry.

This year’s CFO of the Year class was selected with the help of our esteemed panel of judges, which included Brian Broadbent, president and CEO of BVU: The Center for Nonprofit Excellence; Charlie Cooley, former CFO of Lubrizol; and Ralph Della Ratta, managing partner and CEO of Western Reserve Partners.

GOLDEN LEDGER AWARD ROBERT MATEJKA Retired CFO of RPM If his professionalism didn’t precede him, one of his many stories, usually delivered over a whiskey cocktail, probably did.

When not burning the midnight oil at work, Robert Matejka was often found surrounded by friends and family either at home or the local watering hole, telling stories with an olive-laced Manhattan in one hand and a smoke in the other.

Matejka’s work ethic and high-level financial acumen has left an impression with the colleagues he worked with and mentored. But to the many who called him a friend, his charm and personality will live on forever.

Well, that and his stories.

His friends will try and retell them, but simply can’t capture Matejka’s trademark, soft-spoken delivery.

Drawn to a career in finance, Matejka retired as chief financial officer from RPM International Inc. just a few years ago.

Matejka died in June. He was 72.

Matejka was the CFO other CFOs, and countless accountants, would go to with questions.

Savvy with the most technical elements of the accounting process, he was revered as a kind of legend at RPM, said Ralph Della Ratta, managing director at Western Reserve Partners LLC. He was also known for his mentorship. As a professional, though,

he never trumpeted his work or sought accolades — even though the people around him knew he deserved them.

“He was just such a nice guy. He didn’t beat his chest and say, ‘Look at me.’ He’s the guy people should recognize as terrific financial executive,” said Della Ratta, who also sat on the Crain’s CFO judging panel.

Della Ratta first met Matejka as a young investment banker at McDonald & Co., and they quickly became friends outside their day jobs.

“It was great working with him,” he said.

“He was easy to work with, had incredible knowledge and he knew where my knowl-

edge gap was. He didn’t have a big ego and wouldn’t make you feel dumb. And I don’t think anybody would say anything differently.”

Matejka’s legacy is in the knowledge he passed along to others and the impact he’s left on the companies he’s served.

He joined RPM in 2000 and is credited with helping grow the company to the massive enterprise it is today. The business was an “acquisition machine” during that time, Della Ratta said.

“He spent his career working for quality organizations. This was the highest level you could be at,” said Steve Todd, an independent financial consultant today who retired in January 2011 from Ernst & Young as a global vice chairman.

“From an accounting perspective, he could deal with all facets of being a public company, either as a corporate controller or CFO.” Matejka mentored Todd when the latter was a new staff accountant at Ernst & Young (then Ernst & Ernst) in the mid 1970s. Their paths would continue to cross professionally throughout their careers after Matejka left the firm a few years later, and the two stayed close throughout their lives.

Matejka displayed quiet humility at work while pushing for the recognition of others, but was equally primed to debate with friends.

He liked to talk politics and sports and preferred when someone disagreed with him on a given subject so the argument

could continue.

“People say he was confident talking to CEOs or bartenders,” Todd said. “He just enjoyed people, and that’s a very endearing trait for someone to have.”

Todd still laughs when thinking of his jokes, but doesn’t like to repeat them for fear of botching the punchline.

“He was a very hard worker, very dedicated to his job,” Todd said. “He was really smart, but really enjoyed having a good time. He always had a joke and told great stories.”

Not surprisingly, he brought out the best in others.

“He demanded hard work, but would have fun, too. He was not about being a boss who was over them, but was with them in the trenches getting stuff done.

And he’d spend time with the people he worked with to get to know them,” Todd said.

“I pattern my own work style after him. I saw the benefits of having a good working relationship with your coworkers — both personally and professionally.”

Todd likens Matejka to comedian George Burns, pausing before punchlines that would have people “cracking up” laughing.

But even when entertaining, he was still confidently soft spoken — so much so his audience often stopped what they were doing and leaned in closer to zero in on his voice.

“He made work fun,” Todd said, “and he was a lot of fun to be with.”

— Jeremy Nobile

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CFO OF THE YEAR ERIC RYCHEL Aleris; Beachwood

ROBERT TONKINSON

About two years ago, Aleris developed a strategic plan focused on strengthening its global rolled products business, and ultimately making that the core of the company’s dealings. It was Eric Rychel, now the company’s executive vice president and chief financial officer, who helped make that a reality.

Rychel orchestrated Aleris’ acquisition of Nichols, a major supplier in this part of the world. It was an extremely accretive transaction, according to the nomination, because it strengthened Aleris’ position as the top supplier of rolled aluminum products to North America’s building and construction industry.

Moreover, according to the nomination, the acquisition, completed in April 2014, “has already achieved its robust synergy target and is on track to deliver significantly more shareholder value than originally anticipated.”

“He’s done a good job not only doing the work, but just in terms of his ability to step up and be a much more visible leader in the company, not just the finance group,” Aleris CEO Sean Stack said. He added, “He’s been able to make a mark on the company in a positive way.”

In addition to orchestrating the Nichols acquisition, Rychel helped complete Aleris’ transformation into a pure-play rolled products company by spearheading the sale and ultimate divestiture of two businesses so it could reinvest in its rolled-products efforts. At the start of the year, Aleris divested its recycling

During his time at Mercy, Robert Tonkinson was known for his approachable demeanor and his ability to translate sophisticated financial speak into a more universal language. That was particularly helpful for the leadership at the Mercy Foundation of Lorain County, the health system’s philanthropic arm, according to its president and Tonkinson’s nominator, Scott Pember.

“Mr. Tonkinson’s intimate understanding of the important role that foundations play in today’s ever-evolving health care market made him a true champion for the Mercy Foundation of Lorain County,” Pember said.

Tonkinson recently left the organization, but after his departure, Pember said in an emailed statement that his “proficiency in hospital operations and finance helped the foundation grow exponentially in the last years.”

With Tonkinson’s help, for instance, Pember said the foundation was able to secure about $1.3 million to purchase a new MRI machine.

In addition, Pember said he “empowered leadership within the foundation to become their own advocates throughout budgeting and capital acquisitions processes.”

And according to the nomination, Tonkinson’s approach to profitability and stability were critical as the health system navigated the constantly evolving health care landscape in the wake of the Affordable Care Act.

Mercy Health; Lorain

and specification alloy business and its extrusions business. Both transactions closed within one day of the other. The sale of both businesses, according to the nomination, greatly simplified the Aleris portfolio and allowed the management team to focus its resources on the rolled products business.

“It was a very complex year of transactions,” Stack said. “He was the point guy on all of those from a transactional standpoint.”

Rychel also has a passion for mentoring.

Earlier this year, he visited a group of seniors at Euclid High School to discuss his role and encourage them to consider a career in finance. Afterward, according to the nomination, one of the students wrote him a note saying that if he doesn’t make the NBA, his backup plan was to be a CFO. — Timothy Magaw

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Tonkinson, meanwhile, is a veteran financial mind, with more than 25 years in the health care and finance space. From 1987 until 2002, for example, he worked for Carilion Health System in Roanoke, Va. He started his career as a finance analyst and climbed the corporate ladder, ultimately serving as the system’s vice president for financial planning and budget and assistant treasurer.

He also worked for the Urbana, Ill.-based Carle Foundation. He has a bachelor’s in public policy and a master’s in health care administration — both from Brigham Young University.

— Timothy Magaw

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DAVID HEGEMAN The Millcraft Paper Co. Cuyahoga Heights Millcraft Paper Co. has more than a chief financial officer in David Hegeman, according to company president Travis Mlakar.

“For so many great reasons, Dave Hegeman is a standout — a truly superlative individual who is highly regarded by all that know him,” Mlakar said in nominating his head of finance.

Yes, Hegeman does a good job of keeping the company’s books, accounts and overall finances in order, just as any competent CFO would do.

He also has worked to guide Millcraft through two successful acquisitions, as both a financial expert and strategy adviser to the company.

But his value goes beyond simple job duties or even strategic input — Hegeman is the whole package, Mlakar said.

“Dave is a steady leader with sharp focus,” Mlakar wrote.

“He is an analytical strategist and fiduciary champion.

“He is a mentor and coach to his team and others; he is a trusted confidant to and member of the Board of Directors and executive team; he is a voice of reason and a formidable resource for many; he is a diligent comrade who always seeks to understand the situation at hand.

“He is fun and interactive.”

If you’re starting to think that Hegeman is a star at Millcraft, you’re right.

And more than that, he’s a star at a company that is itself excelling.

For the last two years, Cuyahoga Heights-based Millcraft has been included in the Crain’s 52 — a recognition of the fastest-growing companies in Northeast Ohio presented by FirstMerit Bank and Crain’s Cleveland Business.

Mlakar said his CFO consistently provides the company’s leadership with the solid facts and information needed to guide the business to success, while constantly keeping the company focused on improving its processes and overall performance.

Hegeman is constantly pushing for improvement, he said. Hegeman has improved the company’s ability to forecast its cash flow, reduced its debt and enabled it to increase its margins.

“Under Dave’s guidance we have increased profitability by nearly 20% and will record the most profitable year in company history in 2015,” Mlakar said.

But while Mlakar credits Hegeman with having a large role in the company’s success, he’s also quick to point out that his CFO is a great mix of business acumen with a memorable personality.

“He is known for his sense of humor and robust laugh; for his powerful speaking voice that certainly

commands attention; for his dedication and commitment towards the better good; for always doing the right thing; for his love of family; for his respect for all others.

Dave has developed a professional persona that reflects a balance between business partner/strategist and advocate,” Mlakar said.

Finally, Hegeman provides the one thing that every company

president wants from the company CFO. “As the President of Millcraft, I rest easy knowing that Dave has the lead in financial, accounting, and legal affairs, among others.

“He is a professional value and a friend to Millcraft, and we’re proud to have him on our team,” Mlakar said.

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CFO OF THE YEAR THOMAS P. ARNOLD

SHARON A. DUMAS

Western Reserve Academy; Hudson

City of Cleveland

Thomas P. Arnold “is great at making sure the debits equal the credits” at Western Reserve Academy, according to the nomination. And he has done a lot to help the 189-year-old boarding and day school keep an eye on its long-term financial stability.

You know, the type of stuff you would expect from a CFO. But he also has the kind of personality that allows him to work well with others.

“He has become a trusted resource and works hard to help his colleagues and listen to their needs,” the nomination stated.

Arnold, who has spent more than 20 years helping educational institutions manage their finances, was hired by Western Reserve Academy in July 2014.

Since then, he has helped the venerable school prepare itself for the future.

Because of Arnold, the academy, which serves grades 9 through 12, now has a more precise way of projecting revenue it receives from students. The school now uses what head of school Christopher Burner described as the net tuition revenue approach, which is used to calculate how much families actually pay after financial aid provided by the institution is taken into account.

Arnold also has worked “to understand the changing independent school mar-

ket,” and he has used his financial expertise to describe the value that Western Reserve Academy provides in a way that makes sense to the families of prospective students, the nomination said.

And it’s because of Arnold that the academy’s latest annual audit went so smoothly, according to Burner.

“The audit was as painless as we’ve ever gone through, and it took less than one week,” he said.

However, Arnold’s communications skills and his ability to bond with others also have helped him do his job, Burner said.

“He brings a great deal of experience and efficiency along with a human touch,” he said.

And communication is key to the job.

The nomination noted that Arnold is helping manage multiple facility improvement projects on campus. Thus, he works closely with the school’s director of facilities and independent contractors “to make sure that they understand our facility needs from a cost perspective” while “preserving historic integrity,” the nomination said.

Arnold also has worked to help employees prepare for the future. He helped the company implement health savings accounts, which allow employees on high-deductible health plans to

put money from their paychecks into tax-free savings accounts for medical expenditures. As part of that effort, he helped educate employees on the importance of being proactive about taking care of their health, Burner said.

Arnold also brought in financial planners who gave employees free advice about what they need to do to prepare for retirement, Burner added.

He’s big on giving credit to other employees as well. Last year, he instituted the Leonard S. Carlson Award to recognize the academy’s most dedicated staff members. Carlson spent nearly 40 years as the school’s former business manager before retiring in 2009.

— Chuck Soder

Cleveland, like nearly all major cities, has had its financial challenges over the last decade. But when news reports focus on the most challenged cities, Cleveland isn’t mentioned and Sharon Dumas, finance director since Frank Jackson became mayor in 2006, is part of the reason.

Though she is always quick to credit the mayor, the city has, under Dumas’ financial leadership, restructured its debt to take advantage of lower interest rates and has maintained a balanced budget without significantly cutting city jobs or services.

Her nomination credits her ability to forecast financial impacts and control costs with positioning the city to have the resources available to fund the capital, infrastructure and safety projects needed to prepare for the coming Republican presidential convention in July.

One key to the city’s ability to avoid turbulent financial waters has been the introduction under Dumas and Jackson of fiveyear budget plans, which have included becoming self-insured, increasing employee contributions to health care premiums, ongoing budgetary reviews and end-ofyear balance discussions with department heads. The nomination credits that longrange planning with helping to avoid financial crises for the last five years.

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ily added to Duma months, beginning mas took on the jo the city’s public ut lic Power and the w At the time, Da spokesman, told know what they s thing done, find a b mas) is an incred tremendously tale all the balls in th any.”

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BARBARA WELKER Lifebanc; Cleveland Dumas’ portfolio. For seven nning in October 2014, Duthe job as interim director of lic utilities — Cleveland Pubthe water department. e, Dan Williams, the mayor’s told The Plain Dealer, “You hey say: If you want somend a busy person to do it. (Duncredible multitasker. She’s y talented and able to keep in the air without dropping y, the city’s 2014 budget was y the Government Finance sociation with its “Distinget Presentation Award.” ming to Cleveland City Hall, d as finance director for the Cleveland and district credit LTV Steel Co. an her career with the city in as assistant director in the development department. s commissioner of neighborpment before taking over ope struggling $200 million EmZone neighborhood program before moving over er two finance department angling the $1.1 billion city won her accolades.

When the city of Detroit fell into bankruptcy in 2013, Kevin O’Brien, now a retired Cleveland State University researcher who followed city finances for decades, told Crain’s that Dumas ranked with George Voinovich’s first finance director, William Reidy, who dug the city out of default in 1980.

“I look at the finances of the city historically since Bill Reidy, and we’ve had great finance directors with the exception of one or two,” O’Brien said. Dumas, he went on, “has done a great job, better than anyone since Reidy.” — Jay Miller

In 14 years at Lifebanc, Barbara Welker has risen from an accounting assistant to its chief financial officer.

Her current role takes on added importance for a nonprofit that is the organ procurement organization for all of Northeast Ohio.

“There have been times where we have to put a freeze on things,” Lifebanc CEO Gordon Bowen said.

“She’s very vocal in saying, ‘Hey we have to look at this.’

“She understands that every dollar we spend is a dollar we can’t use to save more lives. She takes that to heart.”

According to the nomination, Welker helped Lifebanc save about $1 million in its Medicare Cost Report, and she recently aided the organization in a winning battle for $500,000 in property taxes. She also has reduced costs.

The nomination said Welker “seamlessly” transitions between outreach and administration, “acting as a conduit between transplant centers, donors and recipients.”

Knowing everything that goes into organ and tissue donation — the waiting lists, blood tests and extensive hospital bills — makes her “exceedingly effective at her job,” the

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nomination said.

Bowen said Welker is crucial in another manner.

“It’s hard to find good people,” Bowen said.

“For me, that’s only half the battle.

It’s believing in the mission and the work you do.”

Bowen added that Welker “does a great job making sure she holds people accountable with the decisions we make, and she always is a strong advocate on the financial side.”

Lifebanc’s goals, according to the nomination, “are not entirely monetary.” It’s concerned with the people it helps, not the bottom-line numbers.

“She’s very conscientious,” Bowen said of Welker.

“She’s been here 14 years, and she’s very dedicated to the mission, vision and values.

“She really puts the organization ahead of others. Everything we do here leads to saving and helping more lives.”

The mother of two is the treasurer of Donate Life Ohio, a statewide nonprofit, and is the secretary and a member of the finance committee for the Association of Organ Procurement Organizations.

She shares best practices in both community service roles, and the organizations compare missions, costsharing tips and communication styles.

“She’s also a mentor for a lot of our directors — people who are not always proficient in finances,” Bowen said.

“She helps them understand the budget and profit-loss margins. She’s been an asset in that regard as well.”

— Kevin Kleps

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CFO OF THE YEAR PHILIP FRACASSA Timken Co.; Canton In the separation of the Timken Co. and its steel business, which became a new public company called TimkenSteel Corp., Phil Fracassa stayed and helped guide it through the split, becoming its chief financial officer after nine years with the $3.1 billion global maker of bearings, transmissions, gearboxes and related products based in Canton.

Fracassa had been senior vice president of planning and development since 2012, after joining the Canton company in 2005 as vice president-tax.

Along the way, he held a series of senior financial positions, including senior vice president of tax and treasury and senior vice president and group controller of the bearings and power transmission business, the businesses that remained with Timken after the spinoff of the steel business.

The spinoff of a major line of business like Timken’s steel operation is fraught with financial implications and Fracassa

played a key role in that transaction.

“Phil has been a key contributor to the success of The Timken Co. since joining us in 2005, and in late 2013, prior to being named CFO, led the team that tackled one of the most challenging and complex initiatives in the company’s history — the separation and spinoff of our steel business,” wrote Timken president and CEO Richard Kyle in an email.

“Phil has been instrumental in re-positioning Timken and improving investors’ overall perceptions of the company.”

According to his nomination, Fracassa has overseen numerous acquisitions and in his tenure as CFO has cut costs and steered the company through a number of risk-management decisions.

Fracassa began his career with what has become PricewaterhouseCoopers in Detroit. Before joining Timken, Fracassa was director of taxes for Visteon Corp., an automotive electronics supplier.

He also served as a tax attorney with

General Motors.

A native of Warren, Mich., and a certified public accountant, Fracassa holds a bachelor’s degree in accounting from the University of Detroit and a law degree from the University of Detroit’s Mercy School of Law. In 2011, he completed the Advanced Management Program at INSEAD in Fontainebleau, France.

Outside the office, Fracassa is a member of Financial Executives International, the Manufacturers Alliance for Productivity and Innovation, or MAPI, and the Association for Corporate Growth.

He was included in Treasury & Risk magazine’s lists of 40 distinguished finance executives under the age of 40, according to his official biography.

He also is on the board of the Canton Regional Chamber of Commerce, where he is immediate past chairman, and the Cleveland advisory board of the FM Global, a commercial property insurance company.

— Jay Miller

BDO CONGRATULATES

THE 2015 CFO OF THE YEAR CLASS and our clients and friends who are being honored.

Marty Butler, Exact Care Pharmacy Phil Fracassa, The Timken Company Kevin Herendeen, Fathom Bob O’Brien, Forest City Enterprises Bill Renniff, Baldwin Wallace University Eric Rychel, Aleris Barbara Welker, LifeBanc BDO Cleveland 32125 Solon Road, Cleveland, OH 44129 / 440-248-8787 BDO Downtown Cleveland Hanna Building, 1422 Euclid Ave., Suite 1500, Cleveland, OH 44115 / 216-325-1700 BDO Akron 303 Springside Drive, Akron, OH 44333 / 330-668-9696 Accountants and Consultants www.bdo.com © 2015 BDO USA, LLP. All rights reserved.

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JOHN GRAVES Girl Scouts of North East Ohio; Cleveland At any large organization, it’s rather uncommon for C-suite executives to devote much time to the workers or volunteers on the ground.

Yet, John Graves, chief financial officer for the Girl Scouts of North East Ohio, has a reputation for getting his hands dirty, working directly with the troops, parents and 15,000 volunteers that comprise the nonprofit’s regional council here.

That’s what makes him such an excellent CFO, said Jane Christyson, CEO of the Northeast Ohio group. From gaining a more comprehensive understanding of the overall organization and the wants and challenges of its members to implementing sweeping changes, Graves’ leadership and hands-on approach is punctuated by his familiarity with the volunteers.

“I’ve not seen that in anything I’ve worked with, where the financial guy is very much serving staff and functions on the staff side,” Christyson said. “And it really drives a lot of the innovation he does. He really un-

derstands the volunteers and isn’t sitting in some ivory tower.”

Some of Graves’ most impactful initiatives in his seven years with the nonprofit have benefitted not only the local group but the entire $12 million organization. For one, Graves led the discussion on hiking the price of Girl Scout cookies by 50 cents a box. While Tagalong fans might’ve griped over the increase, the change bolstered the group’s bottom line by $700,000, or nearly 6% of the group’s total annual revenue.

When the group rolled out new credit card machines for collecting cookie payments, Graves met with local groups to help them learn the hardware.

“I’ve just never seen (a CFO) so involved with the volunteers,” Christyson said.

His efforts have even garnered the attention of the national Girls Scouts of the USA group, where he is helping lead a CFO task force evaluating the financial status of local Girl Scout groups and another looking to automate the accounting processes for all 74

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While many CFOs are becoming increasingly familiar with how technology fits into their jobs and organizations they oversee, Graves wrote the book on it — literally. He’s written several books on information technology published by the American Institute of CPAs and has spoken on the topic across the country.

Graves’ blood is rich with the volunteer spirit, which is perhaps why he connects so well with them.

Beyond his efforts with the Girl Scouts, Graves is president of the board of trustees of Eastminster Presbytery, a body that oversees 50 Presbyterian churches in Northeast Ohio, president of Kent Presbyterian Church and is an honorary life member by the Presbyterian Women for his work with youth.

“He really loves his job and believes in the mission of the Girl Scouts,” Christyson said.

“He is truly passionate, and I think that all drives him to do the very best job possible.”

— Jeremy Nobile

The Baldwin Wallace community congratulates

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CFO OF THE YEAR JENNIFER L. DEMMERLE

WILLIAM M. RENIFF

Northeast Ohio Regional Sewer District; Cleveland

Baldwin Wallace University; Berea

It’s not easy being chief financial officer of a public agency. Not only does your performance and financial reporting face internal scrutiny — but public inquiry as well.

Demmerle, and the Northeast Ohio Sewer District she serves, pass those tests with flying colors.

For 2014, as it has for many years since Demmerle’s took over financial leadership in 2007, the sewer district won both the Distinguished Budget Presentation Award and the Certificate of Achievement for Excellence in Financial Reporting from the National Government Finance Association, putting the district in the top tier of government agencies.

Solid financial leadership has been particularly important for the sewer district since it is in the midst of a $3 billion, 25-

For being known as what he is — a numbers guy — William Reniff also is known for using his financial skills to advance the mission of the private liberal arts-based university.

Reniff can be spotted at the student union helping direct freshmen as they arrive on campus and helping find funds to add programs that help boost its enrollment.

For example, the nomination said Reniff has been involved in items ranging from supporting a drive to add a lacrosse team to finding the funds to turn the wrestling coach’s position from part to full-time, which helped the school garner more students. At the same time, he has worked to find funds to support new programs in areas from nursing to speech communication disorders that have attracted additional students.

One example of that is securing more than $10 million in Ohio State Historic Preservation Tax Credits that helped repurpose a former church for its music complex and update residence halls. Reniff’s participation in that effort is such other colleges and nonprofits throughout the state call him for advice on how to undertake such efforts. Another is finding funds to continue to improve the school’s digital technology, such as replacing computer printers throughout the college with a more cen-

year capital improvements program. Already, the district has issued more than $1 billion in bonds during Demmerle’s eight years as top financial officer.

Project Clean Lake is a court-mandated program that is designed to help the district meet water quality standards under the federal Clean Water Act. “As CFO for the district, Jennifer must keep a tight rein on operational costs,” said Julius Ciaccia Jr., the district’s CEO, in an email. “She has creatively structured a combination of debt and revenue enhancements, through rate increases, that not only sustain our AA bond ratings, but are supported by our local elected leaders and customers.”

Ciaccia noted that Demmerle must track more than $300 million in capital expenditures annually, in addition to

managing an operating budget that spends more than $200 million in revenue from sewer charges.

“She truly knows the ins and outs of SEE DEMMERLE, PAGE 27

ROB GUDBRANSON Invacare; Elyria When Rob Gudbranson took over as chief financial officer of Invacare Corp. in 2008, the company was swimming in debt, had more staff than it could sustainably pay, and federal regulators were breathing down the neck of the health care equipment maker.

So, no pressure there.

Today, Gudbranson remains as the company’s CFO, but the trouble that existed when he took that post is no longer around. Those familiar with the company, including its founder and largest individual shareholder, said that’s not a coincidence.

“I made a list of everything that was wrong with the financial department. It

was a two-page list, and I figured it would take him a couple of years,” recalls founder Mal Mixon, who was still CEO in 2008.

“Six months later, he said ‘what’s next?’” Mixon recalls.

In the years since Gudbranson took over its finances, Invacare has conducted a string of strategic divestitures, painfully realigned its staffing, shed more than $500 million in debt and returned to growth mode.

Gudbranson worked closely with Mixon to do that, and even served a stint as interim CEO of the company for two years, until current CEO Matt Monaghan SEE GUDBRANSON, PAGE 27

tralized approach.

That approach is also reflected in the budgetary challenges that inevitably face a college.

Robert Helmer, Baldwin Wallace president, said that when Reniff briefs him on budget challenges, “he is able to bring them forward and suggest solutions that are not threatening to people. He knows how to show a way forward.”

Reniff’s style is direct — which is reflected in his own four-line bio on the university’s list of officers despite his 30 years in finance and management for organizations such as St. Vincent Charity Hospital and Kaiser Permanente. At Baldwin Wallace, he oversees the university’s physical plant and human relations department, which Helmer points out gives Reniff a role with both SEE RENIFF, PAGE 26

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BILL MANN

CRAIG RICHMOND

Joseph, Mann & Creed; Twinsburg

The MetroHealth System; Cleveland

In more than 20 years of working together, Tina Pereces has always seen Bill Mann as a can-do kind of guy.

“He’s very cool and collected,” said Pereces, the director of sales and marketing at Joseph, Mann & Creed, an accounts receivable management firm in Twinsburg that Mann helped found in late 2000/early 2001. Pereces has worked with Mann and the firm’s CEO, Perry Creed, since 1992, when they all worked at a prior collection firm.

“You always know that what something is happening and needs immediate attention, he’s going to get done what needs to get done,” Pereces said of Mann, noting that was one of the reasons she was “willing to go along for the ride” with the launch of the new firm.

She said Mann and Creed both worked

When Craig Richmond arrived at MetroHealth in 2010, the health system’s long-troubled finances had begun to stabilize, but there was still concern in the community about the hospital system’s future. Today, MetroHealth’s books are better than ever and employee morale is high.

MetroHealth CEO Dr. Akram Boutros credits much of this to Richmond, now the health system’s senior vice president and chief financial officer.

Richmond, who joined the system first as its vice president of revenue cycle, is described in his nomination as a “fearless change agent” — one who is adept at finding problems, drilling down the facts and making them right.

“He has a thirst for learning and has a belief that things can get better,” Boutros said. “He believes that improving quality, the finances, the service to the community and transforming health care can all be done at the same time. That’s unusual.”

In 2014 — the year Richmond assumed the CFO role — MetroHealth’s operating revenue ballooned from 2013’s figure of $855 million to $905 million. Moreover, operating income inched upward from $18.9 million in 2013 to $35.2 million in 2014. Those are particularly significant jumps, given that during the same time health systems across the country were contracting.

Although it might be considered a nontraditional role for a CFO, Richmond is closely involved in the operations of the health system. For one, he’s spent time in the operating room observing cases such as a hip replacement and open-heart surgery. According to the nomination, this helps Richmond “fully understand various job needs so he can be an informed advocate in support of the appropriate resources for effective job performance.”

SEE RICHMOND, PAGE 32

for nearly a year without taking salaries, instead plowing the money back into what has become a 75-employee company with annual revenues approaching $6 million.

Mann’s also “a great judge of character,” Pereces said, and has skills that go well beyond what might be seen as traditional CFO functions.

Indeed, the nomination noted that Mann “manages not only finance, but also technology, compliance and is a member of the sales team.” His responsibilities include “all finance and accounting functions, including strategic financial oversight related to budget management, cost-benefit analysis, reporting, efficiency opportunities, system integration and forecasting,” the nomination stated.

Mann also is “the mainstay behind the automation and systems development of our software solutions,” according to SEE MANN, PAGE 28

KEVIN HERENDEEN Fathom; Valley View Kevin Herendeen, chief financial officer of marketing firm Fathom, is generous about sharing the skills he’s learned over the years.

It’s rare to find someone with Herendeen’s experience at a young company like Fathom, said CEO Scot Lowry. He has skills in both the financial arena and in management, and he coaches the younger employees. He’s an “incredibly genuine” leader, Lowry said.

Herendeen arrived at Fathom about five years ago. His previous experience includes roles as CFO and as general manager of manufacturing database publisher Harris InfoSource, where he led the initiative that resulted in a sale to busi-

ness information firm Dun & Bradstreet.

He continued leading Harris and eventually was promoted to vice president of sales, small business credit.

The nomination said that the company’s directors and vice presidents “have benefited greatly from Kevin’s experience and insights as it relates to decisions that balance growth, investment, profitability and leadership development.”

And Herendeen has done a lot to help the company’s younger employees, many of whom are new to the business concepts valued by Fathom’s clients, the nomination said. He has provided training on critical financial topics, as well as on SEE HERENDEEN, PAGE 26

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CFO OF THE YEAR CHRISTOPHER J. HOLDING TimkenSteel Corp.; Canton

CFO

OF THE

Christopher J. Holding was critical to the split of TimkenSteel Corp. and Timken Co. in 2014.

Indeed, TimkenSteel’s CEO, president and chairman, Tim Timken, calls it one of Holding’s most significant accomplishments, noting that the company pushed through it with little-tono hiccups. Most chief financial officers spend their careers putting a company together, not splitting one apart, he said.

“You just can’t underestimate how challenging it was,” Timken said.

The nomination said that while Holding was helping with the spinoff, he also created a “new, right-sized financial team for TimkenSteel” and set up a new structure for the balance sheet. He and his team were also responsible for estimating how much it would cost TimkenSteel to operate independently and for making sure the steel business was meeting the needs of reporting as a public company. The nomination also noted his efforts to lower costs in the face of economic challenges in TimkenSteel’s first year.

“He spearheaded change efforts while obtaining buy-in from manage-

ment and employees, and helped people detach from existing passions to embrace new ways of doing business,” the nomination said.

Timken referred to Holding as his “right-hand guy” on the split and now as his partner in managing the lean company. Today, Holding is TimkenSteel’s executive vice president and chief financial officer.

The company had net sales of close to $1.7 billion in 2014 and about 2,500 employees in Ohio at the end of June of this year. While with Timken, Holding served in roles including senior vice president of tax and treasury, global business segment controller and global operations controller, the nomination said. Holding is involved in the community as secretary and treasurer of the board of trustees of Project Rebuild, a member of the Jackson Local Schools Foundation and treasurer of the TimkenSteel Charitable Fund board, the nomination said.

He also serves on the CFO council of the Manufacturers Alliance/MAPI and the board of the Akron-Canton Airport and is a member of the American Institute of Certified Public Accountants and Financial Executives International.

“As CFO, Chris contributes to TimkenSteel’s success in critical ways,” the nomination said. “He continuously works to establish and build the company’s credibility with both Wall Street and within the industry.

He exhibits ethical and effective leadership in making decisions and managing day-to-day activities, as well as in obtaining buy-in.”

“Finally, Chris is forging a cultural transformation within the company’s financial structure, working to enhance each business unit’s awareness of being part of an independent company, and driving to establish the finance team as a fundamental partner for the business,” the nomination said.

— Rachel Abbey McCafferty

HERENDEEN, FROM PAGE 25 personal finance, and he serves as a mentor to more than a dozen members of Fathom’s team. Lowry said the company has about 160 employees.

“This support has helped many of our client service representatives connect more directly with issues important to our clients as we continue to go up market and become more strategic,” the nomination said. Herendeen

also leads Fathom’s acquisition efforts and has improved the company’s margins, the nomination said — an example being an expansion project where he was able to save more than $200,000. The company’s gross revenue in 2014 was about $18.6 million.

Outside of work, Herendeen is a board adviser for Omaha-based Cole Information and the treasurer for the Aurora Homeowners Association, the

nomination said. He also coaches in the Aurora Youth Basketball League.

Fathom’s mantra is focused on people, purpose and performance, Lowry said. And Herendeen puts an emphasis on how well the company’s people are doing, making decisions through the lens of whether they’re growing.

“Kevin really epitomizes our culture,” Lowry said. — Rachel Abbey McCafferty

RENIFF, FROM PAGE 24 the college’s property and 700 employees as well as overseeing a budget of more than $90 million in gross revenue in 2014. Reniff is sought out for his financial advice and is a guest lecturer on financial management for students pursuing a master’s degree in education. He enjoys working with

a group of students from St. Edward High School in Lakewood, where he is an alumnus, who have an interest in entrepreneurship. Reniff also organizes a day at Baldwin Wallace’s Center for Innovation and Growth to practice “Shark Tank” style business pitches before a group of business professionals.

— Stan Bullard

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GUDBRANSON, FROM PAGE 24 was hired in April. That’s a strong testament to Gudbranson’s “breadth of management ability,” Monaghan says today.

“Both Invacare and the markets it serves have gone through significant transitions in a short period of time,” Monaghan said. “Rob has led the company through its transition with his keen attention to detail and strong financial acumen.”

It’s been tough but rewarding work, said Gudbranson. The most difficult part, he said, was when the company laid off nearly 200 employees shortly after he became interim CEO. But had the moves not been made then, he said, the company would likely have had to have made even more painful cuts later.

“I’m very focused on making sure that we’re going to be strong five to 10 years from now,” Gudbranson said.

Mixon has never been surprised at

the success enjoyed by the man he hired. He watched Gudbranson grow up, when Mixon lived on Stratford Road in Cleveland Heights and was a neighbor.

“He’s laser smart,” Mixon said. “One of the problems with Rob is he always does such a good job where he is that it’s hard to promote him to the next job.”

Mixon obviously has a great deal of admiration for the man who could be considered a protégé — and that admiration flows on a two-way street.

Gudbranson said he’s learned a lot from Mixon through the years, about business generally, as well as entrepreneurialism and manufacturing specifically.

“If I weren’t in finance, I’d probably be running a manufacturing company,” Gudbranson says today.

And why not? He’s already run one and even turned it around. — Dan Shingler

DEMMERLE, FROM PAGE 24 public finance and uses that vast knowledge to best manage the sewer district’s assets as we invest in our region and our Great Lake,” Ciaccia said.

She developed an internal billing department, a task formerly handled

by Cleveland’s water department, and launched the district’s e-procurement system and a web-based payroll system for its 700-plus employees.

Before joining the sewer district as deputy director of finance in 2005,

Demmerle was assistant finance director at the cities of Brook Park and Lakewood.

Beyond the office, Demmerle is a board member of the Ohio Government Finance Association and a member of the board of the Ohio chapter of Women in Public Finance. She also lectures on government finance at Baldwin Wallace University, where she earned her bachelor’s in accounting and finance and her MBA. — Jay Miller

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CFO OF THE YEAR MARC RUBINSTEIN

SEE MANN, PAGE 25

The Free Medical Clinic of Greater Cleveland Cleveland The expansion of health care coverage under the Affordable Care Act dramatically upended the business models of Northeast Ohio’s free clinics, as many retooled their operations to accept patients with insurance. It was a process that came with a few roadbumps, as the Free Medical Clinic of Greater Cleveland knows all too well.

However, Marc Rubinstein, now the free clinic’s chief financial officer, helped bring calm to an otherwise chaotic situation. The clinic, for instance, was designated a federally qualified health center — meaning it could accept Medicaid and Medicare — in June 2012. However, shortly before the clinic’s first site visit from the feds, the clinic unexpectedly lost its CFO, leading to a number of non-compliance findings.

After a brief period in which the clinic’s finance team was overseen by a volunteer loaned executive, Rubinstein, a longtime executive with Hattie Larlham, joined the organization. Under his leadership, the organization reviewed, revised and adopted a number of new policies and practices which helped the organization pass all 19 of the Health Resources and Services Administration’s program requirements.

Rubinstein was faced with building an entire billing apparatus from scratch because free clinics typically don’t bill insurance companies or patients, but community health centers are required by the feds to maximize revenue recovery through such vehicles, according to the nomination. Rubinstein man-

aged to pull this off in just one year.

“What impressed me about him was just how quickly he began to grapple with and understand the world of federally qualified health centers,” Free Clinic executive director Danny Williams said. “You have to immerse yourself in it to understand.”

During his relatively brief tenure with the organization, he’s had a dramatic impact on the organization’s financial management. From a revenue standpoint, according to the nomination, his billing team has been responsible for generating more than $500,000 in new program income. For instance, he also has improved accountability by launching a time-sheet system that allows for more accurate expense allocations.

“You want to work with people who are mature and pleasant to work with. Life’s too short,” Williams said. “Even when we’ve had difficult issues to manage through, I could count on him to bring a calm perspective.”

— Timothy Magaw

the nomination.

While handling such disparate duties, Mann “has maintained stability, managed risk and navigated Joseph, Mann & Creed during a challenging economy and the complicated, everchanging business environment of our industry,” the nomination stated.

He also “recognized the need to diversify into international markets, which resulted in a partnership (with the) League of International Creditors. To that end, (he offered) guidance to mitigate risk when developing a plan for global efforts in order to comply with today’s changing” economy.

Mann is the former president of the International Association of Commercial Collectors and the current president of the Ohio Receivables Management Association.

He’s also a board member of BBB of Greater Cleveland and the past president and a current board member of the Beachwood Chamber of Com— Scott Suttell merce.

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CRAIN’S CLEVELAND BUSINESS z OCTOBER 19 - 25, 2015 z PAGE 29

WILLIAM FURR

MARTY BUTLER

Key Community Bank; Cleveland

ExactCare; Valley View

At KeyBank, William Furr is redefining the role of a chief financial officer.

While all CFOs have a role in a company’s strategy and direction, the Key Community Bank CFO is the bridge — or perhaps ladder in this case — that connects sky-high goals with ground-floor execution.

That element of leadership coupled with superb long-term strategic vision is what separates good CFOs from the great ones, and it’s how Furr is helping redefine the role of the CFO at Cleveland’s largest bank, said KeyCorp CFO Don Kimble.

Furr oversees the company’s more than $4 billion in annual revenue, a job that’s inherently detail oriented.

But he’s known about the company as an outspoken delegator.

Crunching numbers is a common part of the CFO job, but not as common as being a “high-level negotiator,” as he’s described in his nomination.

Some of those skills were tested in achieving some of Key’s latest strategies implemented over Furr’s relatively short tenure with the company, like when he instituted a new accountability model for top market producers.

Furr’s efforts established clear goals for the first time.

While shining a light directly on success and failures, it also led to a new bonus system for those who meet or exceed expectations.

It’s one of the ways the business model was reorganized, and Kimble said it was made possible by Furr’s holistic view of the business and ability to implement change.

More than just a CFO, he’s also considered a “practical strategist,” the nomination said.

While lifting revenues, Furr’s other initiatives have brought innovative approaches to cost manage-

ExactCare Pharmacy went from being a $50 million company to a $98 million company during 2014.

A good thing, for sure, but also not an easy beast to manage if you’re Marty Butler.

He’s the company’s chief financial officer, but he also oversees human resources and plays all sorts of other roles at the closeddoor pharmacy, which is the creator of the ExactPack — a package containing a month’s worth of medication, customized for a particular person.

Without Butler, ExactCare might not have 300 employees, according to Dale Wollschleger, who started the company and is its president.

“Without him leading that growth, we wouldn’t be nearly as big as we are today,” he said.

Wollschleger described Butler as someone who “can take on any role.” He added that he’s adaptable and embraces change.

It might help that he’s worked in a variety of different roles over the years.

For one, he has both startup and big-company experience.

Before joining ExactCare at the start of 2013, he served as CEO of a Cleveland Clinic spinout company called Enforcer eCoaching, a health and wellness coaching company. And before that he

ment.

Among various efforts, Furr oversaw an internal program dubbed “Fit for Growth,” a sweeping expense containment program credited with saving Key $100 million in redundant expenses.

“I work with many others who are good at reporting, but Will understands the procedures.

“He really has the ability to understand the business issues, the drivers of business, and see how it impacts the organization,” Kimble said.

“He really does have a big-picture perspective.”

In the last two years under Furr’s leadership, the community bank has grown pre-tax earnings by 45% while shaving costs 7% through the same period — some pretty strong numbers for a CFO with just more than two years under his belt.

“We wouldn’t be having this success today if he weren’t in that chair,” Kimble said.

“He’s the role model for the way we want to have things managed here at Key.” — Jeremy Nobile

spent more than three years as a vice president at Walgreens, a role that most recently involved overseeing a business intelligence and analytics team.

He joined Walgreens when it bought Cleveland-based Whole Health Management, where he was vice president of operations.

His resume isn’t the only reason why he’s so valuable to ExactCare: Wollschleger said Butler is “respected by the lowest person on the totem pole all the way up to the board.”

He’s trustworthy and he treats his employees well, Wollschleger added. For instance, a few weeks ago, he was in the office handing out cupcakes.

Frank Conway, a senior vice president at Fifth Third Bank, made similar comments in the nomination.

“What I admire most about Marty’s leadership style is that he truly takes a ‘service’ approach towards his role as CFO. “I have had the fortunate opportunity to work with him for several years now and I see it in his daily approach towards ExactCare’s employees, ownership and customers. … Marty has kept a strong focus on making sure that ExactCare is a great place to work along with a great place to be a customer.”

Butler has an accounting degree from John Carroll University and an MBA from Harvard Business School. He also serves on the board of three local organizations: Big Brothers Big Sisters of Greater Cleveland, Town Hall of Cleveland and the Harvard Business School Alumni Club of Northeastern Ohio.

He’s also “a family man who loves his wife and his twin girls,” Wollschleger said.

And he added that Butler “probably runs a marathon every weekend.”

— Chuck Soder

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z OCTOBER 19 - 25, 2015 z CRAIN’S CLEVELAND BUSINESS

CFO OF THE YEAR DAVID HOLVEY

KEVIN R. KRENCISZ Cleveland Sight Center Cleveland Larry Benders has been president and executive director of the Cleveland Sight Center for only six months, but he already can see what makes Kevin R. Krencisz so valuable to the nonprofit.

“He’s a uniquely talented guy who’s incredibly attentive to detail and is able to connect all the dots,” Benders said of Krencisz, the Cleveland Sight Center’s director of administration and chief financial officer since 2010.

The 109-year-old nonprofit serves the needs of Northeast Ohio residents who are blind or have low vision. In addition to offering developmental and rehabilitation services for that population, Benders said, the Cleveland Sight Center runs a call center that offers “competitive employment” for the people it serves. (If you call the 1 800-BUCKEYE travel information service, for instance, the person on the other end of the phone is at the Cleveland Sight Center’s call center.)

That mix of functions places a premium on Krencisz’s ability to “balance tactics from the nonprofit and for-profit worlds, meaning running the organization like a business but with compassion for the clients the organization serves,” according to the nomination.

Benders said the call center requires Krencisz to handle the intricacies of contracts with county and state institutions, while on the traditional social service side of the organization, he’s responsible for helping keep the Cleveland Sight Center on solid financial footing in an era of declining state funding.

“We’re making a difference every day in people’s lives,” Bender said. “It’s critical to have someone like (Krencisz) who’s able to

The Stein Companies; Broadview Heights

see the big picture.”

The nomination noted that Krencisz wears many hats at the Cleveland Sight Center, with his work duties including human resources, information technologies and even marketing functions at the 150-employee nonprofit.

Krencisz led the redesign of the organization’s website, including making it accessible on mobile devices. He also redesigned the Cleveland Sight Center’s annual report to more prominently highlight the organization’s events and activities.

More traditionally for a CFO, Krencisz “reduced the organization’s line of credit from $4 million to virtually zero from 2012 to the present,” the nomination stated. The line of credit had been established to complete a building renovation and to terminate a frozen defined benefit pension plan, according to the nomination; both of those initiatives were meant to reduce ongoing costs.

Outside the nonprofit, Krencisz has served on several boards in recent years, including the St. John Neuman Finance Council, the Strongsville Rotary and the Art House.

— Scott Suttell

In the 10 years he’s been with the company, David Holvey has helped steer Stein Companies through growth and change.

For example, Holvey — the company’s chief financial officer, vice president and treasurer — has been instrumental in more than doubling the sales volume during that time through acquisitions and the growth of the company’s core businesses, the nomination said. Stein, meanwhile, provides services such as slag and scrap processing to steel mills and selling specialty demolition equipment.

Holvey also helped the company launch a new computer system, which has given Stein more financial insights and “greatly improved the integration of cost analysis throughout the Stein Companies,” according to the nomination.

Jim Conlon — Stein’s vice president, general counsel and secretary — said information technology is overseen by a number of people at the company, with Holvey being one of those. “The commissioning of the new computer system was a painful experience that met with a great deal of resistance,” Conlon said in the nomination. “Dave patiently and professionally worked through the issues by prioritizing the problems and systematically coming up with solutions that caused buy-in from all of the ‘stakeholders.’”

The nomination also highlighted Holvey’s work in an acquisition that took place shortly after he joined the company, praising his “insights and practical approach.” He has strong skills in cash management, accounting and taxes and good relationships with lenders, vendors and tax professionals that benefit the company. Stein has about 850 employees, Conlon said.

We pay thousands of people every day.

Today we pay a few compliments.

Outside of his work at Stein, Holvey is involved in the Revere schools booster club, as well as the Ohio Society of CPAs and the CFO Roundtable Group, the nomination said.

“The management team values Dave as a business partner, not just for his financial acumen, but because he has a good understanding of the Company’s operations and strategic vision,” controller Angela Madigan said in the nomination. “Dave has high ethical standards and integrity that he exemplifies in his interactions with the management team, lenders, suppliers, customers and staff.”

Holvey’s quiet leadership and athletic background help him stand out, Conlon said.

He said he has found that athletes, especially those who play team sports, often communicate well and respect other people’s roles.

And Holvey, a former Case Western Reserve University basketball player, “really embodies that,” he said.

“Dave is a great team player,” Conlon said.

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20151019-NEWS--31-NAT-CCI-CL_--

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CRAIN’S CLEVELAND BUSINESS z OCTOBER 19 - 25, 2015 z PAGE 31

STEVEN J. BURGER Employers Health Purchasing Corp.; Canton

BETH HALL Affinity Advisory Network; Canton

It’s good to have a guy like Steven J. Burger around when you’re operating in “an environment where change is constant,” according to colleague Mike Stull, chief marketing officer at Employers Health Purchasing Corp.

The organization, which helps employers buy and manage health insurance purchased through group contracts, has roughly tripled in size since 2006, in terms of employment and revenue.

Burger came on board in 2010 and has been a stabilizing force since then, Stull said.

That’s partly because of the way he relates to the organization’s 25 employees, according to Stull.

“People don’t hesitate to go to Steve and ask a question,” he said.

The nomination form said that Burger knows “how to lead in a way that others desire to follow.”

“Steve always finds a solution to a challenge, praises work well-done, lends his support to others in an instant and never has an excuse. More than anything, he earns the trust of others with a positive, can-do attitude,” the nomination said.

He also has done a lot to help manage the growth of Employers Health, a for-profit subsidiary of a membership association called the Employers Health Coalition. For instance, he led an effort to help Employers Health open new offices in Columbus, Cincinnati and Madison, Wis. And while it was hiring so many new people, he was working to help it operate more like a larger organization.

Stull recalled how Burger worked with him to figure out what Employers Health’s typi-

Sometimes, it’s best to find the right person for the job no matter who they are, and sometimes it pays to keep key positions at a family business in the family.

Less often, for businesses that are really lucky, one person turns out to be both.

Canton-based Affinity Advisory Network is one of those lucky few, as it found a great chief financial officer in Beth Hall, who just happens to be the wife of company founder and chief executive Robert Hall.

It wasn’t something either spouse says they intended would happen. Certainly it was not the life plan of Beth Hall; she had become a dental hygienist before she discovered that having her hands in other people’s mouths all day was just not for her.

Even today, with some experience under her belt helping to guide the company to growth and success, she does not see herself as a financial power broker. Hall still refers to herself as the company’s comptroller.

“I came in and we started working together — even though we vowed we would never work together,” Beth Hall said of her beginnings with the company. “I was just the comptroller and paying the bills.”

Today, she’s been at the helm of the company’s finances for five years and “she’s become the most successful CFO Affinity has ever seen,” said Robert Hall.

“Beth is a phenomenal CFO because she has a very high attention to detail, is super intelligent, and her follow-through is top notch,” Robert Hall said. “As far as the budget and money goes, she saves and stashes money like a squirrel stashes nuts for the winter.”

cal client should look like, and what sort of services the organization should offer.

Employers Health also has benefited from the fact that Burger can wear many hats. He has worked on the human resources side, managed numerous vendor relationships and spent time helping employees with technology issues. He even has hunted for office space and office furniture, Stull said.

He’s highly dedicated to the company as well. Stull described how Burger once was in the office at 2:30 a.m. because he needed to get some stuff done before the company’s CEO left the country. He obviously wouldn’t work that late regularly — he values a healthy work-life balance — but he SEE BURGER, PAGE 32

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Affinity Advisory Network helps its clients to protect and invest their retirement incomes, but it’s not a broker/dealer or a registered investment adviser. It mostly sells insurance and annuity products, and it helps clients secure their rightful government benefits. That means that Beth Hall does not have to track and account for millions in client assets, but she still has to manage the finances of the 12-person firm.

She’s in that role despite the fact that she and her husband pledged to never work together, but she said things have worked out better than she could have imagined. Today, she jokes that her husband is harder on her than he is on other employees, while he gives her credit for being both astute and SEE HALL PAGE 32

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z OCTOBER 19 - 25, 2015 z CRAIN’S CLEVELAND BUSINESS

CFO OF THE YEAR

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RICHMOND FROM PAGE 25 “He knows you can’t cut your way to success, but you better become more efficient each and every year,” Boutros said. “There is no ceiling on efficiency for him.”

Richmond also is heavily involved with the health system’s mentoring program. Today, more than 85% of the finance professionals at the health system are credentialed and/or certified with a professional designation compared to 20% in

2009, according to the nomination. He also places a premium on employee engagement, as he holds quarterly town hall meetings with employees about the health system’s initiatives.

“Craig epitomizes the new generation of chief financial officers who go well beyond having just financial acumen but also embody leadership skills,” Boutros said.

“He’s a champion of health system innovation.”

— Timothy Magaw

BURGER FROM PAGE 31

boards of both schools.

He serves as treasurer for the Akron chapter of the Society for Human Resources Management, and he’s vice president of the board

knows how to get things done, Stull said.

“He’s competent, he’s committed and he’s just a great guy to work with,” Stull said.

Burger holds a bachelor’s and an MBA from Walsh University.

He also teaches accounting-related courses at Stark State College, and he serves on the advisory

HALL FROM PAGE 31 Sponsored by:

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It appears to be working. The firm has been growing rapidly since Robert Hall bought out a partner in 2012.

The firm’s chief revenues are the premiums it brings in, and Beth Hall said those have roughly doubled

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He’s also involved with the Catholic Men’s Fellowship in the Diocese of Youngstown.

— Chuck Soder

every year since she became CFO. They will probably not quite double this year, but should total more than $50 million by year’s end.

“I’d love to take credit for all the growth, but no,” she said.

“But I will take credit for saving the money we needed to grow.”

— Dan Shingler

Western Reserve Academy is proud to congratulate our CFO Tom Arnold on his recognition as a member of the Crain’s Cleveland Business 2015 CFO of the Year Class.

Tom is a dedicated member of our tight-knit WRA community. Every day he lives our mission and works with excellence, integrity and compassion. Thank you, Tom, for all that you do.

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20151019-NEWS--33-NAT-CCI-CL_--

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CRAIN’S CLEVELAND BUSINESS z OCTOBER 19 - 25, 2015 z PAGE 33

First in class:

How Northeast Ohio can lead the nation in degrees and jobs

CHRISTOPHER L. NAGEL Fairmount Santrol Holdings; Chesterland During a stint as chief financial officer at the provider of high-performance sand and sand-based products used by oil and gas exploration and production companies, Christopher L. Nagel amassed quite a record of achievement. So much so, in fact, he will leave the company Oct. 20 to assume a similar role at a consumer products company that is not yet identified.

Jenniffer Deckard, Fairmount Santrol CEO, continues to value the contributions Nagel made to the company, which has grown significantly and went public last year.

“We accomplished much in his four-year tenure,” Deckard said. “(Nagel) and I partnered with a few key members of the management team in representing our great company to hundreds of investors and bankers over the two-week IPO launch.

The team’s credibility and knowledge of our business and of our financial drivers and metrics gave investors further confidence to invest in Fairmount Santrol, even in the midst of a very challenging investment environment. I truly cannot have imagined going through the process without his steady hand and key leadership.”

That is particularly high praise because Deckard was his predecessor as the company’s CFO. While at Fairmount Santrol, Nagel helped select the underwriters that

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took the company public and put in place financial reporting systems it needs as a publicly traded company. He installed its investor relations functions. He also helped guide the company’s strategic planning efforts and three major transactions, providing aid in the due diligence process for three acquisitions with a total cost of almost $475 million.

During Nagel’s time at Fairmount Santrol, the company, through expanding its own operations and acquisitions, grew to $1.4 billion in gross revenue last year with more than 1,000 employees.

Throughout that period, the nomination said Nagel helped the company maintain financial stability, even as declining oil and gas prices clouded prospects for the companies Fairmount Santrol serves with supplies of sand and related products.

Nagel was able to embrace such a pace because Fairmount Santrol was the third time he’d held a post as CFO. He held the same title at both FreightCar America of Chicago and Scotts Miracle-Gro of Columbus. He holds a bachelor’s degree from Ohio State University.

While in Northeast Ohio, Nagel and his wife, Marti, have been engaged civically. They have actively supported the mission and activities at Fieldstone Farm, a therapeutic horseback riding center for peo-

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20151019-NEWS--34-NAT-CCI-CL_--

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z OCTOBER 19 - 25, 2015 z CRAIN’S CLEVELAND BUSINESS

CFO OF THE YEAR ROBERT G. O’BRIEN Forest City Enterprises Inc.; Cleveland As the real estate developer and owner with a $9 billion portfolio that spreads from New York City to Hawaii prepares to transform itself to a real estate investment trust, one of the biggest changes it has undergone since becoming a public company, Robert O’Brien is captaining the financial side of the ship.

Forest City CEO David LaRue said O’Brien is one of two senior leads on the project for him, along with Geralyn Presti, general counsel, who oversees the legal ones.

O’Brien and his team are tasked with the financial, tax and accounting aspects of the change, including having its financial reporting system in place Jan. 1 if shareholders approve the plan.

O’Brien charted a different path from many to the CFO’s office of a public company.

Where most are accountants by training, O’Brien holds a bachelor’s in economics and

an MBA in finance. He joined the company’s in-house financial corporation 27 years ago in a position helping procure loans for its projects. He dove into the accounting side of the business “head first,” according to the nomination, and played significant roles in strategic planning and investment strategy that led to him becoming CFO in 2008.

The timing was such that O’Brien was in charge of financial operations when the Great Recession struck, banks closed and real estate financing dried up. The company’s stock price collapsed and leverage — the mother’s milk of real estate development — became a bad word.

“Bob likes to say that calm seas don’t make good sailors,” LaRue said. “You need some rough waters to improve your sailing skills. I firmly believe that he is the main architect of our financial transformation to where we are.

Some others did not make it. We’ve gone

from survival mode to expansion mode.”

O’Brien’s most recent accomplishment was selling $800 million in stock — and designating half of the proceeds to Forest City’s efforts to continue reducing its bank loans.

Colleagues say O’Brien is a skilled communicator, which helps him navigate strong differences of opinion within the company and explain the company’s operations to the investment community, according to the nomination.

O’Brien’s outside activities reflect his financial skills. He is chairman of the board of Cleveland Development Advisors, an affiliate of the Greater Cleveland Partnership that invests in and helps finance catalytic real estate developments in the city of Cleveland.

He also is treasurer of the LAND studio nonprofit and is on the board of Saint Martin de Porres High School, both in Cleveland.

— Stan Bullard

COLUMBUS CONTINUED FROM PAGE 1

exhibition game in Columbus since 2002.

Factor in the Cleveland Indians’ seven-season affiliation with the Triple-A Columbus Clippers, the capital city’s efforts to bring the Cleveland Browns’ training camp to Central Ohio and Northeast Ohio’s strong affinity for the Buckeyes, and the sports ties between the state’s two largest cities seem to be as strong as ever.

Geography — it’s a 140-mile drive from Nationwide Arena, home of the Blue Jackets, to Quicken Loans Arena — obviously helps. And Columbus’ standing as the nation’s 15th-largest city and home to the state’s strongest economy makes it a coveted business partner for the Browns, Cavs and Indians.

Brian Timm, the director of corporate sponsorships for the Greater Columbus Sports Commission, has been working with the Indians for the last year on a sponsorship package that is geared toward drumming up interest with potential business sponsors and ticket- and suite-buyers in Central Ohio.

“I’m a Cincinnati native,” Timm said, “but it seems like Cleveland has a little more interest in getting connected with Columbus businesses.”

The Queen City is a shorter drive, but when it comes to sports, Columbus is, by most accounts, pro-Cleveland.

So much to share Prior to joining forces with the Monsters, the Blue Jackets had what Davidson describes as a “terrific” American Hockey League affiliate in Springfield, Mass.

“But as far as making it work — getting players in and players out, getting scouts in and out, getting coaches in and out — it was not as easy as here,” said Davidson.

The partnership, however, goes well beyond cost savings.

All 12 of the Monsters’ Friday night home games in 2015-16 will be Blue Jackets nights — contests that include a specialty jersey and wall-

The Cleveland Cavaliers hosted a basketball clinic for Columbus-area students on Sunday, Oct. 11.

(Contributed photo) to-wall promotions for the NHL team. The Blue Jackets are returning the favor via in-arena and electronic signage touting their top minorleague affiliate.

The organizations’ business teams have had plenty of “soup to nuts” talks since the partnership was announced, said Kerry Bubolz, the Cavs’ president of business operations and the leader of the organization’s three minor-league teams (the Monsters, Cleveland Gladiators and Canton Charge).

There will be cross-promotions, ticket sales offers, social-media collaborations and any other allocation of services the clubs can devise.

“There will be a lot of content sharing, which I think is awesome,” Bubolz said.

The Monsters and Blue Jackets think their respective fan bases will now be more inclined to make trips to see the other, and the Cavs’ and Blue Jackets’ partnerships with Fox Sports Ohio — which has 5.2 million subscribers — presents a chance to take the cross-promotional efforts

“to another level,” Bubolz said.

“I think for us to have an increased presence in the Cleveland market, which has always been a tremendous hockey market, has great benefits for us — from an awareness standpoint to a branding and sales standpoint,” said Larry Hoepfner, the Blue Jackets’ executive VP of business operations.

‘Staggering’ ratings The Cavs’ six-game loss to the Golden State Warriors in June produced the best NBA Finals TV ratings since 1998, Michael Jordan’s final days in a Chicago Bulls uniform.

In Cleveland, the games produced monster numbers for WEWS NewsChannel 5 — a 43.7 ratings norm.

But the most eye-opening number, according to Bruce Wimbish, the director of marketing and communications for the Columbus sports commission, was Columbus ranking as the third-best market for the Finals with an average rating of 23.4.

Columbus’ 13.9 rating for the Eastern Conference finals was 54% better than the norm for Atlanta, whose Hawks were swept by the Cavs in the series.

“It was kind of staggering when people found out about (the Columbus ratings),” said Wimbish, who spent six years with the Cavs’ communications team before joining the Greater Columbus Sports Commission.

It’s not just LeBron James who can spark Columbus’ interest in Cleveland sports.

Cleveland and Akron are the only areas with a greater number of Browns season-ticket holders than Columbus, and the state capital’s 7.4 rating for the 2015 NFL draft ranked fourth among all markets. (Cleveland, of course, was first.)

Patty Williams, the director of finance for WBNS-10TV, said Browns games on the Columbus CBS affiliate have delivered higher ratings than Bengals broadcasts in the last five years. Last season, the gap grew to 60% — though the Bengals, who

were undefeated entering Week 6 of the NFL season, are producing better ratings in 2015, Williams said.

The Browns’ scrimmage at Ohio Stadium last August drew a crowd of almost 50,000 (the 60,000 free tickets that were made available online were claimed in eight hours), and Columbus is making a big push to become the team’s new training camp home.

Browns president Alec Scheiner has consistently said how highly the organization views Columbus from a business perspective, but the team has yet to commit to taking its training camp on the road for a couple weeks every summer.

Such a decision wouldn’t have to be made until February or March, Scheiner told Crain’s, but the Browns are “not sure it goes that far.”

The Indians, meanwhile, have something in common with Columbus’ NHL team.

The Tribe’s affiliation with the Triple-A Clippers is one in which the minor-league club is a big draw in a large market. The Clippers have ranked in the top four in International League attendance for seven consecutive seasons. (The Lake Erie Monsters have been in the top six among the 30 AHL teams at the gate for six straight years.)

Timm, the Columbus sports commission’s director of corporate partnerships, said the organization’s work with the Indians has “really been about introducing them to people” in Central Ohio.

Timm said he doesn’t have “hard numbers” on what the partnership has produced for the Indians, but he believes there’s “huge interest” in the club, thanks in large part to the Indians-Clippers connection.

That Cleveland-to-Columbus optimism extends to basketball, football and hockey.

“There has been a lot of planting of seeds between the two cities,” said Wimbish, the Columbus sports commission’s marketing director.

“With the Blue Jackets and Lake Erie Monsters partnership, we’re excited to see what will happen next.”

20151019-NEWS--35-NAT-CCI-CL_--

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CRAIN’S CLEVELAND BUSINESS z OCTOBER 19 - 25, 2015 z PAGE 35

BRAD ZUCKER Ancora Advisors; Mayfield Heights Ancora Advisors had only four employees when Brad Zucker was hired in 2001. Fourteen years later, the financial advisory firm has more than 40 employees and $3.6 billion in assets under its management.

Zucker’s “unwavering dedication has undoubtedly contributed to Ancora’s growth and continued success,” the nomination said.

Ancora CEO Fred DiSanto describes Zucker as tireless.

“The one thing that I think sets Brad apart is he has an unbelievable work ethic and the way he can multitask, which over the last year has been magnified with our move into the new building (in Mayfield

Contact: Phone: Fax: E-mail:

Heights),” DiSanto said.

Zucker oversaw the purchase and renovation of Ancora’s new headquarters, and he “rigorously negotiated” economic development incentives with the county and city throughout the process.

“The building is now both revenue-generating and cost-saving,” the nomination said.

In late 2012, Zucker created fiveand 10-year strategic financial plans for the employee-owned firm, and he has helped Ancora “not only meet but exceed” its targets, according to the nomination.

“He’s just been an invaluable asset for the firm,” DiSanto said. “We

always knew he has been a great asset, but in the last year with all the moving parts and still being able to perform at such a high level, he just outworks people. That’s what he does.”

In a role that’s rare for a CFO, Zucker also has his own clients.

That’s not his primary objective — not even close — DiSanto said, “but it’s part of the atmosphere here that if there’s an opportunity to bring a client in, they’re going to bring a client in.”

Zucker doesn’t oversee his clients’ assets. Ancora’s portfolio managers do that. “He manages the relationship,” DiSanto said.

In 2011 and 2012, Zucker was part of a strategic planning committee that determined Ancora “should drastically reshape its goals,” the nomination said. That resulted in the firm focusing on the investment adviser side of the business and divesting a “less desirable” broker dealer operation.

The father of three daughters is a mentor for LaunchHouse, the Shaker Heights business incubator, and he participates in various Case Western Reserve University alumni and student mentoring programs.

He also serves on the board of the Cleveland Jewish News Foundation, volunteers for the Ohio Society of

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2:17 PM

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z OCTOBER 19 - 25, 2015 z CRAIN’S CLEVELAND BUSINESS

Business of Life Vintage complex gets modern makeover

BY STAN BULLARD Many people talk about how they hate mansard roofs. Even when they first became widespread atop new commercial buildings in a revival of the style in the 1970s, people talked about disliking mansard roofs, especially when they were clad in roofing shingles.

However, BurtonCarol Management is doing something about its mansard roofs at its Great Northern Village apartments, 5272 Victoria Lane in North Olmsted. It’s removing the shingle-covered roofs that sweep down over the second floor of the 1974-vintage complex. The removal is no simple operation, in part because there are 15 buildings with a total of 116 apartments.

The Warrensville Heights-based apartment ownership and management firm did not start out to perform a mansard-otomy.

Joy Anzalone, BurtonCarol chief operating

officer, said the company sought to replace old roofs atop the buildings. With mansard roofs, the top is a shallow angle, and they move into a steep-angle astride the building.

There also were problems with the trusses that support the droopy roofs in a style created in France that was first popular in the United States from1860 to1900. (An example of a mansard roof at its best is at the onetime University Club Building, at 3813 Euclid Ave. in Cleveland.)

“We wanted a transformation of the property,” Anzalone said of Great Northern Village. “We wanted to do new roofs — and we couldn’t do them without dealing with the mansards.”

The scope of the work was so great that, instead of a roofing contractor, BurtonCarol had to hire general contractor Nyman Construction Co. of Cleveland to oversee the project. The job requires removing the existing

roofs, then replacing the roof and installing new walls on the second floor. An average of 30 workers labored daily on the project last summer, according to Ken Murphy, a Nyman vice president.

The work also included rebuilding the exterior second-floor walls, installing decorative cornices as well as replacing windows and doors. Hallways and common areas are being updated, along with some of the units.

Rob Risman, president and CEO of BurtonCarol, and Anzalone put the budget for the updates at more than $1 million.

“I’m rebuilding a complex that my father (Bill Risman) built,” Rob Risman said. “It’s a wonderful location.”

The investment is worthwhile, he said, because the property benefits from its location near Great Northern Mall and public transportation. Occupancy remains about 95% at the property, where rents range from $690 to

Source Lunch

Lunch Spot

Renee Harvey grew up in Denver and wanted to become a teacher.

When a job opportunity fell through at the last minute, she called an audible.

Harvey earned a master’s degree in sports administration and has spent her entire professional career working in the NHL and NFL — the last 13 years of which have been with the Cleveland Browns.

as much as $850, depending on the unit’s size, makeup and location.

“Tenants were worried we wanted to raise rents after this, but that’s not the case,” Anzalone said.

“However, we worried that it looked so dated that prospective tenants would drive by and not consider it.”

The results are striking, given the former appearance of the complex.

The completed buildings now look almost identical to just-completed suburban multifamily projects.

Maygon Carter, Great Northern Village’s property manager, said she has received compliments on the change in the appearance, including when shopping nearby.

Trish Gibeaut, who has lived in the complex for seven years, said she did not mind the mansard roofs, but added, “What they’re doing looks good.”

Renee Harvey PHILANTHROPY

As the vice president of the Cleveland Browns Foundation , the former college volleyball player is in charge of an organization that underwent a significant transformation in 2013. The foundation emphasizes education through a “holistic approach,” supporting Northeast Ohio programs that promote youth development and success in the classroom.

And yes, her family has a lot of Broncos fans, but Harvey is all about the — Kevin Kleps orange and brown.

The meal

Nuevo Acapulco 24409 Lorain Road, North Olmsted, 440-734-3100, nuevoacapulco.com

Chicken fajitas and carne asada (a tasty skirt steak with green onions, rice, beans, guacamole and tortillas), with sodas

Of all the things you’ve done with the Browns, is there one initiative that stands out as particularly gratifying?

My previous position was on the community relations side (Harvey has been the organization’s director of community relations and its VP of community outreach). I started in 2002, and we knew obviously that we would have to do something for a 9/11 commemoration. And we developed our Hats Off to Our Heroes program. That’s undergone several iterations since, but I think seeing that and what it’s become, and what it means to our fans on game day, has really stuck with me as something I’m most proud of and most excited about.

Are there some things about NFL players that a lot of people might not realize?

I started in hockey (as the community relations manager of the San Jose Sharks), and hockey players are known to be excellent. They’re very down to earth.

So when I took the position (with the Browns), you hear horror stories, but I was pleasantly surprised. I was very taken aback at how genuine the players are, how giving they are with their time given the demands that they have.

They’re very humble, and the majority really, truly understand the opportunity to give back.

That’s just part of who they are.

What’s the building like in Berea after a win on Sunday?

Everyone has a little extra pep in your step. Definitely a lighter mood, but I will say, and it’s probably similar to the football side, is we try to not get too high or too low. Just kind of steer the course.

We don’t just see people for who they are; we see

20151019-NEWS--37-NAT-CCI-CL_--

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CRAIN’S CLEVELAND BUSINESS z OCTOBER 19 - 25, 2015 z PAGE 37

Stan Bullard

In the past nine months,

98% The vibe

The bill

The casual Mexican spot has a menu with so many options that it’s difficult to choose. Arrive hungry, and expect leftovers.

$34.29 + tip

What is the best leadership advice you’ve received?

I’d say two things. One is the importance of building relationships. I think the second is how important it is to listen, because if you don’t understand that person’s perspective, it will be very challenging to come up with a solution.

Is there something the Cleveland Browns Foundation is doing that maybe not enough people are aware of?

Yes. We’re just starting a new partnership with the Cleveland Metropolitan School District on their Get to School campaign.

It’s obviously an attendance program, but more of an absence reduction program.

And they’re seeing some good progress if you look year-to-year based on last year.

We’re working with them to develop a strategy where we can hopefully reward kids for strong attendance, for improved attendance, because obviously if kids aren’t in school, the teachers aren’t going to be able to help them. We’re really proud of that partnership. It’s just getting started, but we’re thrilled to be partnering with the district.

What’s it like working with Dee and Jimmy Haslam?

I want Northeast Ohioans to understand how committed they are to not only this region, but the community. They both have a strong history of philanthropy in Tennessee, and they want to replicate that here in Cleveland.

You have three sons who play multiple sports. Does that leave any time for hobbies?

That is our entertainment. That is what I do on my personal time — whatever my kids are involved with. And we would have it no other way. If I can sneak in a workout or two, I’m doing OK.

THREE THINGS: MOVIE PICKS

of kids participating in United Way-funded literacy programs are now reading at grade level.

“Shawshank Redemption,” “The Departed” or “Coming to America”

WERE YOU ALWAYS AN ATHLETE?

My dad played sports, and I grew up with only boys on my street. So it was by default. It was play sports, or play by yourself.

FALL ACTIVITY Watch football.

On Saturdays.

Harvey watches her sons — Drew, 10; Cade, 7; and Luke, 5 — play.

Sundays are, surprise, taken by the Browns.

them for who they can become.

20151019-NEWS--38-NAT-CCI-CL_--

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z OCTOBER 19 - 25, 2015 z CRAIN’S CLEVELAND BUSINESS

UBER CONTINUED FROM PAGE 1

Robert Kellman, Uber’s Midwest public policy manager, on Oct. 6 told the Senate’s State and Local Government Committee that the company is operating in six Ohio cities: Akron, Cincinnati, Cleveland, Columbus, Dayton and Toledo.

Uber and Lyft see themselves more as technology companies than transportation cousins to the taxi industry, since their business revolves around smartphone apps. The companies connect passengers, who have downloaded an app to their phone, with drivers who own their own cars and use a companion app to receive pick-up assignments. Fare payment, by credit card, is handled

by the company electronically, which passes along part of the fare to the driver.

Unlike cab companies, they do not own cars, insure and maintain those cars and then lease them to drivers. They are just middlemen between a car and a driver, and someone who needs a ride.

State Rep. Bob Hackett, R-London, one of the bill’s sponsors, told Crain’s that the legislation was driven by the need to ensure that both cars and drivers are fully insured, and that regulating insurance is a state function.

“The existing system wasn’t working,” he said in a telephone interview. “The solution is getting a busi-

ness rider on the (driver’s) auto insurance policy.”

Managing liability It has been Uber’s policy that its insurance kicks in only once a driver accepts a fare, and continues for as long as the passenger is in the car.

But once the passenger departs, Uber insurance doesn’t cover the cruising driver until the next fare is accepted or when he or she logs off for the day.

HB 237 requires the TNC to make sure drivers have personal liability insurance coverage appropriate for a commercial driver. If not, the TNC is secondarily on the hook for any

claims.

While insurance is a traditional state function, inspecting taxicabs and setting taxi fares has been handled locally. Ride-hailing fares are more of a negotiation — the company offers the ride at a fare that the potential customer is free to accept or decline.

However, the legislation would bar cities from extending their taxi regulations, which include inspections for cars, to on-demand services. The Ohio Municipal League sees that as usurping municipal regulatory authority.

“Not only does this provision violate the Ohio Constitution, it also prevents enforcement of safety stan-

dards,” Susan Cave, the Ohio Municipal League’s executive director told a House committee in June.

Cleveland has been mulling regulating the services, but legislation has not been created.

A statement emailed by Daniel Ball, the city’s assistant director of media relations, indicated that the city is monitoring the state legislation.

“The city of Cleveland is currently studying possible legislation to uniformly regulate all types of for-hire vehicle services in Cleveland, including taxicab associations, transportation network companies, and other types of for-hire vehicle companies that provide livery service,” the statement read.

The state of things Hackett, who chairs the House insurance committee, said the state legislation came out of discussions he participated in among ride-sharing company executives and members of the National Conference of Insurance Legislators.

The Ohio bill grew out of those discussions and is patterned after legislation that has been passed in other states, notably Wisconsin.

“The legislation before you today will ensure Uber and other transportation network companies are able to expand to new towns and cities across Ohio, adding job opportunities and transportation options with every stop,” Uber’s Kellman told the Senate committee.

“The clarity (HB 237) provides for TNCs will allow Uber and other ridesharing companies to make increased investments across Ohio, likely adding hundreds, if not thousands of jobs for Ohio’s residents.”

A Sept. 24 story in The Columbus Dispatch said Uber plans to add 10,000 drivers in Ohio in 2016.

Taxicab, or vehicle-for-hire, firms oppose the legislation, believing it gives on-demand car services an unfair advantage. Taxi firms must own, maintain and fully insure their cars and must adhere to fares established by the cities, like Cleveland, that regulate them.

Not only do Uber drivers use and pay to maintain their own cars, but Uber uses dynamic pricing, like airlines, to raise or lower fares based on demand. The company contends its pricing model encourages more drivers to get on the road when demand is high.

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When Uber and Lyft came to Cleveland last year, DeVo Bavishi, the president of Ace Taxi, argued to have the on-demand services adhere to the same local regulations his firm must follow. Now that HB 237 is gaining momentum, he’s thinking he might prefer state regulation of taxis as well.

“All we care for is for a level playing field,” Bavishi told Crain’s. “If (HB 237) is going to happen, we would want to be under the same rules as well.”

Hackett said he has heard calls for that level playing field, but he said he wants to see the current legislation stay on track to be passed this session. Bringing taxi services under state control could come in future legislation.

“I would support that,” he said.

“Companies should have one set of rules.”

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CRAIN’S CLEVELAND BUSINESS z OCTOBER 19 - 25, 2015 z PAGE 39

The List

HIGHEST PAID CFOS-PUBLIC COS. Ranked by 2014 Compensation TOTAL COMPENSATION 2014 2013

NAME THIS COMPANY YEAR TITLE

% CHANGE

SALARY

BONUS

STOCK AWARDS

OPTION AWARDS

NONEQUITY INCENTIVE PLAN

CHANGE TO PENSION VALUE

ALL OTHER COMPENSATION

1

Richard H. Fearon/Eaton vice chairman, chief financial and planning officer

$5,984,370 $7,752,545

(22.8)

$768,298

$0

$513,190

$525,578

$1,983,752

$2,143,506

$50,046

2

Jon P. Marten/Parker Hannifin Corp.

CFO, executive vice president, finance and administration

$5,369,020 $3,846,965

39.6

$611,310

$0

$1,456,299

$907,037

$699,724

$1,580,094

$114,556

3

James F. Pearson/FirstEnergy Corp. senior vice president, CFO

$4,341,489 $2,183,513

98.8

$507,212

$0

$1,471,545

$0

$361,356

$1,995,585

$5,791

4

Laura K. Thompson/Goodyear Tire & Rubber Co. executive vice president, CFO

$3,114,684 $3,229,020

(3.5)

$508,333

$0

$164,517

$299,993

$1,312,325

$793,689

5

Sean P. Hennessy/Sherwin-Williams Co. senior vice president, finance; CFO

$3,105,462 $3,018,643

2.9

$640,666

$0

$919,368

$539,102

$776,000

$0

6

Robert G. O'Brien/Forest City Enterprises Inc. executive vice president, CFO

$2,871,494 $2,153,283

33.4

$550,000

$412,500

$781,854

$366,662

$700,000

$7,214

$53,264

7

John P. Sauerland (1)/Progressive Corp.

CFO

$2,772,936 $2,521,631

10.0

$487,115

$0

$1,470,081

$0

$803,740

$0

$12,000

8

Mark R. Belgya/The J.M. Smucker Co. senior vice president, CFO

$2,674,683 $2,748,269

(2.7)

$460,000

$9,200

$1,831,600

$0

$327,800

$26,141

$19,942

9

Philip D. Fracassa (2)/The Timken Co. executive vice president, CFO

$2,593,030 NA

NA

$417,067

$0

$667,982

$482,599

$273,737

$703,000

$48,645

10

Donald R. Kimble/KeyCorp CFO

$2,430,179 $3,187,880

(23.8)

$600,000

$0

$1,079,983

$119,996

$625,000

$0

11

P. Kelly Tompkins (3)/Cliffs Natural Resources Inc. executive vice president, CFO

$2,251,997 $1,985,267

13.4

$513,750

$0

$838,310

$0

$499,000

$201,850

$199,087

12

Gregory A. Thaxton/Nordson Corp. senior vice president, CFO

$2,249,043 $1,339,891

67.9

$390,000

$0

$385,375

$317,754

$410,036

$702,369

$43,509

13

Terrence E. Bichsel/FirstMerit Corp. senior executive vice president, CFO

$2,056,942 $1,855,676

10.8

$465,750

$0

$450,006

$0

$406,260

$675,706

$59,220

14

Vincent K. Petrella/Lincoln Electric Holdings Inc. executive vice president, CFO, treasurer

$1,960,240 $1,791,280

9.4

$460,000

$0

$0

$0

$852,751

$616,579

$30,910

15

Russell L. Gordon/RPM International Inc. vice president, CFO

$1,885,991 $1,506,528

25.2

$330,000

$0

$701,337

$318,900

$450,000

$44,414

$41,340

$35,824

$230,326

$5,200

RESEARCHED BY DEBORAH W. HILLYER Numerical information provided by S&P Capital IQ, www.spcapitaliq.com. Crain's Cleveland Business does not independently verify the information and there is no guarantee these listings are complete or accurate. We welcome all responses to our lists and will include omitted information or clarifications in coming issues. (1) Sauerland became CFO in April 2015. (2) Fracassa was named CFO in March 2014. (3) Tompkins was named CFO in April 2015.

The List NAME THIS TITLE YEAR ORGANIZATION

ADDRESS, PHONE, WEBSITE

HIGHEST PAID CFOS-NONPROFIT Ranked by Total Compensation BONUS AND TOTAL BASE COMPENSATION COMPENSATION INCENTIVE OTHER

DEFERRED COMPENSATION

NONTAXABLE BENEFITS ASSETS ($)

990 FILING DESCRIPTION YEAR

Michael A. Szubski CFO University Hospitals Health System Inc.

11100 Euclid Ave. Cleveland 44106: (216) 844-1000 www.uhhospitals.org

$1,260,326

$598,983

$415,131

$38,895

$177,365

$29,952

3,338,270,000

Health care

2013

1 2

Steven C. Glass treasurer, CFO Cleveland Clinic Foundation

9500 Euclid Ave. Cleveland 44195: (216) 444-2200 my.clevelandclinic.org

$1,076,557

$947,079

$0

$91,480

$19,231

$18,767

7,710,452,150

Health care

2013

Michael P. Trainer vice president, CFO Children's Hospital Medical Center of Akron

One Perkins Square Akron 44308: (330) 543-1000 www.akronchildrens.org

$570,468

$413,286

$121,498

$2,693

$17,400

$15,591

991,299,797

Health care

2013

3 4

John F. Sideras senior vice president, CFO Case Western Reserve University

10900 Euclid Ave. Cleveland 44106: (216) 368-2000 www.case.edu

$546,778

$415,628

$50,000

$2,322

$45,062

$33,766

2,981,715,054

Higher education

2013

5

Melissa Rogers senior vice president, CFO Sisters of Charity Health System

2475 E. 22nd St. Cleveland 44115: (216) 696-5560 www.sistersofcharityhealth.org

$526,465

$384,150

$74,859

$13,864

$42,552

$11,040

94,090,457

Health care

2013

6

Daniel J. Moncher executive vice president, CFO Firelands Regional Medical Center

1111 Hayes Ave. Sandusky 44870: (419) 557-7400 www.firelands.com

$505,801

$327,851

$67,000

$45,376

$38,000

$27,574

436,269,224

Health care

2013

7590 Auburn Road Concord Township 44077 (440) 375-8100 www.lakehealth.org

$414,977

$367,809

$7,138

$9,547

$24,710

$5,773

538,843,712

Health care

2013

7

Michael E. Kittoe senior vice president, finance; CFO Lake Health

Mary Ann Freas senior vice president, CFO Southwest General

18697 Bagley Road Middleburg Heights 44130 (440) 816-8000 www.swgeneral.com

$389,591

$288,767

$53,419

$16,997

$16,232

$14,176

469,648,855

Health care

2013

8 9

Mark D. Wright CFO, Aultman Health Foundation Aultman Health Foundation

2600 Sixth St. SW Canton 44710: (330) 452-9911 www.aultman.org

$359,495

$314,377

$26,370

$783

$7,650

$10,315

305,243,032

Health care

2013

Brian S. Kenyon executive vice president, CFO Rock and Roll Hall of Fame and Museum Inc.

1100 Rock and Roll Blvd.

Cleveland 44114: (216) 781-7625 www.rockhall.com

$357,212

$277,560

$17,250

$23,638

$13,092

$25,672

92,331,838

Museum

2013

10

RESEARCHED BY DEBORAH W. HILLYER Source: Form 990 SEC filings. Crain's Cleveland Business does not independently verify the information and there is no guarantee these listings are complete or accurate. We welcome all responses to our lists and will include omitted information or clarifications in coming issues. Individual lists and The Book of Lists are available to purchase at www.crainscleveland.com.

20151019-NEWS--40-NAT-CCI-CL_--

10/16/2015

1:28 PM

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