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Business Leaders Forum
Kevin D. Clark, PhD, Charles I. Plosser, PhD, Neil Irwin, James V. O’Donnell ’63 VSB, Lynn L. Elsenhans, and Terence M. O’Toole ’80 VSB spoke at the second annual Business Leaders Forum.
VSB’s Business Leaders Forum unites Key Stakeholders
THe VillanoVa uniVersitY Business leaDers ForuM—sPonsoreD by the Villanova School of Business—is an annual event that brings together business leaders from across the world for networking and dialogue on important industry topics.
Members of VSB’s eight advisory councils, business professionals, key stakeholders, and Villanova University leaders gathered at the Villanova University Conference Center to participate in the second annual Business Leaders Forum this past fall. Dr. Charles I. Plosser, President and Chief Executive Officer of the Federal Reserve Bank of Philadelphia, served as the keynote speaker and provided his perspective on the economy. Following his address, attendees heard from an industry panel of CEOs featuring Lynn L. Elsenhans, Chairman and CEO, Sunoco, Inc.; Terence M. O’Toole ’80 VSB, Co-Managing Partner, Tinicum Capital Partners II, LP; and James V. O’Donnell ’63 VSB, CEO, American Eagle Outfitters, Inc. The panel, titled “A Policymaker’s Perspective on the Economy,” was moderated by Neil Irwin, National Economy Correspondent for The Washington Post.
BeFore an auDience oF 200, Charles Plosser kicked off the forum with a critical evaluation of the Federal Open Market Committee’s (FOMC) most recent decision to engage in Operation Twist. He believed this action may be counter-productive by pushing forward with monetary easing that will do little to boost growth. “The actions taken in August and September tend to undermine the Fed’s credibility by giving the impression that we think such policies can have a major impact on the speed of the recovery. It is my assessment that they will not.”
Plosser’s remarks at the Business Leaders Forum were his first since dissenting from a Fed decision for a second straight month. The regional Fed bank president posed the most opposition within FOMC in almost 19 years.
Operation Twist is likely to reduce long-term rates by “less than 20 basis points” and “the pass-through to the rates at which consumers and businesses actually borrow is likely to be much less,” Plosser said. “I am skeptical that this will do much to spur businesses to hire or consumers to spend.”
On the economy, the Philly Fed president downgraded his forecasts for economic growth relative to earlier in the year. He anticipated the GDP in 2011 to come in below two percent and to be about three percent in 2012. He did not predict a second recession. However, he did anticipate only modest improvement
Robert Byrnes ’76 VSB, President of the Villanova University Alumni Association; the Rev. Peter M. Donohue, OSA, PhD, ’75 A&S; Daniel M. DiLella ’73 VSB; and Patrick Meyer ’74 VSB. The Rev. Peter M. Donohue, OSA, PhD, ’75 A&S presented the Rev. Joseph C. Bartley, OSA Alumni Medallion to Daniel M. DiLella ’73 VSB.
in the unemployment rate, expecting a rate in the eight to eight-and-a-half percent range in this year.
“Reducing the interest rate on excess reserves, at least in my mind, would be a more traditional monetary policy action,” Plosser said. “That said, the Fed may not want to take such a step because of the uncertain effects from lowering the rate to zero, including possible damage to overnight lending markets.”
INDUSTRY PANEL
WitH rePresentatiVes FroM tHe energy, finance, and retail sectors serving as panelists, three industry experts discussed the economy, covering many areas of business. Among other topics, the participants addressed plans for the future with respect to hiring and growth, the potential impact of the 2012 presidential election, how fiscal tightening might influence their decisions, and global competition. Elsenhans spoke about the need to deleverage and her desire for transparency on the costs of government mandates. O’Donnell spoke about how doing business globally is dramatically impacting the retail industry, while O’Toole provided his perspective on how financial activities in Europe are impacting banking institutions in the United States.
Each CEO discussed key characteristics they look for in future employees. These included a willingness to relocate and a fundamental commercial and business instinct. Panelists also spoke about current business trends, noting that employees have returned to a 1950s mentality, where there is a desire to stay with the same organization for many years instead of jumping from firm to firm throughout a career. The panel also discussed the effects of commodity pricing, Chinese and international markets, and government regulation.
ADVISORY COUNCILS
tHe reV. Peter M. DonoHue, osa, PHD, ’75 a&s, VillanoVa uniVersitY President, and Kevin D. Clark, PhD, VSB’s Interim Dean, addressed the group before a luncheon that was followed by individual advisory council meetings. Each of VSB’s eight Advisory Councils met during that time to discuss center programming and key strategies and initiatives.
