By Alix Stuart
CFO.com
For legislators, the long process of reforming the nation's health-care system has finally come to an end. On Thursday Congress passed the reconciliation bill containing the final changes to the landmark Patient Protection and Affordable Care Act, which President Obama signed into law on Tuesday. But for finance chiefs, the process of determining what health reform means for their companies is only beginning.
Joel Quall, corporate controller at publicly traded Knight Capital Group, a New Jersey–based electronic trading services firm, says he has been talking with employees about how health-care reform is going to affect them. Some of the firm's 800 U.S. employees are positive about the change. "People are relieved about being able to cover children up to age 26 on their plan," says Quall. And the lifting of lifetime caps on insurance coverage resonates personally with Quall, who says he saw his late father worry about that issue through a wrenching series of cancer treatments.
For rest of article please visit www.cfo.com
Monday, March 29, 2010
Friday, March 26, 2010
Bank Of America Business Capital CFO Survey
2010 CFO Outlook: A Survey of What Manufacturing Chief Financial Officers Expect
Download the entire report
The following article explores the results of the 12th annual survey of mid-size and large U.S. manufacturing company CFOs commissioned by Bank of America Business Capital. Phone interviews were conducted from mid-August to mid-October 2009.
The key message from this year’s survey results is that while CFOs gave the current state of the U.S. economy its lowest score in the survey’s history, they are optimistic about the outlook for the economy. Two-thirds of manufacturing company CFOs surveyed said they expect the economy to expand in 2010, and almost 60 percent said they expect the manufacturing sector to grow. Both of those responses were much higher than in last year’s survey. Despite that optimism, a slight majority said their companies have delayed or canceled expansion plans.
Many CFOs may just have a wait-and-see attitude. They see positive signs for the economy and for manufacturing, but they may need to see more concrete results before committing to expansion themselves.
Sixty-two percent of the manufacturing company CFOs surveyed report that they have no plans to change the size of their labor force in 2010. Of the remaining CFOs surveyed, 28 percent will be making additions to staff and 9 percent will be laying off employees. For the first time in three years, most U.S. manufacturing company CFOs are predicting that their labor costs and product pricing will remain constant in 2010 (45% and 51% respectively). Only 37 percent of CFOs predict their labor costs will increase in 2010, significantly lower than the 56 percent reported last year.
In the survey, CFOs reported little change in their borrowing needs for 2010. About half of the CFOs surveyed expect their cost of capital to increase, compared with about one-quarter two years ago. Even so, there was an increase in CFOs who said they are considering financing in 2010, and more than half said that credit availability over the past year has stayed the same.
The Economy
Despite giving the current economy low marks, chief financial executives at U.S. manufacturing companies are more optimistic than in recent years about the nation’s economic outlook.
Sixty-six percent of CFOs believe the national economy will expand in 2010, more than double (31%) who cited expansion in last year’s survey. There are no significant differences in the economic outlook by region or type of company, however, in terms of sales size, manufacturing companies with revenues between $200 million and $499 million are significantly more likely (76%) to predict economic expansion than smaller manufacturers with revenues between $25 million and $74 million (64%).
For the second consecutive year, manufacturing company CFOs have a negative view of the U.S. economy, giving it an average score of “44” on a scale ranging from 0 (extremely weak) to 100 (extremely strong). This represents a decline compared to last year’s score of “46” and is the lowest score recorded for this measure since the survey began.
Only 29 percent of CFOs rate the current state of the U.S. economy above the “50” midpoint, significantly lower than the 35 percent rating reported in the 2009 CFO Outlook. This negative view is consistent across all companies regardless of census region, revenue size and whether the company is publicly- or privately-owned.
CFOs are equally critical of the world economy giving it an average score of “46”. This represents a significant decline from last year’s score of “53” and marks the first time ever in the history of the survey that U.S. manufacturers have a negative view of the world’s economic affairs.
Manufacturing Sector
Manufacturing company CFOs are the most critical of their own industry at this point in time. They give the manufacturing sector an average score of “40”, which is a 10-point drop from 2008 and the lowest level ever in the history of the CFO Outlook.
Yet 59 percent expect the manufacturing sector to expand in 2010 – more than double the 25 percent a year ago. After six years of waning optimism, this marks a return to 2004 levels when manufacturers held positive views about their industry. Of the remaining companies, 30 percent believe the industry will remain the same in 2010 and 11 percent think it will contract. Companies in the Midwest are more optimistic (63%) about industry expansion than manufacturers in all other regions.
In addition, 61 percent of CFOs expect revenue growth in 2010, up from 50 percent last year. Regionally, CFOs in the Northeast (64%) and Midwest (63%) are directionally more likely than those in the South and West (57%) to be projecting revenue growth. Likewise, revenue expectations are the most optimistic among large companies (66% for companies with revenues between $200 million and $499 million and 69 percent for companies with revenues between $500 million and $2 billion). Finally, companies expecting sales to foreign markets to increase (72%) and businesses expecting M&A activity (68%) are both expecting above-average revenue growth in 2010.
Fed Actions
While the global recession has tested many companies, the survey responses show that most CFOs now anticipate growth in 2010. Conditions may still be challenging for some businesses, but the broader view is much more optimistic than a year ago.
In December 2008, the Federal Reserve Board lowered the overnight federal funds rate to near zero and has kept it there since. Given that interest rates have remained unusually low for this extended period of time, it is not surprising that 88 percent of manufacturing company CFOs believe the actions taken by the Fed over the past year have helped the U.S. economy. This represents a significant increase for this measure since last year’s survey (64%).
Large manufacturing companies with revenues between $500 million and $2 billion are more likely to say that the Fed’s actions hurt the economy than small manufacturers with revenues between $25 million and $74 million (17% and 7% respectively).
Expansion Plans
Unlike last year when more than half (52%) of all manufacturing company CFOs reported that the economy had no impact on their growth plans, the length and severity of the recession have certainly changed all that. Currently, more than half of all CFOs surveyed report that current economic conditions have caused them to delay or cancel their plans for growth or expansion (46% delay, 10% cancel). This represents a significant jump from 38 percent in the 2009 CFO Outlook and is the highest ever recorded for this measure.
The percentage of CFOs who intend to accelerate their growth plans as a result of economic conditions dropped again this year and is currently only 8 percent. The only subgroup reporting above-average growth plans (16%) are those that are expecting M&A activity in 2010.
Among those CFOs who are delaying their expansion plans, the primary reason is financial market conditions (88%), a category which includes factors such as poor sales performance (66%), uncertainty of future (19%) and the weak economy (17%). The credit market (26%) is a secondary reason for altering growth plans.
Cost Concerns
For the first time in many years, the cost of materials and energy costs are not the primary financial concerns of manufacturing company CFOs. Instead, CFOs report that revenue growth (49%), cash flow (45%) and healthcare costs (41%) are their biggest financial concerns in 2010.
The financial concerns of U.S. manufacturing company CFOs do vary by geographic region. For instance, companies in the South are significantly more concerned about the cost of materials (43%) and energy costs (33%) than businesses in the West (30% and 20% respectively). Healthcare costs are a significantly greater concern to CFOs in the Midwest (46%) than in the West (32%). Finally, credit availability concerns companies in the Midwest (38%) significantly more than those in the Northeast (27%).
Small companies with revenues between $25 million and $74 million report much higher levels of concern over revenue growth (55%) than all other companies. In addition, these small companies are significantly more concerned about cash flow (49%) and healthcare costs (46%) than large companies with revenues between $500 million and $2 billion (31% and 28% respectively).
Finally, private companies are significantly more likely than public companies to be concerned about healthcare costs (46% vs. 27%), equipment costs (41% vs. 30%), credit availability (37% vs. 25%) and corporate taxes (22% vs. 14%).
Nearly half of CFOs expect a higher cost of capital, yet almost 70 percent are considering financing, with working capital and capital expenditures listed as the top reasons. This is up significantly from the 59 percent reported in last year’s survey. Private companies are significantly more likely than public companies to be considering financing for working capital (48% vs. 25%) and capital expenditure (41% vs. 28%). In contrast, public companies are significantly more likely than private companies to not be considering financing at this time (47% vs. 27%).
For the first time in three years, most U.S. manufacturing company CFOs are predicting that their labor costs and product pricing will remain constant in 2010 (45% and 51% respectively). Only 37 percent of CFOs predict their labor costs will increase in 2010, significantly lower than the 56 percent reported last year. Likewise, only 36 percent of manufacturers think prices for their products will increase in 2010 (down significantly from the 69 percent reported in the 2009 CFO Outlook).
The subgroups expecting above-average increases in labor costs or product pricing next year are:
Labor Costs
■ Companies in the West (43%) and Northeast (42%)
■ Manufacturers expecting their sales to foreign markets to increase in 2010 (40%)
Product Pricing
■ Companies expecting to participate in M&A activity in 2010 (48%)
■ Manufacturing companies in the South (41%)
■ Companies with revenues between $500 million and $2 billion (41%)
The results of the Bank of America Business Capital 2010 CFO Outlook illustrate that manufacturers are cautious and this is reflected in their business practices. Although manufacturers are clearly concerned about the future of the U.S. economy, this year’s survey shows that they continue to believe in the ability of the marketplace to weather the storm.
http://www.montgomery.com/public/public.portal?_pd_page_label=products/abf/capeyes/archive_index&dcCapEyes=indCE&id=435#
Back to Top
General disclaimer for Bank of America Merrill Lynch
©2010 Bank of America Corporation. All rights reserved.
Download the entire report
The following article explores the results of the 12th annual survey of mid-size and large U.S. manufacturing company CFOs commissioned by Bank of America Business Capital. Phone interviews were conducted from mid-August to mid-October 2009.
The key message from this year’s survey results is that while CFOs gave the current state of the U.S. economy its lowest score in the survey’s history, they are optimistic about the outlook for the economy. Two-thirds of manufacturing company CFOs surveyed said they expect the economy to expand in 2010, and almost 60 percent said they expect the manufacturing sector to grow. Both of those responses were much higher than in last year’s survey. Despite that optimism, a slight majority said their companies have delayed or canceled expansion plans.
Many CFOs may just have a wait-and-see attitude. They see positive signs for the economy and for manufacturing, but they may need to see more concrete results before committing to expansion themselves.
Sixty-two percent of the manufacturing company CFOs surveyed report that they have no plans to change the size of their labor force in 2010. Of the remaining CFOs surveyed, 28 percent will be making additions to staff and 9 percent will be laying off employees. For the first time in three years, most U.S. manufacturing company CFOs are predicting that their labor costs and product pricing will remain constant in 2010 (45% and 51% respectively). Only 37 percent of CFOs predict their labor costs will increase in 2010, significantly lower than the 56 percent reported last year.
In the survey, CFOs reported little change in their borrowing needs for 2010. About half of the CFOs surveyed expect their cost of capital to increase, compared with about one-quarter two years ago. Even so, there was an increase in CFOs who said they are considering financing in 2010, and more than half said that credit availability over the past year has stayed the same.
The Economy
Despite giving the current economy low marks, chief financial executives at U.S. manufacturing companies are more optimistic than in recent years about the nation’s economic outlook.
Sixty-six percent of CFOs believe the national economy will expand in 2010, more than double (31%) who cited expansion in last year’s survey. There are no significant differences in the economic outlook by region or type of company, however, in terms of sales size, manufacturing companies with revenues between $200 million and $499 million are significantly more likely (76%) to predict economic expansion than smaller manufacturers with revenues between $25 million and $74 million (64%).
For the second consecutive year, manufacturing company CFOs have a negative view of the U.S. economy, giving it an average score of “44” on a scale ranging from 0 (extremely weak) to 100 (extremely strong). This represents a decline compared to last year’s score of “46” and is the lowest score recorded for this measure since the survey began.
Only 29 percent of CFOs rate the current state of the U.S. economy above the “50” midpoint, significantly lower than the 35 percent rating reported in the 2009 CFO Outlook. This negative view is consistent across all companies regardless of census region, revenue size and whether the company is publicly- or privately-owned.
CFOs are equally critical of the world economy giving it an average score of “46”. This represents a significant decline from last year’s score of “53” and marks the first time ever in the history of the survey that U.S. manufacturers have a negative view of the world’s economic affairs.
Manufacturing Sector
Manufacturing company CFOs are the most critical of their own industry at this point in time. They give the manufacturing sector an average score of “40”, which is a 10-point drop from 2008 and the lowest level ever in the history of the CFO Outlook.
Yet 59 percent expect the manufacturing sector to expand in 2010 – more than double the 25 percent a year ago. After six years of waning optimism, this marks a return to 2004 levels when manufacturers held positive views about their industry. Of the remaining companies, 30 percent believe the industry will remain the same in 2010 and 11 percent think it will contract. Companies in the Midwest are more optimistic (63%) about industry expansion than manufacturers in all other regions.
In addition, 61 percent of CFOs expect revenue growth in 2010, up from 50 percent last year. Regionally, CFOs in the Northeast (64%) and Midwest (63%) are directionally more likely than those in the South and West (57%) to be projecting revenue growth. Likewise, revenue expectations are the most optimistic among large companies (66% for companies with revenues between $200 million and $499 million and 69 percent for companies with revenues between $500 million and $2 billion). Finally, companies expecting sales to foreign markets to increase (72%) and businesses expecting M&A activity (68%) are both expecting above-average revenue growth in 2010.
Fed Actions
While the global recession has tested many companies, the survey responses show that most CFOs now anticipate growth in 2010. Conditions may still be challenging for some businesses, but the broader view is much more optimistic than a year ago.
In December 2008, the Federal Reserve Board lowered the overnight federal funds rate to near zero and has kept it there since. Given that interest rates have remained unusually low for this extended period of time, it is not surprising that 88 percent of manufacturing company CFOs believe the actions taken by the Fed over the past year have helped the U.S. economy. This represents a significant increase for this measure since last year’s survey (64%).
Large manufacturing companies with revenues between $500 million and $2 billion are more likely to say that the Fed’s actions hurt the economy than small manufacturers with revenues between $25 million and $74 million (17% and 7% respectively).
Expansion Plans
Unlike last year when more than half (52%) of all manufacturing company CFOs reported that the economy had no impact on their growth plans, the length and severity of the recession have certainly changed all that. Currently, more than half of all CFOs surveyed report that current economic conditions have caused them to delay or cancel their plans for growth or expansion (46% delay, 10% cancel). This represents a significant jump from 38 percent in the 2009 CFO Outlook and is the highest ever recorded for this measure.
The percentage of CFOs who intend to accelerate their growth plans as a result of economic conditions dropped again this year and is currently only 8 percent. The only subgroup reporting above-average growth plans (16%) are those that are expecting M&A activity in 2010.
Among those CFOs who are delaying their expansion plans, the primary reason is financial market conditions (88%), a category which includes factors such as poor sales performance (66%), uncertainty of future (19%) and the weak economy (17%). The credit market (26%) is a secondary reason for altering growth plans.
Cost Concerns
For the first time in many years, the cost of materials and energy costs are not the primary financial concerns of manufacturing company CFOs. Instead, CFOs report that revenue growth (49%), cash flow (45%) and healthcare costs (41%) are their biggest financial concerns in 2010.
The financial concerns of U.S. manufacturing company CFOs do vary by geographic region. For instance, companies in the South are significantly more concerned about the cost of materials (43%) and energy costs (33%) than businesses in the West (30% and 20% respectively). Healthcare costs are a significantly greater concern to CFOs in the Midwest (46%) than in the West (32%). Finally, credit availability concerns companies in the Midwest (38%) significantly more than those in the Northeast (27%).
Small companies with revenues between $25 million and $74 million report much higher levels of concern over revenue growth (55%) than all other companies. In addition, these small companies are significantly more concerned about cash flow (49%) and healthcare costs (46%) than large companies with revenues between $500 million and $2 billion (31% and 28% respectively).
Finally, private companies are significantly more likely than public companies to be concerned about healthcare costs (46% vs. 27%), equipment costs (41% vs. 30%), credit availability (37% vs. 25%) and corporate taxes (22% vs. 14%).
Nearly half of CFOs expect a higher cost of capital, yet almost 70 percent are considering financing, with working capital and capital expenditures listed as the top reasons. This is up significantly from the 59 percent reported in last year’s survey. Private companies are significantly more likely than public companies to be considering financing for working capital (48% vs. 25%) and capital expenditure (41% vs. 28%). In contrast, public companies are significantly more likely than private companies to not be considering financing at this time (47% vs. 27%).
For the first time in three years, most U.S. manufacturing company CFOs are predicting that their labor costs and product pricing will remain constant in 2010 (45% and 51% respectively). Only 37 percent of CFOs predict their labor costs will increase in 2010, significantly lower than the 56 percent reported last year. Likewise, only 36 percent of manufacturers think prices for their products will increase in 2010 (down significantly from the 69 percent reported in the 2009 CFO Outlook).
The subgroups expecting above-average increases in labor costs or product pricing next year are:
Labor Costs
■ Companies in the West (43%) and Northeast (42%)
■ Manufacturers expecting their sales to foreign markets to increase in 2010 (40%)
Product Pricing
■ Companies expecting to participate in M&A activity in 2010 (48%)
■ Manufacturing companies in the South (41%)
■ Companies with revenues between $500 million and $2 billion (41%)
The results of the Bank of America Business Capital 2010 CFO Outlook illustrate that manufacturers are cautious and this is reflected in their business practices. Although manufacturers are clearly concerned about the future of the U.S. economy, this year’s survey shows that they continue to believe in the ability of the marketplace to weather the storm.
http://www.montgomery.com/public/public.portal?_pd_page_label=products/abf/capeyes/archive_index&dcCapEyes=indCE&id=435#
Back to Top
General disclaimer for Bank of America Merrill Lynch
©2010 Bank of America Corporation. All rights reserved.
RBC Bank Looking at Growth Strategies
Reporting by Scott Wolf News Observer
"Everything is on the table," CEO Gordon Nixon told Bloomberg News during an interview in New York on Wednesday. He said acquisitions or a merger with another bank are two ways to "maximize return." He said concerns about bank balance sheets and U.S. banking regulations make it difficult to value potential acquisition targets. Royal Bank's last U.S. purchase was the $1.6 billion takeover of Alabama National Bank in February 2008.
There will be opportunities "for years to come" to buy rival banks and expand the U.S. business, Nixon told Bloomberg."The first thing we're going to do is fix it," Nixon said. The biggest question is whether "that business is going to be as attractive as other opportunities for us to deploy capital."
Royal Bank last year reorganized RBC Bank after the subsidiary began losing money during the recession, hurt by its exposure to real estate and deteriorating commercial loans. That effort included cutting hundreds of jobs and replacing top managers.
RBC Bank is now led by CEO Jim Westlake, a Canadian who took over the top spot from Scott Custer last fall. Westlake didn't directly contradict anything his boss told Bloomberg News, but he said RBC Bank officials are not now discussing the possibility of a sale. "You wouldn't ever want a CEO who wouldn't consider all options," he said in a telephone interview Thursday. "Any conjecture about what we might do is exactly that. We are very focused on building a good bank here."
Westlake spoke from his car at Raleigh-Durham International Airport, where he was waiting to fly to Toronto to visit his bosses at Royal Bank.
To fix RBC Bank, officials have consolidated all the branding across its territories under the RBC Bank name and are working to improve the company's balance sheet and loan portfolio, Westlake said.
RBC Bank, with about 430 branches, now employs 500 people in the Triangle, mostly at its headquarters tower in downtown Raleigh. Company wide, RBC Bank has about 5,000 employees, down from 6,000 a year ago.
Royal Bank entered the U.S. market with its $2.1 billion purchase of Rocky Mount-based Centura Bank in 2001.The company's shares, which have nearly doubled in the past year, rose 53 cents Thursday to close at $58.96.
To read full article please click here
"Everything is on the table," CEO Gordon Nixon told Bloomberg News during an interview in New York on Wednesday. He said acquisitions or a merger with another bank are two ways to "maximize return." He said concerns about bank balance sheets and U.S. banking regulations make it difficult to value potential acquisition targets. Royal Bank's last U.S. purchase was the $1.6 billion takeover of Alabama National Bank in February 2008.
There will be opportunities "for years to come" to buy rival banks and expand the U.S. business, Nixon told Bloomberg."The first thing we're going to do is fix it," Nixon said. The biggest question is whether "that business is going to be as attractive as other opportunities for us to deploy capital."
Royal Bank last year reorganized RBC Bank after the subsidiary began losing money during the recession, hurt by its exposure to real estate and deteriorating commercial loans. That effort included cutting hundreds of jobs and replacing top managers.
RBC Bank is now led by CEO Jim Westlake, a Canadian who took over the top spot from Scott Custer last fall. Westlake didn't directly contradict anything his boss told Bloomberg News, but he said RBC Bank officials are not now discussing the possibility of a sale. "You wouldn't ever want a CEO who wouldn't consider all options," he said in a telephone interview Thursday. "Any conjecture about what we might do is exactly that. We are very focused on building a good bank here."
Westlake spoke from his car at Raleigh-Durham International Airport, where he was waiting to fly to Toronto to visit his bosses at Royal Bank.
To fix RBC Bank, officials have consolidated all the branding across its territories under the RBC Bank name and are working to improve the company's balance sheet and loan portfolio, Westlake said.
RBC Bank, with about 430 branches, now employs 500 people in the Triangle, mostly at its headquarters tower in downtown Raleigh. Company wide, RBC Bank has about 5,000 employees, down from 6,000 a year ago.
Royal Bank entered the U.S. market with its $2.1 billion purchase of Rocky Mount-based Centura Bank in 2001.The company's shares, which have nearly doubled in the past year, rose 53 cents Thursday to close at $58.96.
To read full article please click here
Wednesday, March 24, 2010
Accountants Look to Cloud Computing For Cost Cutting
Article from CFO.com
Unlike the development curve of many business trends, the use of cloud computing to lower accounting costs has gained an early foothold among smaller companies. There is practically limitless room for growth; what almost everyone regards as the most successful cloud software provider to date, salesforce.com, started out at the lower end but now continues to find a berth in larger and larger companies.
The American Institute of Certified Public Accountants is pushing to accelerate adoption of cloud solutions among its 350,000 members, focusing especially on small and midmarket companies as well as CPA firms. The AICPA's first official endorsement of a cloud vendor, payroll solutions provider Paychex, came several years ago. But the institute has rolled out more such partnerships with increasing frequency, including with bill.com for invoice management and payment in 2008, financial management and accounting software maker Intacct a year ago, and tax-automation supplier Copanion at year-end 2009.
Related Articles
Another cloud vendor will receive the institute's stamp of approval this spring, according to Erik Asgeirsson, chief executive of CPA2Biz, an AICPA subsidiary that provides the parent with technology and marketing services and advocates the use of accounting automation by small businesses.
The pitch is that the cloud offers a steep drop in information-technology costs, since applications are hosted by the vendors and provided on demand, rather than via physical installations or seat licenses. "It is extremely important for CFOs, controllers, and CPA firms to leverage this new way of doing business," says Asgeirsson. "Putting these solutions in place provides sustainable competitive advantages."
Please read rest of article at CFO.com
Unlike the development curve of many business trends, the use of cloud computing to lower accounting costs has gained an early foothold among smaller companies. There is practically limitless room for growth; what almost everyone regards as the most successful cloud software provider to date, salesforce.com, started out at the lower end but now continues to find a berth in larger and larger companies.
The American Institute of Certified Public Accountants is pushing to accelerate adoption of cloud solutions among its 350,000 members, focusing especially on small and midmarket companies as well as CPA firms. The AICPA's first official endorsement of a cloud vendor, payroll solutions provider Paychex, came several years ago. But the institute has rolled out more such partnerships with increasing frequency, including with bill.com for invoice management and payment in 2008, financial management and accounting software maker Intacct a year ago, and tax-automation supplier Copanion at year-end 2009.
Related Articles
Another cloud vendor will receive the institute's stamp of approval this spring, according to Erik Asgeirsson, chief executive of CPA2Biz, an AICPA subsidiary that provides the parent with technology and marketing services and advocates the use of accounting automation by small businesses.
The pitch is that the cloud offers a steep drop in information-technology costs, since applications are hosted by the vendors and provided on demand, rather than via physical installations or seat licenses. "It is extremely important for CFOs, controllers, and CPA firms to leverage this new way of doing business," says Asgeirsson. "Putting these solutions in place provides sustainable competitive advantages."
Please read rest of article at CFO.com
Hanover Insurance Appoints New CFO
The Hanover Insurance Group, Inc. (NYSE: THG), a leading provider of property and casualty insurance, today announced that Ellen M. Rizzo has been appointed chief financial officer of its property and casualty business. In this role, Rizzo is responsible for financial oversight of The Hanover’s personal lines, commercial lines and claims organizations.
Rizzo joins The Hanover from The Travelers Companies, where she served as senior vice president and chief financial officer of business insurance since 1999. With more than 25 years of service to Travelers, she has established a reputation as an accomplished and insightful financial executive.
“Among the many ways we deliver distinctive value as a company is by attracting and retaining talented and committed professionals,” said Marita Zuraitis, president of The Hanover’s property and casualty business. “Ellen is one of the most talented and committed financial professionals in our business, and we look forward to benefiting from her extensive experience as we continue our journey to be the best partner for winning independent agents.”
“Ellen has a very successful track record leading financial organizations for property and casualty businesses,” said Steven J. Bensinger, executive vice president and chief financial officer of The Hanover Insurance Group. “We are confident that her broad industry knowledge and insight will be great assets to our organization as we continue to deliver on our promises to our agent partners and their customers.”
Ellen holds a master’s degree in finance and a bachelor’s degree in accounting from the University of Connecticut.
Reorganization of Divisions at SunTrust Banks
SunTrust Banks Inc (STI.N) said on Tuesday it was creating a new unit to oversee all of its consumer banking operations, and reorganizing its corporate and investment banking operations.
The Atlanta-based bank's newly created consumer banking organization will have oversight of all consumer deposit and loan offerings, including mortgage and credit cards.
The change by one of the 10 largest U.S. banks mirrors shifts by other large U.S. consumer banks to streamline operations and give a few executives ultimate responsibility for basic consumer services, like deposits and loans.
C.T. Hill, 59, will run the new unit, SunTrust said. He previously ran the bank's Mid-Atlantic Banking Group and managed its retail business line.
Thomas Kuntz, 53, will oversee the bank's 1,700 branches spread through 16 divisions in the Southeast and Mid-Atlantic regions of the United States.
The bank is also moving some of its commercial executives.
Amy Medendorp, 48, will become business executive for SunTrust's commercial line of business. She previously worked as co-head of the corporate and investment bank with Hugh Cummins, who will take over full responsibility for the corporate and investment banking operations.
Tuesday, March 23, 2010
Jet Blue Subleases Space From Met Life
JetBlue Airways announced they have decided to keep its headquarters in New York City, and to combine the current Forest Hills, New York and Darien, Connecticut corporate offices,into one main support center to be located in Long Island City, Queens.JetBlue's Darien, CT support center will be combined with the current New York office sometime in 2011. Seventy jobs will be relocated to New York. The carrier's Darien office provides transactional financial support for the value airline since 2000 and has been a key ingredient of the airline's success in its first decade.
Subleasing Space From MetLife
JetBlue will be subleasing the space from MetLife, who will continue to maintain a significant presence at the location with approximately 800 associates.Subject to execution of a lease with Metropolitan Life Insurance Co. (MetLife), JetBlue expects to occupy approximately 200,000 square feet by mid-2012 in the historic Brewster Building in Long Island City Queens. The Brewster Building, owned by Brause Realty, a New York City-based real estate company, is just six miles down the road from JetBlue's current support center location in Forest Hills, and is situated at the foot of one of the main gateways to Manhattan -- the Queensborough Bridge.
David Brause, President of Brause Realty Inc. and Chairman of the Long Island City Business Improvement District (BID), said, "We are very pleased that JetBlue Airways has chosen to lease our family's building in Long Island City for its new headquarters location. In partnership with our tenant, MetLife, Brause Realty looks forward to many years together with JetBlue as we accommodate this vibrant company's present space needs and their growth into the future."
"We are pleased that JetBlue, has made their decision to join us and establish their headquarters at our class A Long Island City facility," said John M. Vazquez, Vice President, Chief Procurement Officer, Vendor Sourcing and Corporate Services for MetLife. "Our mutual commitment to Long Island City is evidence that the area continues to grow and prosper with significant residential and business development. We are confident that JetBlue crewmembers will feel right at home in our headquarters quality building and will enjoy the full array of amenities available. We value this partnership with JetBlue and appreciate having such a well regarded and customer focused organization complement MetLife."
Subleasing is Not Always the Answer
Many companies consider subleasing commercial real estate as their only option. It is not always the best strategy when you look at tax implications and the neutral impact on bottom line. Cambridge Consulting Group negotiates unique Lease Buyout programs that have saved Fortune 500 companies millions of dollars. For more information on their services please visit their new website- www.commercialleaseterminations.com
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