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Fred Malek

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Frederic Vincent "Fred" Malek[1] (born December 22, 1936) is the former President of Marriott Hotels and Northwest Airlines and former assistant to United States Presidents Richard Nixon and George H.W. Bush. Malek served as a National Finance Committee co-chair of John McCain's 2008 presidential campaign and has played a role in every Republican nominee for President over the past four decades.[2] In 2011, he received the Horatio Alger Award.[3]

Early life

Malek was born in Berwyn, Illinois of Czech and Croatian descent,[4][5] the son of a beer truck driver.[1] He was raised in Chicago. He graduated with a Bachelor of Science from West Point in 1959,[6] and served in Vietnam with Army Special Forces as an airborne ranger. He received his M.B.A. degree from Harvard Business School in 1964 and worked as a management consultant for McKinsey & Co.. He and two classmates made a pact to purchase a business together; two would work and support the third while he scouted out opportunities. In 1967, he left McKinsey and, with his partners, purchased Triangle Corp., a struggling hand tool manufacturing company in Orangeburg, South Carolina.[6][7]

Political career

Nixon administration

Malek served in the Nixon administration in several different roles, including Deputy Under Secretary of Department of Health, Education, and Welfare under Secretary Robert Finch, as special assistant from 1970–73 and deputy director of Nixon's re-election campaign.[8] Malek served as deputy chief of the Committee to Re-elect the President in 1972.[9]

As an efficiency expert to Nixon, Malek helped restructure Nixon's staff and officials and streamline the bureaucracy.[10] In his memoirs, Nixon described Malek as a "tough young businessman whose specialty was organization and management."[11]

In the first Nixon administration, Malek designed and directed the "Responsiveness Program", a strategy to replace civil servants with Nixon supporters and to steer government resources to benefit Nixon's 1972 re-election.[12][13][14] According to the Senate Watergate report, Malek wrote in a 1972 memo to Haldeman that someone was needed to "take the lead in the program to politicize Departments and Agencies" and to "supervise the patronage operation and closely monitor the grantmanship operation."[15] In advocating the plan, Malek wrote of "substantial risks" to politicizing the Executive Branch and expressed concern that the plan would "undoubtably backfire" if made public; therefore he recommended that "to minimize any links to the President, there should be no directions on this project in writing."[16]

Malek was sworn in as Deputy Director of the Office of Management and Budget on February 2, 1973 and served until 1975 when he resigned to re-enter the private sector.

BLS controversy

In 1971, Richard Nixon became convinced the Bureau of Labor Statistics (BLS) had come under the control of Democratic rivals and what Nixon termed a "Jewish cabal." He instructed aides Charles Colson and H. R. Haldeman to identify a list of Democrats and "important Jewish officials" at the agency.[17]

Malek provided the data on Democrats after a check of voter registration rolls, but balked at fulfilling the rest of Nixon's query. "I refused four times. The fifth time he came back and gave me a direct order through Haldeman, so I gave him a number. I regret my compliance. It was a mistake."[18] Malek did not have access to BLS employees' religious affiliations, so his list comprised those BLS employees with "Jewish-sounding names", and two months after he sent the list, two of the officials on it were reassigned to "less visible jobs" within the Labor Dept.[19] Slate columnist Timothy Noah, however, asserts that a September 8, 1971 memo from Malek to Haldeman appears to contradict Malek's assertions of limited involvement, in which Malek states he has recommended to the Secretary of Labor "fairly drastic moves" including the "compromise" reassignment of three officials. Documents released by the Nixon library in January 2010 also appear to contradict Malek's statement.[17][20][21]

Seymour D. Reich, chairman of Conference of Presidents of Major American Jewish Organizations during the 1990s, said "Malek made a mistake 18 years ago when he agreed to a regrettable request by President Nixon." But he added, Malek "has taken pains to assure the Jewish community that he realizes his error and that he intended no harm. I believe he is sincere."[22] In 2010, Sen. Dianne Feinstein (D-Ca.) called Malek "a man of high principle" who "has proved many times over the years his loyalty to the highest principles of freedom, human rights and international tolerance.".[23] On December 15, 2014 Malek received the Anti Defamation League's Achievement award during a ceremony in Washington, DC.[24]

Bush administration

In September 1989, Malek was appointed by President Bush to coordinate plans for the 1990 economic summit of industrialized nations. The appointment was seen as a test of whether Malek could successfully serve in the administration. Malek had been a deputy chairman of the RNC in charge of the national convention in 1988 and was said to be "on track" for chief of staff in the Bush White House, but resigned to dissasociate the Vice President from negative publicity from the Nixon administration controversy.[25]

Malek served as Director of the 1990 Economic Summit of Industrialized Nations where he was responsible for the preparation and staging of the event.[26]

The appointment proved a success, and in 1992 Bush appointed Fred Malek campaign manager for his re-election. Malek was "responsible for nuts-and-bolts daily management." Malek ran the campaign with fundraiser Robert Mosbacher and pollster Robert Teeter out of a rented office in downtown Washington.[27]

Malek also served as co-chairman of the finance committee for John McCain in 2008,[28] raising $500,000 for his presidential campaign.[29]

American Action Network

Malek is founder, chairman and one of three primary financial supporters of the American Action Network, a 501(c)(4) center-right tank established in January 2010 to promote policies based on the principles of freedom, limited government, and strong national security.

Republican Governors Association

Malek also chairs the Executive roundtable meetings of the Republican Governors Association, an organization supporting the election of Republican governors.[30] In 2012 it was announced that Malek agreed to serve as the Republican Governors Association's Finance Chairman.[31] Before gubernatorial elections in 2013 and 2014, the RGA, under Malek's leadership, outpaced the Democratic Governors Association by about $10 million.[32]

Business career

Marriott Corp.

In 1975, Fred Malek joined the board of Bethesda-based Marriott Corp., where he oversaw Marriott's hotel business, its design and construction division, and Sun Line Cruises. He was elected executive vice president of Marriott in March 1978, adding to his duties oversight of Marriott's contract food services group.[33] Under Malek's oversight of the hotel and resort division from 1981 to 1988, earnings increased nearly fourfold, or 18 percent a year, during a period that encompassed a recession, industry overbuilding and profit declines by competitors.[34]

In early 1989, Malek joined the Carlyle Group as a senior adviser. On April 19, 1989, he led a group of investors to purchase the Coldwell Banker Commercial Group, the nation's largest commercial real estate services company, from Sears, Roebuck and Company at a price estimated at $300 million.

Northwest Airlines

Malek soon joined Los Angeles investor Al Checchi and Marriott's Gary Wilson in a $3.65 billion, all-cash purchase of Northwest Airlines. The investor group, including representatives of the Bass brothers, and Bankers Trust New York Corp. was joined in the leveraged buyout by KLM Royal Dutch Airlines and Elders IXL, which contributed $480 million in equity. Malek and Checchi joined the airline's 10-member board.[35] Checchi named Malek as president to replace president and CEO John Horn, and the two split the chairman duties held by Steven Rothmeier.[36]

In July 1989, Malek and a group of Carlyle investors bought Marriott's leading airline catering division for an estimated price of $650 million.[37] From January 1, 2002 to December 31, 2005, Malek was a member of the Board of Directors of Fannie Mae.[38]

Thayer Lodging Group

Founded in 1991, Malek and Leland Pilsbury are the two founding partners of Thayer Lodging Group. The US Military Academy at West Point's Thayer Hotel is a 151-room "Historic Hotel of America" property located 50 miles north of New York City on the banks of the Hudson River at 674 Thayer Road in West Point, New York on the campus of the USMA. It is named after Sylvanus Thayer, West Point class of 1808, the "father of the Military Academy." Thayer has a lengthy and successful track record: since forming its first private equity fund in 1991, Thayer has completed 41 hotel investments with a total acquisition cost of approximately $2.4 billion.[39] Thayer’s funds currently own a portfolio of 14 hotels and 3,637 guest rooms and, through its investment in Interstate, have ownership interests in 64 hotels with 11,655 guest rooms.[39] On July 1, 2013 Thayer acquired Ritz Carlton-San Francisco to the delight of Malek, who said, "we hope to replicate the success of our Orlando Grand Lakes Ritz Carlton, one of our highest return investments."[40]

On May 21, 2014, Thayer Lodging Group announced its acquisition by Brookfield Asset Management.[41] Thayer continues to own the hotels it acquired during the years prior to its partnership with Brookfield. Malek continues to be actively involved in Thayer's day-to-day operations.[42]

SEC administrative action

On August 12, 2003, the SEC filed a civil fraud lawsuit[43] against former Connecticut state Senate Majority Leader William DiBella for participating in a fraudulent scheme to invest $75 million of the state pension funds with Malek's firm, Thayer Capital Partners.[43][44] The SEC said that Thayer failed to disclose payments to DiBella who performed "no meaningful work" and was hired by Thayer at the request of the state treasurer.[45] On May 18, 2007, DiBella and North Cove were found liable for aiding and abetting Silvester's intentional violations of the Securities Exchange Act of 1934, and Thayer was found in negligence of Investment Advisers Act of 1940. Thayer paid a civil penalty of $150,000, and Malek personally paid a fine of $100,000.[46]

Virginia government reform commission

On May 7, 2010, Virginia Governor Robert McDonnell appointed Malek to chair a 31-member commission to find efficiencies and savings in government.[28] Critics objected to Malek's appointment based on both the BLS and SEC administrative action and McDonnell responded that he did not know of these parts of Malek's past.[20][45][47][48]

American Friends of the Czech Republic

Malek, of Czech descent, is the Chairman of the American Friends of the Czech Republic.[49] Following the April 17th, 2013 explosion that left West, TX devastated, Malek and the Friends of the Czech Republic donated substantial funds to help put the town of primarily Czech descent back on its feet; the group even sponsored an essay contest for two children to travel on an all expenses paid trip to the Czech Republic.[50][51] Following unprecedented flooding in Prague and nearby villages in early June, 2013, Malek traveled to the city to meet with Ambassador Norm Eisen and local officials to pledge aid and discuss ways to help the region recover.[52]

Major League Baseball

Malek was a co-owner in the Texas Rangers along with former President George W. Bush and other investors. After selling his stake in the team, Malek earned his money back fivefold.[53]

Malek played a major role in recruiting the Montreal Expos franchise to Washington, D.C.[54] Working alongside city leaders, Malek set up the Washington Baseball Club, an investment group with partners that included Jeff Zients, Steve Porter, Paul Wolff, Frank Raines, Jim Kimsey, Colin Powell, Vernon Jordan and David Bradley.[55]

Other work

In 2008, Malek was nominated to the Board of Visitors of the United States Military Academy at West Point by the President of the United States at the time, George W. Bush.[56] He was the 2011 Chairman of this board.[57] He has been a philanthropic support of West Point, underwriting the Malek Tennis Center. “Harvard was extraordinarily helpful in teaching me to analyze problems on a purely academic front," Malek has said. "It did more than that, actually. But in terms of overall effect, it was not even close to the U.S. Military Academy in making me who I am. West Point builds the entire structure of the man, the values of the man. It develops you in the whole.”[6]

On Tuesday, May 29, 2012, Marymount University celebrated the formal renaming of its School of Health Professions in honor of Fred and Marlene Malek. Mrs. Marlene Malek graduated from the school in 1979 and is a member of the Marymount Board of Trustees. The School of Health Professions was renamed "Malek School of Health Professions" to honor the Maleks' ongoing commitment to Marymount University.[58]

Fred and Marlene Malek were honored with the Outstanding Philanthropist Award by the Association of Fundraising Professionals’ Washington, DC, Metro Area Chapter at their National Capital Philanthropy Day in 2012.[59]

Personal life

Malek is married to Marlene A. Malek. They have two children, and reside in McLean, Virginia.[60]

In 1959, at age 22, Malek was arrested along with five other men in Vicary's Park near Peoria, Illinois, after police found their car spattered with blood, and a dog that had been skinned, gutted and spitted over a barbecue pit in the park. Malek and the other men were charged with cruelty to animals, but the charges against Malek were dropped after one of the others confessed to killing the dog and said he acted alone. Malek has claimed that he did not participate in the incident.[44]

Malek is a "fitness fanatic" who has kept up healthy habits since West Point. A skiing accident in the mid-1980s left Malek with an artificial hip, which forced him to switch from running to lifting weights, swimming and bicycling.[34]

Published works

  • Hidden Tragedy: The Failure to Make Government Work, Fred Malek, Free Press, 1979.[3]

References

  1. ^ a b Leubsdorf, Carl P. (1990-06-24). "Return to grace Summit chief sheds stigma of Nixon-era incident". The Dallas Morning News. Retrieved 2010-06-07. {{cite news}}: Cite has empty unknown parameter: |coauthors= (help)
  2. ^ "Most Popular E-mail Newsletter". USA Today. August 29, 2012.
  3. ^ "Frederic V. Malek Named 2011 Horatio Alger Award Recipient". Horatio Alger Association. Retrieved 18 April 2011.
  4. ^ Cannon, Lou (1972-10-17). "The Hard Hats Are At The Throttle". Sarasota Herald-Tribune. p. 4. Retrieved 2010-05-01. {{cite news}}: Cite has empty unknown parameter: |coauthors= (help)
  5. ^ [1]
  6. ^ a b c Zinsmeister, Karl (Spring 2011). "Spartan Donors". Philanthropy. Retrieved 5 June 2012.
  7. ^ Nomination of Frederic V. Malek To Be a Governor of the United States Postal Service, John T. Woolley and Gerhard Peters, The American Presidency Project [online]. Santa Barbara, CA: University of California (hosted), Gerhard Peters (database).
  8. ^ "Fred Malek". Retrieved 2008-04-08.
  9. ^ http://www.nixonlibrary.gov/forresearchers/find/textual/central/smof/malek.php
  10. ^ New York Times, November 15, 1972.
  11. ^ RN: The Memoirs of Richard Nixon, p. 624, Richard Nixon, 1990.
  12. ^ nid=1356&dat=19750930&id=ByATAAAAIBAJ&sjid=lAUEAAAAIBAJ&pg=2758,5691792, Jack Anderson, "Success Story of Interior Nominee," Ocala Star-Banner, September 30, 1975.
  13. ^ [2] Ray Cromley, Times Daily, September 6, 1972.
  14. ^ http://books.google.com/books?id=x7nMs-JwAikC&pg=PA382&lpg=PA382&dq=%22responsiveness+program%22&source=bl&ots=-lkHCcaR-H&sig=IbkYbKlH-QWVjoKqK8JNlJ01wHM&hl=en&ei=LSsBTKSDMMKBlAfWt5jFCQ&sa=X&oi=book_result&ct=result&resnum=8&ved=0CC8Q6AEwBw#v=onepage&q=%22responsiveness%20program%22&f=false
  15. ^ The Senate Watergate Report, Chapter III, 1974, citing Malek memo to Haldeman.
  16. ^ The Senate Watergate Report, 1974, Chapter III, citing December 23, 1971 memo from Malek to Haldeman.
  17. ^ a b "Nixon's Jew count: The whole story!", Timothy Noah, Slate, Sept. 26, 2007.
  18. ^ "Adviser Makes Peace With Jewish Groups; In Line for New Bush Job" Christopher Connell, AP, September 11, 1989.
  19. ^ "New Job for Aide Who Quit Bush Campaign", Bernard Weinraub, Sept. 10, 1989.
  20. ^ a b Noah, Timothy (May 21, 2010). "What's the Matter With Virginia? Part 2: Fred Malek's anti-Semitic past makes him unfit to chair a state government panel". Slate Magazine. Retrieved 2010-06-10.
  21. ^ "Memorandum from Malek to Haldeman" (PDF). Nixon Library. February 11, 1971. Retrieved 2010-06-10.
  22. ^ Connell, AP, 1989.
  23. ^ Anita Kumar (10 May 2010). "Democrats attack McDonnell's selection of Malek as government reform chairman". Washington Post.
  24. ^ http://www.washingtonpost.com/business/capitalbusiness/capital-buzz-ex-living-social-exec-has-new-career-in-making-signs/2014/12/23/fcae9538-8499-11e4-b9b7-b8632ae73d25_story.html
  25. ^ "New Job for Aide Who Quit Bush Campaign", Bernard Weinraub, New York Times, September 10, 1989.
  26. ^ http://www.c-span.org/video/?13058-1/houston-economic-summit-preview
  27. ^ "Bush picks commerce secretary; GOP fundraiser to be nominated", Bill Mintz, Houston Chronicle, December 27, 1991.
  28. ^ a b "McDonnell announces members of government reform commission". May 7, 2010. Retrieved 2010-05-26.
  29. ^ "John McCain Bundlers". Retrieved 2010-06-06.
  30. ^ http://www.fredmalekblog.com/
  31. ^ http://www.politico.com/politicoinfluence/1212/politicoinfluence9614.html
  32. ^ http://www.politico.com/story/2013/08/rga-dga-fundraising-95533.html#ixzz2by1HpsNr
  33. ^ "Frederic Malek, Former Nixon Aide, Elected Vice President of Marriott", Washington Post, Chapin Wright, March 13, 1978.
  34. ^ a b "Malek Brings Cargo of Controversy to NWA", Minneapolis-St. Paul CityBusiness, Beth Ewen, October 9, 1989
  35. ^ "Checchi's backers will get about 20% of Northwest", Denise Gellene, Los Angeles Times, June 24, 1989.
  36. ^ "Labor Upbeat About Change in Management at Northwest", AP, Sept. 29, 1989 .
  37. ^ "Marriott will sell catering unit to one of NWA's buyers", Gellene, Los Angeles Times, July 12, 1989.
  38. ^ Fannie Mae News Release, November 10, 2005, "Frederic Malek to Retire From Board"
  39. ^ a b http://www.thayerlodging.com/#/About/
  40. ^ http://finance.yahoo.com/news/thayer-lodging-group-acquires-ritz-123000168.html
  41. ^ "Thayer Lodging Group, Inc., Announces its Acquisition by Brookfield Asset Management. In response to the merger of the two companies, Fred Malek said "this transaction brings together two companies that share similar investment objectives, management approaches and a common outlook on the global real estate market"". PR Newswire. Thayer Lodging Group. Retrieved 1 October 2014.
  42. ^ https://www.bisnow.com/washington-dc/news/hotel/malek-momentum-45352
  43. ^ a b SEC v. William A. DiBella and North Cove Ventures, LLC, Civil Action No. 304CV1342 (WWE) (District of Connecticut)
  44. ^ a b Colbert I. King, "Fred Malek, a Dog and the SEC" Washington Post March 11, 2006
  45. ^ a b Helderman, Rosalind (May 26, 2010). "McDonnell Says he didn't know of Malek disputes: Made List of Jews for Nixon". Washington Post. p. B1.
  46. ^ SEC v. William A. DiBella, et al., Civil Action No. 3:04 CV 1342 (EBB) (District of Connecticut)
  47. ^ "McDonnell unaware of reform chairman's past". WTOP. May 25, 2010. Retrieved 2010-05-26.
  48. ^ "Va. delegate says commission chair anti-Semitic". WTOP. May 10, 2010. Retrieved 201-05-26. {{cite news}}: Check date values in: |accessdate= (help)
  49. ^ http://www.afocr.org/who-we-are/leadership
  50. ^ http://www.radio.cz/en/section/curraffrs/czech-republic-to-provide-aid-to-devastated-texan-town
  51. ^ https://www.facebook.com/photo.php?fbid=484977904904245&set=a.153928088009230.39079.149550088447030&type=1&relevant_count=1
  52. ^ http://eisen.blog.idnes.cz/c/346800/Pritel-v-tisni-A-Friend-in-Need.html
  53. ^ http://www.washingtonpost.com/business/economy/fred-maleks-pursuit-of-success-includes-stops-at-west-point-white-house-marriott/2014/10/05/1146514c-4828-11e4-b72e-d60a9229cc10_story.html
  54. ^ http://www.washingtonian.com/articles/people/how-dc-got-baseball-back/
  55. ^ http://www.fredmalekblog.com/2015/07/28/10-years-of-baseball-in-washington/
  56. ^ Rutenberg, Jim (6 December 2008). "On His Way Out, Bush Leads Others In". New York Times. Retrieved 18 April 2011.
  57. ^ "United States Military Academy at West Point, Board of Visitors". United States Military Academy at West Point. Retrieved 18 April 2011.
  58. ^ "Governor, University Laud Maleks' Philanthropic Efforts in Health-Care Arena". Arlington Sun Gazette. 4 June 2012. Retrieved 4 June 2012.
  59. ^ http://www.marymount.edu/newsEvents/newsDetails.aspx?Channel=%2FChannels%2FSite+Wide+Content&WorkflowItemID=1ee9eb8f-d4cb-41a5-bfbf-c9d9864ba8c4
  60. ^ Fred Malek is McCain's new moneyman, Washington Examiner, Jeff Dufour, February 12, 2008.
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