Gary Loveman

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Gary Loveman
Born (1960-04-12) April 12, 1960 (age 61)
Boston, Massachusetts, US
NationalityAmerican
Alma materMassachusetts Institute of Technology (PhD)
Wesleyan University (B.A.)
OccupationEconomist, businessman

Gary William Loveman (born April 12, 1960) is an American economist, businessman, and former academic professor.[1] After nine years[2] on the faculty of Harvard Business School,[3][4][5] he left in 1998 to become COO of Harrah's Entertainment, which, following a number of acquisitions, became Caesars Entertainment.[6] He was the CEO of Caesars Entertainment Corporation for 12 years until stepping down on June 30, 2015, amidst a bankruptcy and restructuring.[7][8] He remained chairman until late 2017.[9] He was then president of Aetna’s Consumer Health and Services division from October 2015[10][11] until January 2018.[10] He is a partial owner of the Boston Celtics.[12]

Loveman is known for the development and application of analytics to influence customer behavior.[13]

Early life and education[edit]

Loveman grew up in Indianapolis, Indiana as the youngest of three siblings.[14] His father was a factory worker at Western Electric and his mother a homemaker.[4] As a child, he was interested in math and active in sports.[14] Loveman went on to attend Wesleyan University where he earned a bachelor's degree in economics in 1982.[15][16] After graduating from Wesleyan, Loveman worked for the Federal Reserve Bank of Boston for two years as an economic researcher before pursuing a doctorate degree at Massachusetts Institute of Technology.[14][15] In 1989, Loveman completed his PhD in economics.[15][2]

Career[edit]

Harvard career[edit]

After graduating from MIT at the age of 29, Loveman began teaching at Harvard Business School, where he was a professor for nine years.[15][2] While at Harvard, Loveman taught Service Management and developed an interest in the service industry and customer service.[15][2] In 1991 he was hired as a consultant for the casino company Harrah's Entertainment.[17] He also launched a side career as a speaker and consultant after a 1994 paper he co-authored, titled "Putting the Service-Profit Chain to Work", attracted the attention of companies including Disney, McDonald's, and American Airlines. The paper focused on the relationship between company profits and customer loyalty, and the importance of rewarding employees who interact with customers.[14][15]

Harrah's COO[edit]

In 1997, Loveman sent a letter to Phil Satre, the then-chief executive officer of Harrah's Entertainment, in which he offered advice for growing the company.[14] Loveman again began to consult for Harrah's, and in 1998 he was offered the position of chief operating officer.[15] He initially took a two-year sabbatical from Harvard to take on the role,[2] at the end of which Loveman decided to remain with the company.[18]

As COO, Loveman was responsible for the establishment of the company's Total Rewards loyalty management system, which gathers data on casino customers. The program allowed the company to analyze the travel and spending habits of their customers. Through this, Harrah's determined that repeat slot players, not high rollers, were most profitable. Under Loveman's leadership Harrah's began to focus on building loyalty and bringing more of these gamblers to the casino.[14][15][19] Loveman also established a rewards program for Harrah's employees of all levels, based on customer satisfaction.[14] He served as Harrah's Entertainment's chief operating officer until 2003.[19]

CEO of Harrah's and Caesars[edit]

In 2003, Loveman became chief executive officer of Harrah's, replacing Phil Satre.[14][15] By 2005, Loveman had grown Harrah's into the largest casino operator in the world with the acquisition of Caesars Entertainment.[19][20] In 2008, he led the company as it transitioned from a public to private company, after being acquired by private equity firms Apollo Global Management and TPG Capital for approximately $30 billion.[14][21]

In the wake of the financial crisis of the late 2000s the company experienced a decrease in revenue and increased debt associated with the 2008 buyout by Apollo and TPG. Loveman cut costs and renegotiated the company's maturing debt to avoid defaulting. His leadership of the company through the debt restructuring in 2009 was praised by the American Gaming Association president and CEO Frank J. Fahrenkopf Jr.[14][21]

During his tenure at Caesars, he introduced an employee health program with on-site clinics,[9] Wellness Rewards.[22]

Caesars restructuring[edit]

In 2010, Loveman oversaw Harrah's transition to the name Caesars Entertainment Corporation and led an effort to take the company public again.[23] The company successfully completed an initial public offering in 2012, selling approximately two percent of its shares.[24] In 2013, Loveman initiated the sale of Caesars' golf course in Macau,[25] which had been purchased in 2007 to later open as a casino. Loveman had initially turned down the purchase of a gaming license in Macau in 2006, a decision he described in 2010 as the biggest mistake the company had made.[14]

A proponent of legalizing online gambling,[18][26] Loveman has published opinion pieces on the topic in publications such as the Las Vegas Review-Journal and on CNN Money.[27][28] Loveman helped to launch Caesars' online gambling operation in Nevada in September 2013.[29]

As CEO, Loveman expanded Harrah's from 15 casinos in 2003 to over 54 locations in 2013,[15][18] through the acquisition of Caesars, Horseshoe Gaming Holding, Planet Hollywood, the Imperial Palace casino, and the World Series of Poker brand.[14][19][30] Loveman announced in February 2015 that he was going to step down from his post as CEO.[31] He remained chairman[32][33] until 2017.[9]

Aetna[edit]

He became an executive vice president of Aetna and president of its Consumer Health and Services organization,[32] Healthagen, in October 2015.[10] He also joined Aetna's executive committee.[33] Hired to expand both the consulting arm and health services,[10] he and the division were charged with leading Aetna's strategies concerning "population health and consumer engagement," in part using data analytics and marketing.[10] With the unit, Loveman developed digital tools and expanded Aetna's "consumer health and services analytics capabilities."[34] In September 2016 Aetna opened a "consumer business hub" in Wellesley, Massachusetts under Loveman's oversight.[11] Aetna announced in December 2017 that it would become a stand-alone unit inside CVS Health in 2018.[10] Loveman stepped down from Aetna in January 2018.[10][34]

In March 2018, CNBC reported that Loveman had been approached as a candidate for the new CEO role at Berkshire Hathaway's new health joint venture with Amazon and JPMorgan.[35]

He is a partial owner of the Boston Celtics[12] and remains on the board.[36]

Committees and boards[edit]

In addition to his corporate positions at Caesars as of 2013 Loveman served on the board of directors at FedEx and Coach, Inc..[18][37] He was also on the board of directors for the American Gaming Association,[38] where he previously served as the chairman of the board from 2007 to 2009.[39]

He is the chairman of the Business Roundtable's Health and Retirement Committee.[40] Also in 2012, he was named to the President's Export Council.[41] Loveman was previously a member of MIT's Department of Economics' visiting committee.[42] Loveman and his wife have also helped with fundraising efforts for Joslin Diabetes Center.[43] Loveman is also on the board of trusteesof Boston Children's Hospital.[44] In 2017, Boston Children's Hospital announced that $350,000 had been donated in honor of Loveman by his former colleagues to fund malaria research and a music therapy program.[9]

Awards and recognition[edit]

Loveman's career was the subject of a Stanford Graduate School of Business case study in 2003,[15][45] and he was recognized as the "best CEO" in the gaming and lodging industry by Institutional Investor magazine in 2004, 2005, 2006 and 2007.[46][47][48] In 2013, Loveman was inducted into the American Gaming Association's Gaming Hall of Fame[49] and awarded the Education Hero Award by the Las Vegas-based Public Education Foundation.[50]

References[edit]

  1. ^ Geier, Ben (June 6, 2015). "Meet the Harvard Business School professor trying to save an icon". Fortune. Retrieved August 27, 2015. Gary Loveman, a former Harvard Business School professor and current CEO of Caesar’s entertainment...
  2. ^ a b c d e Liv Gold (February 23, 2010). "Gary Loveman, PhD '89". MIT Technology Review. Retrieved September 17, 2013.
  3. ^ Jeffrey Pfeffer and Victoria Chang (2003). "Gary Loveman and Harrah's Entertainment". Stanford Business.
  4. ^ a b Pogash, Carol (October 7, 2002). "From Harvard Yard To Vegas Strip". Forbes. Retrieved August 27, 2015. Loveman joined Harrah's in 1998.
  5. ^ "Life Lessons From Outgoing Caesars Entertainment CEO Gary Loveman". Wall Street Journal. June 30, 2015. Retrieved August 27, 2015. Here are a few lessons the former Harvard Business School professor has tried to pass on from his roller-coaster ride atop the casino giant.
  6. ^ "Harrah's Entertainment Inc. changes name to Caesars Entertainment Corp". Las Vegas Sun. November 23, 2010. Retrieved August 27, 2015. Harrah's Entertainment Inc., the world's largest casino company, has changed its name to Caesars Entertainment Corp.
  7. ^ William Alden (2015). "Chief of Troubled Casino Operator Caesars to Step Down". The New York Times. Retrieved September 20, 2018.
  8. ^ O’Keeffe, Kate (June 29, 2015). "Weary but Unbowed, Caesars CEO Defends His Tenure". Wall Street Journal. Retrieved August 27, 2015. Mr. Loveman, who will step down after 12 years as CEO on Tuesday but stay on as chairman...
  9. ^ a b c d "Boston Children's Hospital Receives Grant to Support Malaria Research and Music Therapy Program Honoring Dr. Gary Loveman". Boston Children's Hospital. 2017. Retrieved September 20, 2018.
  10. ^ a b c d e f g Shelby Livingston (2018). "Aetna executive and former Caesars CEO to leave insurer". Modern Healthcare.
  11. ^ a b Catherine Carlock and Jessica Bartlett (2017). "Sources: Aetna exploring significant office presence in Boston". Boston Business Journal. Retrieved September 20, 2018.
  12. ^ a b "Don't bet on being able to wager on Cavs at Cleveland casino, even if Ohio legalizes sports wagering". Cleveland.com. May 17, 2018.
  13. ^ Marc Levinson (2014). "Book Review: 'What Stays in Vegas' by Adam Tanner". The Wall Street Journal.
  14. ^ a b c d e f g h i j k l Karl Taro Greenfeld (August 5, 2010). "How to Survive in Vegas". Bloomberg Businessweek. Retrieved September 17, 2013.
  15. ^ a b c d e f g h i j k Julie Schlosser (March 8, 2004). "Teacher's Bet". Fortune. Retrieved September 17, 2013.
  16. ^ "Management". caesars.com. Caesars Entertainment. Archived from the original on October 4, 2013. Retrieved October 7, 2013.
  17. ^ "Gary Loveman of Harrah's Entertainment: Gambling Man". Institutional Investor. July 12, 2005. Retrieved September 17, 2013.
  18. ^ a b c d Laura Schreffler (July 23, 2013). "One on One with Gary Loveman—Hail to the Chief of Caesar's Entertainment". Haute Living. Retrieved September 17, 2013.
  19. ^ a b c d Deena Beasley (February 25, 2010). "Harrah's CEO loves heels, hates Vegas palaces". Reuters. Retrieved September 17, 2013.
  20. ^ "Harrah's buying Caesars". CNN. July 15, 2004. Retrieved September 17, 2013.
  21. ^ a b Deena Beasley (February 22, 2010). "Harrah's CEO: Las Vegas still weak". Reuters. Retrieved September 17, 2013.
  22. ^ "Gary Loveman's statement on 'Employer Wellness Programs: Better Health Outcomes and Lower Costs'". Business Roundtable. 2015.
  23. ^ "Harrah's changes corporate name to Caesars". St. Louis Business Journal. November 23, 2010. Retrieved September 17, 2013.
  24. ^ Lee Spears (February 8, 2012). "Caesars Surges 71% in Debut After Slashing IPO From 2010 Try". Bloomberg Businessweek. Archived from the original on June 1, 2013. Retrieved September 17, 2013.
  25. ^ Howard Stutz (August 9, 2013). "Romance off: Caesars sells Macau land holdings for $438 million". Las Vegas Review-Journal. Retrieved September 17, 2013.
  26. ^ Phil Hevener (September 24, 2013). "Maybe Global Gaming Expo (G2E) unites us". Gaming Today. Retrieved October 4, 2013.
  27. ^ Elaine Chaivarlis (April 26, 2011). "The Nightly Turbo: Gary Loveman on Legalizing Online Poker, PokerStars Cash-outs Coming, and More". Pokernews.com. Retrieved September 17, 2013.
  28. ^ "President and CEO of Caesars unleashes defence of online poker". Pokernewsreport.com. May 9, 2011. Retrieved September 17, 2013.
  29. ^ Christopher Palmeri (September 16, 2013). "Caesars to Start Online Poker Service in Nevada This Week". Bloomberg Businessweek. Retrieved October 4, 2013.
  30. ^ "Company News; Harrah's Agrees to buy Horseshoe Gaming". The New York Times. September 12, 2003. Retrieved September 17, 2013.
  31. ^ "Gary Loveman Resigns as Caesars' CEO". Casino News Daily. 2015.
  32. ^ a b Dan Haar (2016). "Aetna Hires Top Hertz Lawyer As General Counsel, Continuing A Consumer-Brands Push". Hartford Courant.
  33. ^ a b "Gambling exec Gary Loveman to join Aetna". Courier Journal. 2015.
  34. ^ a b "Aetna consumer/health exec departs". Hartford Business. 2018.
  35. ^ Christina Farr (2018). "Amazon's big health venture with Berkshire and JPMorgan is scouting CEOs – with VC John Doerr's help". CNBC. Retrieved September 20, 2018.
  36. ^ "Gary W. Loveman". Faculty and Research.
  37. ^ "Board of Directors". fedex.com. FedEx. Archived from the original on December 25, 2013. Retrieved September 17, 2013.
  38. ^ "Board of Directors". americangaming.org. American Gaming Association. Archived from the original on January 6, 2013. Retrieved September 19, 2013.
  39. ^ "Loveman Elected to AGA Chair". Casino Enterprise Management. February 2007. Archived from the original on September 19, 2015. Retrieved October 4, 2013.
  40. ^ "Health and Retirement Committee". businessroundtable.org. Business Roundtable. Archived from the original on September 6, 2013. Retrieved September 19, 2013.
  41. ^ "Caesars' Loveman Appointed to President's Export Council". Global Gaming Business. March 30, 2012. Archived from the original on May 17, 2012. Retrieved September 17, 2013.
  42. ^ "Visiting Committee". mit.edu. Massachusetts Institute of Technology Department of Economics. Retrieved October 2, 2013.
  43. ^ "Gary Loveman and Kathleen Walsh: A Pair Wins for Joslin". joslin.org. Joslin Diabetes Center. Retrieved September 17, 2013.
  44. ^ "Board of Trustees, Boston Children's Hospital". childrenshospital.com. Boston Children's Hospital. Retrieved October 2, 2013.
  45. ^ Jeffrey Pfeffer; Victoria Chang (2003). "Gary Loveman and Harrah's Entertainment". stanford.edu. Stanford Graduate School of Business. Retrieved September 17, 2013.
  46. ^ "Magazine names Loveman industry's best CEO". January 18, 2005. Retrieved September 17, 2013.
  47. ^ "Harrah's Entertainment Reports First-Quarter Results". Hospitality Net. April 27, 2006. Retrieved October 7, 2013.
  48. ^ "The Best CEOs". Institutional Investor. January 10, 2007. Retrieved September 17, 2013.
  49. ^ "Gaming Association chief to be 2013 hall inductee". Associated Press. August 31, 2013. Archived from the original on December 30, 2013. Retrieved September 17, 2013.
  50. ^ Dorothy Huffey (September 28, 2013). "Public Education Foundation honors Schorr, Loveman". Las Vegas Review-Journal. Retrieved October 4, 2013.