Return to Transcripts main page
American Morning
CEO Boot Camp in New York City
Aired November 29, 2001 - 08:29 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
PAULA ZAHN, CNN ANCHOR: Guess who is standing by right next to me, Bill? You probably know, because he's here this time every morning.
Our own Jack Cafferty is back with us with a story of what business reporter might appreciate -- CEOs actually taking orders instead of giving them?
JACK CAFFERTY, CNN FINANCIAL NEWS ANCHOR: You know, if I own stock in a publicly traded company, and I find out that the top guy is going to school to learn how to do the job, this would worry me a little.
ZAHN: You might not take him very seriously.
CAFFERTY: Yes. Well, they actually -- they have what they call, I guess for want of a better way to describe it, a boot camp for CEOs. And that's where the guys in the corner office and the women, because there are some women who have the corner offices and the top jobs, can go here in New York City, presumably to learn some additional things about how to be effective in their assignment.
And Kathleen Hays is attending as an observer, and she joins us now to explain exactly what it is these people are doing -- good morning.
KATHLEEN HAYS, CNN FINANCIAL NEWS: Oh, no, Jack, I intend to be a CEO. Come on, that's why I'm really here.
CAFFERTY: My hope is...
(CROSSTALK)
HAYS: That's (UNINTELLIGIBLE).
CAFFERTY: My hope is that you will take over this company soon.
HAYS: There you go. Don't worry. Because
(CROSSTALK)
CAFFERTY: Because I have a list of issue I want to discuss with you.
HAYS: Give me a little more time.
CAFFERTY: OK.
HAYS: At any rate, it is kind of a different thing, because, you know, who thinks of CEOs like needing to be taught anything? They seem like the Mr. and Mrs. Bigs of the world. But I guess what's really different about this conference, unlike business school or something, is that you have very successful, very well regarded -- guys who really have proven their track record -- teaching other CEOs some new, some not so new, basically about how to do their jobs. Things like how to deal with the business press -- there's a tricky one -- how to deal with Wall Street. And think about it, how to deal with your board. I guess that's like suddenly getting a whole new group of in-laws or something that you've got to answer to.
Ray Gilmartin, who is the chairman and CEO of Merck, is chairing the day-long academy this year, and he has pretty high hopes for the session.
(BEGIN VIDEO CLIP)
RAYMOND GILMARTIN, CEO, MERCK & CO.: What we expect to be able to accomplish at the end of the day is to touch on subjects that are unique to the job of being the CEO. That although there are a lot of other executive education programs, not any of them, really, cover things like dealing with the board, board (UNINTELLIGIBLE) issues, dealing with the press, dealing with Wall Street, and these are all important areas of knowledge to be successful as a CEO. That it would be helpful to learn from others about what their experiences have been in the past.
(END VIDEO CLIP)
HAYS: Some of the other presenters today: John Smail, former chairman of the executive board of General Motors, responsible for a lot of the management shake-ups in the 90s, Jack Neutron (ph), Jack Welch, former head of GE, and I guess a lot of people say probably the most successful CEO of this century will be here this afternoon. In fact, I'm going to interview him around 4:15 this afternoon.
Some of the people who are attending are Art Lafley, who is the new head of Procter & Gamble. We've got the new head of Campbell Soup, Hershey, Deere, I mean these are big like fortune 100, 200 companies. But again, I guess this is just a very unique time for them to listen to the experiences of other people, maybe be able to ask them some questions, and I guess...
CAFFERTY: Let me ask you...
(CROSSTALK)
HAYS: ... go out renewed and recharged. Go ahead, Jack.
CAFFERTY: Yes, no, I don't mean to interrupt, but $10,000...
HAYS: Go ahead. CAFFERTY: ... I mean, isn't this money that could be better spent like in dividends for the shareholders? And like couldn't they call each other...
HAYS: Well...
CAFFERTY: Couldn't they call each other on the phone if they have questions?
HAYS: Well...
CAFFERTY: I mean, I'm not making light of it, but I mean...
HAYS: ... seriously, though -- you know, but seriously, you know as well as I do, having been in the news business for a long time, it's one thing to talk to people on the phone, and it's one thing to interview them remotely. When you stand next to somebody in a room, sit next to them over coffee, you get a whole other perspective that you wouldn't get with remotely.
Another thing (ph), this is a tax write off, I assume. It didn't really cost them $10,000. It probably cost them 5,000 after tax.
CAFFERTY: Why is it...
HAYS: And (UNINTELLIGIBLE) companies.
(CROSSTALK)
CAFFERTY: Why is it so expensive?
HAYS: Come on, this is a drop in the bucket.
CAFFERTY: Why is it so expensive?
HAYS: Why is it so expensive?
CAFFERTY: Ten grand a day...
HAYS: Because I think (UNINTELLIGIBLE)...
(CROSSTALK)
CAFFERTY: ... that's not chump change.
HAYS: Don't you suppose somebody has to make money on it? Don't you suppose the people who set this up -- it's interesting, the people who started this two years ago, one of the start is Dennis Kozlowski, who is the head of Tyco International. You know, Tyco has become one -- another very successful corporation. Dennis, himself, says he wants to be the next Jack Welch, and he's had a very successful track record. Dennis Cary (ph), who is a long time industry consultant, head of the M&A Group (ph).
You know, this is New York City, this is CEOs. To me, I think the money issue isn't -- probably to me wouldn't be so important. Or as a shareholder, if, if if I get more than that $10,000 worth out of this, they come back and they run the company better, deal with shareholders better, maybe it was worth it.
CAFFERTY: Yes. Is it too late to get a ticket?
HAYS: Yes, Jack, I'm sorry.
CAFFERTY:: Yes, and it's sold out.
HAYS: In fact, I have a list of people at the door who can't get in, and I don't want to tell you whose names are on it, but
(CROSSTALK)
CAFFERTY: I'll just go this afternoon over to Penn Station and watch the trains come in then. Thanks though, Kathleen -- talk to you later, Kathleen.
HAYS: Well, see, enough of them are part of those 22 viewers watching you in the morning. But see, they say, huh-uh, no, no -- no Jack Cafferty.
CAFFERTY: OK. Kathleen Hays -- talk to you later.
ZAHN: So do you suppose, Jack, that they learn today how you fire people without twitching?
CAFFERTY: Well, if you want to be like Jack Welch, that's priority one. They didn't call him Neutron (ph) Jack for nothing. You know, so if you want to be Jack Welch, you...
ZAHN: Have you ever been fired before?
CAFFERTY: Have I ever been fired before? Sure. Yes.
ZAHN: Yes. And weren't you amazed at the calm that the bosses can
(CROSSTALK)
CAFFERTY: I had one of the greatest jobs in the world. I used to clean swimming pools when I was a kid in Reno, Nevada.
ZAHN: Yes.
CAFFERTY: And my job in the summer, it was a part-time job, was to go out and clean swimming pools. Well, there is a couple of things: You meet the wealthiest girls in the city.
ZAHN: Oh!
CAFFERTY: And they are the ones that have the swimming pools.
ZAHN: Exactly.
CAFFERTY: And so, my list of social contacts improved dramatically that summer. But I got fired, because I found myself spending more time talking to the young ladies who lived at the addresses, than actually removing the stuff from the tile on their pool. And one day, I went back to the office, and the guy said, "You're out of here."
ZAHN: Do you think that guy has been to boot camp? I bet so.
CAFFERTY: I don't know.
ZAHN: You probably could -- well, I just think that's got to be the worst thing in the world to manage people, and then in the end have to fire them when you know they are -- that this is their sole income and they're supporting families. I couldn't do it. I am glad I'm not a boss.
CAFFERTY: Yes.
ZAHN: I'm glad I don't have one of those corner offices.
CAFFERTY: Yes.
ZAHN: (UNINTELLIGIBLE) firing me.
CAFFERTY: You're a soft-hearted person. You're a kind, gentle soul.
ZAHN: Never will be a boss. On the other side, Jack is back with more of what he doesn't get.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.
