Fred Malek

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Frederic "Fred" V. Malek (born December 22, 1936) is an American businessman and former assistant to United States Presidents George H.W. Bush and Richard Nixon. He is currently a national finance committee co-chair of John McCain's presidential campaign.

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[edit] Early life

Malek was born in Berwyn, Ill. and raised in Chicago. He graduated with a Bachelor of Science from West Point in 1959, 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 Malek worked as a management consultant for McKinsey and Co.. In 1967 he left to co-found and assume chairmanship of Triangle Corp., a hardware manufacturing company.[1]

Prior to becoming Special Assistant to Richard Nixon, Malek worked at McKinsey & Co. In 1967, he co-founded Triangle Corp., a hand tool manufacturing company.

[edit] Political career

[edit] 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. [2]

As an efficiency expert to Nixon, Malek helped restructure Nixon's staff and officials and streamline the bureaucracy.[3] In his memoirs, Nixon described Malek as a "tough young businessman whose specialty was organization and management."[4]

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.

[edit] BLS controversy

In 1971, Richard Nixon became convinced the Bureau of Labor Statistics had come under the control of Democratic rivals and even 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.[5]

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."[6] Two months after he sent the list, two of the officials on it were reassigned to "less visible jobs" within the Labor Dept.[7]

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."[8]

[edit] 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.[9]

The appointment proved a success, and in 1992 Bush appointed 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.[10]

[edit] Business career

In 1975, 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.[11] 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.[12]

In early 1989 Malek joined the Carlyle Group as a senior adviser. On April 19, 1989, 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.

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.[13] Checchi named Malek as president to replace president and CEO John Horn, and the two split the chairman duties held by Steven Rothmeier.[14]

In July 1989, Malek and a group of Carlyle investors bought Marriott's leading airline catering for an estimated price of $650 million. [15]

In 1991 Malek created Thayer Capital Partners, of which he is still Chairman. [16]

[edit] Personal

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

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.[17]

[edit] Published works

  • Hidden Tragedy: The Failure to Make Government Work, Fred Malek, Free Press, 1979.[1]

[edit] External links

[edit] References

  1. ^ 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).
  2. ^ Fred Malek. Retrieved on 2008-04-08.
  3. ^ New York Times, November 15, 1972.
  4. ^ RN: The Memoirs of Richard Nixon, p. 624, Richard Nixon, 1990.
  5. ^ "Nixon's Jew count: The whole story!", Timothy Noah, Slate, Sept. 26, 2007]].
  6. ^ "Adviser Makes Peace With Jewish Groups; In Line for New Bush Job" Christopher Connell, AP, September 11, 1989.
  7. ^ "New Job for Aide Who Quit Bush Campaign", Bernard Weinraub, Sept. 10, 1989.
  8. ^ Connell, AP, 1989.
  9. ^ "New Job for Aide Who Quit Bush Campaign", Bernard Weinraub, New York Times, September 10, 1989.
  10. ^ "Bush picks commerce secretary; GOP fundraiser to be nominated", Bill Mintz, Houston Chronicle, December 27, 1991.
  11. ^ "Frederic Malek, Former Nixon Aide, Elected Vice President of Marriott", Washington Post, Chapin Wright, March 13, 1978.
  12. ^ "Malek Brings Cargo of Controversy to NWA", Minneapolis-St. Paul CityBusiness, Beth Ewen, October 9, 1989
  13. ^ "Checchi's backers will get about 20% of Northwest", Denise Gellene, Los Angeles Times, June 24, 1989.
  14. ^ "Labor Upbeat About Change in Management at Northwest", AP, Sept. 29, 1989 .
  15. ^ "Marriott will sell catering unit to one of NWA's buyers", Gellene, Los Angeles Times, July 12, 1989.
  16. ^ Fred Malek: Chairman, Thayer Hidden Creek. Retrieved on 2008-04-08.
  17. ^ "Malek Brings Cargo of Controversy to NWA", Minneapolis-St. Paul CityBusiness, Beth Ewen, October 9, 1989