Jeff Zients
10th Director of the National Economic Council
In office
March 5, 2014 – January 20, 2017
PresidentBarack Obama
Preceded byGene Sperling
Succeeded byGary Cohn
Acting Director of the Office of Management and Budget
In office
January 27, 2012 – April 24, 2013
PresidentBarack Obama
DeputyHeather Higginbottom
Preceded byJack Lew
Succeeded bySylvia Mathews Burwell
In office
July 30, 2010 – November 18, 2010
PresidentBarack Obama
DeputyJeffrey Liebman
Preceded byPeter R. Orszag
Succeeded byJack Lew
1st Chief Performance Officer of the United States
In office
June 19, 2009 – October 16, 2013
PresidentBarack Obama
Preceded byPosition established
Succeeded byBeth Cobert
Deputy Director of the Office of Management and Budget for Management
In office
June 19, 2009 – October 16, 2013
PresidentBarack Obama
Preceded byClay Johnson III
Succeeded byBeth Cobert
Personal details
Born (1966-11-12) November 12, 1966 (age 57)
Kensington, Maryland, U.S.
Political partyDemocratic
SpouseMary Menell
Children4
EducationDuke University (BS)

Jeffrey D. Zients (born November 12, 1966) is an American business executive and former government official. Zients is currently the president of Cranemere.[1] From February 2014 to January 2017, he served as Director of the United States National Economic Council and President Obama's Economic Advisor. Zients previously served as the acting director of the Office of Management and Budget.[2]

Early years

Zients was raised in a Jewish family,[3] is a native of Kensington, Maryland,[4] and lives in the Washington, D.C. area.[5] He graduated in 1984 from St. Albans School, and earned a Bachelor of Science degree, summa cum laude,[6] from Duke University. Zients worked in management consulting for Mercer Management Consulting (now Oliver Wyman) and Bain & Company. As a consultant Zients reportedly "fell in love with Bain's culture, teamwork … and analytical rigor".[7][additional citation(s) needed] Following this role he was appointed as chief operating officer of DGB Enterprises, a holding company for the Advisory Board Company, Corporate Executive Board, and Atlantic Media Company.[6]

Business career

Advisory Board and Corporate Executive Board

Zients was the chairman (2001–2004), chief executive officer (1998–2000), and chief operating officer (1996–1998) of the Advisory Board Company and former chairman (2000–2001) of the Corporate Executive Board.[8] Zients and Bradley took each of the companies public through successful initial public offerings that made both men multimillionaires.[5][9]

Portfolio Logic

Zients founded[10] and was the managing partner of privately held Portfolio Logic LLC, an investment firm primarily focused on health care services and business services. He was a member of the board of directors of XM Satellite Radio until its 2008 merger, and[8][11] a board member at Sirius XM Radio until his Senate confirmation.[12][13] Zients had also served on the boards of Revolution Health Group, Best Practices and Timbuk2 Designs.[9][10][11][14]

Baseball

In 2005, he worked to bring Major League Baseball back to Washington with venture capitalist Fred Malek forming the Washington Baseball Club, one of eight[15] or nine groups vying to buy the Washington Nationals.[16] The Malek/Zients team included General Colin Powell, AOL founding CEO Jim Kimsey, attorney Vernon Jordan, Darrell Green formerly of the Washington Redskins, Fannie Mae chairman Franklin Raines[4][16] and others.[4] Malek was going to be the managing partner for the first three years when Zients would take over.[15] They came close to owning the team[15] but lost to another group led by the Lerner family.[8]

Cranemere

Zients is the CEO of Cranemere, a holding company.[17]

According to The Washington Post, Cranemere is known for, "rejecting the debt-fueled buy-and-sell grind of private equity and doing it old-school like Buffett—looking for value where others have missed it and investing for the long-long term."[17]

Facebook

Zients joined the board of Facebook after the Cambridge Analytica scandal[18] and the Audit and Risk Oversight Committee.[19] According to The Wall Street Journal, he declined to seek re-election in 2020 over differences with company leadership over governance and its policies around political discourse.[20]

Public sector career

Office of Management and Budget

Jeffrey Zients speaking at White House press briefing on a possible government shutdown (2011)

In 2009, President Barack Obama appointed him to the new position of United States Chief Performance Officer and Deputy Director for Management of the Office of Management and Budget in the federal government of the United States.[21] According to Obama, his assignment was to help "streamline processes, cut costs, and find best practices throughout" the U.S. government.[21] Zients replaced Nancy Killefer who withdrew from her nomination to this position in February 2009 to avoid controversy about her personal income taxes.[22] His nomination was approved by the full Senate after a hearing on June 10, 2009, by the Senate Homeland Security and Governmental Affairs Committee who voted unanimously to approve him.[23][24]

As the Chief Performance Officer, Zients led the Obama administration's "Accountable Government Initiative". Zients outlined the Initiative in a memo to the government's Senior Executive Service in the fall of 2010.[25] One primary area of focus was to reform how the government buys and manages information technology.

In his role as DDM, Zients established and chaired the President's Management Council[26] and oversaw the "Management" side of the Office of Management and Budget.

Zients served as the acting director of OMB from July 2010 to November 2010, and again from January 2012 to April 2013. In 2011 President Obama tasked Zients with reorganizing the Commerce Department to make it a hub for export-import policy.[27]

Healthcare.gov

Following the error-plagued launch of healthcare.gov on October 1, 2013, Zients was recruited by President Obama and his Chief of Staff Denis McDonough to lead a "tech surge" to fix the website.[28][29] While leading the "tech surge" to fix healthcare.gov, Zients had an ownership position in PA Healthcare. The position of the White House was that Mr. Zients's stake in PSA Healthcare, a pediatric home health business, was not a conflict of interest.[28]

Zients worked with Silicon Valley experts, and Obama Chief Technology Officer Todd Park to create an ad hoc technology "dream team" of trouble-shooters and coders.[30]

Zients's assumption of the role of Director of the National Economic Council was delayed by his acceptance of an assignment from President Barack Obama to fix the problems of HealthCare.gov. According to Time's March 2014 cover story "Obama's Trauma Team", Zients is widely credited with salvaging HealthCare.gov.[30] As a result, he was often referred to as "Mr. Fix-It" within the Obama Administration.[31][32]

National Economic Council

From 2014 to 2017, Zients served as Assistant to the President for Economic Policy and Director of the National Economic Council (NEC).[2]

Tax and budget

In December 2015, Zients helped to negotiate with Congress on a tax and budget agreement, which permanently extended the American Recovery and Reinvestment Act (ARRA) tax credits, including the Earned Income Tax Credit (EITC), Child Tax Credit (CTC), American Opportunity Tax Credit (AOTC), as well as a number of tax "extenders" that had traditionally been extended together for a year or two at a time.[33][34] The agreement also made the Research and Experimentation Tax Credit (R&D Tax Credit) permanent for the first time since its enactment in 1981, providing certainty to companies investing in innovation.[35] It also made permanent tax cuts for small businesses, including enhanced expensing for small businesses making new investments and a zero percent capital gains rate for investments in small businesses.[35] The agreement extended the Production Tax Credit (PTC) and the Investment Tax Credit (ITC) – two important incentives for clean energy – for five years.[36] In testimony to the U.S. Senate, Zients described President Obama's objectives for corporate tax reform: "close loopholes, lower the overall rate, encourage investment here at home, simplify taxes for America's small businesses, and not add a dime to the deficit."[37]

Conflict of interest rule

Zients worked with the Department of Labor to finalize the Fiduciary Rule, also known as the Conflict of Interest Rule, to protect American's hard-earned savings by ensuring retirement advisers provide advice in their clients' best interest.[38]

The rule has been strongly criticized by Wall Street leaders and business groups.[39] It also garnered strong support from progressive leaders in Congress including Senator Elizabeth Warren, and she has led the fight against the Trump Administration's efforts to weaken the Obama era rule.[40]

Overtime rule

Along with the Labor Secretary, Tom Perez, Zients was a leading proponent in the Obama administration of the overtime rule, which extended overtime pay to nearly 5 million workers by updating out-of-date rules.[41] The 2016 rule, which was held up in court following a challenge by business trade associations and Republican-led states, would have increased the overtime salary threshold to $913 per week, or $47,476 for a full-year worker, from its current level of $455 per week, or $23,660 for a full-year worker. It would also have indexed the threshold to wage growth on a triennial basis; under the 2016 rule, the threshold would have increased to roughly $51,000 on January 1, 2020.[42]

Liaison to business

Across his roles in the administration, Zients served as a liaison to the business community, including by managing execution of recommendations from the President's Council on Jobs and Competitiveness,[43] and by establishing the President's Management Advisory Board to bring Fortune 500 executive expertise to bear against the federal government's biggest management challenges.[44] The Wall Street Journal dubbed Zients "a kind of ambassador to the business community".[45]

Post-NEC business career

In 2017, Zients became the CEO of Cranemere, a Berkshire Hathaway–style holding company focused on the acquisition and long-term ownership of mid-sized companies in the United States and Europe.[1] Cranemere was founded in 2014 by former AEA Chairman and CEO Vincent Mai.[1]

In 2018, he joined the board of Facebook.[46] According to The Wall Street Journal, he declined to seek another term earlier this year over differences with company leadership over governance and its policies around political discourse.[47]

Personal life

While working at Bain, Zients worked with South African Mary Menell. They later were married in South Africa with Menell's parents' family friend Nelson Mandela in attendance.[48] They have four children.[citation needed] Along with his wife Mary, Zients co-founded the Urban Alliance Foundation.[49]

References

  1. ^ a b c "TRUMP to dine with SCHUMER and PELOSI to talk Dreamers -- WHAT THIS MEANS FOR RYAN -- OBAMA to host a young leaders summit -- PETE DOMENICI dies at 85". Politico. September 13, 2017. Archived from the original on September 16, 2017. Retrieved September 17, 2017.
  2. ^ a b "Obama Picks Zients as Director of Economic Council". Bloomberg. Archived from the original on September 17, 2013. Retrieved September 14, 2013.
  3. ^ Guttman, Nathan (February 28, 2013). "Meet the Four Jews Shaping the U.S. Economy". The Jewish Daily Forward. Archived from the original on September 3, 2017. Retrieved September 3, 2017.
  4. ^ a b c Shin, Annys (October 4, 2004). "Zients Is at the Top of His Game". The Washington Post. Archived from the original on March 24, 2017. Retrieved September 3, 2017.
  5. ^ a b O'Keefe, Ed. "Who Are Jeffrey Zients and Aneesh Chopra?". The Washington Post. Archived from the original on May 31, 2012. Retrieved April 19, 2009.
  6. ^ a b "Advisory Board Co. 10-K". U.S. Securities and Exchange Commission. June 27, 2003. Archived from the original on July 4, 2017. Retrieved April 29, 2009.
  7. ^ "Obama's Budget Director a Bain Guy, Married a Bain Gal". Washington Examiner. July 16, 2012. Retrieved June 29, 2020.
  8. ^ a b c "Obama names Chopra, Zients to top posts". Washington Business Journal. Advance Publications. April 17, 2009. Archived from the original on April 21, 2009. Retrieved April 19, 2009.
  9. ^ a b O'Hara, Terence (August 31, 2007). "There's More Than Baseball in Jeffrey Zients's Days". The Washington Post. Archived from the original on March 1, 2017. Retrieved April 19, 2009.
  10. ^ a b Nichols, Hans (April 20, 2009). "Obama Names Performance Officer, Vows to Trim Federal Spending". Bloomberg. Retrieved April 19, 2009.
  11. ^ a b "Jeffrey D. Zients". Condé Nast Portfolio. Archived from the original on April 21, 2009. Retrieved April 19, 2009.
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  13. ^ "Zients Resigns from Sirius XM Board". Radio Ink. MediaSpan. June 23, 2009. Archived from the original on June 27, 2009. Retrieved June 30, 2009.
  14. ^ "Jeffrey D. Zients Profile". Forbes. Archived from the original on April 21, 2009. Retrieved April 19, 2009.
  15. ^ a b c Heath, Thomas (April 29, 2009). "Malek, Zients Are Big Hitters in an All-Star Ownership Lineup". The Washington Post. Archived from the original on October 15, 2016. Retrieved April 29, 2009.
  16. ^ a b "Powell Joins Group Bidding On D.C. Baseball Team". Jet. Vol. 107, no. 24. Johnson Publishing. June 13, 2005. p. 50. Retrieved April 19, 2009.
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  18. ^ https://www.politico.com/news/2020/12/03/wikipedia-page-bidens-new-covid-czar-scrubbed-442735
  19. ^ Fischer, Sara. "Facebook changes audit committee charter after privacy issues". Axios. Archived from the original on October 1, 2020. Retrieved May 28, 2020.
  20. ^ Seetharaman, Jeff Horwitz and Deepa (March 26, 2020). "Facebook Nears Complete Board Overhaul With Latest Exit". The Wall Street Journal. ISSN 0099-9660. Archived from the original on July 13, 2020. Retrieved July 13, 2020.
  21. ^ a b Obama, Barack (April 18, 2009). "(Transcript) Weekly Address: President Obama Discusses Efforts to Reform Spending, Government Waste; Names Chief Performance Officer and Chief Technology Officer". The White House. Archived from the original on September 6, 2017. Retrieved September 5, 2017.
  22. ^ Lunney, Kellie (April 20, 2009). "Obama Names Zients As CPO". National Journal Group. Archived from the original on April 22, 2009. Retrieved April 20, 2009.
  23. ^ Brodsky, Robert (June 22, 2009). "Zients confirmed as OMB's deputy director of management". GovExec.com. National Journal Group. Archived from the original on June 26, 2009. Retrieved June 22, 2009.
  24. ^ Meckler, Laura (April 20, 2009). "Administration Seeks to Target Wasteful Spending". The Wall Street Journal. Archived from the original on September 4, 2017. Retrieved April 19, 2009.
  25. ^ "Presidential Memorandum-Accountable Government Initiative | The White House". The White House. September 14, 2010. Archived from the original on September 5, 2017. Retrieved September 3, 2017.
  26. ^ Lewis, Katherine Reynolds (June 14, 2010). "Remaking the Bureaucracy: OMB's Zients Cuts Through the Red Tape". The Fiscal Times. Archived from the original on September 5, 2017. Retrieved September 3, 2017.
  27. ^ "UPDATE 2-Obama orders study of consolidating trade agencies". Reuters. March 11, 2011. Archived from the original on October 17, 2020. Retrieved May 28, 2020.
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  31. ^ Rushe, Dominic (April 16, 2015). "Obama appoints Jeffrey Zients to fix healthcare website". The Guardian. Archived from the original on September 4, 2017. Retrieved September 3, 2017.
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  33. ^ Leibenluft, Jacob (December 22, 2015). "The Budget Agreement Permanently Expands Important Tax Credits for Working Families". The White House. Archived from the original on September 4, 2017. Retrieved September 2, 2017.
  34. ^ Greenstein, Robert (December 16, 2015). "Greenstein: Assessing the Tax Provisions of the Bipartisan Budget and Tax Deals". Center on Budget and Policy Priorities. Archived from the original on September 4, 2017. Retrieved September 2, 2017.
  35. ^ a b Donovan, Shaun (December 18, 2015). "A Critical Step Forward for a Stronger Economy and a Simpler, Fairer Tax Code". The White House. Archived from the original on September 4, 2017. Retrieved September 2, 2017.
  36. ^ Utech, Dan (December 17, 2015). "A Big Win for Clean Energy and Climate Change". The White House. Archived from the original on September 4, 2017. Retrieved September 2, 2017.
  37. ^ "TESTIMONY OF JEFF ZIENTS" (PDF). United States Senate Committee on the Budget. February 14, 2012. Archived (PDF) from the original on October 6, 2020. Retrieved August 29, 2020.
  38. ^ Perez, Thomas; Zients, Jeff (September 15, 2015). "The retirement problem that costs Americans $17 billion a year". CNN. Archived from the original on September 4, 2017. Retrieved September 2, 2017.
  39. ^ "Inside Wall Street's Secret War on American Investors". Money. Archived from the original on July 14, 2020. Retrieved July 13, 2020.
  40. ^ "In 2016, @BarackObama's @USDOL wrote a strong conflict of interest rule so retirement advisers would have to put their clients' interests first. But in 2018, Eugene Scalia sued to overturn it. Now Scalia wants to replace it with a weaker standard". Twitter. Archived from the original on July 3, 2020. Retrieved July 13, 2020.
  41. ^ "Profit and Purpose: The High Road is the Smart Road". whitehouse.gov. February 26, 2016. Archived from the original on July 16, 2020. Retrieved July 14, 2020.
  42. ^ "More than eight million workers will be left behind by the Trump overtime proposal: Workers would receive $1.2 billion less than under the 2016 rule". Economic Policy Institute. Archived from the original on June 27, 2020. Retrieved July 14, 2020.
  43. ^ Zients, Jeffrey (November 30, 2011). "Tracking High Priority Infrastructure Projects". The White House. Archived from the original on September 4, 2017. Retrieved September 2, 2017.
  44. ^ O'Keefe, Ed (April 19, 2010). "Tracking High Priority Infrastructure Projects". The Washington Post. Archived from the original on March 3, 2016. Retrieved September 2, 2017.
  45. ^ Langley, Monica (July 13, 2012). "The Businessman Behind the Obama Budget". The Wall Street Journal. ISSN 0099-9660. Archived from the original on September 4, 2017. Retrieved June 29, 2020.
  46. ^ "Next change for Facebook: New board director, executives reshuffled". The Mercury News. May 8, 2018. Archived from the original on June 16, 2020. Retrieved May 9, 2018.
  47. ^ Seetharaman, Jeff Horwitz and Deepa (March 26, 2020). "Facebook Nears Complete Board Overhaul With Latest Exit". The Wall Street Journal. ISSN 0099-9660. Archived from the original on July 13, 2020. Retrieved July 14, 2020.
  48. ^ Beatty, Warren (July 17, 2012). "Obama's OMB Director Came From Bain Capital". Conservative Daily News. Archived from the original on September 5, 2017. Retrieved September 3, 2017.
  49. ^ O'Donnell, Jayne (October 22, 2013). "Who is Jeffrey Zients? Ask his mom". USA Today. Archived from the original on September 4, 2017. Retrieved September 3, 2017.
Political offices Preceded byPeter Orszag Director of the Office of Management and BudgetActing 2010 Succeeded byJack Lew Preceded byJack Lew Director of the Office of Management and BudgetActing 2012–2013 Succeeded bySylvia Mathews Burwell Preceded byGene Sperling Director of the National Economic Council 2014–2017 Succeeded byGary Cohn