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]
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]
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
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 retirementadvisers 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]
^ ab"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.
^"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.