Fred Malek
Encyclopedia
Frederic Vincent "Fred" Malek (born December 22, 1936) is the former President of Marriott Hotels and Northwest Airlines and former assistant to United States Presidents Richard Nixon
and George H.W. Bush. Malek served as a National Finance Committee co-chair of John McCain
's 2008 presidential campaign
. In 2011, he received the Horatio Alger Award.
of Czech descent, the son of a beer truck driver. He was 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 worked as a management consultant for McKinsey & Co.. In 1967, he left to co-found and assume chairmanship of Triangle Corp., a hand tool
manufacturing company.
under Secretary Robert Finch
, as special assistant from 1970–73 and deputy director of Nixon's re-election campaign. Malek served as deputy chief of the Committee to Re-elect the President
in 1972.
As an efficiency expert to Nixon, Malek helped restructure Nixon's staff and officials and streamline the bureaucracy. In his memoirs, Nixon described Malek as a "tough young businessman whose specialty was organization and management."
In the first Nixon administration, Malek designed and directed the "Responsiveness Program
", a strategy to replace civil servants with Nixon supporters and to steer government resources to benefit Nixon's 1972 re-election. According to the Senate Watergate report
, Malek wrote in a 1972 memo to Haldeman that someone was needed to "take the lead in the program to politicize Departments and Agencies" and to "supervise the patronage operation and closely monitor the grantmanship operation." In advocating the plan, Malek wrote of "substantial risks" to politicizing the Executive Branch and expressed concern that the plan would "undoubtably backfire" if made public; therefore he recommended that "to minimize any links to the President, there should be no directions on this project in writing."
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.
(BLS) had come under the control of Democratic rivals and what Nixon termed 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.
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." Malek did not have access to BLS employees' religious affiliations, so his list comprised those BLS employees with "Jewish-sounding names", and two months after he sent the list, two of the officials on it were reassigned to "less visible jobs" within the Labor Dept. Slate columnist Timothy Noah
, however, asserts that a September 8, 1971 memo from Malek to Haldeman appears to contradict Malek's assertions of limited involvement, in which Malek states he has recommended to the Secretary of Labor "fairly drastic moves" including the "compromise" reassignment of three officials. Documents released by the Nixon library in January 2010 also appear to contradict Malek's statement.
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." In 2010, Sen. Dianne Feinstein
(D-Ca.) stated called Malek "a man of high principle" who "has proved many times over the years his loyalty to the highest principles of freedom, human rights and international tolerance.".
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.
The appointment proved a success, and in 1992 Bush appointed Fred 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.
Malek also served as co-chairman of the finance committee for John McCain
in 2008, raising $500,000 for his presidential campaign
.
, a 501(c)(4) conservative "think and do" tank established in January 2010 to assist the election of "center-right" Republican candidates. Malek also chairs the Executive roundtable meetings of the Republican Governors Association
, an organization supporting the election of Republican governors.
, 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. 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.
In early 1989, Malek joined the Carlyle Group
as a senior adviser. On April 19, 1989, he 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.
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. Checchi named Malek as president to replace president and CEO John Horn, and the two split the chairman duties held by Steven Rothmeier.
In July 1989, Malek and a group of Carlyle investors bought Marriott's leading airline catering division for an estimated price of $650 million. In 1991 Malek created Thayer Capital Partners, of which he is still Chairman. From January 1, 2002 to December 31, 2005, Malek was a member of the Board of Directors of Fannie Mae.
, and Thayer was found in negligence of Investment Advisers Act of 1940
. Thayer paid a civil penalty of $150,000, and Malek personally paid a fine of $100,000.
to find efficiencies and savings in government. Critics objected to Malek's appointment based on both the BLS and SEC administrative action and McDonnell responded that he did not know of these parts of Malek's past.
. As of 2011, he holds the position of Chairman of this board.
.
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.
Richard Nixon
Richard Milhous Nixon was the 37th President of the United States, serving from 1969 to 1974. The only president to resign the office, Nixon had previously served as a US representative and senator from California and as the 36th Vice President of the United States from 1953 to 1961 under...
and George H.W. Bush. Malek served as a National Finance Committee co-chair of John McCain
John McCain
John Sidney McCain III is the senior United States Senator from Arizona. He was the Republican nominee for president in the 2008 United States election....
's 2008 presidential campaign
John McCain presidential campaign, 2008
John McCain, the senior United States Senator from Arizona, launched his second candidacy for the presidency of the United States in an unsuccessful bid to win the 2008 presidential election. His candidacy, in the works for a number of years, was informally announced on February 28, 2007 during a...
. In 2011, he received the Horatio Alger Award.
Early life
Malek was born in Berwyn, IllinoisBerwyn, Illinois
Berwyn is a city in Cook County, Illinois, co-existent with Berwyn Township, which was formed in 1908 after breaking off from Cicero Township. As of the 2000 census, the city had a total population of 54,016.-Demographics:...
of Czech descent, the son of a beer truck driver. He was raised in Chicago
Chicago
Chicago is the largest city in the US state of Illinois. With nearly 2.7 million residents, it is the most populous city in the Midwestern United States and the third most populous in the US, after New York City and Los Angeles...
. 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
Harvard Business School
Harvard Business School is the graduate business school of Harvard University in Boston, Massachusetts, United States and is widely recognized as one of the top business schools in the world. The school offers the world's largest full-time MBA program, doctoral programs, and many executive...
in 1964 and worked as a management consultant for McKinsey & Co.. In 1967, he left to co-found and assume chairmanship of Triangle Corp., a hand tool
Hand tool
A hand tool is a device for performing work on a material or a physical system using only hands. The hand tools can be manually used employing force, or electrically powered, using electrical current...
manufacturing company.
Nixon administration
Malek served in the Nixon administration in several different roles, including Deputy Under Secretary of Department of Health, Education, and WelfareHew
Hew is a masculine given name, and may refer to the following:* Hew Dalrymple, Lord North Berwick , Scottish judge and politician* Hew Dalrymple Ross , British soldier* Hew Fraser , British field hockey player...
under Secretary Robert Finch
Robert Finch
Robert Hutchison Finch was a Republican politician from La Canada Flintridge, California. Born in Tempe, Arizona, he was the son of Robert L. Finch, a member of the Arizona House of Representatives....
, as special assistant from 1970–73 and deputy director of Nixon's re-election campaign. Malek served as deputy chief of the Committee to Re-elect the President
Committee to Re-elect the President
The Committee for the Re-Election of the President, abbreviated CRP but often mocked by the acronym CREEP, was a fundraising organization of United States President Richard Nixon's administration...
in 1972.
As an efficiency expert to Nixon, Malek helped restructure Nixon's staff and officials and streamline the bureaucracy. In his memoirs, Nixon described Malek as a "tough young businessman whose specialty was organization and management."
In the first Nixon administration, Malek designed and directed the "Responsiveness Program
Responsiveness Program
The Reponsiveness Program, established in 1972 during the first presidency of Richard M. Nixon, was a broad strategy to politicize the executive branch and use the power and resources of incumbency to ensure Nixon's re-election...
", a strategy to replace civil servants with Nixon supporters and to steer government resources to benefit Nixon's 1972 re-election. According to the Senate Watergate report
United States Senate Watergate Committee
The Senate Watergate Committee was a special committee convened by the United States Senate to investigate the Watergate burglaries and the ensuing Watergate scandal after it was learned that the Watergate burglars had been directed to break into and wiretap the headquarters of the Democratic...
, Malek wrote in a 1972 memo to Haldeman that someone was needed to "take the lead in the program to politicize Departments and Agencies" and to "supervise the patronage operation and closely monitor the grantmanship operation." In advocating the plan, Malek wrote of "substantial risks" to politicizing the Executive Branch and expressed concern that the plan would "undoubtably backfire" if made public; therefore he recommended that "to minimize any links to the President, there should be no directions on this project in writing."
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.
BLS controversy
In 1971, Richard Nixon became convinced the Bureau of Labor StatisticsBureau of Labor Statistics
The Bureau of Labor Statistics is a unit of the United States Department of Labor. It is the principal fact-finding agency for the U.S. government in the broad field of labor economics and statistics. The BLS is a governmental statistical agency that collects, processes, analyzes, and...
(BLS) had come under the control of Democratic rivals and what Nixon termed a "Jewish cabal." He instructed aides Charles Colson
Charles Colson
Charles Wendell "Chuck" Colson is a Christian leader, cultural commentator, and former Special Counsel for President Richard Nixon from 1969 to 1973....
and H. R. Haldeman
H. R. Haldeman
Harry Robbins "Bob" Haldeman was an American political aide and businessman, best known for his service as White House Chief of Staff to President Richard Nixon and for his role in events leading to the Watergate burglaries and the Watergate scandal – for which he was found guilty of conspiracy...
to identify a list of Democrats and "important Jewish officials" at the agency.
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." Malek did not have access to BLS employees' religious affiliations, so his list comprised those BLS employees with "Jewish-sounding names", and two months after he sent the list, two of the officials on it were reassigned to "less visible jobs" within the Labor Dept. Slate columnist Timothy Noah
Timothy Noah
Timothy Robert Noah is an American journalist. He is a senior editor of The New Republic, where he writes the TRB column and a political blog...
, however, asserts that a September 8, 1971 memo from Malek to Haldeman appears to contradict Malek's assertions of limited involvement, in which Malek states he has recommended to the Secretary of Labor "fairly drastic moves" including the "compromise" reassignment of three officials. Documents released by the Nixon library in January 2010 also appear to contradict Malek's statement.
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." In 2010, Sen. Dianne Feinstein
Dianne Feinstein
Dianne Goldman Berman Feinstein is the senior U.S. Senator from California. A member of the Democratic Party, she has served in the Senate since 1992. She also served as 38th Mayor of San Francisco from 1978 to 1988....
(D-Ca.) stated called Malek "a man of high principle" who "has proved many times over the years his loyalty to the highest principles of freedom, human rights and international tolerance.".
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 RNCRepublican National Committee
The Republican National Committee is an American political committee that provides national leadership for the Republican Party of the United States. It is responsible for developing and promoting the Republican political platform, as well as coordinating fundraising and election strategy. It is...
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.
The appointment proved a success, and in 1992 Bush appointed Fred Malek campaign manager for his re-election. Malek was "responsible for nuts-and-bolts daily management." Malek ran the campaign with fundraiser
Fundraiser
A fundraiser is an event or campaign whose primary purpose is to raise money for a cause. See also: fundraising. A fundraiser can also be an individual or company whose primary job is to raise money for a specific charity or non-profit organization...
Robert Mosbacher
Robert Mosbacher
Robert Adam Mosbacher, Sr. , was an American businessman, accomplished yacht racer, and a Republican politician. In sailing, Sports Illustrated called him "the unquestioned master of fleet racing." In business in 1954, he found a million-dollar field of natural gas in South Texas...
and pollster Robert Teeter
Robert Teeter
Robert M. Teeter was an American Republican pollster and political campaign strategist.-Biography:Born in Coldwater, Michigan, Teeter worked in various capacities for four presidents, and numerous governors and senators. Formerly the president of Market Opinion Research, he later founded an Ann...
out of a rented office in downtown Washington.
Malek also served as co-chairman of the finance committee for John McCain
John McCain
John Sidney McCain III is the senior United States Senator from Arizona. He was the Republican nominee for president in the 2008 United States election....
in 2008, raising $500,000 for his presidential campaign
John McCain presidential campaign, 2008
John McCain, the senior United States Senator from Arizona, launched his second candidacy for the presidency of the United States in an unsuccessful bid to win the 2008 presidential election. His candidacy, in the works for a number of years, was informally announced on February 28, 2007 during a...
.
American Action Network
Malek is founder, chairman and one of three primary financial supporters of the American Action NetworkAmerican Action Network
American Action Network is a 501 issue advocacy organization that focuses on promoting what it styles as “center-right policies.” It was established in February 2010 by Douglas Holtz-Eakin, a former adviser to the presidential campaign of Senator John McCain, and former Republican Senator from...
, a 501(c)(4) conservative "think and do" tank established in January 2010 to assist the election of "center-right" Republican candidates. Malek also chairs the Executive roundtable meetings of the Republican Governors Association
Republican Governors Association
The Republican Governors Association is a Washington, D.C.-based 527 organization founded in 1963, consisting of U.S. state and territorial governors affiliated with the Republican Party.Its Democratic Party counterpart is the Democratic Governors Association...
, an organization supporting the election of Republican governors.
Marriott Corp.
In 1975, Fred Malek joined the board of Bethesda-based Marriott Corp.Marriott Corp.
Marriott Corporation was a hospitality company that operated from 1927–1993, founded originally by J. Willard Marriott and Frank Kimball as Hot Shoppes, Inc. In 1957, Marriott Corporation opened its first hotel in Arlington County, Virginia, United States as the Twin Bridges Motor Hotel...
, 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. 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.
In early 1989, Malek joined the Carlyle Group
Carlyle Group
The Carlyle Group is an American-based global asset management firm, specializing in private equity, based in Washington, D.C. The Carlyle Group operates in four business areas: corporate private equity, real assets, market strategies and fund-of-funds, through its AlpInvest subsidiary...
as a senior adviser. On April 19, 1989, he 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
Sears, Roebuck and Company
Sears, officially named Sears, Roebuck and Co., is an American chain of department stores which was founded by Richard Warren Sears and Alvah Curtis Roebuck in the late 19th century...
at a price estimated at $300 million.
Northwest Airlines
Malek soon joined Los Angeles investor Al ChecchiAl Checchi
Alfred Attilio Checchi is an American politician who was a candidate for Governor of California in the 1998 gubernatorial election, losing to fellow Democrat Gray Davis in the June 1998 primary. Checchi finished in second place in the Democratic primary, capturing 12.49% of the vote. He ran as a...
and Marriott's Gary Wilson in a $3.65 billion, all-cash purchase of Northwest Airlines
Northwest Airlines
Northwest Airlines, Inc. was a major United States airline founded in 1926 and absorbed into Delta Air Lines by a merger approved on October 29, 2008, making Delta the largest airline in the world...
. 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. Checchi named Malek as president to replace president and CEO John Horn, and the two split the chairman duties held by Steven Rothmeier.
In July 1989, Malek and a group of Carlyle investors bought Marriott's leading airline catering division for an estimated price of $650 million. In 1991 Malek created Thayer Capital Partners, of which he is still Chairman. From January 1, 2002 to December 31, 2005, Malek was a member of the Board of Directors of Fannie Mae.
SEC administrative action
On August 12, 2003, the SEC filed a civil fraud lawsuit against former Connecticut state Senate Majority Leader William DiBella for participating in a fraudulent scheme to invest $75 million of the state pension funds with Malek's firm, Thayer Capital Partners. The SEC said that Thayer failed to disclose payments to DiBella who performed "no meaningful work" and was hired by Thayer at the request of the state treasurer. On May 18, 2007, DiBella and North Cove were found liable for aiding and abetting Silvester's intentional violations of the Securities Exchange Act of 1934Securities Exchange Act of 1934
The Securities Exchange Act of 1934 , , codified at et seq., is a law governing the secondary trading of securities in the United States of America. It was a sweeping piece of legislation...
, and Thayer was found in negligence of Investment Advisers Act of 1940
Investment Advisers Act of 1940
The Investment Advisers Act of 1940, codified at through , is a United States federal law that was created to regulate the actions of investment advisers as defined by the law.-Overview:The law provides in part:-Contents:...
. Thayer paid a civil penalty of $150,000, and Malek personally paid a fine of $100,000.
Virginia government reform commission
On May 7, 2010, Virginia Governor Robert McDonnell appointed Malek to chair a 31-member commissionVirginia Commission on Government Reform and Restructuring
The Commission on Government Reform and Restructuring is an advisory group that will make recommendations to the Governor on how to improve the operation of Virginia's government...
to find efficiencies and savings in government. Critics objected to Malek's appointment based on both the BLS and SEC administrative action and McDonnell responded that he did not know of these parts of Malek's past.
Other work
In 2008, Malek was nominated to the Board of Visitors of the United States Military Academy at West Point by the President of the United States at the time, George W. BushGeorge W. Bush
George Walker Bush is an American politician who served as the 43rd President of the United States, from 2001 to 2009. Before that, he was the 46th Governor of Texas, having served from 1995 to 2000....
. As of 2011, he holds the position of Chairman of this board.
Personal life
Malek is married to Marlene A. Malek. They have two children, and reside in McLean, VirginiaMcLean, Virginia
McLean is an unincorporated community and census-designated place in Fairfax County in Northern Virginia. The community had a total population of 48,115 as of the 2010 census....
.
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.
Published works
- Hidden Tragedy: The Failure to Make Government Work, Fred Malek, Free Press, 1979.http://www.amazon.ca/Washingtons-Hidden-Tragedy-Failure-Government/dp/0029197902
External links
- Fred Malek Blog
- Fred Malek | Chairman, Thayer Hidden Creek official biography
- Brokering Power in Business and Politics (Washington Post, April 21, 2008)
- NNDB — Frederic V. Malek
- Register of the Frederic V. Malek Papers, 1968-1977
- SEC filings - Malek Frederic V
- NameBase - Frederic V Malek
- Nixon Presidential Library Archives - Frederic V Malek