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Douglas A. Warner III

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Douglas A. Warner III
OccupationBanker
SpousePatricia Grant

Douglas 'Sandy' Warner (born June 9, 1946 as Douglas Alexander Warner III but widely known as "Sandy") is a American banker who joined Morgan Guaranty Trust Company of New York out of college in 1968 as an officer's assistant and rose through the ranks to become chairman of the board of J.P. Morgan & Co. Inc. in 2000. Among his many accomplishments, Warner may be best remembered for spearheading the 2000 sale of J P Morgan & Co. to Chase Manhattan Bank for $30.9 billion.

Biography

Early life

Douglas Alexander Warner III was born on June 9, 1946 in Cincinnati, Ohio as the eldest son to Douglas Alexander Warner Jr. and Eleanor (Wright) W. Warner. He has a brother, Gordon, and a sister, Marjorie[1] Warner came from money, growing up in the high-toned suburb of Indian Hill in a family with a certain social standing locally. For example, Warner's father served as a trustee of the Cincinnati Music Hall Association and Art Museum and chaired the United Appeal one year. Warner's grandfather (and namesake) ran his own insurance firm and was active in local golfing circles. Grandmother Warner was the daughter of a wealthy Cincinnati entrepreneur named J. Stacey Hill, who was the president of a then- prominent thousand room Cincinnati hotel named Hotel Gibson.[2]

"The Quad" of the Hill School

In 1960 at the tender age of 14, Warner's family shipped Warner a thousand miles away from his home in Ohio to The Hill School - an American boarding school for boys and girls in grades nine through twelve in Pottstown, Pennsylvania. The Hill School is the same school Warner's father graduated from in 1937.[3] While a student at The Hill, Warner played junior hockey 1960-61, junior varsity (JV) hockey 1961-62, and varsity hockey 1962-64.[3] Warner graduated from The Hill School in 1964, the same year as Academy Award-winning producer/director Oliver Stone.

Education and career

From The Hill School, Warner applied to Yale University. Coming from a wealthy family and a prestigious boarding school and having genes that give stature merely from being tall, Warner additionally had another unearned advantage over other Yale applicants as Yale was the same school attended by Warner's father and uncle.[2] In 1964, Warner enter Yale University at the age of 18 as a pre-med student.[4] At age 18, Warner was of draft age but most likely held a 2-S (college deferment) Selective Service System classification as a student at Yale University. During his time at Yale, Warner became friends with the future President George W. Bush through then-Yale ice hockey player Roland W. Betts - now owner of the multimillion dollar Chelsea Piers Sports & Entertainment Complex.[5][6] This friendship would prove valuable as President Bush later named Warner as a financial adviser to President-elect Bush's transition team in 2000.[5][7]

File:Burning Viet Cong base camp.jpg
Vietnamese village after an attack
File:YALEMEDD.gif
Yale medical school Coat of Arms

At the peak of the Vietnam war upheaval in the United States in May 1968, Warner graduated from Yale University with a B.A. degree and intended to go to Yale medical school after leaving Yale undergraduate. Without a college deferment, Warner most likely would have been classified as 1-A, that is to say, classified as available immediately for military service. For example, President Bush was classified as 1-A on Bush's graduation from Yale in May 1968 and was accepted into the Texas Air National Guard at the height of the ongoing Vietnam War.

With the Vietnam war and Yale medical school choices facing Warner, Warner looked to a third option based on advice from his father, an insurance man from Cincinnati, Ohio. Warner's father advised Warner to go into business to develop some "breadth"[8] and subsequently Warner entered the management training program at Morgan Guaranty Trust Company in New York City.[9] At that time, Morgan Guaranty Trust Company was a wholly-owned subsidiary of J.P. Morgan Chase & Co. (formerly J.P. Morgan & Co. Incorporated). Over the next seven years, Warner rapidly advanced from officer's assistant (1968-1970), through assistant treasurer (1970-1972) and assistant Vice President (1972-1975), to Vice President in 1975.[1]

On May 13, 1977, Warner married Patricia G. Grant and produced four children, Alexander, Katherine, Michael, and Alice (deceased), and now, along with Patricia's brother Thomas, are residents of Locust Valley, N.Y.[1][3][10][11]

The Tower of London, built by William the Conqueror in the 11th century.

In 1983, at age 37, Warner was transferred to London, England and was named Senior Vice President.[12] First, Warner was in charge of United Kingdom and Scandinavian banking operations and then became the head of oil and gas lending for the region.[8] In becoming the general manager of the London office and Morgan's senior executive in the United Kingdom in 1986, Warner received extensive experience in U.S. and international corporate finance.[1]

In 1987, Warner was promoted to Executive Vice President and returned to New York city to take charge of North American and South American corporate finance and, later that year, of the entire group worldwide.[1][13]

In 1989, Warner became Managing Director of the Morgan Guaranty Trust Company and elected president and a director in 1990.[14] After rising through the ranks in various positions in London and New York, Warner succeeded Dennis Weatherstone in 1995 as Morgan's youngest CEO ever at age 49.[4][13] From 1995 to 2000, Warner served as chairman and chief executive officer. In 1999, Warner was ranked 14th of the "25 Highest Paid Banking Executives in 1999" with a total compensation for the year of US$9,916,151.[15] In 2000, Warner was mentioned as a possible candidate for President Bush's Treasury secretary along with Enron head Kenneth Lay and a few others.[16] However, Warner was elevated to chairman of the board of J.P. Morgan Chase & Co., The Chase Manhattan Bank and Morgan Guaranty Trust Company of New York, NY in 2000 and serve there until his retirement on September 7, 2001.[14] Instead, President Bush named Warner as a financial adviser to President-elect Bush's transition team in 2000.[5]

2000 merger and retirement

Warner may be best remembered for spearheading the sale of J P Morgan & Co. to Chase Manhattan Bank through its then CEO William Harrison for $30.9 billion.[17]

In retirement, Warner is a director of Anheuser-Busch Companies, Inc. and Motorola, Inc., a member of the Board of Counselors of The Bechtel Group, Inc., chairman of the Board of Managers and the Board of Overseers of Memorial Sloan-Kettering Cancer Center, serves as the Chair of the General Electric Audit committee, and serves on both the General Electric Nominating committee and Corporate Governance and Management Development and Compensation committee.[14] Warner is a member of the Business Council, a trustee of the Pierpont Morgan Library, and a member of the Committee to Encourage Corporate Philanthropy (CECP).[18] In between such retirement, Warner enjoys golf, skiing, and shooting as a member of Links Club, River Club, Meadowbrook Club (Long Island, New York), and Augusta National Golf Club.[1][19]

Business legacy

Analysts say that Mr. Warner was a key figure throughout the 1980s and 1990s in the transformation of J.P. Morgan from a commercial bank to an investment banking firm. For example, J.P. Morgan was the first commercial bank since the 1930s to be granted the power to underwrite debt and equity securities. Under Warner, the firm ended lifelong job security as a result of a 1998 restructuring. One of his biggest cultural marks on J.P. Morgan was the creation of the "House Arrest" group, a dozen or so senior executives who met monthly to discuss management issues.[4]

Philanthropy

  • A loyal Hill School Annual Fund donor, Warner funded the Douglas A. Warner Chapel Program Fund in honor of his father, the late Douglas A. Warner Jr. '37. Warner has also served The Hill School as a term and corporate trustee. Warner gave $100,000 to have the ice hockey rink replaced. [3][20]
  • Warner is a member of the Business Council, a trustee of the Pierpont Morgan Library, and a member of the Committee to Encourage Corporate Philanthropy (CECP).[18]

Awards

File:Douglas Sandy Warner 2001.jpg
Warner receiving the 2001 Leadership Award from The Hill School

In 1998, Warner was an invited Gordon Grand Fellow lecturer at Yale University,[9] and in 2001, he was awarded the Leadership Award from The Hill School. As an alumnus of The Hill School, Warner had proven himself "to be an exemplary leader and true role model for students in his vocation."[21]

Footnotes and references

  1. ^ a b c d e f Marquis Who's Who in America. 2000. Warner, Douglas Alexander , III.
  2. ^ a b Teitelman, Robert. (March 1996). Institutional Investor. Morgan enters the Warner era. (J.P. Morgan and Co. under the leadership of Chairman Sandy Warner)(Cover Story). Volume 30; Issue 3; Pg. 26. (Note: This article has a most in-depth information on Warner.)
  3. ^ a b c d The Hill School - private college preparatory boarding school in Pottstown, Pennsylvania. The Hill School - Alumni / Meet the Hockey Committee. Accessed November 2, 2006. Cite error: The named reference "HillSchool" was defined multiple times with different content (see the help page).
  4. ^ a b c Moyer, Liz. (September 27, 2001) American Banker (USA). Warner's Exit to Further Thin Morgan Ranks at Chase. Volume 166; Issue 186. Pg. 2 Cite error: The named reference "moyer" was defined multiple times with different content (see the help page).
  5. ^ a b c Blackwell, Rob. (January 3, 2001). American Banker (USA). No Shortage of Bankers On Bush Transition Team. Volume 166; Issue 2. Pg. 5. Cite error: The named reference "Blackwell" was defined multiple times with different content (see the help page).
  6. ^ Finn, Robin. (April 4, 2003). New York Times. Public Lives: A Role at Ground Zero for the Master of the Piers. Pg. D2.
  7. ^ See also The White House. (May 29, 2003). Yale Class of 1968 Reunion at the Whitehouse. Accessed November 3, 2006.
  8. ^ a b Leaders - financial - sandy Warner. (19 April 2000), Douglas 'Sandy' Warner III.
  9. ^ a b Yale University. (October 26–November 2, 1998). Yale Bulletin and Calendar - Current Issue. Volume 27, Number 10.
  10. ^ New York Times. (December 21, 1998.) Paid Notice: Deaths GRANT, ALICE WATERS - New York Times. (Accessed November 2, 2006).
  11. ^ Fundrace2004. Fundrace Neighbor Search. Accessed November 2, 2006.
  12. ^ Financial Times. (September 10, 1983) Appointments: Morgan Guaranty Trust Company of New York. Pg. 19.
  13. ^ a b Kraus, James R. (September 16, 1994) American Banker (USA). JP Morgan Picks Warner , Its President, As Next CEO. Volume 159; Issue 179. Pg. 1.
  14. ^ a b c General Electric : Our Company : Board of Directors. Douglas A. Warner III - Independent Director. Accessed November 2, 2006.
  15. ^ American Banker Online - Ranking the Banks. (May 18, 2000). The 25 Highest Paid Banking Executives in 1999. However, an SEC filing indicated that J.P. Morgan & Co. doubled Warner's pay in 1999 to $16.6 million, comprising a base salary of $700,000, options worth $6.66 million, and bonus and restricted stock awards totaling $9.2 million, said. See New York Post. (March 9, 2000) Business Briefs: Morgan Pay. Pg. 34.
  16. ^ OsterDowJones. (December 14, 2000) Who will Bush pick to run Treasury?
  17. ^ McGeehan, Patrick; Hansell, Saul. (September 14, 2000). New York Times. Banking's Big Deal: The Deal; Chase Hopes Deal for Morgan will bring it Prestige. Late Edition - Final, Section C, Page 1, Column 2.
  18. ^ a b CECP - Committee To Encourage Corporate Philanthropy. About CECP|Membership. Accessed November 2, 2006.
  19. ^ McCarthy, Michael; Brady, Erik. (September 27, 2002) USA Today. Privacy becomes public. Sports Section. Pg. 01C.
  20. ^ The Hill School - private college preparatory boarding school in Pottstown, Pennsylvania. The Hill Newsletter. Accessed November 2, 2006.
  21. ^ The Hill School. The Hill School - Leadership / Sixth Form Leadership Award. Accessed November 2, 2006.

See also

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