William Agee

William McReynolds Agee (January 5, 1938 – December 20, 2017) was an American business executive. In 1976 at age 38, he was appointed president and chief executive officer (CEO) of the Bendix Corporation. From 1988 to 1995, Agee was the chairman, president, and CEO of Morrison-Knudsen.

For the American athlete, see William Agee (athlete).
William Agee
Born
William McReynolds Agee[1][2]

(1938-01-05)January 5, 1938
Boise, Idaho, U.S.
DiedDecember 20, 2017(2017-12-20) (aged 79)
Seattle, Washington, U.S.
EducationCollege of Western Idaho
University of Idaho (BS)
Harvard University (MBA)
Known fortenure as CEO of:
Bendix Corporation (1976–1983)
Morrison-Knudsen (1988–1995)
Spouse(s)Diane Weaver (1957–1981)[1][3]
Mary Cunningham (1982–2017)
Children5

Agee was a business consultant, venture capitalist, and chairman of a charitable foundation. He received six honorary doctorate degrees and sat on the boards of Fortune 500 corporations including Equitable Life and Dow Jones as well as Bendix and Morrison Knudsen. In 1979, Agee was featured in a Time magazine cover story titled "Faces of the Future", and was named Finance magazine's "Financial Man of the Year" in 1976.

Early years

Born as William McReynolds Agee in Boise, Idaho, he was the middle child (and only son) of Harold J. and Suzanne (McReynolds) Agee. Harold, the son of a Baptist minister, had varied careers: manufacturing executive, dairy farmer, and state legislator.

Harold moved the family to a dairy farm in nearby Meridian in 1953, and Bill transferred to Meridian High at age 15. He quickly established himself as a bright and popular student with leadership skills. Agee was elected class president in that first year as a sophomore and again in his senior year. He was a multi-sport varsity athlete and was named one of the two most studious members of his class, which graduated in 1956.[1][4]

Education

After graduation from Meridian High School in 1956, in Agee attended Stanford University for one year before dropping out. He enrolled in the University of Idaho in Moscow, where he joined the Beta Theta Pi fraternity,[5] unusual for a married man. He earned an associate's degree while working 40 hours per week in Albertson's accounting department. Agee was elected senior class president and graduated with highest honors in 1960.[6]

During the summer of 1959, Agee, along with his parents, played the part of the Dixon family in the ephemeral film Last Clear Chance. Following graduation, Agee worked for the Title Insurance Company in Boise. He was promoted to controller and senior escrow officer at the age of 23. Agee enrolled in the Harvard Business School in 1961 and was awarded a Masters in Business Administration (MBA), with distinction, in 1963. He became a Certified Public Accountant (CPA) in 1964 and joined the American and Idaho societies of CPAs.

Boise Cascade

Agee was hired by Boise Cascade Corporation at age 25. Starting as Executive Assistant to CEO Bob Hansberger,[7] Agee was appointed Chief Financial Officer (CFO) in 1969 at age 31,[8] and Senior Vice President in 1971.[9] Boise Cascade's stock price rapidly rose to $77 in 1969, then fell to $15 in the fall of 1971.[10] After nine years, he left Boise in late May 1972,[11] and the stock price was around $14.[12]

Bendix

Agee joined Bendix Corporation, an automobile industry related manufacturer located near Detroit, Michigan, in May 1972.[9] He had been recruited for the post by Bendix's then-CEO, Michael Blumenthal. Agee became CFO and Executive Vice President,[11] and held a seat on the Board of Directors. He was elected President of the company in December 1976 at the age of 38,[13] and was elevated to CEO a few weeks later when Blumenthal left Bendix to become the U.S. Secretary of the Treasury in the new Carter Administration.

Agee was recognized in Time magazine [14] for his strategy of bold, selective acquisitions aimed at transforming Bendix from a slow-growth manufacturing company in a mature industry, into a diversified high-tech corporation. Agee's strategy dramatically increased the stock value of Bendix during Agee's tenure despite a recession that afflicted two of its traditionally main businesses, automobile parts and machine tools. While competitors floundered in 1981, Bendix' profits increased 136% and its fiscal year revenues rose to $4.4 billion.[14]

Agee was an unorthodox executive for the 1970s, often dressing in business casual attire years before it was in vogue. He removed the traditional boardroom table, replacing it with large, comfortable chairs to improve communication.[15] He abolished reserved parking for top executives, allowing the best parking spots to go to employees who arrived at the office the earliest.

He was known for promoting young employees based upon merit rather than seniority. This practice caused a flurry of media interest in 1980 when he promoted 28-year-old Mary Cunningham, who had been his executive assistant, to the position of vice president for corporate communications and then VP for Strategic Planning.[16] A nationally publicized account of an alleged office romance between Agee and Cunningham – which both denied – led to Cunningham's resignation in October 1980 when she felt she could no longer effectively do her job.[16][17] Both Agee and Cunningham divorced their spouses and married in June 1982.[17]

Agee sought to expand Bendix by launching a takeover bid for rival Martin Marietta. On August 25, 1982, Bendix announced it had purchased 1.6 million shares of Martin Marietta for $40 million. Martin Marietta fought the hostile takeover by attempting to acquire Bendix, employing the Pac-Man defense, in which a company that is threatened with a takeover, attempts to turn the tables by acquiring its would-be buyer. At one point, Bendix owned a majority of Martin Marietta shares, while Martin Marietta, in turn owned a majority of Bendix shares. Neither Agee nor Marietta President Thomas Pownall would concede defeat, with Pownall refusing even to meet with Agee. When Marietta enlisted the help of a third company, United Technologies, Agee sought a partner to fend off the threatened takeover of Bendix. Agee eventually found Edward Hennessy of Allied Corp., who offered a way out of the stand-off: Allied would take possession of Marietta's shares of Bendix in exchange for the return of Bendix's Marietta holdings. In effect, Martin Marietta would remain an independent company while Bendix would become a subsidiary of Allied. Agee resigned from Bendix following the merger.[18][19]

Morrison Knudsen

From 1988 to 1995 Agee was Chairman, President and CEO of the construction company Morrison Knudsen Corporation (MK) in his hometown of Boise.[20][21] He had served on MK's Board of Directors for several years, and was the Board's choice to step in as CEO and President.[22] At that time, a hostile takeover attempt by Chicago businessman Edward Heil and record losses threatened the company's existence. Agee thwarted the takeover and returned the failing Morrison Knudsen to profitability within one year.[22] By 1990, Agee had made the company highly profitable and it was debt-free.[22] Agee employed a diversification strategy which changed the company from one which was primarily reliant on heavy construction to one which was involved in railroad remanufacturing, precious minerals, and the transit business.[23] Agee formed MK Gold and MK Rail, and was appointed CEO of each. He moved out of company headquarters in Boise to run the enterprise from his home in Pebble Beach. MK had record profits between 1989 and 1991, much of which derived from operating revenue, accounting decisions (cooked books), and non-traditional sources of income such as investments.[21] When the rail business disintegrated after the loss of several contracts, MK found itself unable to return to its core businesses.[22]

In February 1995, when MK announced a loss of $310 million for fiscal year 1994, the MK board voted to terminate Agee.[24] A leak of an intended Agee resignation drew broad media attention which resulted in Agee resigning earlier than originally planned.[21][25][26][24][27]

Nearing bankruptcy in 1996,[28] Morrison-Knudsen merged with Dennis Washington's Washington Construction Group in May,[29][30] and later became Washington Group International, based at MK's headquarters in Boise.[22]

Business consultancy

Agee was Chairman of Semper Charitable Foundation, the Semper family's charitable foundation, and chaired Semper Partners, a venture capital and consulting firm founded in partnership with his wife, Mary Cunningham Agee.[23]

An example of Agee's success in venture capital and consulting was the growth and sale of Mozzarella Fresca, a company that he helped develop into the largest fresh mozzarella manufacturer in the West with customers ranging from Whole Foods to Domino's Pizza.[31]

Agee served on the Board of Directors of Fortune 500 firms including Dow Jones (1978–1993), the Great Atlantic & Pacific Tea Company (1974–1977), Morrison Knudsen (1974–1977 and 1981–1985) Equitable Life (1976–1985), ASARCO (1979–1981), and General Foods (1979–1983).[32]

Agee also served as a Director of Allied Corporation, MK Gold Company, MK Rail Corporation, LoJack Corporation and Key Bank Corp. Other directorships included the Committee for Economic Development, National Council for U.S. - China Trade, the Urban Institute, the Citizens Research Council of Michigan, the Detroit Renaissance Foundation, the United Foundation, the Detroit Economic Growth Corporation and the Cranbrook Education Community.[22]

Death

Agee died from complications of respiratory failure caused by vascular degeneration, Alzheimer's Disease and Scleroderma, a connective tissue disease, at a Seattle hospital on December 20, 2017 at the age of 79.[23][33]

Awards and honors

Agee received honorary doctorates from the University of Detroit (1980), Lawrence Institute of Technology (1980), Eastern Michigan University (1980), Bryant College, Cleary University, and Nathaniel Hawthorne College. In 1978, he received the Harvard Business School's Alumni Achievement Award [34] and in 1990 received the Ellis Island Medal of Honor.[35] Agee was elected to the alumni hall of fame at the University of Idaho in 1978,[36] and was also that year's commencement speaker.[37]

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References
  1. Hopkins, Jim (June 12, 1995). "Reversal of fortune - It took two Agees to tangle with events leading up to MK's near destruction". Seattle Times. (Idaho Statesman). Retrieved August 26, 2012.
  2. Holusha, John (September 12, 1982). "Brash Bendix chairman playing for high stakes". The Ledger. Lakeland, FL. (New York Times). p. 3C.
  3. The Matrimonial Tribunal - Diocese of Boise - Decree of Nullity 1-28-1982 Case 365-81
  4. "Youth, bold style characterize Bendix chief". Milwaukee Journal. (New York Times). October 13, 1980. p. 15.
  5. "Beta Theta Pi". Gem of the Mountains, University of Idaho yearbook. May 1960. p. 194.
  6. "Top fifteen seniors: William Agee". Gem of the Mountains, University of Idaho yearbook. May 1960. p. 300.
  7. "Paper firm official gets new post". Spokesman-Review. May 25, 1964. p. 6.
  8. "Boise Cascade's virus is growth". Milwaukee Journal. February 18, 1970. p. 23.
  9. Sloan, Allan (July 5, 1983). "Agee's rise to the top was made without serious setbacks". St. Petersburg Times. Field Newspaper Syndicate. p. 9B.
  10. Lawrence, John (June 11, 1972). "Boise Cascade belatedly tries to re-shape image". Spokesman-Review. (Los Angeles Times). p. 12S.
  11. "Bendix names new officers". Spokane Daily Chronicle. Associated Press. May 30, 1972. p. 22.
  12. "New York Stock Exchange Transactions". Milwaukee Sentinel. Associated Press. May 31, 1972. p. 10, part 2.
  13. Ruskin, Judith (December 20, 1976). "Bendix leader to keep policy". Spokane Daily Chronicle. Associated Press. p. 40.
  14. Time staff reporter."Just Friends," Time, February 8, 1982
  15. Time staff reporter."Business: Bendix Abuzz," Time, October 6, 1980.
  16. Mary Cunnningham Agee. Powerplay – What Really Happened at Bendix, Simon Schuster 1984, ISBN 0-671-47563-0.
  17. John Skow (December 27, 1982). "The Takeover Didn't Take, but Bill Agee and Mary Cunningham Made One Merger That Works". People. Retrieved July 21, 2010.
  18. Time staff reporter."High Noon: Showdown Time for Bendix",Time, September 20, 1982.
  19. "Agee quits post at Bendix, Allied". Milwaukee Journal. (Los Angeles Times). February 9, 1983. p. 15.
  20. "Morrison Knudsen name Agee as CEO, chairman". Eugene Register-Guard. Associated Press. August 6, 1988. p. 8E.
  21. O'Reilly, Brian (May 29, 1995). "Agee in Exile". Fortune. Retrieved July 22, 2010.
  22. Time staff reporter. "The Wreck of Morrison Knudsen", Time, April 3, 1995.
  23. "William Agee, Business Exec. Who Led Morrison-Knudsen to Bankruptcy, Dies at 79". Seattle Times. December 26, 2017. Retrieved December 26, 2017.
  24. Sloan, Allan (February 6, 1995). "Master of disaster sinks yet another corporation". Milwaukee Sentinel. Newsday. p. 19D.
  25. "Agee ousted; all Boise celebrates". Toledo Blade. Associated Press. February 11, 1995. p. 28.
  26. Wollenberg, Skip (February 11, 1985). "Top exec takes a fall". The Ledger. Lakeland, FL. Associated Press. p. 1E.
  27. Sloan, Allan (February 6, 1995). "Master of disaster sinks yet another corporation". Milwaukee Sentinel. Newsday. p. 19D.
  28. "Is Morrison-Knudsen Corp. on the brink of disaster?". Deseret News. February 9, 1996. p. D7.
  29. "Morrison-Knudsen, Washington Group to merge". Sarasot Herald-Tribune. Sarasota, FL. Associated Press. May 17, 1996. p. 6D.
  30. "Morrison Knudsen settlements OK'd". Deseret News. Associated Press. May 22, 1996. p. D8.
  31. "Mozzarella Fresca Makes History" Archived 2011-07-20 at the Wayback Machine, dBusinessNews, April 6, 2010.
  32. Time staff reporter.Golden Goodbye, Time, February 21, 1983.
  33. William Agee, ’70s C.E.O. Whose Star Was Dimmed, Dies at 79
  34. Harvard Business School Alumni – Past Winners, 1977
  35. Ellis Island Congressional Medal of Honor – Past Medalist Listing: William M.(McReynolds) Agee Archived 2012-02-25 at the Wayback Machine
  36. "Honor voted". Spokane Daily Chronicle. (photos). March 31, 1978. p. 5.
  37. "Idaho honors four notables". Spokane Daily Chronicle. May 12, 1978. p. 16.
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