Ken Thompson
President and CEO, Wachovia
Steve
Carter introduced Ken Thompson, President & CEO of Wachovia. Ken was born in Rocky Mount and joined First Union
in 1976, fresh out of Wake Forest MBA School. He
became the CEO in 2000 and engineered the merger of Wachovia and First Union in 2001. His passions are family, company, and community.
Ken explained that when he addressed
Charlotte Rotary a year ago, he was advised by the company’s lawyers to be careful
with his comments as they were in the middle of the merger vote – and with Sun Trust
offering a competing proposal, they had a proxy fight on their hands. So, he only talked in general terms about their
merger proposal.
“What
a difference a year makes!” “The
good guys win the battle…and are in the process of winning the war.” Today, Wachovia’s performance numbers are
ahead of target, the new signs (blue/green with a forward leaning look) will start being
installed this month in Florida and work up the east coast, and the merger integration is
on budget and slightly ahead of schedule.
Ken stated that they learned some
important lessons from previous consolidations and these lessons are contributing to the
success. They are taking their time. Rather
than converting systems for 20 million customers in a few weekends, they are taking 30
months and testing every system. They are
sending out 100 million pieces of mail (5/customer) telling them what is happening and
when. Gallop research shows their customer
services scores are rising.
First Union and Wachovia had long
and proud histories with huge contributions to communities and our state. That community involvement and support will
continue. In the spring, Wachovia sponsored
the brand-new PGA Tour event at Quail Hollow and a nonprofit called Teach America will
receive the profits. In the last year,
Wachovia had more than 300 classroom partnerships in CMS, including, reading out loud,
tutoring, mentoring, and lunch buddies.
Both companies lead in supporting
the Arts & Science Council and United Way Campaigns, March of Dimes, Habitat for
Humanity, and Red Cross blood drives. Wachovia
Volunteers! are forming in Winston-Salem and Charlotte with additional chapters to follow
across the franchise. Wachovia’s intent
is to take volunteerism to the next level.
Ken closed with a couple of points. 1. The
economy is not robust, but growing. Main
Street is doing fine and Wall Street is hurt by war uncertainty and consumer confidence. He hopes the recent strengths in equity markets
mark a bottom reached in July/August. 2. There is a Crisis of Confidence. Most Americans believe that the Enron activities
are typical of most corporations. “This
is a sad and scary reality”, but there is positive fallout. Full disclosure and CEO/CFO certifications are
good. “We are suffering from the
hangover produced by the popping of the huge bubble in the late 90’s. We will get through it, but it always takes
longer than you expect.”
Head Table: Mike Rash, Jeff Wise, Steve Carter, John Granzow,
Myra Johnston, David Anderson.
Visiting Rotarians & Guests-Don Carmichael; Health &
Happiness-Tom Hutchins; Song-Richard Early; Invocation-Dale LeCount.
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POWELL'S
OBSERVATIONS
POWELL MAJORS
ü Anthony Fox has been appointed to the NC Banking Commission by the
Governor.
ü John Johnson has been the interim volunteer Executive Director of Class Room
Central since May 2002. A new Executive
Director is now in place for the organization that provides school supplies for teachers
that have the largest number of students on the federal free and reduced lunch programs. Class Room Central has great needs for volunteers,
supplies, contributions, and sponsors like the Carolina Panthers that gave $200,000 to get
the project started. Mark Norman and Winston
Kelly serve on the Board with John.
ü Marilynn Bowler has joined Central Piedmont Community College as assistant to
the president for community relations and marketing services.
ü E.K. Fretwell, Donald Haack, and David Tate
are on the Symphony Board that assists Richard Early.
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Did You Hear...
è Welcome to new members Lori Hurd
and Tim Newman.
è Rotary Foundation Banquet, November 16,
2002.
è Polio Eradication Update
Club Pledge:
$54,000
Received To Date: $10,415
Representing:
40 members
è Tony Zeiss has been named the N.C. Community College System President of
the Year.
è Our sympathy is extended to Harry
Weatherly in the death of son-in-law Klay Kayles, and to John Luby in the death of his mother.
è Speedy recovery wishes to Don
Steger and George Robinette!
è Luther Fincher was profiled in the Club XXV feature of the Charlotte Observer.
è Clothing will be collected for Crisis
Assistance Ministries during the month of November. Members are asked to bring donations to a club
meeting or call Jim Adams for pickup (see
attached).
è Rotary Breakfast Bunch, 7:30 AM,
November 25th at the Dowd (Morehead) YMCA.
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