Posted on 12/05/2001 3:14:33 PM PST by mgist
Wednesday December 5, 4:55 pm Eastern Time NEWSMAKER-'Diplomat' Richard Parsons to lead AOL By Franklin Paul
NEW YORK, Dec 5 (Reuters) - Richard Parsons, a lawyer and banker who served in Gerald Ford's White House, will need all of his adept diplomatic skills when he takes over the chief executive job at AOL Time Warner Inc.(NYSE:AOL - news) at a time when the company is looking to streamline its many businesses.
ADVERTISEMENT Parsons, 53, will become one of the nation's most prominent African-American executive next May when he replaces the retiring Gerald Levin as CEO of AOL Time Warner, whose businesses span movies, television, publishing, professional sports, and the Internet.
While viewed as an experienced executive and coalition builder, who confidently ran Time Warner's book publishing, music, and film businesses before its $106 billion merger with AOL, few saw Parsons ascending this soon, if at all.
``The irony is that when the merger first happened, everybody counted Parsons out,'' said one AOL Time Warner executive, who characterized Parsons as ``a great diplomat'' and ``a strong presence.''
Since the merger's consummation earlier this year, Wall Street insiders had speculated that, between co-chief operating officers Parsons and Robert Pittman, it would be Pittman who eventually would lead the company.
A BUSY GUY
As AOL Time Warner ironed out its new, merged structure, Parsons was expected to move on to a political career. After all, he is known to breakfast with former President Bill Clinton at trendy restaurants in Harlem, and is co-chair of The President's Commission to Strengthen Social Security.
He also serves on the transition team of New York City Mayor-elect Michael Bloomberg, holding a position similar to the one he held in Mayor Rudolph Giuliani's transition team in 1993. Parson was also mentioned as a possible candidate for New York governor, and his name was among those floated to join President Bush's White House staff, possibly heading trade- or commerce-related agencies.
Instead, the reins at AOL go to Parsons, a tall New York native with a salt-and-pepper beard, who joined Time Warner in 1995, and currently oversees its content businesses.
His reputation in Washington helped steer the AOL Time Warner merger through a minefield of regulatory probes, as opponents demanded the companies open up cable lines to rival Internet services.
``I have the greatest confidence in Dick Parsons' ability to lead the company forward, coalesce its diverse interests, and work with our strategic partners to achieve our ambitious goals,'' Levin said in a statement.
Deborah Lathen, who ran the cable bureau at the Federal Communications Commission when AOL and Time Warner were seeking approval from the agency, said Parsons was a ``class act'' during their meetings and he worked within the regulatory process.
``When you talk with him, he's very creative, but he also has a CEO veneer without being arrogant,'' Lathen said. ``He was always a consummate professional, he never lost his temper.''
FORMER BANKER
Before joining Time Warner, Parsons was Chairman and Chief Executive of Manhattan-based Dime Bancorp Inc.(NYSE:DME - news), one of the largest U.S. thrifts. Prior to that, he was managing partner of New York law firm Patterson, Belknap, Webb & Tyler.
The second of five children, Parsons worked as a janitor while in law school and went on to hold various positions in state and federal service -- as counsel for former Gov. Nelson Rockefeller and as a senior White House aide under President Gerald Ford.
He joins Franklin Raines, Chairman and CEO of Fannie Mae (NYSE:FNM - news); American Express (NYSE:AXP - news) CEO Kenneth Chenault; and Stanley O'Neal, Merrill Lynch (NYSE:MER - news) president and COO as one of the nation's most prominent African-American business executives.
Alfred Edmund, Editor-in-Chief of Black Enterprise magazine, said while the vast majority of top CEOs are still older, white males, Parsons' appointment proves that companies are growing more comfortable with diverse choices.
``It is significant because there are still so few, but it's no longer a major radical departure to think 'I'm going to bring in an African-American as my CEO,'' he said.
What's more, he suggests that as a company veteran, Parsons is likely to thrive, particularly inside AOL's huge machine. At a smaller shop, a poor financial quarter or operational misstep might shed a bad light, as it has with some recent female and African-American CEOs.
``I don't think he faces the same challenge that Lloyd Ward faced at Maytag,'' he said. Ward, an African-American, ran Maytag from 1999 to 2000, and resigned over differences with the board of directors about the appliance maker's strategy.
``It was out in Iowa, he was very visible, and he was an outsider,'' Edmund said. ``I don't think Parsons faces that same kind of pressure.''
With African-American executives holding prominent roles in top finance, industry, and technology companies, race is less of an issue in corporate America, said Pamela Newkirk, a journalism professor at New York University who has written on race issues in the media.
However, as head of the world's largest media company, Parson's power to influence cultural trends may be felt.
``Parsons could bring greater sensitivity around portrayals of African-Americans in the media,'' Newkirk said. ``But then again he'll do what makes sense as a businessman.''
What? It could happen......
What? It could happen......
I really can't put it past the DemocRats - looking at the terms of Clintoon and the way the media allowed itself to willingly be used. This bears a close watch.....
That may work out for the best if his buddy does to AOL what Clinton did to USA then that rip-off company will take the eternal dirt-nap.
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