Carlos Gutierrez
Encyclopedia
Carlos Miguel Gutierrez (originally Gutiérrez) (born November 4, 1953) is an American former CEO and former U.S. Cabinet Member who is currently a Vice Chairman of Citigroup's Institutional Clients Group. He has previously served as the 35th U.S. Secretary of Commerce
from 2005 to 2009. Gutierrez is a former Chairman of the Board and CEO
of the Kellogg Company
.
, Cuba
, the son of a pineapple
plantation
owner. As a successful businessman, his father was deemed an enemy of the state by Fidel Castro
's regime. Faced with the expropriation of their property following the Cuban Revolution
, Gutierrez's family fled for the United States
in 1960 when he was six years old. Like many other Cuban American
exiles, they settled in Miami. When it became apparent they would not be going home, Gutierrez's father accepted a position with the H. J. Heinz Company
in Mexico
and later started his own business. Gutierrez learned his first words of English
from the bellhop at the hotel where they initially stayed and, some years later, he and his family acquired United States citizenship.
Gutierrez studied business administration at the Monterrey Institute of Technology and Higher Education
campus in Querétaro.
Gutierrez rose through the management ranks, and in January 1990, he was promoted to corporate vice president of product development at the company's headquarters in Battle Creek, Michigan
, and in July of the same year, he became executive vice president of Kellogg USA. In January 1999, he was elected to the company's Board of Directors and by April, he was appointed president and CEO. Faced with a global decline or stagnation in cereal sales, Carlos Gutierrez took the helm at Kellogg and at that time became the only Latino CEO of a Fortune 500 company. Gutierrez was also the youngest CEO in the company’s nearly 100-year history.
Gutierrez's strategy, known as "Volume to Value," was to increase sales by focusing resources on higher-margin products. Higher-margin products targeted specific markets and included products such as Special K
, Kashi, and Nutri-Grain
bars. Extra income would fund advertising, promotions, and R&D, which would encourage further high-margin sales growth. "Volume is a means to an end--not an end," he would say. "What counts is dollars."
In 2004, Fortune Magazine dubbed Gutierrez as "The Man Who Fixed Kellogg", and attributed his success to "taking the slick salesmanship, financial discipline, and marketing savvy that he learned in his youth and blending it with disarming charisma, steely resolve, and an utter lack of pretension that you wouldn't expect in one so nattily dressed." The magazine also added that, "He even makes golf shirts look debonair."
George W. Bush
to be his next term's Secretary of Commerce, succeeding Donald Evans
. On the same day, Kellogg's Board of Directors accepted Gutierrez's resignation as Chairman of the Board and CEO, to be effective upon his confirmation by the Senate and swearing in. The board selected James M. Jenness
to succeed Gutierrez as Chairman and CEO. It also elected Kellogg President and Chief Operating Officer A.D. David Mackay to the board. Gutierrez was confirmed unanimously by the Senate on January 24, 2005 and sworn in on February 7, 2005.
As Secretary of Commerce, Gutierrez also served as Co-Chair of the U.S. Commission for Assistance to a Free Cuba. Secretary Gutierrez was actively involved in U.S. – Cuba policy alongside Co-Chair Secretary of State Condoleezza Rice.
Gutierrez was also one of the President’s point men working with Congress to pass comprehensive immigration legislation, an issue he sees as one of the greatest domestic social issues of our time. He believes a successful immigration solution must focus first on securing our borders, but must also address immigrants contribution to our economy and the importance of American unity.
Gutierrez played a key role in the passage of CAFTA-DR, a landmark trade agreement that expanded opportunities for U.S. exports throughout Latin America. Gutierrez was also instrumental in promoting the Colombia Free Trade Agreement, and in 2006 Gutierrez called for Congress to “work with us and pass the pending Free Trade Agreements with Colombia, Korea and Panama, so we can have fair, two-way trade with our allies and friends.” He also led the first-ever domestic trade mission to the Gulf region in the wake of Hurricane Katrina.
On December 6, 2007, Washington editor of Harper's Magazine
Ken Silverstein
reported that Gutierrez had Adnan Oktar
's Atlas of Creation—a book that advocates Islamic creationism
and blames Charles Darwin
for modern terrorism, including the 9/11 attacks—for display on a stand at the entrance to his US government office. Gutierrez's office did not respond when asked whether the book had been purchased or mailed unsolicited to his office.
, a Washington-based global communications firm.
In February 2009, Gutierrez was named a Scholar at the University of Miami
’s Institute For Cuban And Cuban American Studies. In April 2009, he joined the University's board of trustees. He is also a member of the Board of Trustees of the Woodrow Wilson International Center for Scholars
and the Bipartisan Debt Reduction Task Force.
On February 21, 2009, the Wall Street Journal reported that Gutierrez remained unemployed, along with a significant majority of George W. Bush's 3,000 political appointees who are seeking full-time employment. According to the article, 25% to 30% of those officials have found new jobs, a statistic notably lower than when Ronald Reagan
, George H.W. Bush, and Bill Clinton
left the White House. The article notes that "at least half those presidents' senior staffers landed employment within a month after the administration ended." Gutierrez commented that, "This is not a great time for anyone to be job hunting, including numerous former political appointees." He added that he hopes to run a company like Kellogg again because "I have a lot of energy." However, according to a press release from United Technologies Corporation
, Gutierrez joined the company's board of directors on February 9, several days prior to the publication of the Wall Street Journal article.
According to press releases, Gutierrez also serves on the Board of Directors of Occidental Petroleum
, GLW Corning, and Intelligent Global Pooling Systems. He is also a television news contributor for the business news television channel CNBC
. In March 2010, Gutierrez said he would not like to return to a CEO spot at a foodmaker, because as commerce secretary, he had something different to do each day, whereas, "Business is pretty one-dimensional."
He joined Citigroup
as a vice chairman of the Institutional Clients Group and member of the Senior Strategic Advisory Group.
Gutierrez served as a member of the Debt Reduction Task Force at the Bipartisan Policy Center
.
United States Secretary of Commerce
The United States Secretary of Commerce is the head of the United States Department of Commerce concerned with business and industry; the Department states its mission to be "to foster, promote, and develop the foreign and domestic commerce"...
from 2005 to 2009. Gutierrez is a former Chairman of the Board and CEO
Chief executive officer
A chief executive officer , managing director , Executive Director for non-profit organizations, or chief executive is the highest-ranking corporate officer or administrator in charge of total management of an organization...
of the Kellogg Company
Kellogg Company
Kellogg Company , is a producer of cereal and convenience foods, including cookies, crackers, toaster pastries, cereal bars, fruit-flavored snacks, frozen waffles, and vegetarian foods...
.
Early life and career
Gutierrez was born in HavanaHavana
Havana is the capital city, province, major port, and leading commercial centre of Cuba. The city proper has a population of 2.1 million inhabitants, and it spans a total of — making it the largest city in the Caribbean region, and the most populous...
, Cuba
Cuba
The Republic of Cuba is an island nation in the Caribbean. The nation of Cuba consists of the main island of Cuba, the Isla de la Juventud, and several archipelagos. Havana is the largest city in Cuba and the country's capital. Santiago de Cuba is the second largest city...
, the son of a pineapple
Pineapple
Pineapple is the common name for a tropical plant and its edible fruit, which is actually a multiple fruit consisting of coalesced berries. It was given the name pineapple due to its resemblance to a pine cone. The pineapple is by far the most economically important plant in the Bromeliaceae...
plantation
Plantation
A plantation is a long artificially established forest, farm or estate, where crops are grown for sale, often in distant markets rather than for local on-site consumption...
owner. As a successful businessman, his father was deemed an enemy of the state by Fidel Castro
Fidel Castro
Fidel Alejandro Castro Ruz is a Cuban revolutionary and politician, having held the position of Prime Minister of Cuba from 1959 to 1976, and then President from 1976 to 2008. He also served as the First Secretary of the Communist Party of Cuba from the party's foundation in 1961 until 2011...
's regime. Faced with the expropriation of their property following the Cuban Revolution
Cuban Revolution
The Cuban Revolution was an armed revolt by Fidel Castro's 26th of July Movement against the regime of Cuban dictator Fulgencio Batista between 1953 and 1959. Batista was finally ousted on 1 January 1959, and was replaced by a revolutionary government led by Castro...
, Gutierrez's family fled for the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
in 1960 when he was six years old. Like many other Cuban American
Cuban American
A Cuban American is a United States citizen who traces his or her "national origin" to Cuba. Cuban Americans are also considered native born Americans with Cuban parents or Cuban-born persons who were raised and educated in US...
exiles, they settled in Miami. When it became apparent they would not be going home, Gutierrez's father accepted a position with the H. J. Heinz Company
H. J. Heinz Company
The H. J. Heinz Company , commonly known as Heinz and famous for its "57 Varieties" slogan and its ketchup, is an American food company with world headquarters in Pittsburgh, Pennsylvania.Perhaps best known for its ketchup, the H.J...
in Mexico
Mexico
The United Mexican States , commonly known as Mexico , is a federal constitutional republic in North America. It is bordered on the north by the United States; on the south and west by the Pacific Ocean; on the southeast by Guatemala, Belize, and the Caribbean Sea; and on the east by the Gulf of...
and later started his own business. Gutierrez learned his first words of English
English language
English is a West Germanic language that arose in the Anglo-Saxon kingdoms of England and spread into what was to become south-east Scotland under the influence of the Anglian medieval kingdom of Northumbria...
from the bellhop at the hotel where they initially stayed and, some years later, he and his family acquired United States citizenship.
Gutierrez studied business administration at the Monterrey Institute of Technology and Higher Education
Monterrey Institute of Technology and Higher Education
The Monterrey Institute of Technology and Higher Education commonly shortened as Monterrey Institute of Technology or Monterrey Tech is one of the largest private, nonsectarian and coeducational multi-campus universities in...
campus in Querétaro.
Kellogg Company
Gutierrez joined Kellogg's in Mexico in 1975, at the age of 22, as a sales representative and management trainee. One of his early assignments included driving a delivery-truck route around local stores.Gutierrez rose through the management ranks, and in January 1990, he was promoted to corporate vice president of product development at the company's headquarters in Battle Creek, Michigan
Battle Creek, Michigan
Battle Creek is a city in the U.S. state of Michigan, in northwest Calhoun County, at the confluence of the Kalamazoo and Battle Creek Rivers. It is the principal city of the Battle Creek, Michigan Metropolitan Statistical Area , which encompasses all of Calhoun county...
, and in July of the same year, he became executive vice president of Kellogg USA. In January 1999, he was elected to the company's Board of Directors and by April, he was appointed president and CEO. Faced with a global decline or stagnation in cereal sales, Carlos Gutierrez took the helm at Kellogg and at that time became the only Latino CEO of a Fortune 500 company. Gutierrez was also the youngest CEO in the company’s nearly 100-year history.
Gutierrez's strategy, known as "Volume to Value," was to increase sales by focusing resources on higher-margin products. Higher-margin products targeted specific markets and included products such as Special K
Special K
Special K is a lightly toasted breakfast cereal manufactured by the Kellogg Company. The cereal was introduced to the United States in 1956. It is made primarily from rice and wheat....
, Kashi, and Nutri-Grain
Nutri-Grain
Nutri-Grain is a brand of breakfast cereal and breakfast bar made by the Kellogg Company.In Australia and New Zealand, Nutri-Grain is a breakfast cereal made from corn, oats, and wheat....
bars. Extra income would fund advertising, promotions, and R&D, which would encourage further high-margin sales growth. "Volume is a means to an end--not an end," he would say. "What counts is dollars."
In 2004, Fortune Magazine dubbed Gutierrez as "The Man Who Fixed Kellogg", and attributed his success to "taking the slick salesmanship, financial discipline, and marketing savvy that he learned in his youth and blending it with disarming charisma, steely resolve, and an utter lack of pretension that you wouldn't expect in one so nattily dressed." The magazine also added that, "He even makes golf shirts look debonair."
Secretary of Commerce
On November 29, 2004, Gutierrez was chosen by PresidentPresident of the United States
The President of the United States of America is the head of state and head of government of the United States. The president leads the executive branch of the federal government and is the commander-in-chief of the United States Armed Forces....
George W. Bush
George 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....
to be his next term's Secretary of Commerce, succeeding Donald Evans
Donald Evans
Donald Louis Evans was the 34th U.S. Secretary of Commerce. He was appointed by his longtime friend George W. Bush and sworn into office on January 20, 2001...
. On the same day, Kellogg's Board of Directors accepted Gutierrez's resignation as Chairman of the Board and CEO, to be effective upon his confirmation by the Senate and swearing in. The board selected James M. Jenness
James M. Jenness
James M. Jenness is the chairman of the board and former CEO of the Kellogg Company, succeeding Carlos Gutierrez after President George W. Bush nominated him to become Secretary of Commerce on November 29, 2004...
to succeed Gutierrez as Chairman and CEO. It also elected Kellogg President and Chief Operating Officer A.D. David Mackay to the board. Gutierrez was confirmed unanimously by the Senate on January 24, 2005 and sworn in on February 7, 2005.
As Secretary of Commerce, Gutierrez also served as Co-Chair of the U.S. Commission for Assistance to a Free Cuba. Secretary Gutierrez was actively involved in U.S. – Cuba policy alongside Co-Chair Secretary of State Condoleezza Rice.
Gutierrez was also one of the President’s point men working with Congress to pass comprehensive immigration legislation, an issue he sees as one of the greatest domestic social issues of our time. He believes a successful immigration solution must focus first on securing our borders, but must also address immigrants contribution to our economy and the importance of American unity.
Gutierrez played a key role in the passage of CAFTA-DR, a landmark trade agreement that expanded opportunities for U.S. exports throughout Latin America. Gutierrez was also instrumental in promoting the Colombia Free Trade Agreement, and in 2006 Gutierrez called for Congress to “work with us and pass the pending Free Trade Agreements with Colombia, Korea and Panama, so we can have fair, two-way trade with our allies and friends.” He also led the first-ever domestic trade mission to the Gulf region in the wake of Hurricane Katrina.
On December 6, 2007, Washington editor of Harper's Magazine
Harper's Magazine
Harper's Magazine is a monthly magazine of literature, politics, culture, finance, and the arts, with a generally left-wing perspective. It is the second-oldest continuously published monthly magazine in the U.S. . The current editor is Ellen Rosenbush, who replaced Roger Hodge in January 2010...
Ken Silverstein
Ken Silverstein
Ken Silverstein is an American editor covering the Washington bureau for Harper's Magazine. In addition to contributing to the print edition of Harper's Magazine, Silverstein publishes a weblog entitled "Washington Babylon" on the magazine's website...
reported that Gutierrez had Adnan Oktar
Adnan Oktar
Adnan Oktar , also known as Harun Yahya, is an author and Islamic creationist. In 2007, he sent thousands of unsolicited copies of the Atlas of Creation advocating Islamic creationism to American scientists, members of Congress, and science museums...
's Atlas of Creation—a book that advocates Islamic creationism
Islamic creationism
Islamic views on evolution refers to varying Muslim beliefs on how the life came to be. Muslims acknowledge God as the Creator, as explained in the Qur'an. Other than that, Muslim views on evolution vary...
and blames Charles Darwin
Charles Darwin
Charles Robert Darwin FRS was an English naturalist. He established that all species of life have descended over time from common ancestry, and proposed the scientific theory that this branching pattern of evolution resulted from a process that he called natural selection.He published his theory...
for modern terrorism, including the 9/11 attacks—for display on a stand at the entrance to his US government office. Gutierrez's office did not respond when asked whether the book had been purchased or mailed unsolicited to his office.
Post-Bush administration
Gutierrez is a founder and Chairman of Global Political Strategies (GPS), an international strategic consulting service and a division of APCO WorldwideAPCO Worldwide
APCO Worldwide is an independent communications consultancy. With more than 600 employees in 29 worldwide locations, it is the second largest independently-owned PR firm in the United States. Headquartered in Washington, D.C., APCO was founded in 1984 by Margery Kraus, who is now the firm’s global...
, a Washington-based global communications firm.
In February 2009, Gutierrez was named a Scholar at the University of Miami
University of Miami
The University of Miami is a private, non-sectarian university founded in 1925 with its main campus in Coral Gables, Florida, a medical campus in Miami city proper at Civic Center, and an oceanographic research facility on Virginia Key., the university currently enrolls 15,629 students in 12...
’s Institute For Cuban And Cuban American Studies. In April 2009, he joined the University's board of trustees. He is also a member of the Board of Trustees of the Woodrow Wilson International Center for Scholars
Woodrow Wilson International Center for Scholars
The Woodrow Wilson International Center for Scholars , located in Washington, D.C., is a United States Presidential Memorial that was established as part of the Smithsonian Institution by an act of Congress in 1968...
and the Bipartisan Debt Reduction Task Force.
On February 21, 2009, the Wall Street Journal reported that Gutierrez remained unemployed, along with a significant majority of George W. Bush's 3,000 political appointees who are seeking full-time employment. According to the article, 25% to 30% of those officials have found new jobs, a statistic notably lower than when Ronald Reagan
Ronald Reagan
Ronald Wilson Reagan was the 40th President of the United States , the 33rd Governor of California and, prior to that, a radio, film and television actor....
, George H.W. Bush, and Bill Clinton
Bill Clinton
William Jefferson "Bill" Clinton is an American politician who served as the 42nd President of the United States from 1993 to 2001. Inaugurated at age 46, he was the third-youngest president. He took office at the end of the Cold War, and was the first president of the baby boomer generation...
left the White House. The article notes that "at least half those presidents' senior staffers landed employment within a month after the administration ended." Gutierrez commented that, "This is not a great time for anyone to be job hunting, including numerous former political appointees." He added that he hopes to run a company like Kellogg again because "I have a lot of energy." However, according to a press release from United Technologies Corporation
United Technologies Corporation
United Technologies Corporation is an American multinational conglomerate headquartered in the United Technologies Building in Hartford, Connecticut...
, Gutierrez joined the company's board of directors on February 9, several days prior to the publication of the Wall Street Journal article.
According to press releases, Gutierrez also serves on the Board of Directors of Occidental Petroleum
Occidental Petroleum
Occidental Petroleum Corporation is a California-based oil and gas exploration and production company with operations in the United States, the Middle East, North Africa, and South America...
, GLW Corning, and Intelligent Global Pooling Systems. He is also a television news contributor for the business news television channel CNBC
CNBC
CNBC is a satellite and cable television business news channel in the U.S., owned and operated by NBCUniversal. The network and its international spinoffs cover business headlines and provide live coverage of financial markets. The combined reach of CNBC and its siblings is 390 million viewers...
. In March 2010, Gutierrez said he would not like to return to a CEO spot at a foodmaker, because as commerce secretary, he had something different to do each day, whereas, "Business is pretty one-dimensional."
He joined Citigroup
Citigroup
Citigroup Inc. or Citi is an American multinational financial services corporation headquartered in Manhattan, New York City, New York, United States. Citigroup was formed from one of the world's largest mergers in history by combining the banking giant Citicorp and financial conglomerate...
as a vice chairman of the Institutional Clients Group and member of the Senior Strategic Advisory Group.
Gutierrez served as a member of the Debt Reduction Task Force at the Bipartisan Policy Center
Bipartisan Policy Center
The is a non-profit organization that "drives principled solutions through rigorous analysis, reasoned negotiation, and respectful dialogue." Founded in 2007 by former Senate Majority Leaders Howard Baker, Tom Daschle, Bob Dole, and George Mitchell, "BPC combines politically-balanced policymaking...
.