Kenneth Langone
Encyclopedia
Kenneth Langone, is a venture capitalist, investment banker and financial backer of The Home Depot
, and a former director of the New York Stock Exchange
. He was elected as director of Yum! Brands
effective October 7, 1997, and is a member of the Audit Committee
. Langone is also a trustee of New York University
. On July 8, 2010, Geeknet
announced that Kenneth Langone was elected Chairman of its Board of Directors and is now serving as CEO. Langone has an estimated worth of $1.3 billion.
to working-class parents; his father was a plumber and his mother a cafeteria worker. As a student at Bucknell University
, Langone worked various blue collar jobs as a butcher's assistant, a caddy and a ditch digger. While at Bucknell, Langone became a member of Sigma Chi
. After graduating in three and a half years, Langone headed back to New York, this time to Manhattan
instead of Roslyn Heights. While working full-time during the day, Langone attended New York University Stern School of Business
at night. That part-time evening program now bears his name, and is known as the "Langone Program" at NYU.
's company Electronic Data Systems
.
Building up his experience over the next decade, Langone began to study the home improvement business and eventually bought stock in Handy Dan
, a home improvement chain. This led to a relationship between Langone and both Handy Dan CEO Bernard Marcus
and CFO Arthur Blank
. Although a minority shareholder, Langone effectively protected Marcus from issues that arose between Marcus and Sanford Sigiloff, the CEO of The Daylin Corporation, Handy Dan's parent company. Marcus, however, felt that if Langone sold his interest in Handy Dan, it may actually improve his relationship with Sigiloff. Shortly after Langone sold his Handy Dan stock both Marcus and Blank were fired. Langone organized financing for Marcus and Blank to found Home Depot. Now a national chain with over 300,000 employees, it is Langone's most notable business venture.
Universities Langone has contributed towards include Bucknell University
, and NYU. Bucknell University has benefited from his $11 million donation, which financed a new Athletics and Recreation Center. Additionally, he has donated $6.5 million to NYU's Stern School to endow the Kenneth G. Langone Part-time Evening MBA program. Langone serves as the Chair of the Board of Trustees of the NYU Langone Medical Center
.
Langone has contributed towards charities which fund medical research and treatment and provide education and services to the disadvantaged. These charities have included the Damon Runyon Cancer Research Foundation
, The Children's Oncology Society
(Ronald McDonald House), Tomorrow's Hope Foundation, Harlem Children's Zone
, and the Robin Hood Foundation
, where he serves as Director. Langone is also the Chairman of the Promise Academy
, a charter school in New York City.
He serves on the boards of The Ronald McDonald House of NY CSIS, The Medal of Honor Foundation and the Harlem Children's Zone.
Through Home Depot, Kenneth Langone started the charitable organization Ken's Kids, which provides job training and employment to youths aged 18–21 with disabilities in Philadelphia. Langone himself financially contributes to the charity.
Langone donated millions of dollars to a wide variety of charities, most recently $200 million to what is now known as the New York University Elaine A. and Kenneth G. Langone Medical Center.
. Although the deal fell through, it raised Langone's stature on Wall Street
and in the business community in general. He was a co-defendant with Richard Grasso
in the 2004 prosecution by Eliot Spitzer
over a controversial package of $139.5m of benefits received by Grasso on leaving his post as chairman and chief executive of the New York Stock Exchange, in addition to an estimated $10m annual pay. The Exchange was operated as a non-profit enterprise, and so was subject to New York state laws governing remuneration within non-profit enterprises. Langone was, as a director of the Exchange and senior member of the remuneration committee, heavily involved in development of the pay package. On July 1, 2008 the New York State Court of Appeals dismissed the case. The majority opinion stated that since the beginning of the case the NYSE had become a subsidiary of a for-profit multinational corporation, and that pursuing the company in the matter was therefore "not in the public interest."
Langone served on the board of General Electric
in 2001, Langone tapped Robert Nardelli
to become CEO of Home Depot after Jeffrey R. Immelt
was chosen over both Nardelli and James McNerney
to succeed Jack Welch
as CEO of GE.
Langone also served on the board of Database Technologies, a position he filled at invitation of the company's founder Hank Asher
. Asher claims Langone was responsible for his ouster.
Langone was a co-founder and board member of ChoicePoint
Inc.
The Wall Street Journal
discussed a pitch made by Bernard Madoff
to Langone just before Thanksgiving 2009. Langone told the newspaper that Madoff said he was raising $500 million to $1 billion for this new fund for exclusive clients.
He was made a Knight of St. Gregory
by Pope Benedict XVI
.
He currently resides in Sands Point, New York
.
The Home Depot
The Home Depot is an American retailer of home improvement and construction products and services.The Home Depot operates 2,248 big-box format stores across the United States , Canada , Mexico and China, with a 12-store chain...
, and a former director of the New York Stock Exchange
New York Stock Exchange
The New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...
. He was elected as director of Yum! Brands
Yum! Brands
Yum! Brands, Inc. or Yum! is a United States-based Fortune 500 corporation. Yum! operates or licenses Taco Bell, KFC, Pizza Hut, and WingStreet restaurants worldwide....
effective October 7, 1997, and is a member of the Audit Committee
Audit committee
In a U.S. publicly-traded company, an audit committee is an operating committee of the Board of Directors charged with oversight of financial reporting and disclosure. Committee members are drawn from members of the company's board of directors, with a Chairperson selected from among the committee...
. Langone is also a trustee of New York University
New York University
New York University is a private, nonsectarian research university based in New York City. NYU's main campus is situated in the Greenwich Village section of Manhattan...
. On July 8, 2010, Geeknet
Geeknet
Geeknet, Inc. is a Mountain View, California company that owns several computer tech-related websites and the online retailer ThinkGeek. Formerly known as VA Research, VA Linux Systems, VA Software, and SourceForge, Inc., it was founded in 1993.-VA Research:VA Research was founded in November...
announced that Kenneth Langone was elected Chairman of its Board of Directors and is now serving as CEO. Langone has an estimated worth of $1.3 billion.
Early life
Kenneth Langone was born in Roslyn Heights, New YorkRoslyn Heights, New York
Roslyn Heights is a hamlet in Nassau County, New York, United States. It is considered part of the Greater Roslyn area, which is anchored by the Village of Roslyn...
to working-class parents; his father was a plumber and his mother a cafeteria worker. As a student at Bucknell University
Bucknell University
Bucknell University is a private liberal arts university located alongside the West Branch Susquehanna River in the rolling countryside of Central Pennsylvania in the town of Lewisburg, 30 miles southeast of Williamsport and 60 miles north of Harrisburg. The university consists of the College of...
, Langone worked various blue collar jobs as a butcher's assistant, a caddy and a ditch digger. While at Bucknell, Langone became a member of Sigma Chi
Sigma Chi
Sigma Chi is the largest and one of the oldest college Greek-letter secret and social fraternities in North America with 244 active chapters and more than . Sigma Chi was founded on June 28, 1855 at Miami University in Oxford, Ohio when members split from Delta Kappa Epsilon...
. After graduating in three and a half years, Langone headed back to New York, this time to Manhattan
Manhattan
Manhattan is the oldest and the most densely populated of the five boroughs of New York City. Located primarily on the island of Manhattan at the mouth of the Hudson River, the boundaries of the borough are identical to those of New York County, an original county of the state of New York...
instead of Roslyn Heights. While working full-time during the day, Langone attended New York University Stern School of Business
New York University Stern School of Business
The Leonard N. Stern School of Business is New York University's business school. It was established in 1900 as the NYU School of Commerce, Accounts and Finance. In 1988 it was named after Leonard N. Stern, an alumnus and benefactor of the school...
at night. That part-time evening program now bears his name, and is known as the "Langone Program" at NYU.
Business career
Following his NYU graduation, Langone began his business career. After some time, his launching pad was the IPO deal he set up for Ross PerotRoss Perot
Henry Ross Perot is a U.S. businessman best known for running for President of the United States in 1992 and 1996. Perot founded Electronic Data Systems in 1962, sold the company to General Motors in 1984, and founded Perot Systems in 1988...
's company Electronic Data Systems
Electronic Data Systems
HP Enterprise Services is the global business and technology services division of Hewlett Packard's HP Enterprise Business strategic business unit. It was formed by the combination of HP's legacy services consulting and outsourcing business and the integration of acquired Electronic Data Systems,...
.
Building up his experience over the next decade, Langone began to study the home improvement business and eventually bought stock in Handy Dan
Handy Dan
Handy Dan Home Improvement was one of the first home improvement retailer chains. It went out of business in May, 1989. Ironically, Handy Dan employed two corporate officers named Arthur Blank and Bernie Marcus...
, a home improvement chain. This led to a relationship between Langone and both Handy Dan CEO Bernard Marcus
Bernard Marcus
Bernard "Bernie" Marcus is an American pharmacist and retail entrepreneur.He was born to Jewish-Russian immigrant parents in Newark, New Jersey. He grew up in a tenement and wanted to become a doctor. He couldn’t afford the tuition, so he worked for his father as a cabinet maker through Rutgers...
and CFO Arthur Blank
Arthur Blank
Arthur M. Blank is an American businessman and a co-founder of The Home Depot. Today he is known for his philanthropy and his ownership of the Atlanta Falcons in the National Football League.-Early life:...
. Although a minority shareholder, Langone effectively protected Marcus from issues that arose between Marcus and Sanford Sigiloff, the CEO of The Daylin Corporation, Handy Dan's parent company. Marcus, however, felt that if Langone sold his interest in Handy Dan, it may actually improve his relationship with Sigiloff. Shortly after Langone sold his Handy Dan stock both Marcus and Blank were fired. Langone organized financing for Marcus and Blank to found Home Depot. Now a national chain with over 300,000 employees, it is Langone's most notable business venture.
Philanthropy
Kenneth Langone has used his success from co-founding Home Depot to contribute almost $150 million to various charities. His philanthropic focus has been Universities, medical research and training, education, and helping children.Universities Langone has contributed towards include Bucknell University
Bucknell University
Bucknell University is a private liberal arts university located alongside the West Branch Susquehanna River in the rolling countryside of Central Pennsylvania in the town of Lewisburg, 30 miles southeast of Williamsport and 60 miles north of Harrisburg. The university consists of the College of...
, and NYU. Bucknell University has benefited from his $11 million donation, which financed a new Athletics and Recreation Center. Additionally, he has donated $6.5 million to NYU's Stern School to endow the Kenneth G. Langone Part-time Evening MBA program. Langone serves as the Chair of the Board of Trustees of the NYU Langone Medical Center
NYU Langone Medical Center
NYU Langone Medical Center is an academic medical center in New York City affiliated with New York University. It was named to the Honor Roll of U.S. News "Best Hospitals" in the nation for 2009-2010. The Medical Center comprises NYU School of Medicine and three hospitals: Tisch Hospital, the Rusk...
.
Langone has contributed towards charities which fund medical research and treatment and provide education and services to the disadvantaged. These charities have included the Damon Runyon Cancer Research Foundation
Damon Runyon Cancer Research Foundation
The Damon Runyon Cancer Research Foundation is a not-for-profit cancer research organization focused "discovering the talent to discover the cure." The Foundation states that its goals are to: "identify the best and brightest early career scientists in cancer research, accelerate the translation...
, The Children's Oncology Society
Ronald McDonald House Charities
Ronald McDonald House Charities is an independent 501c3 organization whose mission is to create, find and support programs that directly improve the health and well being of children across the world...
(Ronald McDonald House), Tomorrow's Hope Foundation, Harlem Children's Zone
Harlem Children's Zone
The Harlem Children's Zone is a non-profit organization for poverty-stricken children and families living in Harlem, providing free support for the children and families in the form of parenting workshops, a pre-school program, three public charter schools, and child-oriented health programs for...
, and the Robin Hood Foundation
Robin Hood Foundation
The Robin Hood Foundation is a charitable organization, which attempts to alleviate problems caused by poverty in New York, United States.-History:Founded in 1988, Robin Hood was the brainchild of hedge fund manager Paul Tudor Jones...
, where he serves as Director. Langone is also the Chairman of the Promise Academy
Education in Harlem
Education in Harlem, a community in New York City, is provided in schools and institutions of higher education, both public and private.For many decades, Harlem has been a center of controversy over the lower quality of public education in African American and lower-income communities in the United...
, a charter school in New York City.
He serves on the boards of The Ronald McDonald House of NY CSIS, The Medal of Honor Foundation and the Harlem Children's Zone.
Through Home Depot, Kenneth Langone started the charitable organization Ken's Kids, which provides job training and employment to youths aged 18–21 with disabilities in Philadelphia. Langone himself financially contributes to the charity.
Langone donated millions of dollars to a wide variety of charities, most recently $200 million to what is now known as the New York University Elaine A. and Kenneth G. Langone Medical Center.
Other endeavors
Langone has attracted publicity with his attempted purchase of the New York Stock ExchangeNew York Stock Exchange
The New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...
. Although the deal fell through, it raised Langone's stature on Wall Street
Wall Street
Wall Street refers to the financial district of New York City, named after and centered on the eight-block-long street running from Broadway to South Street on the East River in Lower Manhattan. Over time, the term has become a metonym for the financial markets of the United States as a whole, or...
and in the business community in general. He was a co-defendant with Richard Grasso
Richard Grasso
Richard A. "Dick" Grasso was chairman and chief executive of the New York Stock Exchange from 1995 to 2003, the culmination of a career that began in 1968 when Grasso was hired by the Exchange as a floor clerk...
in the 2004 prosecution by Eliot Spitzer
Eliot Spitzer
Eliot Laurence Spitzer is an American lawyer, former Democratic Party politician, and political commentator. He was the co-host of In the Arena, a talk-show and punditry forum broadcast on CNN until CNN cancelled his show in July of 2011...
over a controversial package of $139.5m of benefits received by Grasso on leaving his post as chairman and chief executive of the New York Stock Exchange, in addition to an estimated $10m annual pay. The Exchange was operated as a non-profit enterprise, and so was subject to New York state laws governing remuneration within non-profit enterprises. Langone was, as a director of the Exchange and senior member of the remuneration committee, heavily involved in development of the pay package. On July 1, 2008 the New York State Court of Appeals dismissed the case. The majority opinion stated that since the beginning of the case the NYSE had become a subsidiary of a for-profit multinational corporation, and that pursuing the company in the matter was therefore "not in the public interest."
Langone served on the board of General Electric
General Electric
General Electric Company , or GE, is an American multinational conglomerate corporation incorporated in Schenectady, New York and headquartered in Fairfield, Connecticut, United States...
in 2001, Langone tapped Robert Nardelli
Robert Nardelli
Robert Louis "Bob" Nardelli was the chairman and chief executive officer of Chrysler. He had earlier served in a similar capacity at The Home Depot from December 2000 to January 2007. Prior to that, Nardelli had risen to become one of the top four executives at General Electric...
to become CEO of Home Depot after Jeffrey R. Immelt
Jeffrey R. Immelt
Jeffrey Robert "Jeff" Immelt is an American business executive. He is currently the chairman of the board and chief executive officer of the U.S.-based conglomerate General Electric. He was selected by GE's Board of Directors in 2000 to replace Jack Welch following his retirement...
was chosen over both Nardelli and James McNerney
James McNerney
W. James McNerney, Jr, is an American business executive. He is the current CEO of Boeing Company.- Education :...
to succeed Jack Welch
Jack Welch
John Francis "Jack" Welch, Jr. is an American chemical engineer, business executive, and author. He was Chairman and CEO of General Electric between 1981 and 2001...
as CEO of GE.
Langone also served on the board of Database Technologies, a position he filled at invitation of the company's founder Hank Asher
Hank Asher
Hank Asher is a businessman best known as the Father of data fusion. With a reported fortune of around US$500 million earned as the founder of several data fusion / data mining companies that compile information about companies, individuals and their interrelationships from thousands of different...
. Asher claims Langone was responsible for his ouster.
Langone was a co-founder and board member of ChoicePoint
ChoicePoint
ChoicePoint was a data aggregation company based in Alpharetta, near Atlanta, Georgia, United States, that acted as a private intelligence service to government and industry...
Inc.
The Wall Street Journal
The Wall Street Journal
The Wall Street Journal is an American English-language international daily newspaper. It is published in New York City by Dow Jones & Company, a division of News Corporation, along with the Asian and European editions of the Journal....
discussed a pitch made by Bernard Madoff
Bernard Madoff
Bernard Lawrence "Bernie" Madoff is a former American businessman, stockbroker, investment advisor, and financier. He is the former non-executive chairman of the NASDAQ stock market, and the admitted operator of a Ponzi scheme that is considered to be the largest financial fraud in U.S...
to Langone just before Thanksgiving 2009. Langone told the newspaper that Madoff said he was raising $500 million to $1 billion for this new fund for exclusive clients.
Personal life
He and his wife Elaine have three children.He was made a Knight of St. Gregory
Order of St. Gregory the Great
The Pontifical Equestrian Order of St. Gregory the Great , was established on September 1, 1831, by Pope Gregory XVI, seven months after his election.It is one of the five orders of knighthood of the Holy See...
by Pope Benedict XVI
Pope Benedict XVI
Benedict XVI is the 265th and current Pope, by virtue of his office of Bishop of Rome, the Sovereign of the Vatican City State and the leader of the Catholic Church as well as the other 22 sui iuris Eastern Catholic Churches in full communion with the Holy See...
.
He currently resides in Sands Point, New York
Sands Point, New York
Sands Point is a village located at the northernmost tip of the Cow Neck Peninsula on the North Shore of Long Island in Nassau County, New York. As of the United States 2010 Census, the village population was 2,675. The Incorporated Village of Sands Point is in the Town of North...
.
External links
- Firm Mines Wealth Of Personal Data, Washington Post, loaded March 14, 2006
- ChoicePoint-FBI Deal Raises New Privacy Questions, consumeraffairs.com, May 16, 2006, loaded April 2, 2007
- N.Y.U. Medical Center gets Another $100 Million Gift New York Times, April 16, 2008