National business leaders comment on Obama win

A few big names in the world of business have posted interesting thoughts on the presidential election victory by U.S. Sen. Barack Obama.

ENERGY
Aubrey McClendon, CEO of Oklahoma City-based Chesapeake Energy, said an Obama presidency will help his business because the President-elect favors a windfall-profits tax on petroleum producers and resists allowing new drilling on federal lands.
Sounds odd until one considers that Obama favors wider use of compressed natural gas in autos.
“The Democrats have been very engaged about compressed natural gas in the last few months,’” McClendon said in an Oct. 28 interview with Bloomberg News. “A Democratic administration is more likely to pursue the use of CNG as a fuel.”

BUSINESS LESSONS
From Jack and Suzy Welch (Jack Welch is the former chairman and CEO of General Electric and a successful author of business books.):
“The election is over. And while we believe John McCain is a great American whose economic platform made better sense for business, especially in terms of free trade, tax policy, and job creation, we look forward with hope to the Presidency of Barack Obama.

“This column is about the lessons business leaders can take from McCain’s loss and Obama’s win. Because even with the differences between running a campaign and a company, three critical leadership principles overlap. And it was upon those principles that Obama’s decisive victory was built.

“Start with the granddad of leadership principles: a clear, consistent ­vision. If you want to galvanize followers, you simply cannot recast your message. Nor can you confuse or scare people.

“The next leadership principle should sound familiar: execution. … In nearly two years of steady blocking and tackling, Obama’s team made few mistakes.

“Finally, this election reinforces the value of friends in high places. From the start, Obama had support from the media, which chose to downplay controversies involving him. Meanwhile, after the primaries, McCain began to take a beating. In the end, no one could dispute that Obama’s relationship to the media made a difference.

“As a business leader, you can’t succeed without the endorsement of your board. Every time you try to usher in change, some people will resist. They may fight you openly in meetings, through the media, or with the subterfuge of palace intrigue. And you’ll need to make your case in all those venues.”

FINANCIAL CHANGES
Bob Doll, the vice chairman and global chief investment officer with New York City-based BlackRock Inc., said a troubled economy will complicate efforts by Obama and the new Congress to enact wholesale changes proposed by Obama’s during the campaign. (BlackRock is one of the world’s largest publicly traded investment management firms with more than $1.259 trillion under management.)
Other comments by Doll include:
“Dividend income and capital gains tax rates will likely increase for many, if not most, investors under an Obama Administration. We think higher tax rates for investors will be a headwind for equities, albeit not an insurmountable one, in the years ahead.”

“Mr. Obama’s potential trade policies may benefit traditional American manufacturing industries. His emphasis on infrastructure improvements could be a boon for construction-related companies. On the energy front, his administration will likely be more ‘green friendly’ than we have seen in the past, benefiting alternative energy companies.”

DEFENSE SPENDING
Marion Blakey, president of the Aerospace Industries Association, said recent increases in defense spending are expected to continue under an Obama administration.
“He does understand the criticality of an adequate defense budget and importance of strong defense,” Blakey said.

Lockheed Chief Executive Officer Robert Stevens said Obama’s national security challenges will be the same as those faced by President Bush, but will be complicated by financial pressures that may require closer scrutiny of Pentagon spending.