Mayo A. Shattuck III
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Mayo A. Shattuck III (born 1954 in
Boston Boston is the capital and most populous city in the Commonwealth (U.S. state), Commonwealth of Massachusetts in the United States. The city serves as the cultural and Financial centre, financial center of New England, a region of the Northeas ...
,
Massachusetts Massachusetts ( ; ), officially the Commonwealth of Massachusetts, is a U.S. state, state in the New England region of the Northeastern United States. It borders the Atlantic Ocean and the Gulf of Maine to its east, Connecticut and Rhode ...
) is an American businessman and philanthropist. He served as non-executive chairman of
Chicago Chicago is the List of municipalities in Illinois, most populous city in the U.S. state of Illinois and in the Midwestern United States. With a population of 2,746,388, as of the 2020 United States census, 2020 census, it is the List of Unite ...
-based
Exelon Exelon Corporation is an American public utility headquartered in Chicago, and incorporated in Pennsylvania. Exelon is the largest electric parent company in the United States by revenue and is the largest regulated electric utility in the Uni ...
Corporation (2012-2022). He is currently Chairman of Gap INC., Board member of Capital One Financial and HUT8, and Chairman of the Board of Johns Hopkins Medical and Johns Hopkins Health System. Shattuck is involved in a number of philanthropic efforts, including those at the
Johns Hopkins University The Johns Hopkins University (often abbreviated as Johns Hopkins, Hopkins, or JHU) is a private university, private research university in Baltimore, Maryland, United States. Founded in 1876 based on the European research institution model, J ...
,
First Tee First Tee is a 501(c)(3) nonprofit organization with the stated goal of improving children's life skills through golf lessons. Based in Ponta Vedra Beach, Florida, the organization claims to teach more than 3.6 million youth annually through progra ...
, and the
University of Maryland Baltimore County The University of Maryland, Baltimore County (UMBC) is a public research university in Catonsville, Maryland named after Baltimore County. It had a fall 2022 enrollment of 13,991 students, 61 undergraduate majors, over 92 graduate programs ...
and is a notable advocate for
nuclear power Nuclear power is the use of nuclear reactions to produce electricity. Nuclear power can be obtained from nuclear fission, nuclear decay and nuclear fusion reactions. Presently, the vast majority of electricity from nuclear power is produced by ...
.


Early life and education

Shattuck was born in Boston, Massachusetts in 1954. He attended the
Noble and Greenough School The Noble and Greenough School, commonly known as Nobles, is a coeducational, nonsectarian day and five-day boarding school in Dedham, Massachusetts, a suburb of Boston. It educates 638 boys and girls in grades 7–12. The school's campus border ...
in
Dedham, Massachusetts Dedham ( ) is a New England town, town in, and the county seat of, Norfolk County, Massachusetts, United States. Located on Boston's southwestern border, the population was 25,364 at the 2020 United States census, 2020 census. First settled by E ...
. Shattuck received a
Bachelor of Arts A Bachelor of Arts (abbreviated B.A., BA, A.B. or AB; from the Latin ', ', or ') is the holder of a bachelor's degree awarded for an undergraduate program in the liberal arts, or, in some cases, other disciplines. A Bachelor of Arts deg ...
from
Williams College Williams College is a Private college, private liberal arts colleges in the United States, liberal arts college in Williamstown, Massachusetts, United States. It was established as a men's college in 1793 with funds from the estate of Ephraim ...
in 1976 and an
MBA A Master of Business Administration (MBA) is a professional degree focused on business administration. The core courses in an MBA program cover various areas of business administration; elective courses may allow further study in a particular a ...
from
Stanford University Leland Stanford Junior University, commonly referred to as Stanford University, is a Private university, private research university in Stanford, California, United States. It was founded in 1885 by railroad magnate Leland Stanford (the eighth ...
in 1980. Shattuck graduated as an Arjay Miller Scholar from Stanford Graduate School of Business. Shattuck's father was "heavily involved in the Boston investment community," and he managed
Harvard Harvard University is a private Ivy League research university in Cambridge, Massachusetts, United States. Founded in 1636 and named for its first benefactor, the Puritan clergyman John Harvard, it is the oldest institution of higher lear ...
's endowment and also served as a managing director at one of Boston's most respected institutional money managers. Shattuck's father passed away in 1974.


Career

After completing his MBA at Stanford in 1980, Shattuck joined Bain and Co. in San Francisco where he worked with former Massachusetts governor and presidential candidate
Mitt Romney Willard Mitt Romney (born March 12, 1947) is an American businessman and retired politician. He served as a United States Senate, United States senator from Utah from 2019 to 2025 and as the 70th governor of Massachusetts from 2003 to 2007 ...
. He also held a position at Morgan Guaranty Trust Co.


Alex. Brown & Sons

In 1985, Shattuck joined the investment firm Alex. Brown & Sons and was soon after promoted to president and chief operating officer in 1991.Atkinson, B. (1998, Nov 28). "Holding it together; executive: Mayo A. Shattuck III spends much of his time these days trying to meld the cultures of Alex. Brown and Bankers Trust." ''The Sun'' There he helped the company move through several challenging mergers and the eventual acquisition of the company by
Deutsche Bank Deutsche Bank AG (, ) is a Germany, German multinational Investment banking, investment bank and financial services company headquartered in Frankfurt, Germany, and dual-listed on the Frankfurt Stock Exchange and the New York Stock Exchange. ...
.
Howard Schultz Howard D. Schultz (born July 19, 1953) is an American businessman and author who was the chairman and chief executive officer of Starbucks from 1986 to 2000, from 2008 to 2017, and interim CEO from 2022 to 2023. Schultz owned the Seattle SuperS ...
, chairman and chief executive of
Starbucks Coffee Starbucks Corporation is an American multinational chain of coffeehouses and roastery reserves headquartered in Seattle, Washington. It was founded in 1971 by Jerry Baldwin, Zev Siegl, and Gordon Bowker at Seattle's Pike Place Market i ...
, called Shattuck a "brilliant strategist", referring to his time at Alex. Brown. In 1997, Shattuck helped engineer the $1.7 billion merger of Alex. Brown and Sons and
Bankers Trust Bankers Trust was a historic American banking organization. The bank merged with Alex. Brown & Sons in 1997 before being acquired by Deutsche Bank in 1999. Deutsche Bank sold the Trust and Custody division of Bankers Trust to State Street Corp ...
resulting in him becoming a vice chairman of Bankers Trust Corp. and the co-chief executive officer of BT Alex. Brown. During this process, Shattuck was known for advocating on behalf of workers at Alex. Brown and serving as mediator between the executives of the two companies. The new company was acquired by
Deutsche Bank Deutsche Bank AG (, ) is a Germany, German multinational Investment banking, investment bank and financial services company headquartered in Frankfurt, Germany, and dual-listed on the Frankfurt Stock Exchange and the New York Stock Exchange. ...
two years later, and Shattuck served as chairman of the board of Deutsche Bank Alex. Brown. Shattuck also served as the head of Investment Banking and Private Banking. Shattuck resigned on September 12, 2001 as head of Deutsche Bank Alex. Brown.


Constellation Energy Group

On October 26, 2001, Shattuck was appointed president and CEO of Constellation Energy Group, and he was elected chairman of the board in July 2002. Shattuck's early tenure at Constellation was characterized by the objective of refocusing the company on the energy sector by taking actions such as laying off 10% of the company's workers and selling off the company's Boeing 747, transport tanker, real estate assets, and nursing home business. Over the same period, he reversed an existing plan to divide the company with the assistance of
Goldman Sachs The Goldman Sachs Group, Inc. ( ) is an American multinational investment bank and financial services company. Founded in 1869, Goldman Sachs is headquartered in Lower Manhattan in New York City, with regional headquarters in many internationa ...
and restructured the company to force more accountability to management. In response to worsening conditions for American energy companies, Shattuck aimed to refinance Constellation's $5 billion debt load and secure more credit from banks allowing the acquisition of various weaker energy companies going into bankruptcy. Shattuck's decisions were widely considered to be painful at first, but ultimately necessary to turn around and grow Constellation. In the next few years, Shattuck expanded Constellation's operations in the financial sector, staking out large positions in energy commodity markets and complex derivative products financed by large, short-term loans. For instance, Shattuck led Constellation's activities in buying power from
utility companies A public utility company (usually just utility) is an organization that maintains the infrastructure for a public service (often also providing a service using that infrastructure). Public utilities are subject to forms of public control and r ...
and reselling power to customers around the country in deregulated markets resulting in significant growth. In expanding Constellation's energy trading activities, Shattuck predicted that only energy companies, and not financial firms, could create a market for
energy derivative An energy derivative is a derivative contract based on (derived from) an underlying energy asset, such as natural gas, crude oil, or electricity. Energy derivatives are exotic derivatives and include exchange-traded contracts such as futures ...
s and risk management in the energy industry. While these operations contributed greatly to Constellation's profits over the period, they also increased the company's exposure to financial market developments. When credit ultimately dried up during the
2008 financial crisis The 2008 financial crisis, also known as the global financial crisis (GFC), was a major worldwide financial crisis centered in the United States. The causes of the 2008 crisis included excessive speculation on housing values by both homeowners ...
, ratings agencies downgraded Constellation's debt and Constellation stock fell by 76% leading some to question whether Shattuck should continue to lead the company. Nonetheless, general sentiment on Constellation's board was "overwhelmingly" to keep him citing his "imperturbability" amid chaos. Over the following few years, Shattuck steered the company through the global financial downturn, securing funding from Berkshire Hathaway to keep the company afloat while avoiding a buyout from the same company, preserving the independence of Constellation. Finally in April 2011,
Exelon Exelon Corporation is an American public utility headquartered in Chicago, and incorporated in Pennsylvania. Exelon is the largest electric parent company in the United States by revenue and is the largest regulated electric utility in the Uni ...
corporation announced plans to acquire Constellation Energy. The planned merger drew negative reactions from some but was ultimately approved by regulators and completed in March 2012. After Exelon completed its acquisition of Constellation Energy, Shattuck assumed the new role of executive chairman. Shattuck retired from Exelon on February 28, 2013 but remained on the board as non-executive chairman. As a non-executive chairman less is required of Shattuck, allowing him to shift his focus from many of the daily tasks associated with leading the company. Shattuck helped engineer the successful spin off of Constellation Energy from its parent, Exelon, in 2022 before his retirement as chairman that year.


Advocacy

Spending much of his career in the energy industry after leaving Alex. Brown & Sons, much of Shattuck's advocacy centers around topics dealing with the future of electrical energy in the United States. One such major point of advocacy has been the deregulation of energy markets across the United States. While prior to the 1990s energy was largely distributed by government regulated monopolies, legislation in various states eventually led to competition between energy companies, thus forcing significant change in how energy companies distributed electricity. In 2010, Shattuck spoke before the
US Chamber of Commerce The United States Chamber of Commerce (USCC) is a business association advocacy group and is the largest lobbying group in the United States. The group was founded in April 1912 out of local chambers of commerce at the urging of President Willi ...
:
"We have markets now where the important thing is that people have choice...Twenty-two states have broken up their regulated utilities to permit competition, he said, and costs have come down. "Deregulated markets do what they are supposed to do...Monopolies are not going to be the answer in terms of driving efficiencies, driving costs down and driving innovation"
Additionally, in contrast to many of his peers in the energy industry, Shattuck has been vocal in his support for a
carbon tax A carbon tax is a tax levied on the carbon emissions from producing goods and services. Carbon taxes are intended to make visible the hidden Social cost of carbon, social costs of carbon emissions. They are designed to reduce greenhouse gas emis ...
stating,
"We ought to address climate change, and address it through a price on carbon"
In 2009, Shattuck released a statement on behalf of Constellation Energy backing a bill named the American Clean energy Security Act of 2009 which limited carbon emissions and promoted green energy generation. Lastly and most notably, Shattuck is an outspoken advocate for American nuclear energy. In particular, Shattuck argues for additional sovereign support in the form of extension of government
loan guarantee A loan guarantee, in finance, is a promise by one party (the guarantor) to assume the debt obligation of a borrower if that borrower defaults. A guarantee can be limited or unlimited, making the guarantor liable for only a portion or all of the ...
s in the construction of nuclear reactors. Speaking to a Johns Hopkins audience, he stated that
"if that upfront fee is really big, it's going to discourage people from wanting to take the loan, because there's so much money going out for a plant of that size. It is a process that we're in to get all parties to get their arms around the gap analysis"
During his time at Constellation Energy and Exelon, Shattuck served as chairman of the Institute of Nuclear Power Operations and a member of the Executive Committee of the Nuclear Energy Institute and Co-Chairman of the Commission on Nuclear Policy in the United States. After withdrawing from a joint project with
EDF EDF may refer to: Organisations * Eclaireurs de France, a French Scouting association * Électricité de France, a French energy company ** EDF Energy, their British subsidiary ** EDF Luminus, their Belgian subsidiary * Environmental Defense Fund, ...
to operate nuclear plants in the United States, Shattuck continues to advocate for nuclear energy.


Controversy

Maryland began to
deregulate Deregulation is the process of removing or reducing state regulations, typically in the economic sphere. It is the repeal of governmental regulation of the economy. It became common in advanced industrial economies in the 1970s and 1980s, as a ...
electricity in the early 2000s (prior to Shattuck's tenure at Constellation) which would ultimately lift the state's electricity rate price caps. This development coincided with large
hurricanes A tropical cyclone is a rapidly rotating storm system with a low-pressure area, a closed low-level atmospheric circulation, strong winds, and a spiral arrangement of thunderstorms that produce heavy rain and squalls. Depending on its locat ...
in the southeastern United States reducing natural gas production in 2007. All of this resulted in Baltimore Gas and Electric Company, a regulated utility company subsidiary of Constellation Energy Group, having to raise electricity rates by 72%. Opponents argued that increased revenues from Constellation profits should be used to subsidize utility prices and keep them low. Shattuck himself was scrutinized for contributing $8,000 in the Maryland gubernatorial election. On the other hand, defenders point out that BG&E is legally separated from Constellation and is heavily regulated by the state's Public Service Commission to keep levels of profitability in check. The Maryland General Assembly ultimately put up a temporary measure to limit price increases to 15%.


Other affiliations

Shattuck also serves as an independent director at several corporations including: *
Capital One Capital One Financial Corporation is an American bank holding company founded on July 21, 1994, and specializing in credit cards, auto loans, banking, and savings accounts, headquartered in Tysons, Virginia, with operations primarily in the ...
* Gap Previously, he served as independent director of Alarm.com and as co-chairman of the
Center for Strategic and International Studies The Center for Strategic and International Studies (CSIS) is an American think tank based in Washington, D.C. From its founding in 1962 until 1987, it was an affiliate of Georgetown University, initially named the Center for Strategic and Inte ...
Commission on Nuclear Policy in the United States.


Philanthropy

During and after his tenure as the head of Alex. Brown & Sons, Shattuck served as the president of the Alex. Brown & Sons Charitable Foundation. Alongside seven other trustees, Shattuck managed the endowment and gave donations to institutions in the Baltimore area. Notable among these activities were million dollar grants given to the Baltimore Museum of Art, the Baltimore Zoo, and Johns Hopkins Hospital (alongside other similar Baltimore institutions). Since joining Constellation Energy in 2001, Shattuck focused much of his philanthropy on Johns Hopkins University (JHU). In 2004, he was elected to the board of trustees of Johns Hopkins Medicine. In 2007, he donated $1 million to a new burn unit in the Children's Center at the Johns Hopkins University Hospital. Resulting from this donation, the hospital constructed The Shattuck Family Pediatric Burn Unit, which consists of 205 private treatment rooms. In addition to the rooms for patient care, the burn unit will include facilities used for education of students, fellows, and residents at The Johns Hopkins Hospital. Previously, he served as co-chair of the $6 Billion dollar JHU Capital Campaign. Shattuck has played a large part in leading this effort to raise funds from donors to support the academic mission of the Johns Hopkins University, especially through the "Rising to the Challenge" campaign. Outside of Johns Hopkins, Shattuck is also a trustee of First Tee, an organization focused on bringing "affordable junior golf programs to communities that do not have them, especially in economically disadvantaged areas." He also established the Shattuck family internship at University of Maryland Baltimore County. This internship provides support and education to students interested in entrepreneurship and business leadership.


Personal life

Mayo Shattuck has 5 children. He was formerly married to Molly Shattuck.


References


External links


Exelon Corp bio
* Rosenwald, Michael S

''Washington Post'', 9 January 2006. * http://www.topix.net/com/ceg * http://www.marketwatch.com/quotes/ceg {{DEFAULTSORT:Shattuck, Mayo 1954 births Living people People from Norfolk County, Massachusetts European-American culture in Baltimore Businesspeople from Massachusetts Businesspeople from Baltimore American chief executives of energy companies Williams College alumni Stanford University alumni Exelon people Noble and Greenough School alumni Gap Inc. people