“New York is a global business hub that will benefit from the business tax reductions included in the bill passed today by the House of Representatives. But the bill will increase the burden on individual taxpayers in New York by as much as 40 percent as a result of the virtual elimination of the ability to deduct state and local taxes from our federal tax obligations. New York City taxpayers contribute $56.1 billion more to the federal government than the city receives back in federal funding. As this bill moves in the Senate and in conference, we trust there will be reconsideration of the provision that penalizes New Yorkers and residents of other high tax states,” said Kathryn S. Wylde, President & CEO of the Partnership for New York City.
NEW YORK, Nov. 13, 2017—Today, the Partnership for New York City released “Global Business, Local Benefit: Foreign Contributions to the New York Economy”, a report on the economic contributions of foreign international business operations to the city and state with recommendations for diversifying and expanding Foreign Direct Investment (FDI).
New York City is the nation’s most important destination for foreign companies, which are largely European-based and concentrated in the retail sector. The 5,000 foreign companies in the city account for $81 billion or 11 percent of the city’s economic output and 298,000 jobs. While this is far more than any other U.S. city, New York is underperforming in comparison to other global cities such as London and Singapore, where there are significant programs to identify and incentivize FDI. London for example, saw $65.6 billion in FDI over the past 10 years, compared to New York’s $30.6 billion.
The analysis found that global companies invest significantly in New York, citing the talent pool, proximity to customers and innovators and a predictable regulatory and political environment as key factors in the city’s value proposition. On the other hand, aging and inadequate infrastructure and lack of affordable, quality educational options are cited as negative factors by foreign companies considering further investment in the city. Federal reduction in corporate tax rates would encourage FDI, while further restrictions on trade and immigration policies will damage prospects for additional FDI activity.
Projections show that FDI in the city is expected to continue to grow at its historic rate of about 4 percent annually over the next five years, with the potential to create 211,000 jobs and $20 billion in economic activity. But there are opportunities to scale up this investment by diversifying the countries of origin to include emerging economies of Asia, Africa and South America, and by focusing on proactive recruitment of businesses in high growth sectors like technology and life sciences.
“New York has enjoyed steady but lackluster growth in foreign business activity over the past decade. It is clear we can do better,” said Kathryn S. Wylde, President and CEO of the Partnership for New York City.
“Understanding the impact of FDI on New York is a critical starting point for reinvigorating the city’s strategy. A.T. Kearney was delighted to be involved in this project, and we hope the data and recommendations are able to help New York better compete with other global cities,” said Jim Singer, Partner, A.T. Kearney.
“New York City beckons as a leading global center for finance, art, culture, media and innovation. But greater investment in our regional infrastructure and a rejuvenation of public education would go a long way to wooing multinationals that have not already made significant investments in the city,” said Jason Stevens, President and Chief Executive Officer of Mitsubishi International Corporation.
“The Partnership has released this important report at a critical moment in our economy’s future,” says Douglas L. Peterson, President and Chief Executive Officer of S&P Global. “Foreign direct investment has been a bedrock of U.S. economic growth for decades and New York has been one of its premiere destinations. However, we are now competing with the likes of Silicon Valley, Denver, Nashville and global cities for high paying jobs and talent. Global leaders have recognized the importance of attracting business to their cities and New York must continue to do the same. By proactively partnering with politicians and the private sector, New York City can send a strong message that it is open for business and welcomes quality, high growth job creators. This report showcases some important policy ideas to achieve this goal.”
“New York plays a preeminent role in attracting trade and capital from around the globe to the U.S.” said Patrick Burke, President and CEO of HSBC USA. “At HSBC, we’re seeing that this investment increasingly comes from higher growth economies in Asia. America continues to be the top destination for cross-border M&A activity from China and outbound direct investment. The composition of investments from China is in sectors like healthcare, infrastructure, and technology, in which the U.S. excels. Continued economic development efforts for catalyzing investment from emerging markets in key sectors can further propel FDI. The Partnership for New York City’s report is yet another demonstration of how FDI can ignite economic activity in our city, state and country.”
“New York will always be a place where foreign companies need to invest and have operations, but we could do so much more to promote the city, its talent and diversity to benefit our economy. Other places, like London, are promoting their city as a place to do business, which has markedly impacted FDI. New York City could be doing the same to attract business to our area,” said Philip Ryan, Chairman of Swiss Re Americas.
Global political and economic challenges prompted the Partnership to update its 2008 report on FDI. As well as conducting 45 interviews with global business leaders, it also commissioned an extensive quantitative analysis by A.T. Kearney to understand the impact of investment on the city and state. The report is available for download here.
New York is the premier headquarters city for global companies. It is where traditional and new economies are converging, most dramatically in the retail and advertising industries. It is the clear choice for Amazon’s second headquarters.
Amazon has already recognized the New York advantage with your decisions to locate several important business operations here. Establishing HQ2 in the city would complete Amazon’s transition from West Coast disruptor to mainstream leader in direct-to-consumer commerce.
New York Metro is the world’s largest and most diverse regional economy. It has the country’s biggest concentration of discerning and demanding customers and clients. It offers co-location with companies that are industry leaders in financial and professional services, media and entertainment, fashion and retail, health and life sciences, education, design and development. It features unparalleled diversity of industry talent and institutional resources, all of which would enhance Amazon’s prodigious strengths and generate new opportunities to learn, grow, and partner.
New York City and its surrounding communities represent a rapidly evolving ecosystem, with a broad spectrum of life style choices and prices, an excellent and affordable public transportation system, and an amazing array of cultural and recreational amenities.
New York will challenge your company and its people to be more productive, outward looking and forward thinking than ever.
A few facts about what makes New York best-suited for HQ2:
- 5.8 million residents with a bachelor’s degree or better in the metropolitan region —80% more than Los Angeles, 5 times more than Seattle, 7 times more than Denver and 3.5 times more than Boston
- 100 great universities that awarded 18,000+ post-secondary STEM degrees in 2016
- 2.3 million residents with graduate or professional degrees —more than the combined populations of Boston, Denver and Atlanta
- R&D spending by major academic institutions of $2.9 billion in 2016, complemented by over $1.6 billion in NIH grants
- 45% of New York’s workforce is foreign born, reflecting the city’s attraction to top global talent
- 47 Fortune 500 headquarters across multiple industries —more than any other city
- The largest and most comprehensive air transport system in the U.S., serving over 350,000 passengers a day
- 97% of the city’s population lives within a quarter mile of public transit and 82% live within a 10-minute walk from a park
In New York, you will find a community of super-achievers who hail from every country in the world. That is the reason we are here and it is what makes this the logical place for Amazon’s HQ2. We hope you agree.
Lee S. Ainslie, III, Managing Partner, Maverick Capital
Candace K. Beinecke, Senior Partner, Hughes Hubbard & Reed LLP
William H. Berkman, Managing Partner, Associated Partners, LP
Michael W. Blair, Presiding Partner, Debevoise & Plimpton LLP
Jeff T. Blau, Chief Executive Officer, The Related Companies, L.P.
Kathy Bloomgarden, Chief Executive Officer, Ruder Finn, Inc.
Martin S. Burger, Chief Executive Officer, Silverstein Properties, Inc.
Patrick J. Burke, President & CEO, HSBC Bank USA
Kenneth I. Chenault, Chairman & CEO, American Express Company
Rodgin Cohen, Senior Chairman, Sullivan & Cromwell LLP
Michael L. Corbat, Chief Executive Officer, Citigroup Inc.
Kenneth D. Daly, President, National Grid New York
Barry Diller, Chairman & Senior Executive, Expedia, Inc. and Chairman & Senior Executive, IAC
William R. Dougherty, Chairman, Executive Committee, Simpson Thacher & Bartlett LLP
Douglas Durst, Chairman, Durst Organization Inc.
Blair W. Effron, Co-Founder, Centerview Partners LLC
Joel S. Ehrenkranz, Partner and Co-Founder, Ehrenkranz Partners L.P.
Joseph R. Ficalora, President & CEO, New York Community Bancorp, Inc.
Winston C. Fisher, Partner, Fisher Brothers
Alan H. Fishman, Chairman, Ladder Capital Finance LLC
Blair Fleming, Managing Director & Head, U.S. Investment Banking, RBC Capital Markets, LLC
William E. Ford, Chief Executive Officer, General Atlantic LLC
Paul Fribourg, Chairman & CEO, Continental Grain Company
Eric J. Friedman, Executive Partner, Skadden, Arps, Slate, Meagher & Flom LLP
Mark T. Gallogly, Co-Founder and Managing Principal, Centerbridge Partners
MaryAnne Gilmartin, President & CEO, Forest City New York
James P. Gorman, Chairman & CEO, Morgan Stanley
Barry M. Gosin, Chief Executive Officer, Newmark Knight Frank
James H. Herbert, II, Chairman & CEO (Founding), First Republic Bank
Marc Holliday, President & CEO, SL Green Realty Corp.
Stephen R. Howe, U.S. Chairman & Americas Managing Partner, Ernst & Young LLP
Kenneth M. Jacobs, Chairman & CEO, Lazard Ltd
Harry Kargman, Founder & CEO, Kargo
Brad S. Karp, Chair, Paul, Weiss, Rifkind, Wharton & Garrison LLP
Jeremy M. Kroll, CEO & Co-Founder, K2 Intelligence
William P. Lauder, Executive Chairman, The Estée Lauder Companies, Inc.
Rochelle B. Lazarus, Chairman Emeritus, Ogilvy & Mather Worldwide
Martin Lipton, Senior Partner, Wachtell, Lipton, Rosen & Katz
Daniel Lubetzky, Founder & CEO, KIND Healthy Snacks
Anthony E. Mann, President & CEO, E-J Electric Installation Co.
Donald B. Marron, Chairman, Lightyear Capital
John McAvoy, Chairman, President & CEO, Con Edison, Inc.
Avner Mendelson, President & CEO, Bank Leumi USA
Ken Moelis, Chairman and CEO, Moelis & Company
Greg Mondre, Managing Partner & Managing Director, Silver Lake
Deanna M. Mulligan, President & CEO, The Guardian Life Insurance Company of America
JJ Ofer, Chief Executive Officer, Global Holdings Management Group (US) Inc.
Jon Oringer, Founder & CEO, Shutterstock, Inc.
John Paulson, President, Paulson & Co., Inc.
Michael A. Peterson, Chief Executive Officer, Peterson Management, LLC
Charles E. Phillips, Jr., Chief Executive Officer, Infor
Deirdre Quinn, Co-Founder & CEO, Lafayette 148 New York
Daniel L. Rashin, Co-President and CEO, Rockefeller Group International, Inc.
Scott H. Rechler, Chairman & CEO, RXR Realty LLC
James D. Robinson, III, Co-Founder & General Partner, RRE Ventures
John Romeo, Managing Partner, Americas, Oliver Wyman
Michael I. Roth, Chairman & CEO, Interpublic Group
Kevin P. Ryan, Chairman & Founder, MongoDB, Zola, Workframe, Nomad Health
Alexander Saint-Amand, Chief Executive Officer, GLG
Robert A. Sauerberg, Jr., President & CEO, Condé Nast
Alan D. Schnitzer, Chairman & CEO, The Travelers Companies, Inc.
Alan D. Schwartz, Executive Chairman, Guggenheim Partners, LLC
Stephen A. Schwarzman, Chairman, CEO & Co-Founder, Blackstone
Tarek Sherif, Chairman & CEO, Medidata Solutions, Inc.
Tad Smith, President & CEO, Sotheby’s
Jerry I. Speyer, Chairman, Tishman Speyer
Robert K. Steel, Chief Executive Officer, Perella Weinberg Partners LP
Michael Steib, President & CEO, XO Group Inc.
Arthur P. Steinmetz, Chairman & CEO, OppenheimerFunds, Inc.
Steven R. Swartz, President & CEO, Hearst
Paul Taubman, Chairman & CEO, PJT Partners, LP
Owen D. Thomas, Chief Executive Officer, Boston Properties
Mary Ann Tighe, Chief Executive Officer, NY Tri-State Region, CBRE, Inc.
Daniel R. Tishman, Vice Chairman, AECOM & Principal, Tishman Realty
George H. Walker, Chairman & CEO, Neuberger Berman Group LLC
Charles Weinstein, Chief Executive Officer, EisnerAmper LLP
Kathryn S. Wylde, President & CEO, Partnership for New York City
Brett Yormark, Chief Executive Officer, Barclays Center &, Brooklyn Nets
Strauss Zelnick, Partner, ZMC
TARA Biosystems, a biotech company developing “heart-on-a-chip” tissue models for drug discovery, toxicology and translational medicine applications announced today that it closed on a $9 million Series A financing. This financing will fuel the development of TARA’s growing portfolio of healthy cardiac tissues, cardiac disease models as well as a range of acute and chronic testing service products. The Series A round was co-led by Trancos Ventures and Morgan Noble.
Annual Program Prepares Senior Business Executives for Civic Leadership
NEW YORK, NY, September 20, 2017 – The Partnership for New York City, the city’s leading business organization, has announced the 2018 class of David Rockefeller Fellows. Thirty-five senior business executives will spend a year learning about the city and how to become more engaged as civic leaders.
The one-year program involves meetings and site visits that focus on enhancing business and civic leadership skills by engaging with top leaders in the private, public and nonprofit sectors. During the program, Fellows attend private meetings with leaders of government agencies and private organizations, such as the New York Police Department, the MTA, the Brooklyn Navy Yard and the Museum of Natural History. They benefit from candid discussions about the big challenges facing the city and how they are being managed.
The selected class is comprised of individuals who hold leadership positions at their companies and demonstrate a strong interest in learning more about political and civic issues. The 2018 class of fellows represents a diverse range of industries, including technology, law, financial services, real estate, media and health care.
Since the program was established in 1989, nearly 400 executives have participated as fellows. Upon completion, the new class will join an elite group of program alumni that includes John McAvoy, CEO and President of Con Edison; Jonathan Gray, Global Head of Real Estate at Blackstone; William Mulrow, Senior Managing Director at Blackstone and former Secretary to Governor Cuomo; and Alicia Glen, New York City Deputy Mayor for Housing and Economic Development.
“This is the first year that David Rockefeller is not with us, making it more important than ever to carry on his legacy of business leadership and civic engagement,” said Kathryn Wylde, President & CEO of the Partnership for New York City. “We trust that the Fellows will gain a new appreciation for the complex responsibilities involved in running both public agencies and private companies and that they will be better citizens, making bigger contributions to the city, because of this experience.”
The 2017-2018 class of David Rockefeller Fellows includes:
Emma Bailey, Managing Director- Legal, Barclays PLC
Khary Barnes, Vice President, Global Corporate Payments, American Express Company
Kate Bicknell, Senior Vice President, Commercial & Residential Development, Forest City New York
Jonathon Blackwell, Director, SL Green Realty Corp.
Jennifer Breithaupt, Global Consumer Chief Marketing Officer, Citi
Melissa Carmichael, Senior Managing Director, Aon
Sarah Chen, Assistant Vice President & Senior Counsel, The Guardian Life Insurance Company of America
Julia Czarniak, Partner, Skadden, Arps, Slate, Meagher & Flom LLP
Neil Dhar, Partner – Head of Financial Services, PricewaterhouseCoopers, LLP
Heather Dietrick, President & Publisher, The Daily Beast, IAC
Steven Glenn, Chief Financial Officer, Warburg Pincus LLC
Jared Hendricks, Senior Managing Director, Centerbridge Partners
Anna Klein, Vice President, Global Corporate Affairs, The Estée Lauder Companies, Inc.
Andrew Komaroff, Chief Operating Officer, Neuberger Berman Group LLC
Deepak Krishnamurthy, Executive Vice President and Chief Strategy Officer, SAP
Diane Kurtzman, Vice President, Human Resources – International & Corporate Groups, The Travelers Companies, Inc.
Laurie Ledford, Senior Vice President & Chief Human Resources Officer, Marsh & McLennan Companies, Inc.
Edward Lee, Partner, Wachtell, Lipton, Rosen & Katz
Paula Madoff, Advisory Director, Goldman Sachs & Co.
Jeffrey Mandel, Managing Director, Acquisitions, United States & New York, Tishman Speyer
Jillian McCarthy, Managing Director, Global Head of Financial Planning and Analysis, Perella Weinberg Partners
Kathleen McCarthy, Senior Managing Director, Blackstone
Jordan Murray, Partner, Debevoise & Plimpton LLP
Louise Pennington, Executive Vice President, Willis Towers Watson PLC
Gina Proia, Executive Vice President, Chief Marketing and Communications Officer, CIT Group Inc.
Keith Rooney, Director, Community & Customer Management Downstate New York, National Grid
Adam Rosman, Executive Vice President, General Counsel and Corporate Secretary, First Data Corporation
Sherif Sakr, Partner, Deloitte & Touche LLP
Robert Sanchez, Senior Vice President, Corporate Shared Services, Con Edison, Inc.
Pablo Sanchez, Head of Retail Banking and Wealth Management, USA and Canada, HSBC Bank USA
Raj Seshadri, President, U.S. Issuers, North America, Mastercard
Manan Shah, Partner, Milbank, Tweed, Hadley & McCloy LLP
Joan Steinberg, Managing Director, Global Head of Philanthropy, Morgan Stanley
Matthew Stopnik, Co-Head of U.S. Financial Sponsors, RBC Capital Markets, LLC
Andrew Topen, Vice President, Global Media Relations & Digital Communications, Pfizer Inc.
For more information about the program and the Fellows, visit www.pfnyc.org/david-rockefeller-fellows.
Petra Pharma, a drug development company focused on novel enzyme targets, and Schrödinger, Inc., a privately-held company dedicated to revolutionizing drug discovery through advanced computational methods, today announced a research collaboration to develop new therapeutic treatment options for patients who suffer from cancer and metabolic diseases.
TARA Biosystems, a life sciences company developing physiologically relevant “heart-on-a-chip” tissue models for both toxicology and drug discovery applications, announced today that it has appointed pharmaceutical industry leader, Michael P. Graziano, Ph.D., as its Chief Scientific Officer.
“For the last seven years, a New York business-backed program — the FinTech Innovation Lab — has been working to stem that West Coast tide by helping financial services start-ups sell their services in New York in an industry where the city clearly dominates: big banks and other finance companies.
“Mayor de Blasio, who has vowed that the city will not share in the cost of MTA repair and upgrading, is suddenly proposing an additional tax on those New Yorkers who already carry a huge tax burden and are widely considered flight risks. The Partnership is not against everyone paying their share: we supported the extension of the so-called Millionaire’s tax when the state was in fiscal trouble; we led business support for the MTA payroll tax, which was supposed to close the budget gap. But when the city has a budget surplus and is spending on arguably frivolous items such as subsidized ferry rides for tourists, there is no rationale for an MTA income tax. The Mayor has previously suggested that city residents are already paying more than their fair share and that there is need for greater transparency on the MTA budget. Now he is prepared to throw the city’s high earners under the bus. If the Mayor’s tax proposal were to be enacted, New York would be about even with California in imposing the highest income taxes in the country. This is simply not a sustainable situation if we expect the city to attract top talent and business investment, particularly with the pending threat of federal tax reform that may eliminate deductions for state and local taxes,” said Kathryn Wylde, President and CEO of the Partnership for New York City.
“As President of the MTA, Patrick Foye is a great addition to the strong team that Governor Cuomo has put in place to deal with the challenges of our aging and capacity-strained transit system. Foye brings deep knowledge of how to leverage the resources of the private sector to achieve a modern, high functioning system. The newly established Office of the Chairman with Managing Director Veronique Hakim and Chief Development Officer Janno Lieber demonstrates the MTA’s renewed commitment to improving service, ensuring a reliable modern subway system for riders, and transforming the culture of the MTA into a less bureaucratic and more entrepreneurial agency,” said Kathryn Wylde, President and CEO of the Partnership for New York City.