When Global Business Travel Association members convene next
month in San Diego, they will have before them one of the more interesting
votes in memory. This isn't because of who is running for president or vice
president of the organization. New occupants for those spots already are
identified, with Dominion's Donna Kelliher and Johnson Downie director of
business services Christle Johnson running unopposed for those positions,
respectively.
What makes the ballot more interesting are the competing
visions outlined by rival bylaw proposals for future governance of the
organization.
It's possible neither of the proposals will garner
votes by more than the required two-thirds of a quorum of GBTA's direct
members. If that happens, the drivers for these proposals won't disappear.
Fatigue from a perceived lack of change among GBTA's top leadership will
remain. It still will be really hard to get people to commit their time to
serve in leadership roles. And the association's board, which supports shifting
power toward suppliers, may try to do so again.
A coalition led by NetApp senior travel manager for the
Americas Mark Ziegler, a former GBTA board member, in May revealed it had submitted a proposal to abolish GBTA's Allied Leadership Council and convert its two automatic
board positions into elected rather than appointed posts. In sharing
information about the proposal, Ziegler declined to speak about its obvious
target: Scott Solombrino. The Dav El Chauffeured Transportation Network
president and CEO is in his eleventh year on the GBTA board of directors and
tenth as ALC's president.
According to Solombrino, before Ziegler's
"contentious," "divisive" and "regressive"
proposal went public, GBTA's board already was working on potential governance
changes of its own. Now on the ballot, a board-approved proposal calls
for seven Allied (supplier) members, up from four, and seven Direct (buyer)
members, down from nine. These board members would include the association's
president, who would always be a buyer, and a vice president who would always
be a supplier. The board's proposal clearly shifts power to suppliers, though
its proponents argue that it's more of an equalizer and that the association
would remain "buyer-led" because its president would always be a
Direct member. The GBTA vice president, a supplier, would represent, lead and
appoint members to the ALC.
When casting their ballots, Direct members will
select the Ziegler proposal, the board proposal or a third option, "none
of the above."
"The future of GBTA depends on the members'
voice," according to former First Data buyer Pamela McTeer, who last month
dropped out of the running for GBTA president after accepting a new job at
Coca-Cola.
The perennially reappointed Solombrino is throwing his
support "100 percent" behind the GBTA proposal, but also is just fine
with the status quo. "I like 'none of the above,' as well," he said
during an interview last month at Business
Travel News' New York office.
A Political Animal
Solombrino's business career began when he was a teenager,
but actually followed his start in politics. The Revere (Mass.) High School
class president in his graduation speech called out corruption related to a new
high school building, prompting the school principal to withhold his diploma
for an extra day, according to Solombrino. His affinity for advocacy continued
into his career in the ground transportation industry when, in 1985, he
co-founded the National Limousine Association.
In 2007, GBTA members approved a bylaw amendment creating
two board seats for suppliers who would be elected by their peers. These new
seats joined the ALC president and vice president to comprise the current four
Allied board seats.
"I was the advocate who got the additional two board
seats done," Solombrino told BTN
editors last month. "I get no credit for it. It would never have passed
without my support. Suzanne [Fletcher] was the president. She agreed, but she
didn't have full support on it. I went out and campaigned for it in almost
every chapter in the country and said to the direct community 'You need to do
this for the Allieds.' And they did it. It passed with 86 percent of the
vote."
Solombrino said he also was "a driver" when NBTA
(GBTA's previous moniker) and the Association Of Corporate Travel Executives in
2009 flirted with a merger. He still supports the idea. It was after
GBTA seemed to establish a more competitive stance toward the other non-profit,
and amid the sometimes-nasty tones of discourse related to the two groups'
near-combination, that some longtime members began questioning what they
considered a lack of change at the top of GBTA.
"I have had the privilege of serving six separate
presidents, six separate boards of directors and three different executive
directors," Solombrino countered. "There has been some inference in
some things said that I have been here too long and somehow I have become part
of the fixtures. But I did not appoint myself. I was appointed. So either I am
the world's greatest magician and can keep making myself reappear, or based on
the metrics and the success and the growth, I have done something well."
Ziegler specifically pointed out that he's not taking issue
with GBTA's growth. That would be difficult to do. After association revenues
hit $14.4 million in 2011, the last year for which GBTA filed tax forms with
the Internal Revenue Service, they rose to $16 million last year (pending an
audit) and are projected to top $18 million this year. Annual association
revenues were around $12 million when Solombrino first joined the ALC.
So why does Solombrino have enemies?
"They'll find a cure for cancer," he said.
"They'll never find a cure for jealousy. When you are in any position for
a long period of time, there will always be a percentage of people that are
called unfavorables because they have a different agenda. I have never taken
advantage of my position. I have turned down opportunities with the media over
the years in this role, and it has absolutely cost my company high-profile
opportunities and it has probably cost my company money. I am here as a purist.
I do it because I believe it is the right thing to do for this industry. Over
time when you have enormous success, some of the people who ran the
organization prior to that success are going to be critical because they didn't
have the success. So when membership and revenue doubles over the past four
years, how do you think the presidents from 10 years ago feel? It didn't happen
when they were there. So people get upset and think people have been around for
too long."
The ALC
Eliminating the ALC is "one of the most ridiculous
proposals that I have ever seen in my years in GBTA," said Solombrino.
"Why does it exist? Simple, it was an economic decision. NBTA had to grow
financially, and the way to grow financially was not through the membership
dues that the Directs were paying. That raised enough money to pay the phone
bill and keep the lights on for half an hour. There was no money being raised
there. The one thing we knew early on is that the Direct corporations, because their
people want to be members of the organization, weren't subsidizing it. They
weren't writing huge checks. They had to convince Allieds that there was value.
If you are going to have a council of Allieds, what's the most important thing
you want those people to be able to do? To have budget control, to be able to
support the organization financially. It wasn't about democracy, it's about
economics."
GBTA formed the ALC to fairly represent each supplier
segment partly as a control for the popular vote. "A popular person could
be a junior hotel rep from an obscure hotel company that could never deliver
ROI back to the organization," Solombrino said. "If the hotel people
had an ounce of brains, every year they would run candidates that represent hotel
and you would have a board filled on the Allied side with hotel people. You
would never see an airline representative because airlines have the lowest
number of members. So the people [who Ziegler and supporters] think they are
going to help, they are not going to help."
He equated the ALC president and vice president positions to
that of the U.S. president's cabinet. If the goal is to represent the supplier
segments regardless of their population in the association, a better analogy
might be the Senate.
Solombrino made an extra effort to mention past ALC
volunteers who he said made an impact and sharply criticized Ziegler's
characterization of the ALC as "obsolete."
'Membership Equality'
We'll find out in August whether any of the three ballot
choices can muster votes from two-thirds of available Direct members, as per
the current bylaws. If the GBTA board proposal wins, it would take a page from
the playbook of 25-year-old ACTE, which formed in part because travel
management company officials felt that in NBTA they were not equally
represented.
Solombrino said the GBTA proposal is "about membership
equality. We are all trying to row in the same direction for the advancement of
the global travel community. What really brought this to a head is when we
truly started to globalize. Other parts of the world don't look at it this way.
'What's this Allied/Direct thing?' they ask. If you look at some of our
competitor associations, they've always had equality. Maybe they were
right."
Advocating more rights for suppliers "is not new for
Scott Solombrino," Solombrino reminded.
The Ziegler proposal would "take rights away from the
Allieds," Solombrino said. "The Allied community has produced $100
million-plus in revenue in 10 years, yet they want to tell them, 'We want to
give you less rights, not more.' And just because they think they are going to
get to elect people, they think that is productive for the organization. But
like I told you, look how that will work out when you look at the Allied roles.
It could go in all kinds of different directions—unintended consequences. So
the board's proposal is certainly better than what they proposed because it
brings back membership equality. We are all in the travel business together
and, yes, we recognize that our customers, the buyers, are the most important
people in the world and we want to support them morally, financially and any
way we can."
Additional elements of the board's proposal would make it
more difficult for members like Ziegler to introduce bylaw changes. While his
proposal next month will win if it gets two-thirds of a quorum of Direct
members, the board's proposal would require such changes to first pass among
three-quarters of board members before getting on the ballot, and then win
approval from at least two-thirds of both Direct and Allied voting members.
Asked about the possibility that, should the GBTA proposal
not pass, someone next year could make a proposal similar to Ziegler's,
Solombrino said, "And so could I. Trust me, we have all learned a few lessons
here."
Sidebar: Members Can Choose From Competing Proposals On GBTA Board Makeup
The Global Business Travel Association last month confirmed
that a proposal submitted by NetApp senior travel manager for the Americas Mark
Ziegler to abolish the Allied Leadership Council and replace its two appointed
board seats with seats elected by Allied members would appear on the ballot for
the association's August election. The catch is, a rival proposal from GBTA and
"none of the above" also will be options.
Although it will be on the ballot, the GBTA's board
"unanimously" rejected Ziegler's proposal, according to ALC president
Scott Solombrino, and put forth one of its own that calls for a completely new
board of directors configuration—seven buyers including the president, who
would be a buyer, and seven suppliers including the vice president, a supplier.
All seats would be elected, except for one buyer seat held by the Chapter
Presidents' Council president, who is elected by the chapter presidents. The
ALC would remain in place and future proposals for bylaw changes would require
the support of three-quarters of the board, plus two-thirds of Direct members
and two-thirds of Allied members.
Allieds also would be able to call a special meeting, the
immediate-past president would move to a non-voting role on the board and a
quorum would be redefined as both 10 percent of Direct members and 10 percent of
Allieds—instead of only the former.
With the organization's annual meeting nearing, GBTA last
month sent members absentee ballots and details of the bylaw proposals.
Ziegler said he would continue to campaign for his proposal.
"It is a grassroots effort to correct an
inequity," Ziegler said of his coalition of a few dozen buyers and
suppliers. Some of them congregate on a LinkedIn group specifically designed
for this effort. "Members will have to vote based on their desire to
remain a buyer-led organization or move to a buyer/supplier neutral
association. I never expected to seek fundamental changes to the organization
like the board has proposed. It will be up to the membership to decide."
According to a GBTA letter to members, the board's "new
equal representation proposal" will "continue GBTA's positive
momentum and position the organization for continued success moving forward.
The board will become more democratic through Direct election of all board
members. At the same time, the new structure will ensure that both Direct and
Allied voices throughout the organization continue to be solicited, heard and
respected."
GBTA claimed it has increased membership by 123 percent
since 2009.
— With reporting by
Holly Leber and David Jonas
This report
originally appeared in the July 8, 2013, edition of Business Travel News.