David M. Cote
David M. Cote | |
|---|---|
| Born | July 19, 1952 Manchester, New Hampshire, U.S. |
| Occupation | Business executive |
| Years active | 1976–present |
| Known for | Chairman and CEO of Honeywell (2002–2017), Executive chairman of Vertiv |
David M. Cote (born July 19, 1952) is a prominent American executive. Before his tenure as chairman and chief executive officer (CEO) of Honeywell beginning in 2002 following its acquisition by AlliedSignal, he held positions at General Electric and TRW Inc.. Cote was also a member of the risk committee at JP Morgan Chase during the period when the bank suffered a $6 billion loss from credit derivatives trading. He relinquished his role as Honeywell CEO in March 2017, with Darius Adamczyk succeeding him, and currently holds the position of executive chairman at Vertiv.
Early life
Born in Manchester, New Hampshire, Cote completed his secondary education at Pembroke Academy in 1970. He commenced studies at the University of New Hampshire in 1971 while simultaneously working night shifts at a GE jet engine facility. In 1976, he graduated with a bachelor's degree in business administration.
General Electric
Cote began his full-time career at General Electric in November 1976, dedicating over two decades to the company. Starting as an hourly worker in GE’s aircraft engine plant located in New Hampshire, he transitioned into a full-time auditor role at a Massachusetts-based facility. A pivotal encounter with CEO Jack Welch in 1985 propelled his advancement by three management levels. Throughout his tenure, he held diverse responsibilities including manufacturing, finance, marketing, strategic planning, and general management before ascending to CEO of GE Appliances in 1996.
TRW
In November 1999, Cote assumed the roles of president and COO at TRW, where he implemented the Six Sigma management system to enhance manufacturing quality by minimizing defects. He was promoted to CEO in February 2001 and subsequently became chairman. During his leadership, Cote oversaw the establishment of Velocium, a TRW subsidiary focused on ultra-high-speed semiconductors. Unexpectedly, he announced his departure from TRW in February 2002.
Honeywell
After the acquisition of Honeywell by AlliedSignal and the EU's rejection of Honeywell’s planned merger with General Electric, Cote was appointed CEO, president, and board member on February 19, 2002, succeeding Lawrence Bossidy. He took on the chairman role on July 1, 2002. At that time, Honeywell was facing a $220 million loss. Cote introduced conservative accounting practices and created trusts to handle asbestos and environmental liabilities, successfully stabilizing these costs to approximately $150 million annually after taxes. Additionally, he launched productivity management initiatives that enhanced product design quality, increased manufacturing output, and reduced expenses.
During the economic downturn of 2008-2009, Honeywell opted for furloughs instead of layoffs to manage operational expenses. In 2015, under Cote’s leadership, his total remuneration amounted to $25 million, encompassing salary, bonuses, and stock options. Furthermore, Honeywell’s political action committee contributions increased significantly from $200,000 in 2002 to $8 million by 2014.
Cote stepped down as Honeywell CEO in March 2017 and was succeeded by Darius Adamczyk, while remaining executive chairman until April 2018.
Vertiv
Since February 7, 2020, Cote has been serving as executive chairman at Vertiv.
Banking
Cote has served on the board of directors for JPMorgan Chase and acted as an advisor for Kohlberg Kravis Roberts (KKR). In 2012, he faced scrutiny due to his role on JPMorgan Chase's risk committee during a $2 billion trading loss incurred by the firm’s chief investment office. Critics pointed out that several committee members, including Cote, lacked sufficient banking expertise.
In February 2014, Cote joined the board of the New York Federal Reserve. Economist Simon Johnson expressed concerns about this appointment given compliance and risk management challenges linked to Cote’s time on JPMorgan Chase’s risk committee. Notably, Cote did not disclose his JPMorgan affiliation on his election documentation. He resigned from the New York Fed board in March 2018.
Government
In 2010, President Obama recognized Cote as one of the leading CEOs he respected most. The previous year, in 2009, Cote received an invitation to the White House to participate in a briefing focused on the U.S. economic recovery strategy. Later that same year, he co-led the US-India CEO Forum alongside Ratan Tata. Then, in February 2010, President Obama appointed him to serve on the National Commission on Fiscal Responsibility and Reform (commonly known as the Simpson Bowles Commission).
Other
Cote was a member of the executive committee for The Business Council during the years 2011 and 2012.
Attitude to deficit reduction
As a co-founder of Fix the Debt, Cote has been actively involved in a coalition comprising business leaders and former lawmakers who promote deficit reduction and tax reform. In a 2013 discussion with the New Hampshire Union Leader, he emphasized that political apprehension is at the core of challenges surrounding U.S. debt reduction, remarking that "Washington is ruled by fear of voters ... and the three 'h's' prevail—hysteria, histrionics and hyperbole." He characterized the options for reducing the deficit as either raising taxes or cutting social security benefits, pointing out the difficulty given public resistance to both.
During federal deficit talks in 2013, amid Republican threats to default, Cote pinpointed an ideological segment within the party that opposed business interests. He stated, "It's clearly this faction within the Republican Party that's causing the issue right now," which OpenSecrets.org interpreted as a caution that Honeywell’s Political Action Committee (PAC) might scale back contributions if collaboration did not improve. In 2012, Honeywell’s PAC and employees contributed approximately $5.3 million to various political candidates and committees.
In March 2014, Cote provided testimony before the House Committee on Financial Services, sharing his perspectives on deficit reduction and enhancing American competitiveness.
Books
- Winning Now, Winning Later (HarperCollins Leadership, July 31, 2020)
- How to Be a Leader: 15 Minutes a Day to Establish Communication, Resiliency, Creativity, and Humility (HarperCollins Leadership, June 4, 2024)
Awards
- Barron's World's Best CEOs (2013–2016)
- Chief Executive Magazine's Chief Executive of the Year (2013)
- Horatio Alger Award (2014)
External links
- CNBC Appearances
- Profile at honeywell.com