Eli Broad

Eli Broad
Eli Broad
Born	Template:Birth date; The Bronx, New York City, U.S.
Died	April 30, 2021 (aged 87)
Occupation(s)	Entrepreneur, philanthropist
Known for	Founder of Kaufman & Broad (KB Home), SunAmerica; philanthropist in education, arts, and science

Eli Broad (June 6, 1933 – April 30, 2021) was a prominent American entrepreneur and philanthropist. As of June 2019, Forbes placed him as the 233rd richest individual worldwide and 78th in the United States, estimating his net worth at $6.7 billion. He was widely recognized for his philanthropic efforts aimed at revolutionizing public K–12 education through the charter school system, along with his substantial support for scientific innovation and the arts.

Early life

Born in the Bronx, New York City, Broad was the child of Lithuanian Jewish immigrants Rebecca (Jacobson) and Leo Broad. His father initially worked as a house painter and union organizer before becoming a proprietor of five-and-dime stores after the family relocated to Detroit, Michigan when Eli was six years old. Broad completed his studies at Detroit Central High School in 1951.

He graduated cum laude from Michigan State University in 1954 with a degree in accounting and a minor in economics. During his college years, he held several jobs including selling women's footwear, canvassing door-to-door for garbage disposals, and working as a drill press operator at Packard Motor while affiliated with the United Auto Workers union. That same year, he married Edythe "Edye" Lawson.

At age 21, Broad became Michigan’s youngest Certified Public Accountant (CPA), a record that stood until 2010. Following two years practicing accounting and teaching evening courses at the Detroit Institute of Technology, he launched his own accounting practice. Early in his career, he managed financial records for Donald Bruce Kaufman’s homebuilding firm, which also provided him office space.

Kaufman & Broad

Broad’s involvement with Kaufman’s homebuilding company inspired him to venture into construction. In 1956, Broad joined forces with Kaufman to build houses, starting with a $12,500 loan from Broad’s in-laws. Their initial project consisted of two model homes situated in Detroit suburbs geared toward first-time homebuyers. By simplifying construction—such as omitting basements and introducing carports—they were able to price homes so that monthly mortgage payments were lower than renting an apartment. Their "Award Winner" model sold 17 units during its opening weekend and reached 600 homes sold within two years. In 1960, anticipating economic challenges in Detroit, they moved operations to Phoenix. Kaufman and Broad Home Corporation (now KB Home) went public on the American Stock Exchange in 1961. Broad relocated the company headquarters to Los Angeles in 1963; Kaufman retired shortly thereafter. By 1969, KB Home became the first homebuilder to be listed on the New York Stock Exchange. Broad resigned as CEO in 1974.

SunAmerica

In 1971, Broad purchased Sun Life Insurance Company of America for $52 million and successfully transformed it into SunAmerica, a leader in retirement savings products. The company went public in 1989 with Broad maintaining a 42% ownership stake. In 1998, after brief negotiations, he sold SunAmerica to American International Group (AIG) for $17.8 billion. Broad continued as CEO until 1999 before dedicating himself entirely to philanthropic activities.

Writing

Broad’s 2012 publication, The Art of Being Unreasonable: Lessons in Unconventional Thinking, released by Wiley and Sons, achieved bestseller status on The New York Times, Wall Street Journal, USA Today, and Washington Post lists. In June 2019, he penned an op-ed for the New York Times advocating for the implementation of a wealth tax.

Philanthropy and Civic Involvement

Eli and Edythe Broad founded the Broad Foundations, comprising both the Eli and Edythe Broad Foundation and the Broad Art Foundation, with total assets reaching $2.5 billion. In 2010, they became signatories of the Giving Pledge, committing to donate a minimum of half their fortune; their promise was to give 75%. By October 2017, their contributions exceeded $4 billion, supporting K-12 education, scientific and medical research, as well as contemporary art projects.

In 2017, Eli Broad stepped down from his active leadership role within the foundation, passing responsibilities to president Gerun Riley while continuing as a trustee and board member of the Broad Museum. He attributed this transition to good health and a wish to "step back" after six decades dedicated to business and philanthropy.

Education

The Broad Foundation’s educational mission centers on broadening opportunities for underserved students to achieve their fullest potential. Since its inception in 1999, it has granted $650 million in funding. In 2001, Eli Broad launched the Broad Center, a nonprofit aimed at cultivating leadership within school systems.

The Broad Prize

Between 2002 and 2014, the foundation annually presented the $1 million Broad Prize for Urban Education, honoring large urban school districts that demonstrated improvements in student achievement while reducing disparities among low-income students and students of color. In 2012, it introduced the Broad Prize for Public Charter Schools, awarding $250,000 to the leading charter management organization. Over a span of 17 years, nearly $18 million was allocated to support college scholarships and readiness initiatives. Both awards were discontinued in 2019.

The Broad Center

The Broad Center aims to develop leaders committed to transforming public education into a standard of excellence and equity. It offers two competitive professional programs: the Broad Academy, which supports current and aspiring superintendents from urban districts, charter networks, and state education agencies to improve organizational effectiveness; and the Broad Residency in Urban Education, a two-year program that places early- to mid-career professionals in leadership roles within urban public schools while they pursue a master’s degree.

Charter Schools

In 2015, the Broad Foundation collaborated with other charter proponents on a confidential 44-page proposal targeting the conversion of half of Los Angeles public schools into charter schools. This effort resulted in founding Great Public Schools Now, a nonprofit dedicated to expanding charter school networks throughout Los Angeles.

Arts

Broad served as founding chairman of the Museum of Contemporary Art, Los Angeles starting in 1979 until 1984. During his tenure, he recruited the museum’s founding director and facilitated acquisition of the Panza Collection.

In 2008, the Broad Foundation contributed $30 million to MOCA with conditions ensuring its independence from a proposed merger with Los Angeles County Museum of Art. Additionally, Broad was a life trustee at LACMA, where his foundation donated $60 million in 2003 for renovations including the establishment of the Broad Contemporary Art Museum and an art acquisition fund.

The Broads gifted $6 million to support the Los Angeles Opera’s presentation of Wagner's Der Ring des Nibelungen cycle during the 2009–10 season. In 2013, they provided $7 million to endow the Eli and Edythe Broad general director role at L.A. Opera, a position held by Plácido Domingo until 2019.

In 2008, they also donated $10 million to create an endowment supporting programming at the Eli and Edythe Broad Stage and its adjacent black box theater located at Santa Monica College.

Collectively, the Broads have committed approximately $1 billion toward Los Angeles cultural institutions, advancing Broad's vision of establishing Los Angeles as a "cultural capital of the world."

The Broad

In August 2010, Eli Broad revealed his intention to create a contemporary art museum in Los Angeles. The architectural firm Diller Scofidio + Renfro was chosen through a design competition to develop the roughly 120,000-square-foot building, which comprises gallery areas, administrative offices, and parking facilities.

By February 2015, while construction was ongoing, a public preview featuring a unique installation drew approximately 3,500 attendees. The Broad officially opened its doors on September 20, 2015, and has since attracted more than 2.5 million visitors.

Grand Avenue project

In 2000, Broad established the Grand Avenue Committee to oversee development efforts along Grand Avenue. He was instrumental in raising funds for the Walt Disney Concert Hall, which debuted in October 2003, and secured a $50 million commitment from Related Companies that facilitated the launch of Grand Park in the summer of 2012.

Higher education philanthropic work

Broad's first significant contribution to education was a $10 million donation to Pitzer College in 1970, where he later served as board chairman starting in 1973.

In 1991, he endowed the Eli Broad College of Business and its Graduate School of Management at Michigan State University with $20 million to support a full-time MBA program. The Broads also contributed $5 million to establish the Eli and Edythe L. Broad Dean of Business Chair.

In 2000, Broad gifted $23.2 million for the creation of the Broad Art Center at UCLA, designed by Richard Meier. Additionally, he and Edythe donated $28 million to Michigan State University for the Eli and Edythe Broad Art Museum, designed by Pritzker Prize-winning architect Zaha Hadid, which opened in 2012. In 2014, the Broad Foundation provided $5 million to support exhibitions at this museum and announced a further $25 million grant to expand the Eli Broad College of Business, bringing their total contributions to MSU close to $100 million.

Scientific and medical research

The Broad Foundation initially concentrated its major funding on inflammatory bowel disease (IBD). Over time, its focus broadened to include genomics and stem cell research.

In 2001, the Broads launched the Broad Medical Research Program aimed at pioneering IBD therapies; this initiative merged with the Crohn's and Colitis Foundation of America in 2013.

Eli and Edythe Broad made a founding donation of $100 million in 2003 to establish the Broad Institute of MIT and Harvard, dedicated to advancing human health through genomics. They continued their support with an additional $100 million in 2004, $400 million in 2009 to endow and grant independence to the institute, and another $100 million in 2013. Today, the Broad Institute supports over 4,000 researchers with an annual budget exceeding $400 million.

The Eli and Edythe Broad Center for Regenerative Medicine and Stem Cell Research at University of Southern California (USC) emerged from a public-private collaboration that included a $30 million contribution from the foundation in 2006. Subsequently, they donated $20 million in 2007 for the same center at University of California, Los Angeles (UCLA), followed by a significant gift in 2008 for the center’s headquarters at University of California, San Francisco, which opened in 2011.

Eli Broad held life membership on the Board of Trustees at the California Institute of Technology (Caltech) and funded the Broad Center for Biological Sciences. In 2009, the Broads contributed $5 million to found the Joint Center for Translational Medicine at Caltech and UCLA. They pledged an additional $5 million in 2018 to endow a professorial chair honoring Caltech President Emeritus David Baltimore.

Gun control

Starting in 2009, the Broad Foundation supported studies on firearm violence and identified deficiencies in gun safety legislation at the UC Davis School of Medicine. In 2013, the foundation contributed $250,000 to counteract recall efforts against Colorado legislators John Morse and Angela Giron, both proponents of gun control policies including restrictions on high-capacity magazines. Eli Broad participated on the advisory board for Everytown for Gun Safety during its inception in 2014 and committed $1 million to the organization in 2018.

Art collection

Eli Broad's passion for art was initially inspired by his wife, Edythe. Their first significant purchase was a Van Gogh drawing from 1888 titled Cabanes a Saintes-Maries, acquired in 1973. Guided by MCA executive Taft Schreiber, their early acquisitions featured pieces by Miró, Picasso, and Matisse, with a later emphasis on post–World War II artworks.

In 1984, they established the Broad Art Foundation to enhance public engagement with their contemporary art holdings. The Broads oversee two distinct collections: a private one comprising nearly 600 artworks and the Foundation's collection of approximately 1,500 pieces, with about 40% obtained through dealer Larry Gagosian.

Personal life

During the early 1990s, the Broads enlisted architect Frank O. Gehry to design their main residence located in Brentwood, which was constructed by Langdon Wilson following Gehry’s plans.

In the late 1990s, Broad acquired two adjacent Malibu properties for $5.65 million and commissioned Richard Meier to create a 5,400-square-foot waterfront residence completed in 2002. Shortly after Broad’s passing, this home sold for $51.65 million.

Eli Broad passed away on April 30, 2021, at Cedars-Sinai Medical Center in Los Angeles after an extended illness at the age of 87.

Honors and awards

Broad was inducted as a Fellow of the American Academy of Arts and Sciences and was honored as a Chevalier in France’s National Order of the Legion of Honor in 1994. He received the Golden Plate Award from the American Academy of Achievement in 1998 and served as a Smithsonian Institution regent between 2004 and 2009.

His philanthropic contributions were recognized with the Carnegie Medal of Philanthropy in 2007 and the David Rockefeller Award from the Museum of Modern Art in 2009. The Broads were recipients of the William E. Simon Prize for Philanthropic Leadership in 2013. Additionally, Broad held a board position with the Future Generation Art Prize.

In 2016, Time magazine included him among its 100 Most Influential People. He and his wife were acknowledged as Distinguished Philanthropists at the John F. Kennedy Center for the Performing Arts in 2018 and received that year’s Cultural Leadership award from the American Federation of the Arts. In 2019, both were granted honorary degrees by the University of Southern California.

Books

The Art of Being Unreasonable: Lessons in Unconventional Thinking ().

External links