Jump to content

Fred Malek

From Alfawiki
Frederic Vincent Malek
Born (1936-12-22) 22 December 1936 (age 89)
Berwyn, Illinois, U.S.
Died24 March 2019(2019-03-24) (aged 82)
Occupation(s)Corporate leader, political strategist, philanthropist
Known forPresident of Marriott Hotels and Northwest Airlines; aide to Presidents Nixon and George H. W. Bush; chair of National Finance Committee for John McCain's 2008 presidential campaign

Frederic Vincent Malek (December 22, 1936 – March 24, 2019) was a prominent American corporate leader, political strategist, and philanthropist. He held top executive roles as president of both Marriott Hotels and Northwest Airlines, and served as an aide to Presidents Richard Nixon—notably participating in Nixon's removal of Jewish federal employees—and George H. W. Bush. Throughout a political career spanning over fifty years, Malek occupied significant financial leadership positions, including chairing the National Finance Committee for Senator John McCain's 2008 presidential bid and leading fundraising efforts for the Republican Governors Association. Over four decades, he supported every Republican presidential campaign except that of Donald Trump.

In addition to his corporate and political engagements, Malek chaired the board of visitors at the United States Military Academy at West Point, actively backing its charitable programs. His commitment to free enterprise and community service earned him the Horatio Alger Award in 2011.

Early life

Born in Berwyn, Illinois, Malek was the son of Martha Dorothy (Smicklas) and Frederic William Malek, who worked as a beer truck driver. Of Czech and Croatian heritage, he was raised in Chicago. He graduated from the United States Military Academy in 1959 with a Bachelor of Science degree and served as an airborne ranger in a special forces unit during the Vietnam War.

Malek obtained his Master of Business Administration from Harvard Business School in 1964 before starting his professional journey as a management consultant at McKinsey & Co.. Alongside two fellow graduates, he formed a partnership aimed at acquiring businesses, pledging mutual support while exploring investment opportunities. In 1967, he departed McKinsey to join his partners in purchasing Triangle Corp., a struggling manufacturer of hand tool products based in Orangeburg, South Carolina.

Dog-barbecuing incident

In August 1959, Malek and four other men were detained near Peoria, Illinois following an incident where a dog was killed and cooked on a barbecue. Animal cruelty charges were dropped for all except Andrew P. O'Meara, who accepted full responsibility for killing, skinning, and grilling the dog as part of demonstrating survival skills.

This episode resurfaced during Malek’s involvement as an advisor and fundraiser for Sarah Palin's 2008 presidential campaign. Although allegations suggested Malek personally killed the dog, he pointed to O'Meara's admission as sole responsible party.

The matter reemerged during the 2012 presidential race when Malek hosted a birthday celebration for Ann Romney, attracting criticism from the advocacy group Dogs Against Romney.

Marriott Corporation

In 1975, Malek began his tenure at Bethesda-based Marriott Corporation and swiftly advanced to become president of Marriott Hotels. By March 1978, he had been appointed executive vice president. Between 1981 and 1988, under his direction of the hotel and resort division, the division’s earnings increased nearly four times, achieving an average annual growth rate of 18%, despite facing economic downturns and industry obstacles.

At the start of 1989, Malek took on the role of senior advisor at the Carlyle Group and spearheaded a group of investors to purchase Coldwell Banker Commercial Group from Sears, Roebuck and Company for approximately $300 million. Serving as co-chairman and a board member for nearly three decades, he contributed to expanding the company's valuation to more than $15 billion.

Northwest Airlines

Malek partnered with Los Angeles investor Al Checchi and Marriott executive Gary Wilson in a $3.65 billion all-cash leveraged buyout of Northwest Airlines. KLM Royal Dutch Airlines and Elders IXL invested $480 million in equity as part of the transaction. Following the acquisition, Malek and Checchi joined Northwest’s ten-member board, with Malek assuming the presidency.

In July 1989, Malek and Carlyle investors acquired Marriott’s premier airline catering business for close to $650 million. Additionally, from 2002 until 2005, Malek held a position on the board of Fannie Mae.

Thayer Lodging Group

In 1991, Malek established Thayer Lodging Group, a private equity firm named in honor of Sylvanus Thayer of West Point. Since raising its initial fund, Thayer has completed 41 hotel investments with total acquisition costs near $2.4 billion. The firm’s current portfolio includes 14 hotels comprising 3,637 guest rooms. A significant acquisition occurred in 2013 when Thayer purchased the Ritz Carlton-San Francisco, aiming to replicate the strong returns previously realized with its Ritz Carlton investment in Orlando’s Grand Lakes.

On May 21, 2014, Brookfield Asset Management acquired Thayer Lodging Group. Malek continued his active involvement as chairman while Thayer maintained ownership of hotels acquired before the partnership.

Thayer Capital Partners / Thayer Hidden Creek / HCI Equity Partners

Malek founded Thayer Capital Partners in 1993, a private equity firm based in Washington, D.C., where he served as chairman. In 2005, it merged with Hidden Creek Partners to form Thayer Hidden Creek. Following regulatory challenges and other difficulties, the firm rebranded as HCI Equity Partners and was operating under this name as of 2016.

Fraud

On August 12, 2003, the Securities and Exchange Commission (SEC) initiated a civil fraud lawsuit against former Connecticut state Senate Democratic Majority Leader William A. DiBella, alleging involvement in a scheme concerning $75 million of state pension funds invested with Malek's Thayer Capital Partners. On May 18, 2007, Thayer was found negligent under the Investment Advisers Act of 1940 and agreed to pay a $150,000 civil penalty; Malek personally paid $100,000.

Malek faced allegations that he profited personally while advancing political and financial agendas through this arrangement. DiBella testified that his responsibilities included assisting Malek with "ongoing investor relations," particularly to influence the incoming state treasurer. The scheme resulted in a substantial portion of the Connecticut State Retirement and Trust Fund being allocated into high-risk, illiquid private equity investments such as those managed by Thayer, significantly increasing the fund’s exposure to risk.

Major League Baseball

From 1989 until 1998, Malek was a co-owner of the Texas Rangers in Major League Baseball, sharing ownership with George W. Bush and others. Upon divesting his interest, he realized a return that was five times his initial investment.

Beginning in 1999, Malek spearheaded an initiative to move the Montreal Expos franchise to Washington, D.C. He founded the Washington Baseball Club, a consortium that included notable figures such as Jeff Zients, Colin Powell, and Vernon Jordan. Despite these efforts, the relocation bid did not come to fruition.

Nixon administration

During the Nixon presidency, Malek occupied multiple positions: he served as Deputy Under Secretary at the Department of Health, Education, and Welfare, acted as special assistant to the president from 1970 to 1973, and held the post of deputy director at the Office of Management and Budget between 1973 and 1975. Additionally, in 1972, he was deputy chief of the Committee to Re-elect the President.

Recognized for his expertise in management, Malek reorganized the White House Personnel Office and was instrumental in recruiting cabinet members. President Nixon described him as a "tough young businessman" with a focus on organizational efficiency and administration.

Malek developed the "Responsiveness Program", which aimed to replace career civil servants with Nixon loyalists and channel government resources toward Nixon's 1972 re-election campaign. The Senate Watergate report uncovered a memorandum authored by Malek advocating for agency politicization while minimizing paper trails to shield connections to the President.

He also played an important role in staffing the newly established EPA, earning commendation from its inaugural administrator, William Ruckelshaus.

On February 2, 1973, Malek was sworn in as deputy director of the Office of Management and Budget, a position he held until his departure in 1975 when he returned to private enterprise.

Nixon Jew count

In 1971, President Richard Nixon suspected that the Bureau of Labor Statistics (BLS) was dominated by Democratic opponents and what he termed a "Jewish cabal." He instructed aides Charles Colson and H. R. Haldeman to assemble lists identifying Democrats and "notable Jewish officials" within the agency. Malek initially supplied data on Democrats derived from voter registration records but resisted naming Jewish officials. After direct orders, he complied by selecting names that sounded Jewish since he lacked access to religious information. Two months later, two individuals from this list were reassigned to less prominent roles within the Labor Department.

Seymour D. Reich, who chaired the Conference of Presidents of Major American Jewish Organizations during the 1990s, acknowledged Malek's error but also recognized his efforts toward reconciliation. In 2010, Senator Dianne Feinstein commended Malek as "a man of high principle" committed to freedom, human rights, and tolerance. On December 15, 2014, Malek was honored with the Anti-Defamation League's Achievement Award in Washington, D.C.

Bush administration

In February 1988, Malek stepped down as president of Marriott Hotels to oversee the Republican National Convention for then vice-president George H. W. Bush. Although considered for White House chief of staff, he withdrew after admitting to compiling a list of Jewish officials at the Bureau of Labor Statistics in 1971 under Nixon’s directive—a task he denied was motivated by anti-Semitism.

In September 1989, President Bush appointed Malek as coordinator for the 1990 economic summit involving industrialized nations. Holding ambassadorial rank as director, he managed all aspects of preparation and execution for the event. Following this success, Malek took charge of Bush’s 1992 re-election campaign operations alongside fundraiser Robert Mosbacher and pollster Robert Teeter from their Washington office.

Malek later co-chaired the finance committee for John McCain’s presidential bid in 2008.

American Action Network

Malek was a co-founder and held the positions of chairman and executive committee member at the American Action Network, a center-right 501(c)(4) policy organization founded in 2010. The group advocates for principles such as individual liberty, restrained government intervention, and robust national defense.

Republican Governors Association

As chair of the Executive Roundtable for the Republican Governors Association (RGA), Malek also took on the role of finance chairman in 2012. During his tenure, the RGA surpassed the Democratic Governors Association in fundraising efforts, which contributed to the growth of Republican governors from 21 in 2008 to 33 by 2018.

Virginia government reform commission

On May 7, 2010, Virginia Governor Robert McDonnell appointed Malek to lead a 31-member commission tasked with identifying government cost-saving measures and improving efficiency. However, Malek’s appointment faced opposition due to past controversies, including disciplinary actions by the BLS and SEC, as well as concerns about his previous anti-Semitic remarks that attracted notable criticism. Governor McDonnell stated he was unaware of these issues at the time of the appointment.

West Point

Malek attributed much of his character development and core values to his experience at the U.S. Military Academy at West Point, highlighting its influence beyond his Harvard education.

In 2008, he was appointed by President George W. Bush to West Point’s board of visitors and became its chairman in 2011. Malek spearheaded the largest fundraising campaign for the Frederic Malek West Point Visitors Center, which opened in 2017, and also financed the Malek Tennis Center, reflecting his substantial philanthropic dedication to the academy.

Marymount

On May 29, 2012, Marymount University honored Fred and Marlene Malek’s sustained support by renaming its School of Health Professions as the "Malek School of Health Professions." Marlene Malek, a 1979 alumna and board trustee, was acknowledged alongside her husband for their charitable involvement.

During National Capital Philanthropy Day in 2012, the Maleks were presented with the Outstanding Philanthropist Award by the Association of Fundraising Professionals’ Washington, DC Metro Chapter.

American Friends of the Czech Republic

With Czech heritage, Malek served as chairman of the American Friends of the Czech Republic. Following the April 17, 2013 explosion at West Fertilizer Company that severely impacted West, TX—a community with deep Czech roots—the organization contributed substantial funds toward recovery efforts and organized an essay competition that awarded two children with fully funded trips to the Czech Republic.

In response to severe flooding in Prague and surrounding areas in June 2013, Malek met with Ambassador Norm Eisen and local officials to commit assistance and discuss ongoing relief initiatives.

Personal life

Malek was married to Marlene A. Malek; together they had two children and lived in McLean, Virginia. A dedicated fitness enthusiast since his time at West Point, he modified his exercise routine after a skiing accident in the mid-1980s led to an artificial hip replacement—transitioning from running to activities such as weightlifting, swimming, and cycling. He also survived cancer on two occasions. Malek died on March 24, 2019, due to complications following hip surgery.

Published works

  • Washington's Hidden Tragedy: Why Government Fails to Function Effectively (Free Press, 1979)

External links