Mayo A. Shattuck III
Mayo A. Shattuck III | |
|---|---|
| Born | 1954 Boston, Massachusetts, U.S. |
| Occupation(s) | Entrepreneur, philanthropist |
| Known for | Chairman of Exelon Corporation (2012–2022), Chairman of Gap Inc., advocacy of nuclear energy |
Mayo A. Shattuck III (born 1954 in Boston, Massachusetts) is a prominent American entrepreneur and philanthropist. He served as the non-executive chairman of Exelon Corporation from 2012 until 2022 and currently holds the position of Chairman at Gap Inc. Additionally, Shattuck sits on the boards of Capital One Financial, HUT8, and both Johns Hopkins Medical and Johns Hopkins Health System. His philanthropic efforts support organizations such as Johns Hopkins University, First Tee, and the University of Maryland Baltimore County. He is also recognized for his strong advocacy of nuclear energy.
Early life and education
Shattuck was born in Boston in 1954 and attended the Noble and Greenough School located in Dedham, Massachusetts. He completed his undergraduate studies at Williams College, earning a Bachelor of Arts degree in 1976. Subsequently, he obtained an MBA from Stanford University in 1980, where he was honored as an Arjay Miller Scholar. His father was a notable figure in Boston’s investment sector, managing Harvard University’s endowment and serving as managing director at a leading institutional asset manager prior to his death in 1974.
Career
Following his MBA graduation from Stanford in 1980, Shattuck began his career at Bain and Co in San Francisco, where he worked alongside former Massachusetts governor and presidential hopeful Mitt Romney. He also held a position at Morgan Guaranty Trust Co.
Alex. Brown & Sons
Shattuck joined investment bank Alex. Brown & Sons in 1985 and advanced to president and chief operating officer by 1991. During his leadership, he navigated the firm through several mergers culminating in its acquisition by Deutsche Bank. Starbucks CEO Howard Schultz commended Shattuck as a "brilliant strategist" for his stewardship at Alex. Brown. In 1997, Shattuck played a pivotal role in orchestrating the $1.7 billion merger between Alex. Brown and Bankers Trust, subsequently assuming the roles of vice chairman of Bankers Trust Corp. and co-CEO of BT Alex. Brown. He functioned as an intermediary between executive teams and championed employee interests throughout the integration process. After Deutsche Bank acquired the combined entity in 1999, Shattuck became chairman of Deutsche Bank Alex. Brown and led both Investment Banking and Private Banking divisions until his departure in September 2001.
Constellation Energy Group
On October 26, 2001, Shattuck was named president and CEO of Constellation Energy Group, later adding the chairman title in July 2002. At the outset of his leadership, he concentrated the company’s focus on core energy operations by reducing staff by 10% and divesting non-essential assets such as a Boeing 747 aircraft, a transport tanker, real estate properties, and a nursing home business. He reversed an earlier plan to split the company with assistance from Goldman Sachs and revamped management accountability structures. Confronted with $5 billion in debt amid sector challenges, Shattuck refinanced liabilities and secured credit facilities to acquire underperforming energy companies.
He broadened Constellation’s financial services by expanding its energy commodity trading and derivative products funded through short-term borrowing. His approach leveraged deregulated markets by purchasing electricity from utilities for resale across the country, fueling substantial growth. Shattuck maintained that only energy firms were equipped to effectively develop energy derivatives markets. While initially profitable, these ventures heightened financial risk exposure; during the 2008 financial crisis, Constellation’s debt ratings were downgraded and its stock value declined by 76%, causing concerns among stakeholders.
Despite external pressures, the board expressed strong confidence in Shattuck’s leadership during this turbulent period. He secured capital from Berkshire Hathaway to maintain operations while safeguarding Constellation’s autonomy by declining acquisition proposals. In April 2011, Exelon announced its intention to acquire Constellation Energy; although facing some resistance, regulatory approval was granted and the transaction was finalized in March 2012. After the merger, Shattuck took on the role of executive chairman at Exelon before retiring on February 28, 2013; he continued as non-executive chairman to lessen day-to-day duties. He was instrumental in facilitating Constellation’s successful spin-off from Exelon in 2022 prior to stepping down as chairman that same year.
Advocacy
Following his departure from Alex. Brown & Sons, Shattuck devoted a significant portion of his professional life to championing the advancement of electrical energy within the United States.
A primary focus of his efforts has been promoting the deregulation of energy markets. Prior to the 1990s, energy distribution was largely controlled by government-sanctioned monopolies; however, legislative changes at the state level introduced competition among energy providers, fundamentally altering how electricity is delivered. In 2010, Shattuck spoke before the US Chamber of Commerce, highlighting that deregulated markets enhance consumer options, lower expenses, and stimulate innovation:
"Twenty-two states have dismantled their regulated utilities to enable competition...Deregulated markets fulfill their intended purpose...Monopolies will not effectively drive efficiency, reduce costs, or foster innovation"
Distinct from many industry leaders, Shattuck has publicly endorsed a carbon tax, asserting:
"We must tackle climate change by implementing a carbon pricing mechanism"
Representing Constellation Energy in 2009, he supported the American Clean Energy Security Act of 2009, legislation designed to curb carbon emissions and encourage renewable energy development. Shattuck is also a vocal proponent of expanding American nuclear power capabilities, advocating for increased governmental backing through prolonged loan guarantee programs for new reactor projects. While addressing an audience at Johns Hopkins University, he remarked:
"If the initial fee is excessively high, it will deter potential borrowers...We are engaged in a process to help all stakeholders understand the gap analysis"
Throughout his leadership roles at Constellation Energy and Exelon, Shattuck chaired the Institute of Nuclear Power Operations, participated on the Executive Committee of the Nuclear Energy Institute, and co-led the Commission on Nuclear Policy in the United States. After withdrawing from a collaborative nuclear initiative with EDF, he remains committed to advancing nuclear energy development.
Controversy
The deregulation of Maryland’s electricity market in the early 2000s—preceding Shattuck’s time at Constellation—resulted in the elimination of state-imposed price caps on electricity rates. This change occurred alongside severe hurricanes in 2007 that disrupted natural gas supplies, compelling Baltimore Gas and Electric Company (BG&E), a regulated utility subsidiary of Constellation Energy Group, to increase electricity prices by 72%. Critics contended that Constellation’s elevated profits should have been used to subsidize utility costs and maintain lower rates. Shattuck encountered criticism after contributing $8,000 to Maryland’s gubernatorial race. Supporters pointed out BG&E’s legal separation from Constellation and its oversight by the state’s Public Service Commission to regulate profit margins. Ultimately, Maryland’s General Assembly enacted a temporary cap restricting rate hikes to 15%.
Other affiliations
Shattuck holds independent directorship positions at prominent corporations such as:
He has also served on the board of Alarm.com and co-chaired the Center for Strategic and International Studies Commission on Nuclear Policy in the United States.
Philanthropy
Throughout his tenure at Alex. Brown & Sons and afterward, Shattuck held the position of president for the Alex. Brown & Sons Charitable Foundation, overseeing its endowment in collaboration with seven trustees. The foundation contributed generously to various Baltimore organizations, providing multi-million dollar grants to institutions such as the Baltimore Museum of Art, Baltimore Zoo, and Johns Hopkins Hospital.
After joining Constellation Energy in 2001, Shattuck directed much of his charitable efforts toward Johns Hopkins University (JHU). He became a member of the Johns Hopkins Medicine board of trustees in 2004. In 2007, he made a $1 million donation to create The Shattuck Family Pediatric Burn Unit at Johns Hopkins Hospital, which includes 205 private treatment rooms along with educational spaces designed for medical trainees. Additionally, he played a pivotal role as co-chair in the $6 billion JHU Capital Campaign, significantly contributing to fundraising initiatives like the "Rising to the Challenge" campaign aimed at advancing the university’s academic goals.
Outside of his involvement with Johns Hopkins, Shattuck serves as a trustee for First Tee, an organization dedicated to providing affordable junior golf programs in underserved areas. He also founded the Shattuck family internship program at the University of Maryland Baltimore County to aid students interested in entrepreneurship and leadership within business.
Personal life
Mayo Shattuck is a father to five children and was previously married to Molly Shattuck.