I've been through eight recessions in my lifetime and, while this one feels deeper and less predictable, I've learned what companies like Marriott need to do to come out strong. Cost cutting is obviously the key to survival today. But the wrong kind of cuts will delay a comeback and erode our competitive position. We need to invest in people, product and service innovation that will reap benefits in the future.
With fewer people checking into our hotels, we've been forced to eliminate some positions. For me, that's the toughest part of the job. I believe sacrifices must be shared and so I've informed the Marriott Board of Directors that I will decline two thirds of my compensation in 2009. All of our senior executives are seeing significant decreases in their compensation as well.
As we think about strength and vitality going forward, I'm also proud to announce some shifts in our management structure that I believe will put us in the strongest position for the future. Effective May 1, Bill Shaw, our current President and Chief Operating Officer will become Vice Chairman of the corporation overseeing Global Finance, Owner and Franchise Services, Architecture and Construction, Information Resources and will be Chairman of our Corporate Growth Committee. In his 34 years with Marriott, Bill Shaw has provided tremendous leadership, especially during the past 12 years when he oversaw global operations across all of Marriott's brands. Bill has assembled a first rate management team with expertise second to none in our industry. He has been at my side through recessions in the '80s, the '90s and again in 2001. His wise financial judgment was and continues to be invaluable.
I'm pleased to announce that Arne Sorenson, our current Chief Financial Officer and President for European Lodging will be promoted to the position of President and Chief Operating Officer, effective May 1. Since joining Marriott 12 years ago, Arne has rapidly emerged as one of the top senior executives in the hospitality industry. He has shown tremendous range and success across a wide scope of disciplines that positions him uniquely for a larger leadership role in our company at a time when both the challenges and opportunities for growth are terrific. In his new role, he'll be responsible for the performance and growth of our brands and businesses throughout the world.
Carl Berquist, currently Executive Vice President, Financial Information and Enterprise Risk Management, will become Chief Financial Officer, reporting to Bill Shaw. Carl joined Marriott in 2002 after a brilliant career at Arthur Anderson.
The steps we are taking today are important and will put Marriott in the strongest position for a successful future. In these unprecedented times, the company is fortunate to have extraordinary executives who will expand our industry leadership and drive long-term opportunity and growth.
This economy provides a tough environment for any company. But it's a wonderful environment for learning. Over the years, Marriott has assembled a fine team of top executives with tremendous scope and range through a process of rotating them through every part of the business. In fact, our success with this leadership development strategy is profiled in the current issue of the Harvard Business Review. This economy puts all of us to the test. And yet, I am confident we have the people, the places and the sense of purpose that will prevail.
On Inauguration Day, we took out an ad in USA Today to mark the historic presidency of Barack Obama. It listed all the conventional wisdom that has been proven to be wrong in our history: That you can't abolish slavery. That you can't give women the right to vote. That you can't fly an airplane from New York to Paris. That you can't cure polio. That you can't put a man on the moon. That you can't beat the Russians in hockey. That you can't elect a black man President of the United States. But we said, "Yes we can!"
That's how I feel now. We're at a crossroads. Things are tough. But when it comes to building a better future, with more opportunity for our associates to welcome millions of guests at more than 3,100 beautiful hotels around the world, I know the answer is: Yes we can!
I'm Bill Marriott and thanks for helping me keep Marriott on the move.
Great Leaders Emerge from Difficult Times
I would ike to contact eh president of Mairott to pass on the name of an employee whod is outstanding
Posted by: john dunleavy | 03/01/2010 at 05:10 AM
This site is a fantastic read. I've been contemplating entering the hotel and hospitality field and have a local Marriott I've considered. It would be difficult to consider any others after spending time here doing some due diligence on the company. Kudos!
Posted by: A Irwin | 03/23/2009 at 04:50 PM
I believe sacrifices must be shared and so I've informed the Marriott Board of Directors that I will decline two thirds of my compensation in 2009. All of our senior executives are seeing significant decreases in their compensation as well.
Kudos, Mr. Marriott. Perhaps the execs at AIG should take a page out of your book. You are a true leader, sir.
Posted by: mj | 03/18/2009 at 01:43 AM
God bless you Mr. Marriott. America needs more senior executives like you. I commend you for your personal sacrifice and the benefits it will provide to all of your employees.
Posted by: Kevin | 03/16/2009 at 02:01 PM
What do you tell your stockholders, who have lost 75% of their stock value in your company during the last few months, when they learn that eventhough Marriott Corp. had a losing 4th quarter in 2008 and faces bleak future projected earnings in 2009 that Marriott laid off line staff but still paid year end bonuses to Corportate staff?
Posted by: Greg Goffaux | 03/16/2009 at 10:01 AM
Mr. Marriott, I commend you on your decision to cut your compensation. While many directors, owners, managers, etc cut many jobs just to keep their own salaries and bonuses, you saw fit to cut from the top down. I think you and other top executives know that this won't hurt your lifestyle very much like it would say, a maid, who loses her job and she is the sole breadwinner and support several kids. I thank you for being compassionate. I have stayed at Marriott hotels in the past and have enjoyed my stays and I will definitely stay at them in the future. God bless you, sir!
Posted by: Lenice Wright | 03/14/2009 at 06:03 AM
As a long time Reward member I continually be impressed by the classiness of the Marriott organization. In these difficult times I have two suggestions. Many parents who would go away for mid semester grade or high school vacation can't afford it..how about some packages for two, three, or four night stays at reasonable prices. My son isn't going to Myrtle Beach but would still like to take his 4 kids swimming...and a pool at Marriott would work fine...I'm sure marketing can evaluate the value of local mini vacations for stressed out families One more suggestion...not every vacation has to involve air fare...Take a two hudred mile diameter circle around interesting areas, ex. civil war sites in Penn, and put together Marriott hotels for each night of a driving sightseeing vacation. Bus tours do it and usually stay in dumpy places...Drive Vacations From Marriott...Best wishes for tough time, Don
Posted by: Don Fronzaglia | 03/13/2009 at 06:11 AM
I wanted Marriott to know I wrote about your effective use of this blog in today's Maryland Daily Record: http://www.womblestrategiccommunications.blogspot.com/
Posted by: Henry Fawell | 03/13/2009 at 02:27 AM
i work in new orleans and i drive from baton rouge every day wich is about 75miles one way im on the transplant team at tulane hospital i stayed at marriott but the rooms are very pricey are there any discounts sometime i have to work all night long dont want to drive home
Posted by: matthew decuir | 03/12/2009 at 08:12 AM
Mr. Marriott, as a former employee and still a shareholder, I just want to applaud you for keeping the ship sailing during a difficult time.
Posted by: Geary Campbell Morris | 03/11/2009 at 07:17 AM
Mr. Marriott, your blog is an inspiration not only to your employees but also your customers. This is the type of leadership that made this country strong, and made us proud to be Americans. True leadership comes with a price, and I see that you are willing to pay that price. I applaud you and your team.
Posted by: Cathy Carr | 03/11/2009 at 04:48 AM
Marriott International has a great leadership, great talents and great culture. No wonder they will always be a leading lodging company in the world.
Posted by: Rolando Viloria | 03/10/2009 at 06:53 PM
I have admired the Marriott name for some time now. This blog stood out due to your stance on leadership. Along with your message to our elected leaders, this message serves as a true testiment to your dedication. Great leaders are dedicated to their vision and are able to relay this vision as reality through their subordinates. Subordinates adopt this vision as their own due to the leadersip's dedication to them. I am sure you know better than I that the Burden of Leadership encompasses many responsibilities and tough decisions, many of which come in the form of sacrifice. You have given me the hope I have been looking for in corporate America, for it is this group of Americans that will bring us out (Not Government). This hope stems from the sacrifice in pay since you had to sacrifice/cut some jobs. I will be staying at a Marriott this weekend as I travel to SF Bay Area in hopes of gaining more information on Cal Berkeley's Haas School of Business.
Posted by: Robert J Shoaf | 03/10/2009 at 06:46 PM
You are my hero! With your leadership style you are sure to come out ahead!
Posted by: Nancy | 03/10/2009 at 10:00 AM
If this country were fortunate enough to have had more CEO's like Bill Marriott running those financial and auto companies that are on the edge of extinction, we likely would not be in this horrendous mess. Thanks Bill for the history reminder in the 3rd last paragraph. I have to speak before a group tomorrow that will be skeptical when I show them four ways to raise money for our Opera Company and recognizing there will be some skeptics, I plan to end the talk with your history conventional wisdom lesson that just might make them all feel we can.
Posted by: Tom Osterman | 03/10/2009 at 08:37 AM
Dear Mr Marriott: I see that Marriott International was once again voted one of the 50 most admired companies in a national survey, a fact of which you and every Marriott associate can be proud.
The hallmark of success, especially long-term, is not the amount of money that you make (though stockholders will disagree) but rather the way in which you make that money.
Marriott corporation has always been a company that deserved and earned my business, starting with my wedding night in 1970 at the Virginia location, the Crystal City Marriott, then almost new. As a junior officer in the Army the amount I spent (I think it was 37 dollars for the room) was equal to one fourth of my base monthly pay, but the chance to enjoy the luxury of a Marriott hotel sealed the deal for me.
Now 39 years later and still married to the same wonderful woman, I find that Marriotts have gotten better and better. Turbulent times are rough on all of us, and I am hoping that every decision that is made by your corporation will weigh the impact on your most loyal guests as well as on your own business.
We'll weather this period of uncertainty, but I hope that Marriott will continue to be the gold standard for excellence in hospitality.
Thank you.
Posted by: Roger Denk | 03/10/2009 at 05:07 AM
I'm just an ordinary person who appreaciates your willingness to be a real leader especially in hard times. I for one will be attempting to stay in Marriots wherever I travel for business or leisure because of your leadership and vision. Yours is a company I pray succeeds and is a living example to others. Thank You.
Posted by: Robin Cusanelli | 03/10/2009 at 02:49 AM
Bill: Those of us at the Mayo Clinic who have come to know, respect and appreciate you continue to be inspired by your business principles and the value you place on your employees and customers. You are a giant of a leader at a time when such is so desparately needed in all parts of the global community. Thank you for upholding a terrific legacy of integrity, responsibility and great quality.
Posted by: Jim Lyddy | 03/09/2009 at 11:17 AM
You and Mr. Marriott Sr. have built the business starting with Twin Bridges and Key Bridge Marriott's that remains to some 3100 hotels and counting. Anyone, such as yourself and Mr. Marriott Senior, can demonstrate such innovation and genius coming from the humble beginnings in the restaurant business (Hot Shoppes) can surely say with confidence that yes you can be credible. I don't know much about your new Chief Operating Officer but have faith that the company will get through this crisis just fine if you see it through. Thank you from one Washingtonian to another.
Posted by: Syed T. A. Naqvi | 03/09/2009 at 11:03 AM
Dear Mr. Marriott
I worked for your great company from 1983 to 1998 in A&C. I recently read once again the Marriott Story. It was so appropriate for the difficult economic times we are in. Your father and founder JW Marriott had the right attitude and courage to find oppurtunity in any crisis. timber does not grow at ease. the stronge the breeze the stronger the trees.
There are so many great lessons that apply directly to our current situation in that little book.
All the best,
Joe V. Travez
Posted by: Joe V. Travez | 03/09/2009 at 10:18 AM
Mr. Marriott Thank you for geniune leadership -- More of Americans need to see you leading the way -- which in turn keeps Marriott on the move -- Now if Congress will only follow the lead -- continued success
Posted by: Gregg Gregory | 03/09/2009 at 10:16 AM
These sentiments are deep. I value the endowment of great leadership
Posted by: Keith Ridley IV | 03/09/2009 at 10:10 AM