Stewart W. Bainum Jr.

Stewart W. Bainum Jr.
Born March 25, 1946
Takoma Park, Maryland, U.S.
Alma mater Takoma Academy
Pacific Union College (1968)
UCLA Anderson School of Management (1970)
Andrews University (1972)
Occupation Businessman, politician
Employer Choice Hotels International
Title Chairman
Political party Democratic Party
Children 2
Parent(s) Stewart W. Bainum Sr.
Jane Goyne
Relatives Duke Bainum (cousin)

Stewart W. Bainum Jr. (born March 25, 1946) is an American businessman and politician. Bainum is chairman of Choice Hotels International, Inc. Since the 1980s, Bainum has led a number of enterprises including four current or former publicly listed companies: Choice Hotels; HCR Manor Care, which operates nursing and assisted living facilities; Vitalink Pharmacy Services; and Sunburst Hospitality.

Bainum has also held political office, having served as a Democrat in the Maryland General Assembly. Bainum was a member of the Maryland House of Delegates from 1979 to 1982 and the Maryland Senate from 1983 to 1986.

Early life and education

Stewart W. Bainum Jr. was born March 25, 1946, and raised in Takoma Park, Maryland.[1] He was the second of four children born to Stewart W. Bainum Sr., who was the founder of what became Choice Hotels and HRC Manor Care, and Jane Goyne. Bainum began working for his father's business at age 12 during summer breaks.[2]

Bainum was educated at Takoma Academy, where he was president of his senior class.[1][3] He received a Bachelor of Arts degree in history from Pacific Union College in Napa Valley, California, in 1968.[1] At Pacific Union, Bainum served as president of the campus student association.[3] He received a Master in Business Administration from the UCLA Anderson School of Management in 1970, and taught at Southern College in the Tennessee River Valley.[1][3][4] After UCLA, Bainum studied theology at Andrews University in Berrien Springs, Michigan, for 18 months from 1971 to 1972.[1][5]

Business career

Bainum joined his father's Manor Care business in 1972 as the director of development and became senior vice president two years later.[6] In 1977, Bainum and his father created a five-year strategy to grow the business' nursing home development through a series of acquisitions and became the first nursing home operation with a corporate marketing department.[6] The Washington Business Journal called Bainum the "quarterback of the company's expansion strategy".[7] From 1972 to 1985, the company's net worth increased from $8 million to $767 million.[8] Seven years after Bainum introduced its mergers and acquisitions plan, Manor Care annual revenues increased from $31 million in 1976[9] to about $500 million.[6]

Bainum led an unsolicited tender offer for Hillhaven Corporation in 1979.[6] Manor Care, a company with a net worth of about $10 million in the late 1970s,[7] gained ownership of 55 percent of Hillhaven's common stock, and sold it a year later making $5 million.[6] Bainum led Manor Care's acquisition of Quality Inns, Inc., in 1980.[6] In 1981, Manor Care acquired Cenco, a private-pay nursing home chain, tripling its size.[6]

By 1983, Manor Care became the United States' second-largest nursing home company.[6] Bainum took over for his father, becoming chairman and CEO in 1987.[10] With Bainum as chairman and CEO, the company spent $280 million to build 39 nursing homes over four years from the late 1980s into the 1990s.[11] Bainum brought in executives from Marriott and The Walt Disney Company, including Disney's Chuck Shields, to bolster management, develop new human resources strategies and redesign compensation packages.[5][12] Bainum instituted programs to reduce turnover of nursing care facility administrators and expanded Manor Care's subacute care facilities in the 1990s to take advantage of a trend in "dehospitalization".[13]

The Washington Business Journal credited Bainum with "turning the low-key company into a billion-dollar enterprise" and the hotels division, which became known as Choice Hotels, became the world's second-largest hotel franchisor.[14] Of the 209 largest family influenced, publicly held companies from 1976 to 1996, the Bainums' Manor Care generated the second-highest average annual shareholder returns, second behind Warren Buffett's Berkshire Hathaway.[15] The company spun off its hotels business in 1996.[16] As of 2017, Bainum remains chairman of Choice Hotels.

Bainum joined the leadership team of Quality Inns, which later became Choice Hotels, in 1977.[17] Since then, the company has grown from 240 Quality Inn hotels[6] to more than 6,500 properties under 11 hotel brands in more than 40 countries.[18]

George Washington University's School of Business and Public Management named Bainum CEO of the year in 1997, citing the company's annual revenue growth from $500 million to 2.4 billion under his leadership.[19] In 1998, Manor Care merged with Healthcare and Retirement Corporation to create a company with a combined value of $4 billion.[20] Bainum was chairman of HRC Manor Care until 2001 and left the board in 2002.[21]

As of March 2017, Bainum is the manager of Artis Senior Living and is on the advisory board for SunBridge Capital Management, LLC.[22][23] Bainum has also held leadership posts with Vitalink Pharmacy Services[24] and Sunburst Hospitality.[25]

Political career

Stewart W. Bainum Jr.
Maryland House of Delegates
In office
1979–1983
Maryland Senate
In office
1983–1987

Bainum, who was described by Forbes as a "fiscal-minded Democrat",[26] served for eight years in the Maryland General Assembly.

Bainum first ran for elected office in 1974, when he sought to unseat incumbent Maryland state Senator Victor Crawford.[27] The Maryland Court of Appeals ruled that Bainum was ineligible to run, as he did not meet the state's residency requirements at the time.[28]

In 1978, he was elected to the Maryland House of Delegates, a post he held until 1982, serving on the Ways and Means Committee and chairman of its Transportation Subcommittee.[27][29] In 1982, state Senator Crawford announced he would not seek re-election and endorsed Bainum's candidacy.[30] Bainum won the general election against Republican Stephen Leventhal with more than 70 percent of the vote.[8][31] He served as state senator of Maryland's 20th District from 1983 to 1986,[27] serving on the Budget and Taxation Committee, the Joint Committee on Budget and Audit, the Subcommittee on Corrections and Transportation, and the Capital Budget Subcommittee.[1]

Bainum's political career is best known for his successful efforts to end special tax breaks for private clubs, such as the all-male Burning Tree Club in Bethesda, Maryland.[27] Bainum and his sister, Barbara Bainum, filed a lawsuit against the club. In 1984, as a result of the lawsuit, a Montgomery County, Maryland, judge ruled that Burning Tree must give up its $186,000 yearly real estate tax exemption if it does not allow women.[32] In 1986, legislation he sponsored that barred private clubs that exclude women from receiving state tax breaks became law.[33] This effort earned him "the hostility of Washington's politico-golfing community".[34] As a Maryland lawmaker, Bainum sponsored a child support bill to require employers to deduct court-ordered payments, similar to how taxes are deducted,[35] as well as legislation requiring public officials to disclose withdrawals from failed savings and loans, increase penalties for illegal handgun use, make information public on toxic substances and hazardous waste, increase fees on heavy trucks to offset road repair costs,[29] and tax relief for low-income tenants.[8][36]

He received awards from Common Cause and environmental advocates.[37]

Bainum launched his campaign for Maryland's 8th congressional district in 1986, hoping to take the seat left vacant by incumbent Michael D. Barnes's run for U.S. Senate.[27] Bainum bested a field of seven Democrats to win the party's primary.[38] He lost in the general election to Republican Constance A. Morella.[39]

Bainum had considered a run for Maryland governor in 1994.[40] The day before he had been scheduled to officially kick off his candidacy, Bainum announced he would not seek the office, choosing instead to focus on his family and businesses.[41]

Bainum was a supporter, 2008 Democratic National Convention delegate and fundraiser for President Barack Obama[42] and endorsed Hillary Clinton in the 2016 U.S. presidential election.[43]

Other roles

Bainum is a member of UCLA's Anderson School of Management's Board of Advisors.[44] He has served on the boards of trustees for University of Maryland Medical System, St. Mary's College of Maryland, Baltimore Symphony Orchestra, Johns Hopkins University and Bowdoin College.[1][45]

He was an honorary co-chair of Marylanders Against Handgun Use.[46] In 2008, Bainum helped fund and unsuccessfully advocated against a 2008 referendum that legalized slot machines in Maryland.[47]

Personal life

Bainum is married and has two children.[1] Bainum first saw his wife, Sandy, while attending a play at the National Theatre, where she played the role of Annie in 42nd Street.[2] Bainum called the theater to introduce himself to Sandy and they began dating shortly after.[2]

References

  1. 1 2 3 4 5 6 7 8 "Society of Senates Past: Roster: STEWART BAINUM Jr". Maryland State Archives. Retrieved November 16, 2015.
  2. 1 2 3 Palombo, Ruth (April–May 1994). "Sandy and Stuart Bainum Jr. happily ever after". Washington Life.
  3. 1 2 3 "Forbes 400". Forbes. 13 October 1997.
  4. ↑ "100 inspirational alumni". UCLA Anderson School of Management. Retrieved 30 March 2017.
  5. 1 2 Novack, Janet (10 December 1990). "Tip O'Neill works here". Forbes.
  6. 1 2 3 4 5 6 7 8 9 Hoffer, William (October 1984). "Mind over manor". Regardie's.
  7. 1 2 Desautels, Mark (20 February 1984). "Bainum puts Manor Care on fast track of rapid expansion and diversification". Washington Business Journal.
  8. 1 2 3 Karpay, Kenneth D. (22 July 1985). "Bainum assesses the two roads diverging in his path: business or politics". The Daily Record.
  9. ↑ Form 10-K, 31 May 1976 |access-date= requires |url= (help)
  10. ↑ Abramowitz, Michael (6 March 1987). "Bainum takes father's post at Manor Care". The Washington Post. Retrieved 10 March 2017.
  11. ↑ "Retreat, hell: Four contrarians who hear opportunity knocking". Business Week. 14 January 1991.
  12. ↑ Chuck Shields (2016). The Disney Apprentice: Lessons Learned from Inside Disney. Theme Park Press. pp. 119–140. ISBN 9781683900030.
  13. ↑ Hinebaugh, Cathy (6 March 1993). "Manor Care:Setting the pace". Warfield's Business Record.
  14. ↑ Hall, Thomas C. (1 April 1994). "Stewart Bainum Jr.: Maryland gubernatorial candidate is to the Manor born". Washington Business Journal.
  15. ↑ Vickers, Marcia (12 January 1997). "For long=haul performance, consider all the best families". The New York Times. Retrieved 10 March 2017.
  16. ↑ Salganik, M. William (4 March 2000). "Manor Care gets 2 buyout offers". The Baltimore Sun. Retrieved 10 March 2017.
  17. ↑ "Stewart W Bainum Jr is elected a dir of Quality Inns Internatl". The Wall Street Journal. 13 June 1977. Retrieved 27 March 2017.
  18. ↑ "Form 10-K". U.S. Securities and Exchange Commission. 31 December 2016. Retrieved 27 March 2017.
  19. ↑ Schwartz, Shelly (9 May 1997). "Manor Care's chief if honored as top executive". Montgomery Gazette.
  20. ↑ Hilzenrath, David S. (11 June 1998). "Manor Care Inc. plans to merge with rival HRC". The Washington Post. Retrieved 10 March 2017.
  21. ↑ "Manor Care through the years". The Washington Post. 9 July 2007. Retrieved 30 March 2017.
  22. ↑ "Executive profile: Stewart W. Bainum Jr". Bloomberg LP. Retrieved 27 March 2017.
  23. ↑ "About us". SunBridge Capital Management, LLC. Retrieved 27 March 2017.
  24. ↑ "Vitalink Pharmacy Services Inc". The Washington Post. 20 April 1992. Retrieved 10 March 2017.
  25. ↑ Spinner, Jackie (21 September 2000). "Sunburst Hospitality sold to buyout group". The Washington Post. Retrieved 10 March 2017.
  26. ↑ "Stewart Bainum Sr". Forbes. 27 October 1986. Retrieved 8 March 2017.
  27. 1 2 3 4 5 Arnoult, Sandra (4 February 1994). "Bainum set to enter governor's race". The Montgomery Journal.
  28. ↑ Bainum v. Kalen et al., John C. Eldridge (Maryland Court of Appeals 28 August 1974).
  29. 1 2 Russakoff, Dale (29 January 1981). "Transportation issue defused". The Washington Post. Retrieved 28 March 2017.
  30. ↑ Feinstein, John (5 June 1982). "Smooth dresser, sharp wit to leave Annapolis". The Washington Post. Retrieved 28 March 2017.
  31. ↑ "Uncontested votes listed in Maryland". The Washington Post. 5 November 1982. Retrieved 28 March 2017.
  32. ↑ Franklin, Ben A. (14 September 1984). "Judge penalizes Burning Tree Club". The New York Times. Retrieved 8 March 2017.
  33. ↑ Ifill, Gwen (7 April 1986). "The battle of Burning Tree". The Washington Post. Retrieved 8 March 2017.
  34. ↑ Molotsky, Irvin; Weaver Jr., Warren (16 November 1986). "Washington Talk: Briefing". The New York Times. Retrieved 27 March 2017.
  35. ↑ McQueen, Michel (15 March 1984). "Bill on child support advances in Md. Senate". The Washington Post. Retrieved 8 March 2017.
  36. ↑ Melton, R.H. (28 October 1986). "Bainum's businessline political drive; 8th District candidate's methods are deliberate, sophisticated -- and successful". The Washington Post. Retrieved 8 March 2017.
  37. ↑ Melton, R.H.; Tapscott, Richard (14 March 1994). "New face in MD.'s gubernatorial pool". The Washington Post. Retrieved 27 March 2017.
  38. ↑ Meyer, Eugene L. (10 September 1986). "Bainum easily wins Md. 8th: Bainum, Morella win bids for Barnes' seat in Md. 8th". The Washington Post. Retrieved 8 March 2017.
  39. ↑ Abramowitz, Michael (6 March 1987). "Bainum Takes Father's Post At Manor Care". The Washington Post. Retrieved 8 March 2017.
  40. ↑ Timberg, Robert (15 May 1994). "Bainum's big-bucks race for governor". The Baltimore Sun. Retrieved 8 March 2017.
  41. ↑ Tapscott, Richard (16 May 1994). "Bainum abandons preparations for gubernatorial campaign". The Washington Post. Retrieved 8 March 2017.
  42. ↑ Slack, Donovan (31 January 2012). "President Obama's mystery hosts? Stewart and Sandra Bainum". Politico. Retrieved 8 March 2017.
  43. ↑ Epstein, Jennifer (23 June 2016). "Republicans are among business leaders backing Clinton". Bloomberg. Retrieved 8 March 2017.
  44. ↑ "Board of advisors". UCLA Anderson School of Management. Retrieved 8 March 2017.
  45. ↑ "Bowdoin College trustees elect new members, approve emeritus status". Bowdoin College. 17 May 2011. Retrieved 8 March 2017.
  46. ↑ "WBR talks with Stewart Bainum Jr". Warfield's Business Record. 25 March 1994.
  47. ↑ Smitherman, Laura (20 July 2008). "Wealth driving 'No' vote on slots". The Baltimore Sun. Retrieved 8 March 2017.
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