< Company Profiles / Burson-Marsteller
01.07.02


Burson-Marsteller
A Corporate Profile

By Corporate Watch UK
Completed July 2002


2.  Who, Where, How much



2.1 Structure
 
Executive Board[7]

Harold Burson
Founding Chairman of Burson-Marsteller, Harold Burson has been in PR for more than fifty years. He was once described by PR Week as “the century’s most influential PR figure” due to the market share of B-M and his innovative work.
Now in his 80s, Burson stepped down as CEO in 1988, the company he co-founded in 1953. He still works at B-M for many long-term clients, including Philip Morris, Merrill Lynch and Coca-Cola. He has no retirement plans[8].
 
Chris Komisarjevsky
President & CEO Worldwide, Chris Komisarjevsky was previously president and CEO of Burson-Marsteller USA. Until 1995, Mr. Komisarjevsky was president and CEO at Gavin Anderson & Company, a public relations subsidiary of Omnicom.
Before that, Mr. Komisarjevsky held senior positions at Hill and Knowlton, Inc. Over 20 years at H&K, he served as president and CEO of the company's Europe, Middle East and Africa operations, was CEO of its Carl Byoir & Associates subsidiary, was head of the firm's New York office and head of its corporate practice.
During his career, Mr. Komisarjevsky has been responsible for public relations and public affairs activities for major corporate and trade association clients in financial services, building materials, entertainment, pharmaceuticals, health care, communications, real estate, management consulting and consumer products. He has had extensive experience in crisis management and labour negotiations.
 
Ken Rietz
Chief Operating Officer and Chair of the global public affairs practice. Ken Rietz career has encompassed more than 30 years in public affairs, public relations and marketing positions. Mr. Rietz now works in New York, after serving as President and CEO of Burson-Marsteller Europe. He has also been CEO of the Western Region, Global Public Affairs Practice Chair and President and CEO of the Washington Region, for B-M.
Before joining Burson-Marsteller in 1989, he was a chief legislative adviser to a senior member of Congress, deputy chairman and political director of the Republican National Committee, executive vice president of MGM Records, a founding partner in Mike Curb Productions and the strategic and media adviser to several members of the U.S. House of Representatives and the U.S. Senate. He has experience in four Republican presidential campaigns.  He was implicated in Nixon’s scandalous 1972 re-election campaign, for hiring agents provocateurs for demonstrations.
 
John Maltese
Chief Financial Officer Worldwide, John Maltese joined Burson-Marsteller in 1986. He began as an Assistant Controller for the Eastern Region, was promoted to Controller of the Americas in 1988, Director of Finance, worldwide, in 1991. In mid-1993 he took the opportunity to manage Young & Rubicam Inc.'s financial accounting subsidiary, Shared Financial Services Company, and was recently promoted to his current position.
Before B-M, Mr. Maltese spent eight years as controller of New York based advertising agency, N.W. Ayer. Before the communications industry, he worked at manufacturing company, Gulf & Western, and for five years at Citibank.
 
Fred Hawrysh
Director of Global Client Service, Fred Hawrysh is based in B-M’s New York headquarters, where he moved in 1997. He has worked with Burson-Marsteller since 1983, in the Americas, Europe and Asia-Pacific.
 
Per Heggenes
Chief Knowledge & Insights Officer Worldwide, Heggenes is oversees proprietary knowledge development, the knowledge and research centres, knowledge sharing systems such as the company intranet and website development and the creative director staff. Previously, he was chairman of the Corporate Practice in Europe from April 1998. Before that, he was Chief Operating Officer of B-M Europe when he was instrumental in rolling out the new client practice structure throughout Europe. Per joined Burson-Marsteller Oslo as an account executive in 1982.
 
Chet Burchett
President & CEO USA, Chet Burchett joined B-M in 1998. He has had numerous roles including president and CEO of Burson-Marsteller Midwest and U.S. Practice Chair for the Brand Marketing practice.
Chet has 20 years of news media and public relations experience. He is a specialist in reputation management. He has developed and executed programs in the areas of corporate communications, public affairs, consumer marketing, sports marketing and business-to-business.
 
Santiago Hinojosa
President & CEO Latin America, Hinojosa joined Burson-Marsteller in July, 1998.
From 1996 until 1998 Mr. Hinojosa was Regional Managing Director for DMB&B Americas (1996-1998), based in Mexico city. He was previously Managing Director of DMB&B's Mexican operations, Noble DMB&B, a large advertising agency in Mexico.
Before DMB&B, Hinojosa was Bozell Worldwide's Managing Director for Latin America, and before that he spent 17 years with McCann-Erickson, in throughout South America. He began his advertising career as an account executive at Benton & Bowles.
 
Bill Rylance
President & CEO of the Asia/Pacific region, Bill Rylance joined Burson-Marsteller in 1982, working in London and the Middle East. In 1986 he was assigned to Korea to manage B-M's worldwide public relations programme for the 1988 Seoul Olympics.
In 1989, Bill established Merit Communications, Korea's first international public relations consultancy. In a decade, Merit became the largest PR firm in Korea. Bill personally provided communications and media relations counsel for the Government of Korea, working directly with the Office of the President.
B-M bought Merit Communications in 1999 and Bill became President and CEO of Burson-Marsteller Asia Pacific, responsible for all operations in Asia Pacific.
 
Carlos Lareau
As Managing Director, Southern Europe, Carlos Lareau has led B-M/Iberia since 1996 before which he held several positions in B-M and was also Vice President of Communications and EU Affairs in a major pharmaceutical company. He has a 14 year experience in Communications, preceded by a career in economic an political journalism in Spain, the US and Latin America.
 
Celia Berk
Appointed Managing Director of Human Resources for Burson-Marsteller Worldwide in November 1998. Ms. Berk joined Burson-Marsteller in January 1997 in the then newly created position of Managing Director, Human Resources for the United States. Prior to joining Burson-Marsteller, Ms. Berk was at Reuters America (1988-1998) in roles encompassing human resources, organizational planning, training, quality and internal communications. Before that, Ms. Berk was Administrator of the Harkness Fellowships of The Commonwealth Fund.
 
Thomas Blach
Now the Managing Director for the Nordic Region, Central, and Northern Europe, Thomas Blach joined Burson-Marsteller in 1989, and became country manager of Burson-Marsteller, Denmark in 1992. From January 1997 to June 1999 he Chaired the European Public Affairs Practice. In 1998 he was also Market Leader in Brussels. In July 1999 Thomas Blach became Chairman of the Nordic Region.

Allan Biggar
Managing Director, UK since April 2000. Allan was previously Chairman of B-M's European Public Affairs Practice and Market Leader of the Brussels office (1997-2000) and before that he was Managing Director of B-M Middle East and North Africa. Biggar began in PR as director and owner of Immediate Corporate Communications. He was a senior member of the Liberal Democrats campaign staff.
 
 
2. 2 Locations

Head Office

Burson-Marsteller
230 Park Avenue South
New York, NY 10003
Phone: +1 212 614 4000
Fax: + 1 212 598 6928
 
London Office
Burson-Marsteller
24-28 Bloomsbury Way
London WC1A 2PX
United Kingdom
Phone: +44 20 7831 6262
Fax: : +44 20 7430 1033
 
A complete list of the addresses of B-M offices worldwide can be obtained from B-M’s web site[9] and at O’Dwyers PR Daily web site[10]
 
2.3 Practice Structure[11]

B-M structures its business around seven key practices or specialisations: Advertising/creative, brand marketing, corporate/financial, healthcare, media, public affairs and technology.
Activities within the advertising/creative practice are conducted by three subsidiary companies. According to B-M’s web site Marsteller Advertising is a “full-service advertising agency specializing in corporate, business-to-business and issue-related (or public information) communications,” whilst Burson-Marsteller Productions handles event management and TPS “offers a wide range of communications services, from designing and producing Web sites, interactive CD-ROMS and presentation graphics to providing video production and broadcast services.”

The Brand Marketing practice employs around 150 people under the leadership of Linda Recupero. The practice offers a wide range of services toward the end of increasing market share for clients’ brands.
The Corporate/Financial practice handles all aspects of “perception management” of a company – “to help top management understand, enhance and manage the perceptions of their corporation held by key audiences, including shareholders and the investing community, the media and, by extension, the general public, employees and opinion makers.”[12]
The extraordinary growth and sophistication of the healthcare industry has prompted B-M to set up a separate practice just for healthcare companies. The Healthcare practice offers the complete range of PR services to healthcare companies from product marketing, to crisis management to long term issues management around complex and controversial subjects like biotechnology. B-M boasts that it can manage and even create “scientific and political consensus around issues” in the healthcare sector[13].

The Media practice is B-M’s pool of expertise in exploiting the media to deliver chosen messages, what they call ‘media relations’, an essential part of any effective PR strategy. As well as ‘media relations’ the media practice also deals with internet-based PR, and communications training. Specialists with backgrounds in a wide range of different media are employed to ensure access to as many media sources as possible.
Public Affairs/ Government Relations work in the USA and Europe is carried out by B-M’s wholly owned subsidiary, BKSH, whilst in the rest of the world it is undertaken by B-M’s own offices
In the States BKSH’s head office is naturally in Washington DC, B-M boasts of “strong working relationships with decision makers and opinion leaders at the centres of power. In Washington, these range from Congress to the White House, from the State Department to the Pentagon, from national associations to the National Press Club. We understand the Washington D.C. community's own unique rhythm and set of unspoken rules, and we are skilled at negotiating for our clients to maximum effect.”
BKSH’s European HQ is in Brussels with a network of offices in the major European capitals each staffed with experts in the local political systems.

Technology was the first of the ‘practices’, formed in 1994. Concentrating mostly on electronic technologies. Like the healthcare practice, the technology practice provides a broad range of services, which might otherwise be provided by other practices, specifically to companies that need specialist knowledge of technology issues.
 
2.4 Subsidiaries

Black Manafort, Stone & Kelly – a lobbying firm with offices in Washington D.C. and Alexandria, Virginia[14]. The company keeps a low profile. It maintains no web site and is not even mentioned on Burson-Marsteller’s site. It is known to have worked for Phillip Morris[15], and to have conducted lobbying on behalf of the brutal Angolan rebel leader, Savimbi[16]
BKSH – B-M’s public affairs/lobbying subsidiary handles most lobbying for B-M in the USA and Europe (see section 2.3 Practice Structure above) 
 
 
2.5  Key UK Personnel

Peter Melchett
Lord Peter Melchett is the latest high profile environmentalist to take a job at Burson-Marsteller. His move was announced in January 2002, immediately after stepping down as head of Greenpeace UK. Melchett maintains that his new job will give him more access to corporations in order to push his the environmental agenda[17]. The move is part of a ‘hiring spree’ for B-M’s Corporate Social Responsibility Unit. B-M expects Lord Melchett's extensive experience of the NGO community, government and business to “provide unique insight for Burson-Marsteller clients.”[18]
 
Des Wilson
In 1989 Wilson was awarded ITN’s ‘Environmentalist of the Year’ prize. In his years of political work he ran the UK campaign for lead free petrol, was Chairman of Friends of the Earth UK, directed the Campaign for Freedom of Information and ran a general election campaign for the Liberal Democrats. In 1993 he took the position of Director of Public affairs and Crisis Management at B-M, with a salary rumoured to be one of the highest in the PR industry at that time[19]. He subsequently moved to BAA.
 
Richard Aylard
B-M’s Corporate Social Responsibility unit is headed by Richard Aylard. Aylard was previously head of the Soil Association, which certifies organic food and campaigns against GM crops and pesticides[20].
 
Gavin Grant
Before joining B-M in November 1999, Grant was Director of Global Corporate and Public Affairs for The Body Shop International reporting directly to Anita and Gordon Roddick[21]. Whilst there he had responsibility for coordinating The Body shop’s Ogoni Campaign which caused tremendous embarrassment for B-M’s client Shell.


Profile 1 l 2 l 3 l 4 l 5

Footnotes
[7] Except where noted info is from B-M’s web site: <http://www.bm.com/overview/ex_board.html>, date viewed 3-5-2002
[8] Klingbeil A, “He’s Mr Public Relations”, Cincinnati Enquirer 15-4-2001, <http://enquirer.com/editions/2001/04/15/fin_hes_mr_public.html>, date viewed 3-5-2002
[9] <http://www.bm.com/overview/locales/>, date viewed, 3-5-2002
[10] <http://www.odwyerpr.com/pr_firms_database/prdb21.htm>, date viewed 20-6-2002
[11] <http://www.bm.com/overview/practice.html>, date viewed, 3-5-2002
[12] <http://www.bm.com/overview/corp_pra.html>, date viewed 3-5-2002
[13] <http://www.bm.com/overview/health_pra3.html>, date viewed 3-5-2002
[14] Multinational Monitor, <http://multinationalmonitor.org/hyper/issues/1993/04/mm0493_13.html>, date viewed 20-6-2002; Mother Jones Magazine, www.motherjones.com/mother_jones/MJ96/kaplan.jump.html <http://www.motherjones.com/mother_jones/MJ96/kaplan.jump.html>, date viewed 20-6-2002
[15] Mother Jones Magazine, www.motherjones.com/mother_jones/MJ96/kaplan.jump.html <http://www.motherjones.com/mother_jones/MJ96/kaplan.jump.html>, date viewed 20-6-2002
[16] Multinational Monitor, <http://multinationalmonitor.org/hyper/issues/1993/04/mm0493_05.html>, date viewed 20-6-2002
[17] Guardian, 8 Jan 2002
[18] B-M’s web site, www.bm.com/newsroom/releases/2002/press2002-01-08.html, date viewed 20-6-2002
[19] Marketing, 20 May 1993
[20] Guardian, 8 Jan 2002
[21] B-M’s web site, www.bm.com/bios/g_grant_rep_bio.html, date viewed 20-6-2002