2005 a pivotal year for Bill Kerr, Meredith
When Bill Kerr was a young boy growing up in Seattle, his grandmother impressed upon him a piece of wisdom he carries with him to this day: “Do your very best, no matter what you do.”
As chairman and CEO of Meredith Corp., Kerr clearly took that advice to heart in 2005 as he led the Des Moines-based media giant to its best financial performance in its 103-year history. With its July 1 acquisition of five leading women’s magazines – Parents, Child, Fitness, Family Circle and Ser Padres — from Gruner + Jahr Publishing, Meredith’s total magazine circulation jumped to nearly 30 million, making it the nation’s second-largest publisher in terms of circulation.
During the fiscal year ending June 30, Meredith increased its earnings by 23 percent to $128.1 million and for a 12th consecutive year increased dividends paid to shareholders. At the same time, its flagship title, Better Homes and Gardens, topped Adweek magazine’s list of 2005 market leaders for the industry. The company’s publishing group features 25 subscription magazines and approximately 200 special-interest publications. Its broadcasting group owns or operates 14 television stations and one radio station.
“It was a key year not only on the publishing side but on the broadcasting side as well,” Kerr told the Business Record. “The thing that strikes me most is that all the cylinders were pumping and they were pumping very well.”
Kerr, who on June 30 will retire from his current positions to become a director and consultant for Meredith, has been selected by the Des Moines Business Record as CEO of the Year.
Undoubtedly, the $350 million acquisition of Gruner + Jahr’s U.S. magazines will be one of the moves he will be most remembered for, said Kerr. He characterized the decision to go forward with the purchase, which recognizes the importance of titles appealing to younger women and Hispanics, as “weighty” but not difficult.
“We obviously did a tremendous amount of financial analysis to understand the upside and the potential downside (of the acquisition),” he said. “One of the things that made things easier is that their magazines are in many respects like our magazines.
Whether it was bold or risky, it was very intelligent and strategic for our company.”
Greater Des Moines will enjoy the upside of the acquisition, both in terms of the 90 or so “pretty outstanding” jobs it brought to the area and in terms of making Meredith an even stronger employer.
“We’re a company that is committed, as are others in the community, to making Des Moines a better community,” Kerr said. “I think it means that Meredith will have an even bigger role in the community.”
Kerr, who during a typical workweek jets to as many as five different cities to keep in touch with the company’s operations, said his permanent residence will shift from New York to Florida after he retires. However, with his duties on the boards of both Meredith and Principal Financial Group Inc., “I won’t be a stranger to Des Moines,” he said. “In fact, I’m in the process of remodeling my apartment in Des Moines. I hope to go from working 110 percent of the time to 90 percent of the time.”
Kerr said he also looks forward to spending more time with his wife, Mary. “We’ve been married 39 years and we’re wonderful friends as well as husband and wife,” he said. “I don’t know if she will be glad to see more of me; I will be glad to see more of her.”
Meredith’s success under Kerr brought industry recognition of the company and its leadership in 2005. In October, Kerr’s photo was on the cover of Folio magazine; the trade journal selected him as leader of a 14-member “dream team” of publishing executives. Advertising Age also spotlighted Kerr and his own executive team at Meredith with a cover story dubbing them “the sexiest men in publishing” shortly after the Gruner + Jahr acquisition.
“I think I got more satisfaction in seeing (Meredith President and chief operating officer) Steve Lacy being named Ad Age executive of the year,” Kerr said. “It’s easy for the CEO to look good if you’ve got a really great team.”
Kerr said he also enjoys developing and working with his managers throughout the organization.
“I hope I will be remembered as someone who did a good job in picking people,” he said. “I love our product and I love our business. I think loving what you do is very important to being successful.”