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Lee Schafer

Columnist | Business
phone: 612-673-4302
Lee Schafer came to the Star Tribune after 15 years as a corporate officer, consultant and investment banker in the Twin Cities. He has been a columnist for Twin Cities Business magazine and was senior editor for Corporate Report Minnesota.
Recent content from Lee Schafer
The Federal Reserve’s John Williams spoke at the Economic Club of Minnesota Tuesday.

Schafer: Are low interest rates here to stay? Fed official says they might be

It always pays to be at least a little skeptical of talk of a new normal, but John Williams' talk was still well worth taking in.

Schafer: Mosaic's headquarters move is disappointing but put it into context

It was surprising to learn this week that the Mosaic Co. has elected to relocate its corporate headquarters to Florida, though the surprise was in…
Medtronic corporate campus

Schafer: Medtronic hire brings expertise and plenty of questions

Medtronic clearly wanted to show how serious its executives are about creating "shareholder value." That only invited more questions.
For fintech companies like Minneapolis-based Sezzle, young adults who can't borrow money because they were turned down for a credit card represent an

Schafer: Sezzle online installment plans appeal to millennials without credit cards

There has been a boomlet of financial technology startups since the Great Recession, with fintech firms making a home in the Twin Cities.
Amazon has an expanding presence in the T3 building in Minneapolis’ North Loop.

Schafer: Hiring challenge knocked Twin Cities off Amazon's list

The recruiting challenge is what came out of feedback Amazon gave officials as part of calls to most of the also-rans in the race to become a second headquarters town.
A row of 2015 Ford F-150 pickup trucks were parked on the sales lot at Butler County Ford in Butler, Pa., in 2015.

Ford Motor Co. isn't quitting the car business—just the unprofitable car business

Doubters' misunderstanding seems to be a big part of the head-scratching reaction.
The Herberger's at Southdale Mall has going out of business signs displayed earlier in the month.

Schafer: Herberger's closing hard to take, but it's hard to fault investors

It's galling to have to admit they were almost certainly right.
In 2011, Medtronic founder Earl Bakken was acknowledged by CEO Omar Ishrak at the annual shareholders meeting in Fridley.

Schafer: Decades-old Medtronic mission statement offers lessons today

At first it seemed that Medtronic Chairman and CEO Omar Ishrak planned to deliver a superficial introduction to Medtronic, as if maybe no one in…
Minneapolis Fed President Neel Kashkari

Schafer: Fed's Kashkari sees strengthening case for higher rates

Kashkari spent much of last year as a sometimes lonely voice at the Fed opposing the idea that short-term interest rates should go up. While he's not exactly on board now with boosting them, a lot has changed since his last no vote. That was only last December.
Anybody looking for a bad guy in the story of Sun Country Airlines stranding passengers in Mexico as a snowstorm disrupted its operations could quickl

Schafer: Private equity has a PR problem

An April blizzard turned into just another bad PR moment for private-equity managers, who can't even seem to come up with a good word to describe themselves.
Four Polaris RZR sports off-road vehicle models have been part of recalls by the Consumer Product Safety Commission.

Schafer: Rolling recalls test Polaris' commitment to running lean

If operational excellence is a big part of the Polaris story, it really needs to stop recalling its products for potential safety problems.
Mark Zuckerberg, chief executive of Facebook, testified on Capitol Hill Wednesday.

Schafer: How much are your online data really worth?

So what's the users' privacy worth? It's priceless.
In this Thursday, Sept. 25, 2014, photo, the headquarters of Ucare is pictured in Minneapolis.

Schafer: UCare created a culture that allowed turnaround after big loss

UCare executives had to cut costs to survive. But there are lessons to be learned here about how they went about it.
Ceridian's headquarters in Bloomington

Ceridian growth is good sign for the Twin Cities

You may have to forgive some of us for our enthusiasm at the launch of Ceridian HCM Holding as a public company. It's a compelling growth story right now.

New numbers show PolyMet's Minnesota mine holds smaller potential, except to backer Glencore

Opponents of PolyMet Mining's plan to mine for copper, nickel and other metals in northeastern Minnesota keep hoping that the economics of the project collapse…
Former Gov. Tim Pawlenty spoke at the Edina Country Club on the Future of Work at a joint meeting of the Chambers of Commerce for Bloomington, Eden Pr

Schafer: Pawlenty's futurism helps steer broader understanding of changing economy

Whether talking about 3-D printed houses or smart toilets is a shrewd way to win votes remains to be seen.
Kim Griffith, motor vehicle supervisor in Bloomington, speaks to the committee about the problems with the Minnesota Licensing and Registration System

Schafer: Firing MNLARS manager won't fix what led to debacle

It may look like the state of Minnesota acted just like the state’s best-run companies by holding someone accountable for the mess made of a…
Unionized employment in St. Paul's newsroom has fallen from about 150 at the time MediaNews acquired the publication in 2007 to the most recent count

Schafer: Lawsuit calls out Pioneer Press owner for its tactics

Alden Global Capital has for years treated one of the biggest media companies in the country like a big ATM. Someday, it will run out of money.
Target CEO Brian Cornell spoke during Tuesday morning's annual investors meeting in downtown Minneapolis.

Schafer: Target's decision to remodel stores goes beyond gut instinct

Target Chief Operating Officer John Mulligan says he gets asked “all the time” why the company keeps investing in its stores. It’s a new digital…
Patterson's Mendota Heights headquarters.

Schafer: New ERP programs can cause headaches for companies — ask Patterson

After Patterson Cos. announced that an ERP problem — among other factors — led to a disappointing quarter, its stock ended the day about 24 percent cheaper.
House Speaker Kurt Daudt and Republican House leaders waited by the door to greet Gov. Mark Dayton as he left the budget announcement news conference.

Schafer: Lawmakers' claims that tax cuts led to state surplus don't add up

The best explanation for the billion-dollar surplus guess has to be that Republicans had really wanted to take a victory lap.
The door to the bank vault at a Wells Fargo bank is shown after a news conference announcing the Wells Fargo vSafe, a personal online safe, in San Fra

Schafer: Annuities may offer a security blanket in uncertain times

For those of us who have had no choice but a do-it-yourself retirement program, there just isn't a sure path to a worry-free future.
3M headquarters in Maplewood. Along with Post-it notes, Scotchgard is maybe the best invention story 3M has.

Schafer: 3M must learn from its $850 million mistake

Minnesota's lawsuit and the settlement arose out of the traditional strengths of an enduringly excellent company.
General Mills headquarters campus

Schafer: Is General Mills deal a good one? Only the company can make it so

General Mills is paying what seems like a lot of money — about 25 times cash earnings — for the Blue Buffalo pet food maker.…
Kate Knuth

Schafer: Chief resilience officer is lesson in risk management

It was a bad PR day for the city of Minneapolis last week when its chief resilience officer left after only seven months and without…

Schafer: Noncompete contracts can make it tough to change jobs

The law is fine, one Twin Cities attorney says. It's getting the law applied that's so challenging for workers.

Schafer: Minneapolis mutual fund manager Disciplined Growth Investors aims to attract clients directly

Some pithy, funny or sometimes odd statements about investing that appear on the sides of transit buses and billboards in the Twin Cities can be…
From left, Mary Vanderwert, Steve Marchese, Zuki Ellis, and Jon Schumacher are the candidates who ran for St. Paul school board under a Caucus for Cha

Schafer: St. Paul schools negotiators started out on the same side

Let’s hope the St. Paul Public Schools’ contract negotiations with its teachers’ union aren’t the start of a new and more chaotic era in labor…
FILE - This May 6, 2012, file photo, shows a Wells Fargo sign at a branch in New York. The Federal Reserve’s move against Wells Fargo & Co. late las

Schafer: Fed wisely puts Wells Fargo on a short leash

The agreement with the Federal Reserve keeping a lid on the size of the Wells Fargo balance sheet is a big deal.
CEO of Cliff Natural Resources, Lourenco Goncalves.

Schafer: Cliffs' CEO plays offense in Iron Range land dispute

Lourenco Goncalves, who put on a not-to-be-missed show for a roomful of Iron Rangers last week in Eveleth, is a miner with a track record of delivering.

Schafer: Wage inflation starting to show its face

There's nothing riskier when deciding what to do with your savings than concluding "this time it's really different" in the market.
This Wednesday, May 3, 2017, photo shows a U.S. Bank branch in Omaha, Neb. U.S. Bancorp reported solid financial results for its fourth quarter, altho

Schafer: U.S. Bank finds policing the bad guys is expensive

U.S. Bank just booked a $608 million expense to settle with regulators over compliance failures.
Pedestrians walk past a recently built trio of geodesic domes that are part of the Seattle headquarters for Amazon.

Schafer: Why would Amazon snub Twin Cities in headquarters contest?

The worst possible outcome in the competition for Amazon.com's second headquarters has already come to pass for the Twin Cities.
Neel Kashkari, president and chief executive officer of the Federal Reserve Bank of Minneapolis.

Schafer: Higher interest rates drive investment? One CFO explains

Neel Kashkari of the Federal Reserve Bank of Minneapolis visited Cargill, and much of what the Fed really does was discussed.

Schafer: Visible City connects data to real-life decisionmaking needs

His company is still just a startup, yet Visible City has been analyzing multiple layers of data to do things like help a client find the sin­gle best site for a new a­part­ment build­ing. That seems pret­ty prac­ti­cal.
By Twin Cities technology entrepreneur Casey Allen's count, Minnesota now has 33 co-working centers. While the supply seems a sign of good, some sort

Schafer: Are co-working spaces disrupting real estate?

It's also seen as a sign of a healthy culture of entrepreneurship to have lots of busy co-working places nearby.

Schafer: Retailers do care what happens in far-off apparel factories

Brands can be easily tarnished when workers are injured or systematically exploited.
FILE - This Tuesday, July 19, 2016, file photo shows the Google logo at the company's headquarters in Mountain View, Calif. Google is clearly useful i

Schafer: Students, find your vocation, not your passion

The college students career counselor Emily Reinert sees at Augsburg University in Minneapolis won’t hear much from her about passion. Instead they will hear more…
President Donald Trump grabs a box containing the tax bill after signing it Friday in the Oval Office of the White House.

Schafer: Tax bill helps some industries a lot more than others

  The assumption in my household all year was that the Republican tax cut bill was meant to really benefit people richer than we are,…
Medica Headquarters in Minnetonka

Schafer: No one should be upset that Medica transferred funds to a for-profit subsidiary

It’s hard to guess who critics thought got the profits when nonprofit Medica transferred capital to its for-profit health insurance subsidiary. No one does, of…
In this Friday, Dec. 8, 2017, photo, people use the Bitcoin ATM in Hong Kong.

Schafer: Ignore the talk of new paradigms in rise of bitcoin

To state the obvious, no one can really "invest" in bitcoin. Just speculate.
Mark Bertolini, Aetna’s chief executive, could see half a billion dollars in compensation when the purchase by CVS goes through.

Schafer: Aetna sale spotlights CEO pay

Aetna Inc. CEO Mark Bertolini will collect about half-a-billion dollars when and if Aetna’s sale to CVS Health closes, according to the Wall Street Journal.…
Minnetonka-based UnitedHealth Group is in the sights of CVS and Aetna as they try to merge.

Schafer: CVS-Aetna deal is about catching up to UnitedHealth

Of the two competitors, the one to bet on is the one that doesn't need to operate a big network of brick-and-mortar stores.

Schafer: Big ACA tax bills catch some smaller employers by surprise

Some employers in the region have still been knocked back by the IRS letters landing in their mailboxes.
Buffalo Wild Wings has been sold to the investment firm that owns Arby's and Jimmy John's. (Dreamstime) ORG XMIT: 1217059

Schafer: Activist exits Wild Wings with little gain

Provided the deal with Arby's closes early next year as planned, McGuire persevered in a grimly determined proxy fight only to agree to a buyout premium of all of 3 percent once his nominees were elected.
Delta will take its only remaining 747 on a victory lap to its four largest U.S. hubs — Detroit, Seattle, Atlanta and finally MSP.

Schafer: It's tempting to jump on that last 747 to MSP

Sure, it's just the retirement of a commercial airplane, but there never was anything ordinary about the 747.
Laurie Harker color illustration of family standing on cash and portfolio under leafy branches of large tree. Minneapolis Star Tribune 2006<p> family

Schafer: Saving for retirement isn't easy at any level of income and is hardest for the poor

Some books and financial advisors make it seem that saving for retirement is pretty simple. The implicit idea is that, if people still live on the financial edge after many years of working, there must be something wrong with them. That's not the case.
Asher Labovich, 13, and his 10-year-old brother, Emerson, left, mess around with the family's Alexa, an Amazon Echo voice assistant, while their mom,

Schafer: Smart-home devices can learn too much about our daily lives

So really how smart — and harmless — is one of these things?

Schafer: Private equity firm finds Twin Cities has big pool of management talent

The sale of a majority stake in the Minneapolis software firm Jamf that was announced last month marked another milestone for investment firm Summit Partners,…
Hy-Vee’s entrance in the Twin Cities market is one reason a consultant this summer called the metro area “one of the most over-stored grocery mark

Schafer: Investment dollars always pursue a return

The decisions about how capital gets deployed also help explain why so many industries, such as restaurants and groceries, are cyclical.

Schafer: Merger is a good fit for Capella, Strayer

Some awfully entertaining reading can usually be found in the background of the merger section of the securities filings that companies prepare for shareholders when…
P.J. Fleck says he won’t know until December how successful his teaching approach has been.

Schafer: Fleck's approach shows importance of building a culture

How the Gophers head football coach define culture? "Connection ... It's connecting people."
Treasury Secretary Steven Mnuchin, right, and Director of the National Economic Council Gary Cohn discuss the goals and feasibility of President Trump

Schafer: Trump should just take a shortcut to saving household taxes

Champions for tax reform in Washington want to help the middle class so much that they have proposed a big income tax cut for the biggest U.S. corporations. Really. And they think it's going to work, too.

Schafer: Bloomington firm Stevens Foster invests locally, keeps the bar high

Lots of people see the good that can come of spending money at a shop owned and staffed by people from the neighborhood. A financial…
In Minnesota’s biggest city, the City Council would likely remind Amazon executives a lot of the City Council in their hometown of Seattle.

Schafer: Would the Twin Cities be a better Amazon partner than Seattle?

Minneapolis residents found out this month that seven of their City Council candidates and two people who are running for mayor can imagine a city…
The SEC says defendants in the inside trading case involving a former Life Time Fitness executive cleared about $87,000 each.

Schafer: Trading case tied to former Life Time exec hits investing neophytes

It's a cautionary tale, if proven in court, about how quick profits can easily tempt unsophisticated people to break the law.
Lisa Clarke, executive director of the DMC Economic Development Agency, shown in April.

Schafer: Mayo Clinic is invested in Rochester, but there's more work to be done

Company towns got their bad reputation when the big employers veer from not just bossing people around to taking advantage of them.
The transcontinental bake-off now underway for a new Amazon.com headquarters has highlighted how aggressive our neighbors in Wisconsin and Iowa have b

Schafer: In sizing up bids for businesses, you can't forget Minnesota starts better off

Compared with Iowa and Wisconsin, in Minnesota we enjoy higher household incomes and are more likely to have a job, have college degrees and be covered by health insurance.
Co-founder of the Jamf software firm Chip Pearson

Schafer: Perception of the Twin Cities technology market doesn't meet reality

Entrepreneur Chip Pearson has been trying to get the word out that our region’s startup technology sector is a lot bigger — and has created…
Target is among the companies using mobile technology to recruit seasonal help. Signs inside select Target locations in South Florida encourage season

Schafer: Target's wage hike not invoked for theatrics

Some local employers can't imagine how Target gets attention for starting people at $11 per hour. It's far too late in this tight labor market for $11 an hour to be news.
Would turning the Twin Cities into a second Amazon company town be good for the region, when Amazon’s growth could come at the expense of a group of

Schafer: Could Amazon steal the Twin Cities' top talent if it expands here?

Complaining about competing against Amazon for workers would make Best Buy and Target look like whiners. But it's clearly an issue.
Fred Martin, founder and lead portfolio manager, Disciplined Growth Investors

Oct. 5 event aims to help investors be better stewards of assets

Fred Martin, the founder and lead portfolio manager for Disciplined Growth Investors of Minneapolis, is also the founder and host of an event he hopes will recur annually called Objective Measure.
It’s been five years since Best Buy CEO Hubert Joly put a turnaround in motion. Yet the company seems to be acting with a lot of urgency.

Schafer: Best Buy CEO tells investors it's all about the customer experience

Keeping the customers coming back seems pretty fundamental, but in traditional retailing it's easy to get distracted by the store.

Schafer: Teachers pension plan officials cry foul over report that used its numbers

When a standard changed, what was already a sizable financial hole turned into a crater.
Amazon's new headquarters town also has to have a major international airport within 45 minutes of the facility, with nonstop flights daily to places

Schafer: Is Amazon the big game for Twin Cities? Bring it on

The Twin Cities doesn't have to get Amazon.com's second headquarters and its potential of 50,000 jobs to get a big win out of the new headquarters sweepstakes.
Attorney General Jeff Sessions speaks during a news conference at the Justice Department in Washington, Tuesday, Sept. 5, 2017, on President Barack Ob

Schafer: There's no good economic case for ending DACA

Most of what I learned in economics for a degree granted more than 30 years ago has long ago leached away, but I remembered enough…

Schafer: Savings from joining forces could make this deal a winner for H.B. Fuller Co.

Savings achieved by joining forces might make this deal a winner for H.B. Fuller Co.
Dave Wichmann will make a lot of money as CEO of UnitedHealth Group, although maybe not as much as his predecessor did.

Schafer: CEOs get a windfall and need perspective to handle it

People would be happier, and not to mention a lot easier to work for, if they really grasped that it's far too easy to give themselves credit for good fortune.
An investment in a college education is a much better bet than buying a lottery ticket, even if the payout tops $750 million.

Schafer: Place your bets on college, not the lottery

There's an old line about a lottery that is well worth repeating: It's not a form of legalized gambling, it's a form of legalized swindling.
Wells Fargo Chairman Steve Sanger’s retirement is seen by many as “continuing fallout” from last year’s scandal.

Schafer: Criticism isn't the only thing Wells Fargo's board deserves

Somebody on that board did a lot of hard work trying to fix the bank's problems.
Thrivent people in the field have shown interest in learning how to build relationships with people of any cultural background.

Schafer: Thrivent executives have hard conversations about race

It turns out that it's not elitist or corporatist to believe that businesses will do better if they find a way to include everybody. It's common sense.

Schafer: For Red Wing entrepreneur, 'make the world a better place' isn't an empty phrase

Susan Langer's start-up is called Live. Give. Save., but this is business, not philanthropy.

Schafer: Staying the same has made Minneapolis investment firm new

Traditional, even old-fashioned, precisely describes Minneapolis money manager Compass Capital Management. Yet it is also growing.

Schafer: 10 years later, financial crisis remains a puzzle

A commentary by two savvy economists shows something new and important to say about the financial crisis even 10 years later.
Foxconn Chairman Terry Gou, left, and Gov. Scott Walker hold the Wisconsin flag to celebrate their $10 billion investment to build a display panel pla

Schafer: Foxconn's economic impact study fails to show the math

What the people of Wisconsin need is a cost-benefit analysis to answer questions. What they got was Foxconn's economic impact study.
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