Centene Corp. CEO Michael Neidorff held no punches in his recent interaction with the media in St. Louis. The executive made it known to the world that he has become unhappy doing business in Missouri. It was apparent that Neidorff flexed the political muscle that his high station has afforded him, observed a highly respected commentator.
Journalist Ray Hartmann, co-founder of the local publication Riverfront Times, understood where Neidorff was coming from in criticizing the dire situation in Missouri. Hartmann agreed that the region indeed is hobbled by serious problems, and worse, the state authorities seemed clueless on how to resolve the conundrum.
The gist of Neidorff’s lamentations – if Missouri, or at least the St. Louis County, will not shape up soon, then Centene is ready to ship out and bring its business elsewhere. Neidorff did not drop a veiled threat as his media talks also revealed Centene’s billion-dollar investment in Charlotte, North Carolina. The giant insurer is setting up a new HQ and declaring publicly – Missouri needs us more, and if we are unwanted, then off we go.
But Neidorff Missed The Mark
According to Hartmann, Neidorff was right in scoring the shortfalls of Missouri. The state is swamped with problems that make it hard for businesses to flourish. Among the biggest constraints cited by Neidorff in his rant is the region’s shortage of a high-performing workforce. This is true because Missouri failed to invest big in education over the past decades. Hartmann admitted.
Then there is the abysmal state of the Missouri infrastructure and the surging crime incidents that are certainly discouraging for Centene and other businesses. On a personal note, Neidorff said, “the insular nature of the social and business elite in St. Louis,” is quite a turnoff.
Hartmann conceded that Neidorff made valid points in outlining the holes that need plugging in Missouri. However, the journalist also reminded the CEO that it is in St. Louis where Centene grew to the level that it is now. Centene is now a $100 billion company, and Neidorff is acknowledged as the most powerful business executive in St. Louis. And Centene saw a significant expansion in the last three decades partly due to “government largesse,” Hartmann said in trying to refresh Neidorff’s seemingly short memory.
It is public knowledge that taxpayers’ money partially supports Centene’s presence in St. Louis, to the tune of $175 million. And Hartmann noted that if Centene pushed through with the plan for a Charlotte relocation, nearly half of the $1 billion that will build the new headquarters would be sourced from public funding, specifically in the form of tax incentives.
So yes, Neidorff is scoring a system that benefits his business and ultimately his pocket. While it’s understandable for the CEO to complain about imperfections, he seemed to have overlooked one good thing: offering concrete solutions.
“He trashed this region like no one before him. Had it been for a truly constructive purpose, I’d have applauded, but it was intended more to rationalize than resolve,” Hartmann wrote in his op-ed piece for the Riverfront Times.
Why Not Do A Self-Check First
In letting out steam and ranting about Missouri, Neidorff did the obvious – leveraging his power. But he overlooked the critical things as well. The system, however, broke, also provided benefits to Centene. And it’s only incumbent on Neidorff to give back what he owes to the region. Sure, he can always criticize, but before doing so, Hartmann recommends checking the mirror first.
There is no doubt that Centene is in a good place right now, and that truth applies to Neidorff. However, Hartmann again reminded the executive that with great power comes greater responsibility. And failure to realize that could prove catastrophic.
“Centene CEO Michael Neidorff is the most powerful person in St. Louis today. He is also its most ominous with respect to the long-term future,” the journalist warned.
