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Chemical, pharmaceutical giant celebrates 50th year, prepares for new president
Sunday, September 21, 2008

Bayer Corp., the U.S. subsidiary of German-based chemicals and pharmaceuticals giant Bayer AG, today marks 50 years of operating its U.S. headquarters in suburban Pittsburgh with a celebration at its Robinson campus for employees and retirees, including former top U.S. executives Konrad Weis and Helge Wehmeier.

When it established the headquarters here in 1958, the company was known as Mobay Chemical Co., a joint venture of Bayer and Monsanto Chemical Corp. that traces its roots to New Martinsville, W.Va.

Since then, the U.S. subsidiary's name changed from Mobay to Miles and eventually to Bayer, while North American sales swelled from $25 million to $12 billion. Employment grew from 35 in Mobay's first office here to 2,700 in the region, including 1,500 in Robinson, and 1,200 at Medrad Inc., a Marshall-based medical device business Bayer acquired in 2006.

On Oct. 1, Attila Molnar, president and chief executive of Bayer's U.S. operations, will retire and be succeeded by Gregory Babe, a native son of New Martinsville who is the first American-born executive to lead Bayer's U.S. subsidiary. The Post-Gazette sat down with Mr. Babe to discuss his new role.


Q: How do you feel being the first non-German to hold the top job for Bayer in the U.S. ?


Gregory Babe

Job: President and chief executive officer, Bayer Corp. and senior Bayer representative for the United States and Canada, effective Oct. 1. Upon assuming that role he will also retain his current position as president and chief executive officer of Bayer MaterialScience LLC.

Age: 51

Hometown: New Martinsville, W.Va; resides in Mt. Lebanon

Education: Bachelor of science, mechanical engineering, West Virginia University, 1980.

Career: 1976-80: Worked at Mobay Corp., predecessor of Bayer Corp., in New Martinsville, as part of a college work-study cooperative program; 1980-present: joined the company full-time and held a series of jobs including supervisor and production management, New Martinsville plant; manager, Brunsbuttel, Germany, plant; director and general manager, Hennecke Machinery, Bridgeville; vice president, corporate quality; senior vice president, information services; chief information officer, North America; chief executive, Bayer Corporate and Business Services; president and chief executive, Bayer MaterialScience.


A: I have to say I'm honored to be the first American to be in that position. I'm excited at the same time. I think it's a very challenging time for all industry and all companies and quite frankly for the world when we look at some of the megatrends out there: the shift in demographics, energy issues and climate.

Q: Is there a cultural barrier you have to overcome as an American who is a top executive with a German-based company?

A: I sort of grew up in the company and I don't feel like an outsider in any way. I started at Virginia Tech on a football scholarship, played one year and decided as the only engineer on the team that it was probably a little heavier time commitment than I needed if I wanted to be a successful student in engineering.

So I immediately arranged for a [work-study] co-op at Mobay in my hometown. I was actually the first-ever formal co-op student inside of Bayer. That was kind of groundbreaking. I did two academic years at Virginia Tech, two at West Virginia University, and started working in New Martinsville upon graduation. ...

I've been in the middle of many large global projects and initiatives. I understand the cultural differences between nationalities. We're not just a company of Germans and Americans; there are lots of diverse nationalities inside our company and one has to be sensitive to that and be careful not to be too presumptuous. I think when I just be myself, I'll bring my American perspective into an international team. I've never felt second-guessed.

Q: After you become president and CEO at Bayer Corp. next month you will retain the role of president and chief executive of Bayer MaterialScience. Is that a lot to juggle and have other top Bayer executives held dual positions?

A: It seems like a lot. None have done it in this region but it's a model we've begun to deploy elsewhere, most recently in China which is a large and booming market. In that country, there's a joint role between material science and corporate overall responsibility. And in Mexico and Canada, the chief executive for the Bayer corporation also has the health-care business responsibility.

The U.S. is so big and so complex we were a little slower at doing it here. I'm confident doing it. There are some good advantages: You still have a foot in the operational side of one of the businesses dealing day to day with issues, customers and all the technical and operational issues you can sometimes get away from. It helps you keep a better perspective. It also means in the challenge of managing, those underneath you may have to take on more. It does really pick up everyone's game ... and enhances all the jobs and gives opportunity for growth.

Q: Your background has focused primarily on material science. How will you find time and develop the expertise needed to devote to the health-care and crop science operations?

A: That's a great question especially if you get to a leadership style perspective because my leadership style is very much one of direct interaction with employees. My whole mode of operation is, if I go into a new job, I have to have my vision as to where I need to take it. And once I have that vision, it's all bout tirelessly communicating that, as best as possible, face-to-face with as many employees as possible.

The next piece is to model the behavior. I don't ask anyone to do anything I'm not going to do myself. Finally, my goals on an annual basis and the goals I give to the organization from a top-down perspective are aligned with that vision. A key part of that is direct communication with employees across the region through electronic channels. We do streaming videos once a quarter. I do monthly roundtables where I meet with a random selection of 20 or 25 employees and bring them in and just talk about how things are going. Not just in Pittsburgh. I've done it at least once a year in every one of my sites in Bayer MaterialScience. I could do that for 12 sites in BMS.

How do you do that for 50 sites in Bayer Corp.? I won't be able to do it at the same level. But I will follow the same basic operating philosophy. I've had invitations already to speak at town hall meetings at the other subgroups and I can't wait to do that. ... That's really quite frankly the job. The job's about employees first. You've got to start there if you're going to make an impact. And you have to be there rather than just reading about it.

Q: Who have been significant mentors to you?

A: I came from a blue-collar background. My parents both worked two jobs ... to send five kids to college. My grandparents were dairy farmers and I worked on the farm with them until I became interested in sports and spent the summers there and learned how to work. But nothing in that background made me interested in science until I hit sixth grade. I had this teacher, Jim DeLuca, at my rural elementary school. We talked about the space program, it was 1969, and he came to my house and helped me set up an aquarium. From that time on it was clear to me I would do something science-based.

Inside of the company I've had some great predecessors. One is Helge Wehmeier (retired president and chief executive of Bayer Corp.). We had lunch today. He always gives good advice. And Lee Noble (retired president of Bayer Polymers) was always a good counselor to me.

And the other one was my high school football coach. He was probably the one person who helped me to think and reach for something more than I expected I could do. As many of the Division III schools were contacting me, I thought that was great. He said, "You can do more." And he was right. I went to Virginia Tech on a football scholarship. It begins to open up a different way of thinking.

Q: How do you spend your time away from work?

A: My life is three components. I've got this work piece which is a very big and important part. I've got my family piece which at this point in my life and my wife, Carla's, life, is about being part of what our [four] children do. And what they do is play basketball year-round. I don't miss many games. It means I can travel at really odd times sometimes. And I squeeze a whole lot of things into days that become very full. But it's very important for me to be part of my kids' growing up years. I've managed it and I'll continue to manage and balance that.

The third thing is what I do for myself. Anyone who lives in Mt. Lebanon probably sees me walking the streets because I walk five miles just about every day -- whether I'm home or not -- because that's what allows me to stay healthy and gives me my way to wind down. [During] a very fast-paced walk, a lot of problems become much clearer and much easier to manage.

Joyce Gannon can be reached at jgannon@post-gazette.com or 412-263-1580.
First published on September 21, 2008 at 12:00 am