×

CNBC TRANSCRIPT: ANNE MULCAHY, FORMER CHAIRMAN AND CEO OF XEROX CORPORATION, ON CNBC'S "SQUAWK BOX"

Anne Mulcahy
Source: xerox.com
Anne Mulcahy

WHEN: Today, September 30th

WHERE: CNBC's "Squawk Box"

Following is an excerpt of the unofficial transcript of Anne M. Mulcahy, Former Chairman and CEO of Xerox Corporation, today on CNBC's "Squawk Box." All references must be sourced to CNBC.

*************************

JOE KERNEN: WE HAVE ANNE MULCAHY HERE. EVERY MINUTE WE WASTE I DON'T -- SHE'S A VERY SPECIAL GUEST HOST IN STUDIO. SHE TURNED AROUND XEROX. CURRENTLY THE DIRECTOR OF SOME OF THESE COMPANIES -- I HAVEN'T HEARD OF THESE.TARGET, JOHNSON & JOHNSON, THE "WASHINGTON POST."

JOHN HARWOOD: SHE'S GOING TO BE SETTING ADMINISTRATION POLICY PRETTY SOON.

TRISH REGAN: THAT'S WHAT WE HEAR.

KERNEN: THAT'S WHERE WE'RE GOING TO GO IMMEDIATELY. OUT OF ALL THE NAMES, AND I SAW -- MIKE TYSON I KNOW IS NOT GOING TO BE PROBABLY -- TAKE LARRY SUMMERS' JOB. I RULED HIM OUT IMMEDIATELY. I SAW NAMES THERE PROBABLY NOT MUCH MORE RIDICULOUS THAN MIKE TYSON. YOURS WE BELIEVE BECAUSE YOU'RE A WOMAN, NUMBER ONE AND CEO WITH A GOOD REPUTATION AND YOU'VE HAD DEALINGS WITH THE OBAMA ADMINISTRATION.YOU'RE CLOSE --

ANNE MULCAHY: AND I'M A DEMOCRAT.

KERNEN: AND YOU'RE A DEMOCRAT.

MULCAHY: THAT'S A FAIRLY SMALL SUBSET OF PEOPLE.

KERNEN: I DIDN'T WANT TO SULLY YOU. KIDDING, KIDDING, KIDDING, PLEASE. PLEASE -- SO THERE WAS TALK. YOU HAD DINNER WITH VALERIE JARRETT, RIGHT?

MULCAHY: I DID HAVE DINNER WITH VALERIE JARRETT. THAT WAS NOT THE TALK AT THE DINNER WITH VALERIE JARRETT.

KERNEN: COME ON. THAT WAS NOT THE TALK?

MULCAHY: ABSOLUTELY NOT. I MEAN, I'VE HAD COMMUNICATIONS WITH THE ADMINISTRATION ABOUT, YOU KNOW, INPUT, WHAT TO DO ABOUT THE BUSINESS COMMUNITY, PARTICIPATING IN CERTAIN ASPECTS OF THAT. I DO BELIEVE IT'S GOOD TO BE A CONSTRUCTIVE FORCE HERE, BUT THAT ROLE WAS NEVER DISCUSSED AT THAT DINNER.

HARWOOD: ARE YOU THINKING VALERIE ONLY HAS DINNER WITH PEOPLE WHO--

SORKIN: HAS THE JOB ISSUE BEEN BROACHED WITH YOU, MAYBE NOT AT THAT DINNER BUT ELSEWHERE --

MULCAHY: BY THE ADMINISTRATION, NO.

KERNEN: NO?

MULCAHY: HAVE OTHER ROLES BEEN APPROACHED?ABSOLUTELY. THIS WAS A MEDIA STORY.

KERNEN: SO THEY CONNECTED -- LET ME ASK. SO YOU'RE SAYING THEY KNEW YOU HAD DINNER AND THEY JUMPED TO THE CONCLUSION AND YOU BECAME ONE OF THE LEADING PEOPLE BECAUSE OF THE --

MULCAHY: JOE, I'M NOT SURE IF I HADN'T HAD DINNER THAT THERE WOULD NOT BE SPECULATION BECAUSE OF EXACTLY WHAT YOU SAID.THAT IS, THEY'RE LOOKING TO OBVIOUSLY HAVE MORE CEO AND BUSINESS REPRESENTATION. THEY'D LOVE TO HAVE MORE WOMEN IN THE ADMINISTRATION AND IF YOU DO THE SEARCH ON, YOU KNOW, WOMEN CEOs, DEMOCRATS YOU COME UP WITH A FAIRLY SHORT LIST OF PEOPLE.

REGAN: WOULD YOU CONSIDER IT?

MULCAHY: I THINK THAT THAT'S NOT A GOOD BIT FOR ME. I THINK I HAVE A ROLE RIGHT NOW. MY PLATE'S PRETTY FULL. I'VE REALLY MANAGED TO TAKE ON TO SOME THINGS THAT ARE REALLY IMPORTANT TO ME RIGHT NOW. I'M NOT LOOKING --

HARWOOD: WHY IS IT NOT A GOOD FIT?

MULCAHY: I THINK IT'S REALLY A POLICY AND PROCESS ROLE, AND CLEARLY THERE IS A ROLE THERE FOR, YOU KNOW, A SERIOUS ECONOMIST, AS WELL AS SOMEBODY WHO'S GOT BUSINESS SAVVY. AND I THINK THEY'LL HAVE OTHER CANDIDATES THAT WILL BE A BETTER FIT FOR THAT JOB.

KERNEN: WHEN WE WERE REPORTING THE STORY, AND I, YOU KNOW, YOUR MIND STARTS GOING WHEN YOU GET OLDER. I WAS HARKENING BACK TO THE LAST TIME YOU GUEST HOSTED AND I SAID THAT THIS IS INTERESTING BECAUSE YOU WERE VERY OUTSPOKEN AND I ASKED WHEN YOU CAME IN AN OFF CAMERA TODAY, YOU WERE OUTSPOKEN ABOUT THE APPROACH OF THE OBAMA ADMINISTRATION TO BUSINESS. QUITE CRITICAL LAST TIME YOU WERE ON AND WHEN YOUR NAME WAS MENTIONED I SAID, THAT SEEMS ODD BECAUSE -- DON'T HOLD IT AGAINST HER, BUT YOU CERTAINLY WOULD CHANGE A LOT OF THINGS OF THE WAY IT'S BEEN HANDLED UP TO THIS POINT.

MULCAHY: I DO THINK THEY CAN DO A BETTER JOB OF RESPONDING TO BUSINESS. I THINK THERE'S BEEN A LOT OF INTERACTION BUT NOT A LOT OF RESPONSE. I DO THINK THERE'S A NEED RIGHT NOW TO USE THIS CHANGE OF ADMINISTRATION AS AN OPPORTUNITY TO GET PEOPLE IN THAT CAN BUILD THOSE BRIDGES AND ACTUALLY DO A BETTER JOB OF RESPONDING TO BUSINESS.

HARWOOD: IS THAT ABOUT SUBSTANCE OR DIPLOMACY?

MULCAHY: I THINK IT'S ABOUT SUBSTANCE.

HARWOOD: YOU ALWAYS TALK ABOUT THE SUBSTANCE

KERNEN: YOU ALWAYS MAKE THIS POINT, LIKE IT'S NOT TRUE. LIKE THEY GOT THIS STIGMA FROM BUSINESSPEOPLE BUT THERE'S REALLY NOTHING THEY'VE EVER DONE TO DESERVE THIS REPUTATION.

HARWOOD: JOE, DO YOU HAVE, LIKE PLUGS IN YOUR EARS?

KERNEN: NO. I ALWAYS SEE THIS AND ALWAYS WONDER HOW CAN YOU POSSIBLY -- DID YOU SEE WELCH ON WHEN HE WENT ITEM BY ITEM?

HARWOOD: YOU'RE INTERFERING WITH AN IMPORTANT PERSON'S ANSWER TO AN IMPORTANT QUESTION.

KERNEN: I GOT TO DO THIS TO SIFT THROUGH THE BS, HARWOOD. GO AHEAD.

MULCAHY: I THINK THERE ARE ISSUES ON THE TABLE THAT WOULD BE DETRIMENTAL TO BUSINESS THAT CLEARLY HAVE TO BE ENGAGED WITH.

HARWOOD: LIKE?

MULCAHY: LIKE FOREIGN TAX DEFERRAL.

HARWOOD: YOU THINK THEY'RE WRONG ON THAT?

MULCAHY: I DO. I THINK THEY'RE WRONG ON THAT.

KERNEN: EVERY CEO THINKS THEY'RE WRONG ON THAT.

MULCAHY: ABSOLUTELY. I THINK INTERESTINGLY ENOUGH AND TO YOUR POINT I THINK THERE HAVE BEEN VERY CONSTRUCTIVE BUSINESS VOICES THAT ARE TRYING TO HELP THE OBAMA ADMINISTRATION THAT HAVE BEEN VERY CANDID ABOUT WHAT SHOULD HAPPEN AND WHAT SHOULDN'T HAPPEN. AND YOU KNOW, I THINK THAT WE HAVE TO BE CANDID ABOUT THIS --

SORKIN: I WANT TO TAKE THE OTHER SIDE ON THIS. IS THE -- WHAT IS THAT? I'M NOT TAKING THE OTHER SIDE. THE QUESTION I HAVE IS -- IT'S NOT A RHETORIC ISSUE, BUT IS IT A PROBLEM BECAUSE THEY DON'T UNDERSTAND THE ISSUES AND THE WAY YOU'RE THINKING ABOUT IT BECAUSE THEY DON'T HAVE SOMEBODY IN THE ADMINISTRATION THINKING ABOUT IT THAT WAY OR FUNDAMENTALLY A VIEW OF THE BUSINESS WORLD FROM THE WHITE HOUSE, AS YOU WOULD SAY, I THINK JOE, THAT SOMEHOW OBAMA, DAVID AXELROD AND CO JUST DON'T LIKE BUSINESS? A LOT CAME AWAY AND SAID, HE SAID HE'S FOR BUSINESS BUT HE DOESN'T REALLY SEEM TO BE.

MULCAHY: YEAH. I THINK IT'S SOME AND SOME.I ACTUALLY BELIEVE THAT THEY HAVE DEVELOPED A MENU OF APPROACHES THAT THEY BELIEVE THEY'VE GOT TO PUT IN PLACE. THEY'VE BEEN SOMEWHAT FOCUSED AND UNMOVABLE ON THOSE ISSUES. AND SECONDLY, I DON'T THINK THERE'S A LOUD ENOUGH VOICE, VOICES WITHIN THE ADMINISTRATION TO HAVE THE DEGREE OF INFLUENCE TO ACTUALLY GET SOME OF THOSE ISSUES OFF THE TABLE.

REGAN: THIS IS WHY JOE WAS SO ENCOURAGED WHEN YOUR NAME CAME UP BECAUSE PEOPLE ARE LOOKING FOR THOSE KIND OF VOICES IN THE ADMINISTRATION.

MULCAHY: MAKE NO MISTAKE ABOUT IT. I WILL SOMEHOW FIND A WAY THINK TO WORK WITH THIS ADMINISTRATION IN A CONSTRUCTIVE WAY, BUT IT CERTAINLY WOULD NOT BE THE ROLE --

KERNEN: HOLD ON.WHAT I'M TRYING TO DEAL WITH, ANNE, IS THE GAP BETWEEN TO KNOW HOW MUCH WE NEED JOBS, EMPLOYMENT, TO KNOW -- I MEAN, I CAN JUST CONNECT -- GO LOGICAL FOR THE ADMINISTRATION. WE WANT JOBS. THE ONLY REAL GOOD JOBS ARE FROM THE PRIVATE SECTOR. THEY'RE FOR THE -- IF YOU WANT JOBS YOU NEED TO TRY TO HELP THE PRIVATE SECTOR. THE GAP BETWEEN THAT, THEY CAN'T KNOW -- THEY CAN'T NOT KNOW THAT THERE'S BEEN A DISCONNECT BETWEEN ACTION AND WORDS AND WHAT THEY'RE ACTUALLY TRYING TO ACCOMPLISH. I THINK MAYBE THEY DO KNOW AND THEY'VE GOT LONGER TERM ISSUES WITH INCOME DISPARITY AND REDISTRIBUTION THAT THEY THOUGHT WAS MORE IMPORTANT AT THIS POINT THAN JOBS AND WILL GET ELECTED IN 2012 EITHER WAY BECAUSE THE ECONOMY WILL COME BACK.

MULCAHY: BY THE WAY I THINK THERE'S SOME TRUTH TO THAT. WHEN YOU TALK ABOUT THE BUSINESS COMMUNITY I ACTUALLY THINK YOU HAVE TO THINK ABOUT IT'S NOT JUST A SINGLE BUSINESS COMMUNITY. I THING THEY THINK ABOUT IT WHERE JOBS GET CREATED. I THINK THEY'RE FOCUSED ON SMALL BUSINESS. THAT'S WHERE THEY'RE OBVIOUSLY GOING TO PUT A LOT OF ENERGY INTO JOB CREATION ON SMALL BUSINESS.THEY'RE GOING TO BUT A LOT OF ENERGY --

KERNEN:AND BASHING BIG BUSINESS. I CAN GO DOWN THE LIST OF INDUSTRIES. IN FACT, TO BE SHORTER TO GO ON THE LIST OF BIG BUSINESSES THEY HAVEN'T BASHED.

HARWOOD: BY THE WAY, IS YOUR VIEW --

KERNEN: VILIFIED.

HARWOOD: -- AS I'VE HEARD FROM SOME ECONOMISTS THAT ALL OF THIS TALK AND ROMANIZATION OF SMALL BUSINESS IS ARCHAIC BALONEY, THAT BIG BUSINESS IS WHERE THE BEST JOBS ARE AND WHERE THEY OUGHT TO FOCUS?

MULCAHY:I DON'T THINK IT'S A BUNCH OF BALONEY. I RAN A BIG BUSINESS. MOST BIG BUSINESSES ARE NOT GOING TO BE THE ANSWER TO A LOT OF JOB GROWTH.

SORKIN: YOU THINK A SMALL BUSINESS --

MULCAHY: I AM A SMALL BUSINESS FAN. I THINK IT'S CERTAINLY PART OF THE SOLUTION. THAT'S WHERE THEY'VE PLAYED A LOT OF THEIR ENERGY AND RESOURCES.

SORKIN: WHEN YOU HEAR BIG BUSINESS CEOs SAY YOU HAVE TO FOCUS ON US, WE CREATE THE JOBS NOT ONLY BECAUSE WE'RE GOING TO BUILD A PLANT BUT BECAUSE OF ALL THE OTHER SMALL BUSINESSES THAT ARE GOING TO HAVE TO SERVICE THE PLANT. THAT'S THE ARGUMENT.YOU THINK THAT'S NOT TRUE?

MULCAHY: NO, I ACTUALLY THINK IT'S MORE ABOUT KEEPING JOBS IN BIG BUSINESS THAN CREATING JOBS IN BIG BUSINESS. I WOULD LOOK AT IT AND SAY IS THERE SOME BIG BUSINESS GOING TO BE IN THE HIGH GROWTH? CERTAINLY THERE ARE SOME SECTORS THAT ARE GOING TO BE THERE. AND I HEARD JACK WELCH SAY BY THE WAY--

REGAN: I WANT TO ASK ABOUT THE POLICY YOU ADD ONE MORE EMPLOYEE AS A SMALL BUSINESS, YOU SUDDENLY BECOME I GUESS A BIG BUSINESS BECAUSE YOUR TAX STRUCTURE IS DRASTICALLY ALTERED. DO YOU THINK THEY'RE DOING ENOUGH TO ENCOURAGE GROWTH AMONG SMALL BUSINESSES THROUGH THEIR TAX POLICY?

MULCAHY: WELL, I MEAN, THEY JUST PASSED A SET OF, YOU KNOW, KIND OF STIMULUS FOR SMALL BUSINESS THAT DOES DEAL WITH TAXES ON EMPLOYMENT TAXES AND HEALTH CARE AND A WHOLE SET OF THINGS DESIGNED TO BE ATTRACTIVE FOR SMALL BUSINESS. I THINK WE TEND TO GENERALIZE THESE DISCUSSIONS AND HAVE TO THINK ABOUT THE BUSINESS COMMUNITY MORE BY SECTOR AND SIZE AND WHAT YOU CAN GET FROM THE BUSINESS COMMUNITY. AND WHEN IT COMES TO BIG BUSINESS THINGS LIKE FOREIGN TAX DEFERRAL, WE WILL LOSE JOBS IF THAT GOES INTO -- IT'S NOT A QUESTION OF --

HARWOOD: LET'S TALK ABOUT THAT.THAT'S CORE TO THE STORY THAT THEY DEVELOPED ABOUT THE ECONOMY.FROM THE ADMINISTRATION AND DEMOCRATS, THE STORY IS, WE'VE GOT ALL OF THESE TAX INCENTIVES BUILT INTO THEIR SYSTEM THAT ARE SHIPPING JOBS OVERSEAS AND WE TAKE THOSE AWAY, WE'RE GOING TO HAVE MORE JOBS HERE. TELL ME WHERE THEY'RE WRONG.

MULCAHY: IF YOU'RE A GLOBAL COMPANY, YOU ARE GOING TO HAVE JOBS OVERSEAS. I MEAN, THIS ISN'T ABOUT --

HARWOOD: THEY WOULD SAY, WHY SUBSIDIZE?

MULCAHY: YOU HAVE TO BE COMPETITIVE IF YOU'RE GOING TO BE A GLOBAL COMPANY. THE REALITY IS IF WE START TAXING JOBS AT A RATE THAT MAKES THEM NONCOMPETITIVE IN THOSE MARKETS THE REALITY IS WE WILL LOSE BUSINESS.IT'S A DEFINITE --

REGAN: WHY ISN'T THIS BEING CONVEYED? IT SEEMS LIKE A FAIRLY STRAIGHTFORWARD PRINCIPLE.

MULCAHY: I THINK IT HAS BEEN CONVEYED.

REGAN: YET WE'RE NOT SEEING ANY ACTION ON THAT FRONT OR ANY INDICATION OF ANY ACTION.

KERNEN: DO THEY SAY WE DON'T -- DO THEY SAY WE DISAGREE WITH YOU?

MULCAHY: I THINK -- AND THIS IS PROBABLY SOME OF THE FRUSTRATION OF THE BUSINESS COMMUNITY IS THAT THERE'S BEEN LOTS OF DIALOGUE ON THIS. AND THERE, YOU KNOW, APPEARS TO BE A LEVEL OF LISTENING BUT NOT THEN A RESPONSIVENESS TO THIS.

HARWOOD: IS IT YOUR SENSE THAT THEY SAY, YEAH, WE GET IT BUT WE HAVE POLITICAL NEEDS AND WE'RE GOING TO FOLLOW THOSE NEEDS?

MULCAHY:ABSOLUTELY. ON THAT PARTICULAR ISSUE, YES.

SORKIN: THIS IS ABOUT POLITICS.

REGAN: IT SHOULDN'T BE, RIGHT? BECAUSE AT THE END OF THE DAY IT'S THE ECONOMY. THE UNEMPLOYMENT RATE IS STILL HIGH.IT'S GOING TO BE A VERY CHALLENGING POLITICAL ENVIRONMENT FOR A DEMOCRAT.

KERNEN: WE'RE BACK TO ACCOMPLISHING LONG-TERM GOALS AND FOR NEAR-TERM JOB GROWTH WE'RE WILLING TO WAIT ON THAT TO ACCOMPLISH THESE LONG-TERM IDEOLOGICAL GOALS WHICH IS BAD.

MULCAHY: WELL, AND I THINK ON THAT PARTICULAR ISSUE --

HARWOOD: SOUNDS LIKE AN ELECTORATE GOAL.

MULCAHY: I THINK SO, TOO. ON THE OTHER HAND, RND TAX CREDITS, THAT'S A BIG DEAL.THAT'S A LONG-TERM INVESTMENT THAT IS REALLY IMPORTANT FOR --

HARWOOD: YOU LIKE WHAT THE ADMINISTRATION SAID ABOUT PERMANENT RND?

MULCAHY: ABSOLUTELY. I THINK THAT, YOU KNOW, WAS A NO BRAINER IN TERMS OF MAKING SURE THAT WE'RE INVESTING UPSTREAM.

HARWOOD: YOU LIKE THE NATIONAL INFRASTRUCTURE BANK AND $50 BILLION THE ADMINISTRATION PROPOSED FOR THAT?

MULCAHY: I THINK WE'D ALL LIKE IT. I THINK THE CHALLENGES EXECUTING AGAINST IT IN A WAY THAT CREATES SUSTAINABLE GROWTH. THAT'S WHERE, YOU KNOW, I SIT BACK AND I'M NOT AN EXPERT IN THAT AREA, BUT I WORRY ABOUT THAT.

HARWOOD: YOU DON'T THINK IT'S GOING TO WORK?

MULCAHY: I'M WORRIED ABOUT IT.I THINK IT'S A CHALLENGE. WE DON'T HAVE A GREAT TRACK RECORD HISTORICALLY OF USING THOSE KINDS OF FUNDS TO CREATE SUSTAINABLE GROWTH.

KERNEN: HOW ABOUT SOME OF THE -- THESE -- THE LATEST JOB CREATION MOVES.WHAT ABOUT 12 MONTHS AGO, 18 MONTHS AGO?HOW ABOUT HEALTH CARE? HOW HAS HEALTH CARE -- HAS THAT HELPED BUSINESSES HIRE, OR HAS THAT CAUSED BUSINESSES TO HESITATE ABOUT HIRING?

MULCAHY: I THINK THE REALITY IS IT'S CREATED HESITATION AND CONCERN AND, YOU KNOW, THERE'S -- I DON'T THINK YOU'D FIND A LOT OF BUSINESSES THAT WOULD --

KERNEN: I'M LEADING THE WITNESS.

MULCAHY: HEALTH CARE IS AN ENABLER.

KERNEN: IF JOBS -- IF VALERIE JARRETT, WE HAD HER ON WHEN WE WERE IN WASHINGTON. IT WAS PROBABLY TEN MONTHS AGO.WE BRISTLED TEN MONTHS AND AGO AND SAYS JOBS HAS BEEN THE TOP PRIORITY FOR THIS ADMINISTRATION FROM DAY ONE. YOU CAN'T MAKE THAT CASE, CAN YOU?

MULCAHY: WELL, I CAN -- YOU KNOW, I THINK THE THINK THE REALITY IS NO ONE HAS THE SOLUTION TO THE JOBS PROBLEM.

About CNBC:
CNBC is the recognized world leader in business news, providing real-time financial market coverage and business information to more than 340 million homes worldwide, including more than 95 million households in the United States and Canada. The network's Business Day programming (weekdays from 5:00 a.m.-7:00 p.m. ET) is produced at CNBC's headquarters in Englewood Cliffs, N.J., and also includes reports from CNBC news bureaus worldwide. Additionally, CNBC viewers can manage their individual investment portfolios and gain additional in-depth information from on-air reports by accessing http://www.cnbc.com.

Members of the media can receive more information about CNBC and its programming on the NBC Universal Media Village Web site at http://nbcumv.com/cnbc/.