American Red Cross President & CEO Gail McGovern will end her 15-year run, retiring on July 1, 2024. Chief Operating Officer Cliff Holtz will become the organization’s new leader. McGovern will join the organization’s board.
McGovern joined the ARC during one of its most tumultuous periods. There were disagreements with the International Federation of Red Cross and Red Crescent Societies and chaos in the Biomedical Services division which handles roughly 40% of the nation’s blood supply. It was under her watch that the federal Food and Drug Administration lifted its consent decree oversight of the Biomedical Services Division after almost 23 years and $47 million in fines.
She is the longest service leader since founder Clara Barton. McGovern stabilized the executive suite after rapid turnover that included resignations or firing of multiple chief executives. It was not always a smooth ride, with criticism of the organization’s response to several weather emergencies.
“The American Red Cross has been transformed under Gail’s brilliant leadership,” said chairman of the Board of Governors, Bonnie McElveen-Hunter via a statement. “She has led the Red Cross with the one-of-a-kind combination of her heart and her mind, bringing her deep compassion and also the superb business skills to ensure our humanitarian mission continues to be a beacon of hope and help for generations to come.”
Revenue at the organization – and most importantly public support – has increased during her tenure. For Fiscal Year 2022, total revenue was $3.18 billion, up from $3.09 billion and public support hit $1.01 billion, up from $792 million. Program service revenue for Fiscal 2022 was $2 billion. She eliminated a $209 million annual operating deficit during her first two years.
She chaired the Leadership 18 group of leaders of the nation’s largest human services organization and four times was selected to The NonProfit Times’ Power & Influence Top 50. In the rationale for the 2023 Top 50 selection, the NPT editors wrote: “If the sector was a rock band McGovern would be the quiet Beatle whose driving beat moved everything forward. By quiet, there’s no longer controversy surrounding one of the nation’s most important nonprofits. Her mantra of try new things and if it doesn’t work, try something else has been the foundation to resolving issues that long plagued ARC.”
Prior to joining the Red Cross, McGovern was a faculty member at the Harvard Business School and earlier was president of Fidelity Personal Investments, a unit of Fidelity Investments. She was also executive vice president at AT&T for the Consumer Markets Division, the company’s largest business unit, responsible for its $26 billion residential long-distance service.
That’s where the Red Cross board has again gone to fill the top job. Holtz spent 15 years at AT&T, his last position there being president of Metro Markets. After leaving AT&T in February 2000 he was in senior leadership positions at Gateway Corporation, Qwest, Deloitte, Nortel and Pelco.
Holtz has overseen all mission delivery for the 142-year-old organization, comprising Blood Services, Training Services, and Humanitarian Services, which includes domestic and international disaster response activities and Service to the Armed Forces. He also leads strategy for the organization.
“Cliff and I have worked closely since his first day here and during the past year we have prepared for my transition. He has been integral to our progress, and I have absolute confidence and trust in his ability to assume the reins with continuity and care,” McGovern said.
“It has been the honor of my life to lead the American Red Cross and be part of an organization that serves millions of people at times when they are at their most vulnerable. The extraordinary skill, compassion and commitment I have seen in our more than 300,000 volunteers and employees across this country humbles me every single day,” said McGovern. “I could not be prouder of how we have stepped up to address the challenges of our time.”
Sector reaction to the announcement was swift. “Gail is not only a humanitarian she is a compassionate and accomplished leader who has guided the Red Cross through extraordinary times. She leaves the Red Cross prepared for the future,” said Jo Ann Jenkins, CEO of AARP.
“Congratulations are in order for my colleague in community resilience, American Red Cross CEO Gail McGovern, on her retirement,” said Angela F. Williams, CEO, United Way Worldwide. “The American Red Cross and communities around the world have benefitted tremendously from her leadership and commitment to humanitarian service. Gail is a steward of collaboration and innovation, and it has been an honor to work alongside her to identify solutions to some of the world’s most challenging issues, especially through our together work on Leadership 18.”
Said Suzanne McCormick, president and CEO of the YMCA of the USA: “Gail will be missed. She is is a fierce leader for good.”
Salvation Army’s Commissioner Kenneth Hodder said, “It has been my privilege to work with Gail for more than three years, during which time I have come to admire and appreciate not only her strategic perspective and outstanding leadership ability, but her personal warmth as well.”
Said Nancy Brown, CEO of the American Heart Association: “Gail McGovern has led the American Red Cross with integrity and compassion and helped the organization navigate some of the worst disasters and crises of our time. Her leadership has been a beacon for nonprofit leaders across the sector, and I know I speak for many others when I share my immense gratitude for her incredible commitment to the humanitarian mission of the American Red Cross.”
