| Shifting
gears
by
Paula C. Squires
Virginia
Business
September 2003
As many companies have learned during the slow economy
it can be tough — but necessary — to change
gears. Try doing it with federal regulators looking
over your shoulder and a turnover in senior management.
That’s the situation these days at Capital One
Financial Corp. Our cover story on one of Virginia’s
best-known and fastest-growing companies tells why CEO
Richard Fairbank is remaking the company into a tamer
version of itself. In an interview with Virginia Business
writer Jack Milligan, Fairbank shares how the company
has weathered the past 14 months, when federal regulators
came calling to see what was in Capital One’s wallet,
shareholders filed suit and long-time business partner
and company co-founder Nigel Morris decided to step
down for personal reasons.
Despite
the challenges, the company remains healthy and is expected
to remain a major player and employer in Virginia —
good news since Capital One is in the midst of one of
the largest corporate expansions in state history. Don’t
hold your breath on the 8,000 jobs the expansion was
supposed to create. Due to business conditions, Capital
One is backing away from those earlier rosy projections.
Also in this month’s issue is our annual look at
world trade. Typically during lean times, companies
look to international trade as a way to boost business.
We think you’ll enjoy our piece on how a small
company in Bristol used exports to grow its work force
from three to 2,300 people.
With
managed health care costs continuing to climb, we also
examine a new trend that might drive down costs: giving
consumers a say. Some Virginia companies are setting
aside annual funds and letting employees decide how
to spend their health care dollars. Beware of these
caveats, though: deductibles are usually higher and
once the money runs out, employees may have to pay out
of pocket for medical expenses.
While
we’re on the topic of having a say, a Harrisonburg
attorney does just that with passion on the Ideas page.
Guest writer Donald D. Litten, a lawyer since 1957,
shares why he believes Virginia should change the way
its selects judges. “Giving exclusive powers to
the legislature creates a partisan process with the
undeniable potential for abuse,” says Litten.
To
help readers obtain more information on topics we write
about, Virginia Business adds a new feature this month.
At the end of each story, you’ll find a Web Pointers
icon to point the way to Internet sites that we found
helpful. We also invite readers to check out our Web
site at www.virginiabusiness.com, where they can read
stories, respond to polls and send a letter to the editor
at talkback@va-business.com. Let us hear from you.
Paula
C. Squires
Managing Editor
psquires@va-business.com
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