NCTA Names Industry Outsider as New Pres.

NCTA picked as pres. industry outsider Kyle McSlarrow, a Bush Administration official with strong ties to the Senate -- a credential the NCTA board put high on its wish list when it began the search for Robert Sachs’ replacement 6 months ago.

Sachs announced his resignation in June (CD Jun 22 p1) but told the board he would stay until a replacement was named. He will leave Feb. 28; McSlarrow officially takes the helm March 1. McSlarrow resigned as deputy Energy secy. last week, effective early Feb., and is expected to spend the month familiarizing himself with his new job.

McSlarrow’s lack of cable industry experience is not a liability, said NCTA Board Chmn Glenn Britt, CEO of Time Warner Cable. “He can learn about the issues -- he had to learn them at the Energy Department,” Britt said. “Quite a large number of people were considered and the selection was unanimous,” he said. “We found the best person for the job.”

“He is a very strong appointment,” said cable lawyer and ex-NCTA staffer Bert Carp. “NCTA went through an extensive interview process, but what’s really important is that the board is really invested in him. He'll start off with a lot of support.” Carp added that NCTA’s board is very active and McSlarrow will be well positioned to be able to play a strong leadership role.

Comcast CEO Brian Roberts applauded the appointment: “Kyle’s lengthy record of leadership, accomplishment and experience as a senior aide in the U.S. Senate and in the Administration will benefit our industry as we work with legislators and policy makers to ensure that cable can continue to prosper, grow and compete,” he said in a statement.

One industry observer said McSlarrow was a quick study when faced with learning the complex science and engineering issues at DOE. The National Laboratory “directors all said ‘what a smart young man,'” the source said. Staffers who worked under McSlarrow found him respectful and polite. McSlarrow’s management style is reputed to be thorough but he’s “not a micromanager,” the source said: “He'll catch on in a second and I think they'll like him. He’s really sharp, business-oriented, and he'll be good for them.”

“I'm eager to lead the effort to tell cable’s story in Washington,” McSlarrow said in a statement. He declined to be interviewed since he’s still officially in his DOE job. At Energy, McSlarrow oversaw 100,000 employees, 17 national labs and a budget of $23 billion. He was chief of staff and then deputy secretary. Energy Secy. Spencer Abraham praised him for his management skills as the department’s COO in the press release announcing his resignation: “Perhaps his greatest accomplishment has been in overseeing the dramatic change in how this department is managed -- most visibly seen in the department’s rating by the Office of Management and Budget as the best managed Cabinet agency in 2004 after having been rated as the worst in 2001.”

“It appears that the NCTA would like to leverage McSlarrow’s political ties as the Senate Commerce Committee works on an overhaul of the Telecommunications Act of 1996,” said UBS cable analyst Aryeh Bourkoff: “One issue currently up for debate is whether the cable industry will contribute broadband revenue to the NCTA subsidy pool.”

McSlarrow was a top candidate to be named Energy secy. but was passed over when the post went to Samuel Bodman, former deputy at the Dept. of Commerce. Last summer, he lost out on another job in which he had been a top candidate when Adm. Frank Bowman, head of the nuclear Navy, was named pres. of the Nuclear Energy Institute.

Energy industry sources said McSlarrow earned high marks at DOE in a job in which others have foundered. As deputy he was the COO of the dept., shepherding a diverse portfolio of issues including clean up and containment efforts. “When they had problems at Los Alamos [National Laboratory] he was the go-to guy,” said an industry source who follows issues at DOE. “He was the lead DOE guy on the energy bill. On the whole lead up to who was going to be secretary he earned respect as a conscientious guy who worked hard. There was disappointment that he wasn’t named secretary. It would have provided some continuity.”

A gas industry source said McSlarrow provided important support for Secy. Abraham, a one term-member of the Senate. “He was considered a confident political player with a good background on the Hill and elsewhere,” the source said. “He was kind of an important person to have around because the Senator wasn’t that adept politically.”

A source with a major energy company agreed McSlarrow is well-regarded. “We just talked at the staff meeting yesterday about how much he will be missed,” the source said. “He was good about calling us back. He was good at listening to industry concerns. He was a problem solver.”

McSlarrow’s roots include 2 runs for Congress in addition to his career in environmental law. He twice ran unsuccessfully against Rep. Moran (D-Va.), a strong incumbent with a checkered career. He also was deputy chief of staff to Sens. Dole (R-Kan.) and Lott (R-Miss.) and chief of staff for the late Sen. Coverdell (R-Ga.). McSlarrow was in the Army general counsel’s office before beginning his private practice and Hill career.