Andrew Tobias - Demystifying Finance

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FIRE AND ICE
The Story of Charles Revson - the Man Who Built the Revlon Empire.

Chapter 20

Last Rites

Was he a good man or a bad man? He was both. He was a very strange man.

-- Sy Wassyng, former Revlon package designer

The man from the temple had arrived promptly for his appointment with Charles Revson, which meant that he could have a long wait. He was sitting in Revson's office with Irving Botwin.

"Revson always had me sit with people," Botwin explains, "because he was always an hour late for any meeting. Rather than have someone sit in the office all by himself, he'd say, 'Irving, sit with the guy; I'll join you shortly.'"

The man Irving was sitting with had come on behalf of Temple Emanu-El, of which Revson was an inactive member, to solicit money for a building fund. He was new to this, Irving recalls his saying, had never approached anyone for a contribution before . . . but, being a C.P.A. and active in the temple, they had made him chairman of the drive. He was understandably nervous about meeting Revson, and wanted to know what he was like.

"He's not going to bite you," said Irving. "The worst that can happen is that he says no."

Charles comes in, Irving introduces them, and Revson says, "I suppose you're here on behalf of the temple?" The man says, "Yes, we have a drive on for the building fund." Revson says, "I'm in between meetings and I know you're busy and I don't want to waste your time and you probably want to get home to your dinner . . ." It was by now around six-thirty. " . . . Irving, give him twenty-five thousand dollars." And he shook the man's hand and walked out.

"The guy started to tremble," says Irving. "He probably would have been happy to get two thousand. I started to walk him back to the elevator and I could see he couldn't put his coat on; he couldn't find the sleeves. He said: 'That's the most remarkable guy I've ever met in my life.'"

The man from the temple, Alfred Bachrach, remembers the incident a little differently, though with much the same result. He wasn't chairman of the building drive, he was president of the temple. He wasn't new to the fund-raising business, he had already received $25,000 and $50,000 donations from several prime donors. It's true he was a bit leery of his meeting with Revson, but as no one on the fund-raising committee had really known him, it fell to Bachrach to make the approach. Charles came in, Bachrach described the new school the temple was trying to build, Charles said he was interested in the temple even though he wasn't able to attend as often as he would have liked, and asked what "they" were giving, meaning the other prominent members. They were giving $25,000 or $50,000, Bachrach said, using some names he'd been given permission to use, and Charles generously offered $25,000, the amount for which a classroom would be named in his honor. Appreciative as he was, it is unlikely that Bachrach trembled unduly. But the essence of the story -- Charles's generosity -- holds. Over the years he gave many millions of dollars to Jewish, medical, and educational causes. Roughly fifty million more -- half his estate -- was placed in a charitable foundation upon his death.

The block-long "Revson Plaza" that spans Amsterdam Average and connects Columbia Law School with the rest of the campus was his $1-million-plus gift, as was the $750,000 black marble computerized (to compensate for shifts in the wind) fountain at Lincoln Center. "Estee Lauder builds a little park on Sixty-sixth Street," sniffs a senior Revlon marketing man, "and she makes a big deal about it. All the rich people in the world live there -- they don't need a park. They need it in Harlem. But she built it there because that's where she'd get some publicity. And here Charles gives three-quarters of a million dollars for a fountain at Lincoln Center, which everybody can enjoy -- and nobody knows about it." (Except that it isn't in Harlem, either, and the inscription, cut across four feet of black marble, reads: FROM THE CHARLES H. REVSON FOUNDATION IN HONOR OF CHARLES H. REVSON.)

Many of his most touching gifts -- $1,000 to the Cuban refugee brother of a manicurist at The House of Revlon, for example -- were purely spontaneous, in no way publicized and, for that matter, not even tax deductible.

Like most donors, Charles was both embarrassed by, and eager for, recognition of his generosity. Those who spoke of his "buying his way into heaven" were simply unfair. If he was no more purely altruistic than the next guy, he was also no less. He believed, as he stated often, that "we who take have got to give." He felt particularly strongly about supporting the state of Israel. Why should he build a factory there when it looked as though it would be more economical to ship goods in from other markets? "Because we're Jews, that's why," he told his financial vice president. He was not one for prayers, and he knew little of the history of his people -- but he knew who his people were.

And now, August 26, 1975, after a year-long struggle with pancreatic cancer (an unusual variety of cancer -- of which, through some morbid coincidence, Kay Daly passed away just months after her former boss), he was being credited by the rabbi at Temple Emanu-El with having been "a giant" among those people. Nearly a thousand of them -- many current and former employees -- had come to his funeral. ("I wouldn't have missed this one for the world," said Bill Mandel on the way in.) And when former judge Simon Rifkind, who delivered the eulogy, characterized Charles's unbending perfectionism as having been "both his greatest strength and his greatest failing," nearly a thousand heads nodded imperceptibly.

Lyn's among them. She had arrived at the temple in a white, low-cut dress, her hair disheveled-looking exactly as her former husband would not have wanted her to look. No seat had been reserved for her. Unlike Ancky, she was not considered a member of the immediate family.

In other respects, everything was just as Charles would have wished. Quietly impressive. (Well, he would have had something to say about the lack of air conditioning, numerous of those assembled remarked, but other than that . . .) The casket was smothered in red carnations. At Ferncliffe, the nonsectarian cemetery where he was laid to rest beside his parents and his brother Joseph, each of the 150 onlookers was given a red carnation to place on the casket upon leaving, by way of farewell. Charles had arranged the same farewell for the Major years before, only with white carnations.

 

It was widely assumed that Charles had divorced Lyn (and hired Bergerac) only after he learned of his terminal illness, thereby to assure that she would be cut out of his estate. This was not the case. He may have sensed that he was entering the last phase of his life, but he did not know how short that phase would prove to be. "He wasn't sick at all when he divorced Lyn," Dr. Steiner states flatly.

By his sixty-eighth birthday, however -- October 11, 1974 -- he had already been in the hospital for an operation on "an obstructive jaundice due to a gallstone" -- they thought he had hepatitis at first -- and he knew he would soon be going back for more treatment. The ritual surprise party held for him in the office each year thus took on a special significance. "All his birthday parties were moving," Paul Woolard, head of Revlon domestic, reflects, "because he had an ambivalent attitude toward them. He didn't want anything to be done, yet I think he really was touched that his people would remember him and respect him and thank him."

Before this last party, Woolard acted as decoy while everyone gathered in the executive dining room. Charles was trying on a new fedora -- he loved hats -- with a broad band and a snap-down brim. "He kept trying it on and asking me how I liked it," says Woolard, "and he looked good. He always looked good." Meanwhile, Revson's secretary kept coming in with messages for Woolard about the people who were gathering. When everyone had assembled, Woolard told him he had a very private matter to discuss with him -- would he mind coming into the next room? "You shit," said Revson, "you did it -- didn't you?" Woolard played dumb, but the jig was up. So they went into the adjoining dining room amidst the applause of everyone from Mickey Soroko to John and Charles Revson, Jr. (but not a woman in the crowd).

There was champagne and low-cholesterol cake, and some gag telegrams the advertising people had come up with, as well as a handsome oriental chest for which they had all chipped in. Charles began to say something, but his voice was quivering. "I didn't think I was going to make it this year," he started to say -- and he began to cry. He actually began to cry. He quickly left the room. Woolard started to say something -- and he too choked up. "Well, that proves he's human," someone said, to break the uncomfortable silence. Once Charles had regained control, he returned to the room and said something about it's having been a tough year, but that he was feeling better and was looking forward to more parties like this one. Then they had lunch and got back to business.

"It was very touching," says Charles, Ir. "Although people respected and feared him, they could feel sympatico towards him. The telegrams and the gift were not what choked him up, because he'd seen this for thirty-five years. It was his having just had the operation, and the fact that he would never hold the same position in the company that he had had. Bergerac would be coming in, and it was going to be a new era for him."

It was the beginning of the end of what had been a lifelong, all-consuming love affair. But it was also a measure of his remarkable self-discipline and clear thinking that he had decided to begin a process of orderly succession. Other founder/chief-executives run their companies halfway into senility and halfway into the ground rather than relinquish the reins to an able successor -- Elizabeth Arden was a case in point.

In Revson's judgment, no one man within the company stood out sufficiently to be certain of commanding unquestioned respect and unchallenged authority. With Mandel's departure, Paul Woolard had become the front-runner. Victor Barnett had high hopes, as well. But talented as Woolard was, efficient as Barnett was, Revson shrewdly decided to go after a man head and shoulders above the rest.

He hadn't been much interested in his first three presidents. Indeed, when the board of directors chose Revlon's first, George Murphy, they did so knowing he would never last. It was, in one director's words, just a way to get Charles used to the idea of having someone between himself and the rest of the company. But now that he wanted Revlon to have a president -- a post that had been vacant for five years -- he wanted the best that money could buy. After considering a number of possibilities, including John Delorean, the General Motors maverick, he decided on Michel Bergerac.

Bergerac was then head of ITT/Europe, with $5 billion in sales. His brother, Jacques, had been known primarily as Ginger Rogers' handsome husband until, at the age of forty, he met Charles Revson at a party on Earl Blackwell's terrace and decided to give up his mediocre career in grade B movies (Les Girls, Gigi, Taffy and the Jungle Hunter) for a role in the cosmetics business. He spent a year learning the business behind the cosmetic counters at Abraham & Straus and Bambergers, in training classes, and at the lab, and soon after rose to head Revlon/France. Supposedly, the negotiations between Revson and his brother Michel were kept so secret that Jacques learned of them only when the deal was announced.

To initiate contact, Charles had called Bergerac at ITT/ Europe headquarters in Brussels. "This is Charles Revson," he said. "I guess you know who I am." Of course. "I understand that you come to New York once a month, and I wonder whether you could have dinner with me on your next trip." Certainly.

After a dinner at the Revson apartment during which nothing of substance was discussed, Charles asked Bergerac if he could guess why he had been asked to come. Bergerac, model of the efficient, well-organized, modern global executive, answered that it would be one of three things: "You could be having trouble with one of your companies in Europe and need my assistance, which I would naturally be delighted to give; you could be interested in selling your company for estate purposes; or you could want to hire me." Charles was so incensed at the idea that he might want to sell Revlon that he flew into a (controlled) rage. "This company will never be sold out to anyone! No one is going to take over Revlon, now or ever." And so on. It was only after he had established that point beyond any conceivable doubt that he returned to the third of Bergerac's alternatives. Yes, he wanted Bergerac to become president of Revlon.

"It was an interesting romance," Bergerac admits, and it led to one of the most remarkable compensation packages in corporate American history. (And presaged, some believe, more such big-money deals for corporate heads in the future.) The $1.5 million bonus he received just for signing won him the sobriquet "Catfish" Bergerac, after pitcher millionaire Catfish Hunter. And a key point in the deal, leaked to the press so that Revlon's veterans would know where their bread would in future be buttered, was that Bergerac would become chief executive officer of the company within one year -- failing which he could quit and receive his full five years' pay (at $325,000 a year). The signal was very clear: this was not just another president for Charles to practice on. This was the future of Revlon.

A result of Bergerac's leadership skill, and of some enormous financial incentives, was that none of Revlon's veterans left the company. Not even Woolard, despite his disappointment. (Barnett was soon moved into a staff position, where his dedication and acumen could be put to good use, but where he would be less apt to antagonize his colleagues. This move alone was enough to win Bergerac considerable loyalty among the other veterans. Shortly thereafter, he resigned.)

Revlon won't fall apart without Revson, in part because of Bergerac, but also because -- despite all the turnover -- he built an organization with depth. He reproduced himself. It wasn't always the most pleasant training, but it pervades the entire cosmetics industry. When Suzanne Grayson, who left Revlon to build her own company, examines a product, her question is always: "Would Charles approve this?" As one observer put it, he carved his initials into everyone he ever worked with.

 

Little more than a month after leaving Lyn, in March 1974, and a few weeks before going into the hospital for his gallstone operation, Charles was aboard the Ultima II, cruising in the Caribbean. (Martin had disembarked in Nassau a day or two earlier.) On one of his innumerable routine calls to the office, he received the chilling word that hours later would be blasted across the front page of the Daily News: PLAYBOY RACER KILLED IN CRASH. Peter Revson, thirty-five years old, had been making a test run in preparation for the South African Grand Prix when his racer crashed into a iron railing and burst into flames. The News credited "the handsome, dark-haired Revson" with having had "money [self-made], style, and the adulation of beautiful women all over the world. His well publicized liaisons," they said, "sometimes overshadowed his record as the best road racing driver in America and one of the best in the world." His last "liaison" had been with twenty-year-old Marjorie Wallace, the first American ever to have been crowned Miss World -- who then had to relinquish the title because of unfavorable publicity over their affair.

Peter's parents and uncle had never approved of his career, opposing it most vehemently after his younger brother, Douglas, also a race-car driver, died in a crash in Denmark in 1967. Whatever strain Peter's career must have placed on his father, his uncle dealt with it by adopting a sort of fatalistic attitude. When Lyn called to tell him that Peter, racing in 1971 at Indianapolis, had hit the wall and was being rushed to the hospital (unscathed as it turned out, but Charles didn't know that), he turned to the men he was meeting with, told them what had happened and, although visibly upset, said simply: "You're in that business, you take that chance."

Now Peter had been killed, and his uncle, tears in his eyes, flew up to New York for the funeral.

As children, Peter, Doug, Johnny, and Boochie had all grown up together. Peter saw his uncle fairly often. Later, their contact was very limited. Peter was one Revson who never worked for Revlon. Indeed, he lent his name to Yardley, a competitor. But they were close in spirit. The Revson toughness, pride, and drive for excellence was every bit as clear in Peter as it was in Charles and Martin. In an autobiography he co-authored shortly before his death, Peter sounded much like an articulate version of Charles Revson himself : "The ability to concentrate is the most important thing you can have . . ." "From turn to turn around a race course you are dealing with perfection . . ." "Understand this: Losing really hurts. To fail in the race is the most painful thing imaginable." (Speed With Style, The Autobiography of Peter Revson (Doubleday, 1974)

 

His own two sons were alive and well, fortunately, but had faced the awesome challenge of growing up just that -- his sons -- and, for that matter, in Peter Revson's shadow. John was basically his father's son; Charles, Jr., his mother's. Where Charles, Jr., is punctual and returns phone calls, John is notoriously late and unreliable. Where Charles, Jr. (like neither parent), might convert a first-class ticket to coach and pocket the difference, John would never dream of flying anything but first class. John went to school where his father wanted him to, Brandeis ("That's where I could get in," he admits -- his father's millions helped); Charles, Jr., refused his father's help or advice and chose Penn. But John -- like his father, who never went at all, and his cousin Peter, who tried three -- never graduated from college; Charles, Jr., did. John is outgoing and a great womanizer; his brother is more reserved. John is short and lean; Charles, Jr., taller and heftier.

Charles, Jr., does have some of his father's characteristics. I could see him staring in amazement at my brown shoes (scuffed, at that), wondering how someone otherwise presentable could be so gauche; and he had the captain move us to what was apparently "a better table." But he is much easier going than his father was or his brother is. At least this much can be said for John: once you do manage to get him on the phone, you get straight answers. If, as his father was, he is no diplomat, neither does he mince words or "beat around the rosary bush." And if he does not have all of his father's shrewdness and drive, he does have some of it.

Demanding as much from his sons as from his other executives -- or more -- Charles, much as he loved them, was not satisfied. Charles, Jr., was responsible -- but he just didn't seem to grasp the overwhelming, all-consuming importance of the business. John had the spark -- but not the same sense of responsibility. "I saw John and his father get on the elevator one day four or five years ago, when John was between wives and living at home," says a former colleague, "and it's a long ride up forty-nine flights. John looked bad. He always looked like he'd been out all night. His hair was always a mess . . . Charles is in one comer of the elevator and John is at the opposite end, and I'm in there with about seven other people. 'What time did you get in last night?' Charles asks him in that whine of his. 'About three-thirty,' John says. 'Goddamn it, I was down in your room at twelve and you weren't there, and at one, looking for you -- I had some great ideas and you're not there. Where were you, the Hippopotamus with some broad? Three-fifty, four bucks a drink -- what happens if you weren't a vice president? What if I made you a goddamned clerk -- would that keep you home? Here I'm paying you whatever it is and when I come to talk to you, you're not home . . .'"

 

Most men derive satisfaction and a shot at immortality of sorts by leaving the world offspring. Whatever reservations Charles felt about his own (they were not perfect, so he felt reservations), he had Revlon to leave as a monument to his memory, in later years he had, increasingly -- and under the guise of its having been necessary for business -- become more and more to Revlon what Colonel Sanders is to Kentucky Fried Chicken. A constant struggle went on within him between his shyness (insecurities) and his ego, with the latter winning more and more of the battles as he got older. He had always resented the fact that his company was not called Charles Revson, the way Arden was Arden; Factor, Factor; Rubinstein, Rubinstein; and Lauder, Lauder. But he couldn't come right out and say that -- he wanted others to goad him into stardom for the good of the company. A woman who worked for Revlon first in the late fifties and then again in the early seventies noticed a huge change in Charles: his ego had inflated tremendously. She recalls a package designer presenting a new carton, with the product name in large type above charles revson, smaller. Charles didn't like the package. The elements were not in balance, he said. The designer, who knew all about elements, begged to differ. Charles said the design looked top-heavy. The designer said he thought it was just right. Charles tried every way to say it without saying it: screw the design; he wanted his name bigger.

A few years earlier, Revlon had got a terrific write-up in Women's Wear -- it was all "Revlon says this" and "Revlon is bringing out that" -- a very positive piece -- and Charles called his PR man, Warren Leslie, livid. Furious. Why? "It should be personalized! I want it personalized!" Mandel had been trying to convey just the opposite image -- that Revlon was an ongoing corporation, not a one-man show -- so that Wall Street would have more confidence. But Charles wanted to be portrayed as the last word in fashion and marketing. Wall Street would keep buying the stock, he said, as long as they kept showing the earnings. And he was right.

And so it was that month by month the charles revson grew into Charles Revson into Charles Revson into CHARLES REVSON, in ads and package designs. By the time of his death, there was a CHR line, a Charles Revson, Inc., a wildly successful perfume called Charlie (which blossomed into a full cosmetics line), and a men's line that would be introduced called Chaz. No one will say whether Jontue, a fragrance that followed Charlie, was a coy bow in the direction of "John, too."

Probably not, but the question of John's future role in the company is often raised. And that, in turn, raises the question of Charles's will -- a curious document. Neither John nor Charles was given a seat on the board of the Revson Foundation, into which half Revson's estate was placed. Nor were they given control over much of the other half, even though a good deal of it is being held in trust for them. Thus neither son has a significant block of Revlon stock to vote. Instead, the foundation, as well as the various trusts set up in the will, are directed by Charles's executors, Harry Meresman and Simon Rifkind, with Victor Barnett named as an alternate.

The executors receive $1 million to execute the estate -- a far cry from the $15 a month Harry Meresman pulled down when Revson first put him on retainer. There is no love lost between the irrepressible, and at times irresponsible, John and Harry Meresman, who is professionalism personified (and who, when I saw him a few days before Christmas 1975, was wearing a plain black suit, black socks and shoes, a white shirt, and, for contrast, a solid black tie). Even Charles had begun to consider Harry a little "square" as he himself was exposed to the limelight, and so dropped him from his list of social regulars. But he trusted him implicitly, and presumably was depending on him to provide the kind of discipline he felt John lacked. (What discipline Meresman does not provide, the Securities and Exchange Commission might: Months after his father's death, John was charged by the S.E.C. with stock market manipulation in concert with, among others, ex-embezzler Eddie Gilbert.)

Others named in Charles's will were his stepchildren, Steven, Jeffrey and Susan Sheresky; his granddaughter, Jill; Katie Lowery, to whom he was always grateful for having in large measure brought up his children -- and who, accordingly, will receive $10,000 a year tax-free for the rest of her life; and Irving Botwin, his friend and executive assistant, to whom he left $250,000 in cash.

Had he wanted to, with a mere 2 percent of his estate he could have bestowed $10,000 on each of 200 people toward whom he felt kindly, or by whom he particularly wished to be remembered -- but that was not what he had in mind. There were not a great many people toward whom he felt special fondness, nor many whom he would admit had had a hand in his success. He had paid them well, and he would not stand for being taken advantage of in death any more than he would in life. So to his chauffeur of eighteen years, Bill White (who in the last year had had to be on call twenty-four hours a day, because Charles refused to go back and forth from his apartment to the hospital in an ambulance), and to the crew of his yacht and to his butler and servants and secretaries, and to Dr. Mac, et al -- not a dime.

Beyond pointing out that Bill White had been on the corporate payroll all those years, not on Charles's personal staff, neither Irving Botwin -- dumbfounded by his good fortune -- nor Harry Meresman, who helped prepare the will, could offer any explanation or rationale for the seeming omissions. "You never knew what that man was thinking," Botwin says of his departed friend and benefactor.

 

Far from bringing on a rush of vituperative revelations, Charles's death elicited an outpouring of fond and respectful remembrances -- some hypocritical, to be sure, but many genuine. One of the nicest came from Marlene Beck, George Beck's fourth wife. She had not been a key figure in his life, of course, but in a way her impression is all the more significant for that. "Charles was the most fantastic man I ever met," she told me quietly. "It's just sad he allowed so few people to know him. He expected you to understand the feelings he couldn't express, and if you didn't, that was just too bad. You never had to ask people whether he was in the office or not -- you just knew from the electricity. Now people don't run any more. The urgency is gone."

So are the fear and chaos.

***