Philip R. Shawe

Philip Reid Shawe "Phil" (born August 19, 1969) is an American business person, the Co-Founder and CEO of TransPerfect. He has overseen the day-to-day operations of the company since its founding in 1992.[1] Phil has been named Entrepreneur of the Year for New York City by Ernst & Young[2] and named to Crain’s New York prestigious “40 Under 40 list” as one of the top young executives in New York.[3]

Philip R. Shawe
Born (1969-08-18) August 18, 1969
OccupationFounder and CEO of TransPerfect

Biography

Born in 1969 to Shirley and Irvin Shawe in Kentucky,[4][5] he attended New York University, and it was in the NYU dorm room that he and Elizabeth Elting founded TransPerfect.

Career

Shawe began his career after graduating NYU with a position at Chemical Bank in New York; he did not see a future in it.[6] When Chemical Banking Corp. merged with Manufacturers Hanover Corp. in 1991, Shawe quit to join Elting in a new business, a translation service. They were "betting..., on the globalization of business".[6]

From 1992 until 2018, Shawe had been the co-CEO of TransPerfect.,[1] and it has grown every quarter since its founding.[7][8] Since May 2018, he has been the sole CEO.

In 2019, Shawe announced that TransPerfect will move the company's Manhattan headquarters from the iconic 3 Park Avenue, to Eyal Ofer's NoMad Tower, with a 15 year lease.[9]

Main article: TransPerfect § Legal_activities

Beginning in 2014, TransPerfect's two co-founders became entangled in a legal fight for control of the company. At issue was their partnership’s lack of an Exit Strategy. Instead of choosing to sell the shares directly, or to a third party buyer, the case ended up in New York State Supreme Court to force a complete sale of the company. The theory behind it was that with 50% ownership, no one had a company control. With that, there was a concern that the value of one's 50% ownership share would yield less than half the value of the actual shares.[10] Elting's legal approach for relief from the legal system was viewed by Shawe as an attempt to use the courts to negotiate an exit policy.[11] In 2014, Elting sought to remove Shawe as an officer of TransPerfect Translations International, Inc. (TPI), and an injunction barring Shawe from conducting any managerial activity related to the business, and sought the dissolution of TransPerfect. Elting alleged that Shawe had created deadlock.[12][13] New York State Supreme Court Justice Melvin Schweitzer dismissed the case, suggesting the two needed to work it out privately and not seek remedy from a court.[14]

The suit was then taken to the Delaware Chancery where Elting made a similar complaint. Shawe alleged that Elting had breached her fiduciary duties by not moving ahead with certain business-related opportunities, such as leases, acquisitions, and suggested that Elting was seeking to divert funds necessary for growth for personal use.[15] In August 2015, The Chancellor of the Delaware Chancery Court, Andre Bouchard, decided that the company should be forced to sell 100% of its shares in a public auction.[16][17]

Shortly after the case was begun, Shawe offered Elting more than $300 Million to buy her shares.[18] Elting had suggested that perhaps she would buy Shawe's shares and alleged that Shawe was undervaluing the company and that her 50% stake was more valuable. Shawe alleged that Elting was never a buyer, and made a Texas Buy Sell offer, to which Elting rejected and continued to seek the court-ordered remedy.[19] The auction was an attempt to ascertain the real market valuation of the company.

In 2016, Chancellor Bouchard sanctioned Shawe for destroying evidence in the case.[20] Bouchard, in his decision noted that no evidence was actually lost, but what he believed to be the attempt is what drove the $7.1 million dollar fine.[21]

Elting's attorneys at the firm Kramer Levin were also sanctioned for obstruction during a deposition during the case.[22]

The result was that Shawe bought Elting’s shares for $385m USD, which is estimated to be $287m in after-tax net proceeds.[23] Shawe contended that after both parties paid their legal bills, Elting's share came to less than she would have made initially.[7]

In February 2018, after a lengthy and expensive legal process, Robert Pincus, the court-appointed custodian, determined that Shawe was the viable buyer in the auction and he became sole owner.[24][25]

Shawe has been outspoken on what he considers to be corruption in the Chancery Court,[26] and has been committed to exposing the issues and effecting changes.[27] Once he completed the purchase of Elting's shares and took ownership in the company, Shawe moved all of his corporate holdings from Delaware to Nevada.[28][29]

Affiliations and Philanthropy

Shawe has guest lectured on Entrepreneurship at New York University and Columbia University and is a member of the Association for a Better New York (ABNY).[30] He had been a member of the board of directors of The Joyful Heart Foundation, a non-profit that worked in support of survivors of sexual assault, domestic violence, and child abuse. His philanthropic efforts include supporting over 25 causes by donating time or financial support, and he was recently named to The V Foundation for Cancer Research’s Circle of Honor.[31]

In 2018, Shawe sponsored ultramarathon runner Michele Graglia to run the Atacama Desert,[32] for which Graglia was accepted into the Guinness Book. Shawe is sponsoring Graglia to run three more deserts - the Gobi, Sahara and Antarctica.[31]

References
  1. Elstein, Aaron (15 May 2018). "Final chapter in TransPerfect saga has been written—at last". Crain's New York Business.
  2. Shawe, Phil. "Hall of Fame - EY Entrepreneur Of The Year". eoyhof.ey.com. Ernst & Young. Retrieved 12 August 2019.
  3. Editorial Team (1 January 2008). "40 Under 40 - Phil Shawe". Crain's New York Business.
  4. "Irvin Burl (Big Irv) SHAWE". The Palm Beach Post. 14 April 2014.
  5. Brodi, Mark (14 April 2014). "Irvin B. Shawe Obituary - West Palm Beach, FL". Dignity Memorial.
  6. Ricklefs, Roger (24 May 1996). "Youthful Entrepreneurs Choosing Brief Corporate Apprenticeships". Wall Street Journal.
  7. Elstein, Aaron (14 January 2019). "TransPerfect remains the country's top translation firm". Crain's New York Business.
  8. Kosman, Josh (13 July 2018). "TransPerfect business booming after years-long 'custody' battle". New York Post.
  9. Cuozzo, Steve (18 February 2019). "NoMad Tower signs TransPerfect as next major tenant". New York Post.
  10. Rainey, Douglas (2 Jan 2017). "Did TransPerfect's Shawe get a fair shake in sales dispute?" ("a would-be buyer other than Shawe would not pay top-dollar for a 50-50 share that would still leave control of the company in limbo"). bird street media llc. Delaware Business Now.
  11. Faes, Florian (29 Nov 2016). "A Fight About Money, Not Spite, Says TransPerfect's Phil Shawe". Slator.com.
  12. Elting v. Shawe (Supreme Court Of The State Of New York County Of New York August 4th, 2014).Text
  13. Ross, Barbara. "Co-founder of $400 million company seeks restraining order against his business partner and former lover". New York Daily News. NYDailyNews.com. Retrieved 18 June 2014.
  14. "TransPerfect Translations International Announces Major Victory In New York Supreme Court". PR Newswire. The Street. 8 Sep 2014.
  15. Chiappardi, Matthew (3 Jun 2015). "TransPerfect Co-CEOs Warned To Make Peace Or Else". Portfolio Media, Inc. Law360.
  16. "Court orders feuding biz partners, ex-lovers, to sell their profitable translation firm".
  17. Editorial Board (18 October 2016). "Editorial: Why you should care about TransPerfect case". delawareonline. Delaware News Journal.
  18. Chiappardi, Matt (5 May 2016). "TransPerfect Co-Founder Offers Ex-Partner $300M Buyout - Law360". www.law360.com.
  19. Schweitzer, Melvin (2 August 2017). "Possible Legal Precedents In TransPerfect Global - Law360". www.law360.com.
  20. Montgomery, Jeff (19 August 2016). "TransPerfect Boss Hit With $7.1M Fee Sanction By Del. Court - Law360". www.law360.com.
  21. Greaney, Isaac; Gimmel, Daniel; Avellar, Justin. "Attempted Spoliation Translates Into Fee-Shifting" (PDF). Sidley.
  22. Cassens Weiss, Debra (30 September 2015). "Kramer Levin is sanctioned $135K for deposition conduct". ABA Journal.
  23. Faes, Florian (4 May 2018). "TransPerfect Sale Clears Final Hurdle". Slator.
  24. Smart, Andrew (16 February 2018). "Court Accepts TransPerfect Sale to Phil Shawe, Hopes All 'Can Move on with Their Lives'". Slator. Slator.com.
  25. Smart, Andrew (26 January 2018). "The Five Factors Why Phil Shawe (and not H.I.G.) Got TransPerfect". Slator.
  26. Rainey, Doug (16 August 2018). "TransPerfect owners take parting shots as company incorporates in Nevada". Delaware Business Now.
  27. Rainey, Douglas (10 July 2019). "Chief Justice Strine's TransPerfect legacy". Delaware Business Now.
  28. Eichman, Mark (17 August 2018). "TransPerfect leaves Delaware as corporate home, citing Chancery Court dispute". WHYY.
  29. McParland, Tom (17 October 2018). "TransPerfect Has Incorporated in Nevada After Long Battle in Del. Over Forced Sale". Delaware Law Weekly. ALM.
  30. Summers, Allison K (12 April 2019). "Disruptive CEO Nation: TransPerfect on Apple Podcasts". Apple Podcasts.
  31. Taylor, Charlie (4 October 2018). "Helping People Overcome Adversity Translates Into Exciting Corporate Philanthropy - Thrive Global". thriveglobal.com.
  32. Tomko, Jeff (10 September 2018). "Former model ditches runway for 700-mile desert run". www.metro.us. Metro.
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