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www.HartfordBusiness.com June 12, 2017 • Hartford Business Journal 13 Bertolini telegraphed HQs move years ago By Greg Bordonaro gbordonaro@HartfordBusiness.com I n the wake of Hartford health insurer Aet- na's recent announcement that it's looking to relocate its headquarters, most likely to New York City, a lot has been made of the frosty relationship between its CEO Mark Bertolini and Gov. Dannel P. Malloy. During a May 31 press conference, Mal- loy said he's made several recent attempts to talk or meet with Bertolini directly about the company's future in Hartford. Malloy in multiple letters even offered to match any economic incentives pitched by other states. But his over- tures were rebuffed, and instead Malloy and his team were handed off to lower- level execs — a sure sign the two leaders weren't on the same page. But their relationship didn't start out that way, at least not publicly. Bertolini doesn't grant many interviews to local media, but in Dec. 2010 he talked with the Hartford Business Journal, which named him a Hartford region executive to watch in 2011 — his first full year as CEO. In that interview, Bertolini said he liked Malloy and had high hopes for his adminis- tration. But he also described Connecticut's business climate as "not a very good one," and said if the situation didn't change it could impact Aetna's future workforce decisions. "We are committed here as long as it's a fair and competitive business climate, and we are prepared to act if it does not become a fair and competitive business climate," Bertolini told HBJ in 2010. That interview, which occurred a few weeks before Malloy was inaugurated to his first term, sent a clear and early warning shot across the bow of the Democratic governor's administration. So what's happened to the Bertolini-Mal- loy relationship since then? We don't know what has gone on behind the scenes, but we can point to a few seminal moments that likely frayed the relationship. In his first year in office, Malloy signed into law one of the largest tax increases in state history — $1.5 billion — to balance a budget deficit and announced a $51 million aid package to Bloomfield-based Cigna Corp. Cigna, of course, is a health insurer and competitor to Aetna, which couldn't have been thrilled its nearby rival was getting support from the state to add jobs and renovate its campus. General Electric, which recently moved its headquarters to Boston from Fairfield, also didn't have the coziest relationship with Malloy and there were reports the company wasn't pleased that its jet-engine competitor, United Technologies Corp., received millions in state aid in 2014 in exchange for invest- ments in its Connecticut operations. Fast-forward to 2015, when the legislature adopted another major tax hike including $700 million in new or additional business taxes. The budget prompted an unprec- edented public display of dissatisfaction from major employers including GE, Aetna and Travelers, which put out statements con- demning the tax hikes. "We strongly believe this will undermine the competitiveness of Connecticut-based businesses and will lead to an exodus of jobs and business from the state,'' Aetna said at the time. "Connecticut is in danger of damag- ing its economic future by failing to address its budget obligation in a responsible way. Such an action will result in Aetna looking to reconsider the viability of continuing major operations in the state.'' Lawmakers eventually rolled back some of those tax hikes, but the damage was already done and the state remains mired in its fiscal crisis. Meantime, Aetna recently confirmed for the first time that it is headquarters shopping. The company is expected to announce in the weeks ahead where it will choose to locate its headquarters and top executives. New York City is the front runner. We also can't leave out the fact that Bertolini himself has a soft spot in his heart for New York City. If you follow him on Twitter, you'll see posts of the New York City skyline and events at Madi- son Square Garden. Bertolini has also taken on a more national voice in recent years, critiquing the Affordable Care Act and offering insights into more sustainable healthcare reforms. It now appears he wants a larger stage for both him and his company. n Aetna commits to 'mindful' workplace with new Hartford center In the midst of swirling news about a potential relocation of its Hart- ford headquarters, Aetna has quietly opened its first Mindfulness Center in the Capital City to help reduce employee stress and improve work- place culture. The new center, which aims to help workers better focus on what's happening in the moment, is based at Aetna's head- quarters but employees outside Connecti- cut can access it virtually, said Andy Lee, the insurer's chief mindfulness officer. The center gives employees a chance to participate in mindfulness activities and learn how to incorporate the exercis- es in their everyday life. In the beginning, activities will be held three to four times a week. Eventually, Lee said, the center will host external speakers and courses. "Stress affects all companies," said Lee, who indicated the goal is to trans- form workplace culture to help work- ers effectively manage stress. "It's a part of the company's broader strategy," said Cheryl Jones, the director of mindfulness at Aetna. "We're evolving beyond the mindfulness-based wellness programs and aiming to create a work- place culture of well-being." Aetna first offered mindfulness programs in 2011 and hosted a Mind- fulness Challenge in 2016. n The world gets more complex and the stakes get higher every day. Nowhere is that more true than in tax and audit. You need a business partner who is agile enough to keep up with your changing business. A partner confident enough to give you advice you can turn into action. We think this makes us a little different. Our clients tell us it makes us better. Federman, Lally & Remis – Not Your Typical Bean Counters. Confidence and agility. 231 Farmington Avenue, Farmington, CT 06032 | 860-678-7100 | www.flrcpa.com FLR25_Sail_HBJ_HalfPg.indd 1 12/7/16 9:29 AM Mark Bertolini, CEO, Aetna