Newly released disclosure reports show virtually all of the top Chicagoans serving in the WestWing have assets valued at a million dollars or more at the end of 2008.
In several cases, the reports provide the first detailed look at the finances of some of thepresident's top aides and friends from Chicago who have risen with him. They also show thefinancial haircut many have taken to be in the White House, at least until they return to the privatesector.
Some of the wealth can be attributed to the fact that the top aides surrounding Obama--such as theChicago Trinity of Rahm Emanuel, David Axelrod and Valerie Jarrett--are from a big city wheresalaries tend to be higher. Comparable senior staffers with the previous two presidents came fromAustin, Texas, and Little Rock, Ark., where salaries for top professionals tend to be the lower than inChicago.
In contrast to his senior staff, Obama's Cabinet tends to have fewer high-net-worth individuals.That group includes former senators, governors and others who have spent much of their careersworking in the lower-paying public sector.
Like those of his predecessors, Obama's senior staff tends toward seasoned professionals, peoplewho have moved up in their respective fields and found private sector wealth.
For Obama, millionaire status is a relatively new thing. His annual household income fluctuated inthe range of about $250,000 during the first half of this decade, before his election to the U.S. Senatein 2004 and millions in book royalties and advances that started rolling in during 2005.
Leading the Chicago pack in investment portfolio size is Emanuel. The White House chief of staffreported 2008 investment income of at least $168,107 on a portfolio worth between $4.5 million and$11 million.The disclosures, required of both senior and deputy level aides each year, were madepublic last weekend. They allow individuals to report across a broad range in values for eachinvestment and corresponding investment income, using categories such as from $500,001 to $1million, so it is impossible to know exact figures.
Many of his investments are now in municipal bonds, a favored choice of the wealthy because theirinterest is tax-exempt. Emanuel has dozens of the bonds, whose issuers range from McHenry Countyto the Northeast Nebraska Solid Waste Coalition.
Chiefs of staff tend to have some wealth, often because they are Washington veterans or have somechief executive experience in business.
Andy Card, for example, the first chief of staff to President George W. Bush, had worked for
General Motors Corp. before moving to the White House. He listed assets worth at least $1.1 millionon the first financial disclosure form that he filed in 2001.
White House social secretary Desiree Rogers, a longtime Obama family friend from Chicago,reported $1.8 million in salary from People's Gas and North Shore Gas, where she left as presidentduring the middle of 2008.
Rogers also earned $350,000 in salary in 2008 from Allstate Insurance Co., where she was workingon a financial social networking program before leaving for Washington. Her service on twocorporate boards, Equity Residential and Blue Cross and Blue Shield, netted her another $170,000.She listed stocks, mutual funds and other investments worth at least $2.1 million.
Rogers was once married to millionaire and Chicago financier John Rogers, the head of ArielCapital Management and another close Obama friend and fundraiser.
Jarrett, a senior adviser to Obama, reported a money market fund holding between $1 million and$5 million as part of her assets.
Since moving to the White House, Jarrett has resigned her position as chief executive of HabitatCo., one of the Midwest's largest property-management firms.
Her report shows she earned $550,000 in deferred compensation from Habitat Executive Services,plus a salary of $302,000 in 2008.
She also reported $346,687 in income from serving on seven boards, including the Federal ReserveBank of Chicago. Jarrett's most lucrative fee as a director was $146,643 from Chicago-based USGCorp., a building products maker.
Jarrett is also still receiving compensation from the Chicago Transit Authority, where she was
Mayor Richard Daley's hand-picked chairman from 1995 to 2003. She estimated $35,559 in deferredcompensation as part of the CTA's supplemental retirement plan.
For Axelrod, the disclosures also made clear the value of a political consulting firm he built fromthe ground up starting in 1985, an asset that gained value because of Obama's success.
The senior adviser to the president sold his stake in two firms for $3 million before he moved to theWhite House in January. Although he no longer has direct financial ties to the companies, he willreceive installment payments for his shares over five years.
AKP&D Message and Media was sold for $2 million to John Kupper, John Del Cecato and LarryGrisolano. He also sold his interest in ASK Public Strategies, a firm that has done public policy issuecampaigns for such entities as the Chicago 2016 Committee, Commonwealth Edison Co., and the
University of Chicago Medical Center, where Michelle Obama worked as an executive.
Axelrod, who worked almost exclusively on Obama's campaign in 2008, collected a salary of roughly$1.5 million from his two firms. His investments, meanwhile, showed a valuation of at least $3.8million.
The person most equivalent to Axelrod in the Bush White House was top political adviser KarlRove, who listed at least $2.3 million in stocks, bonds, cash and other assets in 2001.
Another Chicagoan, Christina Tchen, left a lucrative legal career to become the director of Obama'sOffice of Public Liaison. Her disclosure report shows she made $2.2 million last year as a partner atSkadden, Arps, Slate, Meagher & Flom.