blast from the past

Who is Dan Loeb? The billionaire investor who chairs Success Academy’s board has a checkered past

A screenshot taken from an American Enterprise Institute event published in 2014.

Success Academy’s board chairman and major charter school donor Daniel Loeb made headlines this month for posting a racially charged comment on Facebook that compared an African-American New York state senator with the Ku Klux Klan.

Loeb deleted the post, apologized, and left Success Academy and other charter school organizations scrambling to condemn his behavior — and explaining why he would remain on their boards.

Loeb represents a double-edged sword for charter schools. He is a wealthy and well-connected hedge fund manager, who has given millions of dollars to the charter school cause. But his actions force Success Academy CEO Eva Moskowitz and other charter leaders to make a calculation: Is his behavior a fair price to pay for the boost to their cause?

So far, they have apparently decided that it is. He has not yet been removed from Success’s board. Here are other things Eva Moskowitz has had to grapple with — which include a string of insensitive comments, but also his support for other progressive causes— as she has navigated her relationship with Loeb over the years:

He’s a nonpartisan ally — and antagonist. Loeb supports both Democrats and Republicans, and he also attacks candidates and lawmakers on both sides of the aisle. For example, he’s a major backer of New York Gov. Andrew Cuomo, but he has given to Republican mayoral candidate Nicole Malliotakis and supported Mitt Romney in past presidential campaigns. At the same time, he has lashed out at both Hillary Clinton and Barack Obama, often in withering and offensive terms, while also telling friends he would not vote for Donald Trump.

This isn’t the first offensive comment he’s made. Far from it, in fact. Loeb is fast-fingered on Facebook and frequently uses derogatory language to lash out at people who have made him unhappy. Here are a few of the examples that have been reported previously:

  • Another time Loeb compared the unions and their supporters to the KKK: Loeb posted the following on his Facebook page in 2016, first reported by Dealbreaker: “If you truly believe that education is the dividing line (and I concurr) then you must recognizer and take up the fight against the teachers union, the biggest single force standing in the way of quality education and an organization that has done more to perpetuate poverty and discrimination against people of color than the KKK.”
  • Using a derogatory term for people of color: Loeb once got into a fight with Fairfax Financial, a Canadian insurance company, which resulted in a lawsuit. Reported Reuters in 2011: “Fairfax’s filing quotes Loeb as saying he found the situation somewhat ironic because “the odds are much greater of being strung up by a Canadian Jew than a Canadian schwarze.” Loeb, who is Jewish, used “schwarze,” a derogatory Yiddish word for a black person, to describe Watsa, who is of Indian ancestry.”
  • Making light of domestic violence by comparing Obama to an abuser: In a 2010 letter to hedge fund managers who had supported Obama, Loeb wrote, according to CNBC: “I am sure, if we are really nice and stay quiet, everything will be alright and the President will become more centrist and that all his tough talk is just words; I mean he really loves us and when he beats us, he doesn’t mean it; he just gets a little angry.”
  • Making a xenophobic, homophobic attack against a rival: A damning 2013 Vanity Fair profile dredged up an anecdote from 1999, when Loeb was feuding with John Liviakis, a San Francisco public-relations executive. In an “imaginary monologue” in the voice of Liviakis, Loeb wrote under a pseudonym: “Then I will laugh at you fools for buying my shares and I will celebrate with a bottle of grappa, some fresh feta, and a nice young boy-just like in the old country.” Liviakis sued him for libel.

Loeb’s allies say his mean-spirited comments don’t necessarily reflect deep-seated beliefs. “I have known Dan to be a champion for underserved children who has worked tirelessly for years on their behalf,” said Jenny Sedlis, the head of StudentsFirstNY and a former deputy to Moskowitz, last week. “I know from first-hand experience the post he made does not reflect his true beliefs or the person he is.”

He has championed progressive causes in the past. Most notably, Loeb helped get gay marriage on the books in New York by throwing his influence into winning over Senate Republicans. This position put him in line with most Democrats and with Moskowitz, who has had wide support in New York City’s gay community for nearly 20 years. It also suggests that some of his internet posts, which have included seemingly homophobic comments, do not necessarily reflect the entirety of his beliefs.

It’s also not his first ethical challenge. Loeb had an account on the marital cheating site Ashley Madison, though he later said he did not use the site to engage or meet anyone on the site. He also has garnered criticism for the way he uses online message boards, where some business insiders say he plays fast and loose with federal regulations about the ways hedge fund operators can communicate with investors. And multiple accounts have him hitting a Cuban child with his car during a vacation in 2002, although he and his friends tell different versions of that story.

His friends and investors have their own problems. At Third Point Management, Loeb manages $17 billion and has a host of high-profile investors — including someone else who landed in hot water for speaking freely this summer. Anthony Scaramucci told Vanity Fair that Loeb was “one of the best investors of his generation. . . . He is the guy that would chew through the wallboard to create a return for his investors.” At the time, Scaramucci had invested about 10 percent of his own fund’s $500 million with Loeb. Now, of course, he’s better known as the man who served for 10 days as Trump’s White House communications director before resigning after making a profanity-laden public attack on other White House officials.

Overhaul Efforts

The entire staffs at two troubled New York City high schools must reapply for their jobs

Mayor Bill de Blasio spoke in 2015 with Automotive High School Principal Caterina Lafergola, who later left the school. Automotive is one of eight schools where teachers have had to reapply for their jobs in recent years.Now, teachers at two more schools will have to do the same. (Ed Reed/Mayoral Photography Office)

In a bid to jumpstart stalled turnaround efforts, the entire staffs at two troubled high schools will have to reapply for their jobs — an aggressive intervention that in the past has resulted in major staff shake-ups.

The teachers, guidance counselors, social workers and paraprofessionals at Flushing High School in Queens and DeWitt Clinton High School in the Bronx will have to re-interview for their positions beginning next spring, education department officials said Thursday, the same day that staffers learned of the plan. Meanwhile, Flushing Principal Tyee Chin, who has clashed bitterly with teachers there, has been ousted; his replacement will take over Friday, officials said. (DeWitt Clinton’s principal will stay on.)

Both schools are part of Mayor Bill de Blasio’s signature “Renewal” program for low-performing schools, but have struggled to hit their improvement targets. They are also under state pressure to make significant gains or face consequences, leading to speculation that the rehiring is meant partly to buy the city more time before the state intervenes. (Last year, Flushing was the only school out of two-dozen on a state list of low-achieving city schools not to meet its turnaround goals.)

“Having a strong leader and the right team of teachers is essential to a successful school,” Chancellor Carmen Fariña said in a statement, “and this re-staffing process is the necessary next step in the work to turnaround these schools.”

The staffing change stems from an agreement between the de Blasio administration and the city teachers union, who have agreed to the same process for eight other schools since 2014. Among the six schools that went through the process last year, nearly half of the staff members left — either because they were not rehired or they chose not to reapply.

As part of the deal, hiring decisions will be made by committees at each school comprised of the principals and an equal number of union and city appointees. Unlike when former Mayor Michael Bloomberg attempted to overhaul bottom-ranked schools by replacing their principals and at least half of their teachers, these committees can choose to hire as many or as few of the current teachers as they choose.

In the past, the city has placed teachers who were not retained through the rehiring process in other schools — a move that drew criticism for overriding principals’ authority to choose their own staffs. City officials would not provide details about the arrangement for Flushing or Clinton other than to say that the education department would help teachers who left the schools find new placements.

The education department “will work with each teacher to ensure they have a year-long position at a school next year,” spokesman Michael Aciman said in an email.

Both high schools have already endured a destabilizing amount of turnover: Since 2013, more than half the teachers at both schools have left, according to the teachers union. And Flushing’s incoming principal, Ignazio Accardi, an official in the department’s Renewal office, is the sixth in six years.

The school’s outgoing principal, Tyee Chin, had a brief and troubled tenure.

Last year — his first on the job — he wrote a letter to his staff describing a toxic environment that he called “the Hunger Games for principals,” where he said some teachers keep up a “war cry” for a new leader. Meanwhile, the teachers union lodged a discrimination complaint against Chin with a state board, alleging that he threatened to press “racism and harassment” charges against the school’s union representative simply for carrying out her duties, said United Federation of Teachers Vice President of High Schools Janella Hinds.

“Principal Chin came in with an attitude that wasn’t collaborative or supportive,” Hinds said. “We’re dealing with a school community that has had a long list of principals who were not collaborative.”

Chin’s departure comes after DeWitt Clinton’s previous principal, Santiago Taveras, who also sparred with teachers, was removed last year after city investigators found he had changed student grades. He was replaced by Pierre Orbe, who will remain in his position.

The education department will host recruitment events during the spring and summer to bring in teacher applicants, who will be screened by the schools’ staffing committees, officials said.

However, it may be difficult to find seasoned teachers willing to take on such tough assignments.

When the teachers at Brooklyn’s long-struggling Automotive High School were forced to reapply for their jobs in 2015, the majority left. Many of their replacements were rookies, said then-principal Caterina Lafergola.

“Many of the schools that are going through the rehiring have a stigma attached to them,” she said last year. “It’s very hard to recruit strong candidates.”

Not long after, Lafergola left the school, too.

Future of Schools

For Indianapolis principals hoping to improve, one program says practice makes perfect

PHOTO: Shaina Cavazos
A kindergarten student reaches for crayons during a lesson at Global Prep Academy.

Mariama Carson has spent 20 years as an educator, first as a teacher and now as principal of Global Prep Academy. But in all that time, she never found training that prepared her as well as what she learned over two weeks last summer.

Carson, along with 23 other Indianapolis school leaders, was chosen to be a fellow in a principal training program through the Relay Graduate School of Education. Almost immediately, she noticed a big difference from previous coaching she’d had: They practiced everything.

How do you teach kids the right way to walk in the hallway? They practiced it. How do you let a teacher know she’s struggling? They practiced it. What are the precise words to use in an evaluation? More practice.

“The commitment to practice is what has been so different,” Carson said. “Whatever we learn in Relay … it’s not just something someone has told you about. You’ve practiced it. You’ve lived it.”

Relay, a six-year-old New York-based organization, was founded by a cadre of leaders from high-performing charter school networks. Practice, role-playing and applied learning are at the center of their work with educators, which for five years has included a year-long principal fellowship.

In the 2016-17 school year, Relay trained about 400 school leaders in the United States. Fellows from Indianapolis were chosen and sponsored by The Mind Trust, an Indianapolis-based nonprofit. Joe White, who directs The Mind Trust’s school support initiatives, said he was happy with the response during the last round of applications. The next cohort, whose members will be announced this month, will be larger and contain more Indianapolis Public School educators, as well as charter school principals, he said.

The Mind Trust wants to make the training “available to as many new operators as possible to continue expanding this work across the city,” White said. “We think that this is the way that we create sustainable schools that will provide high-quality results and outcomes for kids for a very long time.”

Two principals in the midst of the program told Chalkbeat that the fellowship is already changing the culture and efficiency of their schools. The principals spent the fellowship’s two-week summer training session in Denver learning how to best collect and analyze student data, give feedback to teachers and create a school building that runs smoothly.

“The practice and critical feedback we got was unlike anything I’d ever experienced,” said Mariama Carson, a principal at Global Prep Academy, which is housed in the IPS Riverside 44 building. “Usually as a principal, you don’t get that kind of feedback.”

But Relay, which also has teacher training programs, has its share of critics. Kenneth Zeichner, a researcher and professor at the University of Washington, analyzed non-university-affiliated teacher training programs, including Relay’s. Although he hasn’t looked into the principal program specifically, he said he is troubled that the teacher training curriculum emphasizes using test scores to gauge results at the expense of a more well-rounded assessment of students, who many times are coming from families living in poverty.

He also worries Relay as a whole is too focused on fast growth, rather than on proving its methods work. There have been no independent studies done on whether Relay produces better teachers than other alternative or university programs, Zeichner said, although one is underway.

“My concern about Relay is not that they exist,” Zeichner said. “If you’re going to measure the quality of a teacher education program — of any program — the independent vetting, or review, of claims about evidence (is) a baseline minimum condition.”

Chalkbeat spoke with Carson and Bakari Posey, principal at IPS School 43. The two just completed their second of several training sessions, which will continue through the rest of the school year.

Responses have been edited for brevity and clarity.

What made you want to be part of the fellowship?

Carson: The job of a principal is so lonely. To have the opportunity to work with high-quality, hard-working principals across the country is always inviting.

Posey: I wanted to make sure that I was able to appropriately and efficiently and effectively develop the people on our team. That’s what really drew me in. It’s shaped my thinking and sharpened my lens as a leader and what I’m looking for in classrooms.

What have you learned so far that you’re implementing in your school?

Carson: It’s been transformative in how our building is run just on the cultural side. Relay has really helped us understand that especially with adult learners, you have to start with the “why.” And then we model, and the teachers (in my school) play the position as students. We go into full acting mode, and then the teachers execute that practice. For two weeks before the kids even showed up, that’s what our teachers were doing. Normally, I’d hand my teachers a packet of procedures and expectations, but we never practiced.

Posey: We’ve started to implement already … around coaching teachers — how we give that feedback and give teachers bite-sized action steps to work on instead of making a list of 12 things to do at once. If you do one thing better every single day, then you get better overall. Something else that’s big for me is student work exemplars — actually having an example of excellence for student work that the teacher creates and uses to guide feedback. Overall it’s just kind of helped to organize my thinking as a school leader and really kind of give you a little bit of a road map towards student growth and overall school success. It’s the best professional development I’ve ever been a part of.

How have teachers back in your schools responded to the changes you have introduced, including suggestions on improving instruction, evaluations, etc.?

Carson: Teachers have been responding well, and they’re getting used to this culture, a culture of practice. Even in our feedback sessions where we’re coaching teachers, it’s “OK, execute the lesson — I’ll be the student, you be the teacher.”

Posey: They’ve been receptive. It’s not coming from a place of “gotcha” or I’m trying to make you look really bad. It’s really coming from a place of really getting better for our students to really give them the best, which is what they deserve.