When Michael Bolen finished his military career, he had two college degrees under his belt and a desire to go to work using his hands.
So instead of taking an office job or becoming a junior-level corporate executive, he decided to start in the same profession as his father,he became an entry-level carpenter.
But that was more than two decades ago.
Today, after spending 15 years building Orange County’s second-largest commercial construction business, Bolen is set to oversee daily national operations of an industry mammoth.
In a few months, Bolen will move to St. Louis to take over as chief executive officer of McCarthy Building Cos.
The $1.1 billion construction firm was recently ranked by Engineering News-Record as the 22nd-largest domestic builder.
After generating nearly 15% revenue growth and 20% more contracts nationally in 1999, McCarthy is switching CEOs as it transitions from a family-run business.
The 135-year-old construction firm has tapped Bolen to be its first non-McCarthy-family CEO.
“I’ve been talking to him about this, on and off, for the past five years,” said Michael McCarthy, who will relinquish the CEO job but remain as company chairman.
“I wanted a person of vision with strong leadership values,” he added. “Mike certainly has those attributes,he should be very proud of what he has accomplished.”
Starting from scratch, Bolen has helped McCarthy build a California operation that now produces about $450 million in annual revenue,nearly $300 million of which comes from Orange County-related projects.
For the past decade, California deals made from the company’s West Coast regional headquarters in Newport Beach have amounted to about a third of the company’s entire business.
“That’s remarkable considering the fact that most construction companies went through a slump in the early 1990s,” said Wayne Lindholm, vice president for Hensel Phelps Construction Co. in Irvine. “But Mike has kept their production high, even when the economy hasn’t been as strong as it is now.”
Built Organization
As district manager for Orange County’s fourth-largest construction firm, Lindholm considers Bolen a stiff competitor.
“I’ve got to be honest,if I’m talking to a client and they tell me McCarthy is their contractor, I tell them they’ve got a very good firm behind them,” said Lindholm. “Mike has built an extremely strong, well-run organization.”
And one Bolen is confident will remain in top shape with the selection of Carter Chappell to replace him in a restructured and expanded local organization. The company’s operations in California will be split, with a northern division headquartered in Sacramento. Business for McCarthy’s Southern California operations will be managed through its Newport Beach office.
“Carter and I have been working together since 1981,” said Bolen. “He has been a key partner of mine and someone who will continue to build our business in Southern California.”
In St. Louis, McCarthy’s new CEO will be trying to do the same thing. With fiscal 2000 winding down,the company’s fiscal year ends in March,sales are approaching a record $1.6 billion.
But with Michael McCarthy the last remaining family member to hold a key operational position in the company, the 51-year-old Bolen is moving up in a corporate structure undergoing extensive change.
Switching to Employee Ownership
Besides being groomed as the heir apparent to the 61-year-old Michael McCarthy, he will help switch private control to more than 2,000 employees and managers. The company, according to Michael McCarthy, should be entirely employee-owned by the time he reaches age 70.
“I am not the type of person who can sit still and retire,” he said. “But I wouldn’t mind slowing down somewhat.”
McCarthy described his responsibilities in coming years as one of helping Bolen grow into a new role with the company as well as making sure overall growth is managed smoothly.
“We have some strong values, and I want to make sure those family connections and personal relationships with our clients continue,” said McCarthy. “Mike is the perfect person to head up that effort.”
Bolen’s friends and colleagues in Orange County think so, too.
“There is nobody more qualified to take a job like this,” said Chappell. “He came up through the ranks. He’s done almost every job you could think of in this business.”
A graduate of the U.S. Air Force Academy who completed his graduate degree in counseling at the University of Northern Colorado while still on active duty, Bolen joined McCarthy in 1978 to take a job in Phoenix as a second-generation carpenter.
He rose quickly through the ranks, moving into project management at various McCarthy offices throughout the country.
Once assigned to Newport Beach, however, Bolen settled down.
“That’s the hardest part of moving now. I have young kids, and they as well as my wife love it here,” said Bolen. “It’s going to be tough to leave.”
Bolen and his wife, Debi, have two daughters: Shelby, 4, and Haley, 2.
“A challenge like this is something I’ve wanted for the past 15 years,” said Bolen. “It became clear that the (McCarthy) family was going to transition the company, and it became a goal of mine to be the one to make that happen. I’ve been working toward that type of a role for a long time.”
One of those who is happy to see an Orange County resident move into such a prominent national position is Kevan Steffey.
As vice president of Murray Co., a local plumbing and mechanical commercial contracting firm, he has been doing business with Bolen for years.
The two have also formed a friendship outside of work.
“If you can’t find Mike in his office, he’s either going to be on a golf course, in a boat or out hunting somewhere,” said Steffey with a laugh.
Steffey says he’ll never forget going with Bolen to compete in a deep-sea fishing tournament near Pensacola, Fla., two years ago.
The sea turned rough and 120 miles off the coast, Bolen got sick. Knowing that $100,000 in prize money was at stake, Bolen refused to turn back or complain.
“He was green in the face all day, but you could hardly get him to talk about it,” said Steffey.
That’s the attitude Bolen takes in all his endeavors, he added.
“He’s very down-to-earth and always shows respect for other people,” said Steffey. “That creates a lot of loyalty in his employees and everyone he’s around.”
Bolen, he believes, is a born leader.
“I’m happy for his success, but it’s going to be sad to see him go,” said Steffey. “He’s a great guy to be around. A lot of people will miss him around here.” n
