Charles Koch | |
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.jpg) Koch in 2019 | |
| Born | Charles de Ganahl Koch (1935-11-01)November 1, 1935 (age 90) Wichita, Kansas, U.S. |
| Education | Massachusetts Institute of Technology (BS,MS) |
| Occupations |
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| Employer | Koch Industries |
| Title | Chairman andCEO ofKoch Industries |
| Political party | Libertarian |
| Spouse | [1] |
| Children | |
| Father | Fred C. Koch |
| Relatives |
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| Signature | |
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Charles de Ganahl Koch (/koʊk/KOHK; born November 1, 1935) is an American businessman, engineer, and philanthropist. As of May 2025, he is ranked as the 22nd richest man in the world on theBloomberg Billionaires Index, with an estimated net worth of US$71.4 billion.[4] Koch has been co-owner, chairman, andchief executive officer ofKoch Industries since 1967, while his late brotherDavid Koch served as executive vice president. Charles and David each owned 42% of the conglomerate. The brothers inherited the business from their father,Fred C. Koch, then expanded the business.[5] Koch Industries is the largest privately held company by revenue in the United States, according to Forbes.[6]
Koch also supports a number of libertarianthink tanks, including theInstitute for Humane Studies, theCato Institute, theAyn Rand Institute,[7] and theMercatus Center atGeorge Mason University. He also contributes to theRepublican Party and candidates,libertarian groups, and various charitable and cultural institutions. He co-founded the Washington, D.C.–basedCato Institute. Along with his brother, Koch has been an important funder of think tanks thatlobby tooppose environmental regulation. Koch has published four books detailing his business philosophy,Market Based Management (2006),[8]The Science of Success (2007),[9]Good Profit (2015),[10] andBelieve in People (2020).[11]
Koch was born and lives inWichita, Kansas, one of four sons of Clementine Mary (née Robinson) andFred Chase Koch.[12][13] Koch's grandfather,Harry Koch, was aDutch immigrant who settled in West Texas, founded the Quanah Tribune-Chief newspaper, and was a founding shareholder ofQuanah, Acme and Pacific Railway.[14] Among his maternal great-great-grandparents wereWilliam Ingraham Kip, an Episcopal bishop, andElizabeth Clementine Stedman, a writer.
In an interview with Warren Cassell Jr., which was recorded in February 2016, Koch said that as a child he did not live a privileged lifestyle despite growing up in a wealthy family. Koch said, "My father wanted me to work as if I was the poorest person in the world."[15] After attending several private high schools,[16] Koch was educated at theMassachusetts Institute of Technology. He is a member of theBeta Theta Pi fraternity.[17] He received aBachelor of Science (B.S.) ingeneral engineering in 1957, aMaster of Science (M.S.) innuclear engineering in 1958, and a second M.S. inchemical engineering in 1959.[18] His focus was on ways to refine oil.
After college, Koch started work atArthur D. Little, Inc.[19]
In 1961 he moved back to Wichita to join his father's business,Rock Island Oil & Refining Company (now known asKoch Industries).[20] In 1967, he became president of the business, which was then a medium-sized oil firm.[21] In the same year, he renamed the firm Koch Industries in honor of his father.[22] Charles's brothersFrederick andBill had inherited stock in Koch Industries. In June 1983, after a legal and boardroom battle, the stakes of Frederick and Bill were bought out for $1.1 billion and Charles and his younger brother David became majority owners in the company.[23] Despite the settlement, legal disputes continued until May 2001, whenCBS News reported that Koch Industries settled for $25 million.[24]
In 2006,Koch Industries generated $90 billion in revenue, a growth of 2000 times over, which represents an annual compounded return of 18%.[25] As of 2014[update], Koch was worth approximately US$41.3[26] billion (in 2013 $36 billion) according to theForbes 400 list.[12] Koch would routinely work 12-hour days at the office (and then spent more time working at home), weekends, and expected executives at Koch Industries to work weekends as well.[27][28]
Koch has been a director of INTRUST Financial Corp. since 1982[29] and director of Koch Industries Inc. since 1982. He is director of resin and fiber companyInvista and director ofGeorgia-Pacific LLC, paper and pulp products. Koch founded or helped found several organizations, including theCato Institute, theInstitute for Humane Studies and theMercatus Center atGeorge Mason University, theBill of Rights Institute, and theMarket-Based Management Institute. He is a member of theMont Pelerin Society.[30]
Charles Koch describes himself as aclassical liberal and has formerly identified as alibertarian.[31] He is opposed tocorporate welfare[32] and told theNational Journal that his "overall concept is to minimize the role of government and to maximize the role of private economy and to maximize personal freedoms."[33] He has expressed concern about too much government regulation in the U.S., stating that "we could be facing the greatest loss of liberty and prosperity since the 1930s."[34] In addition, he has warned that drasticgovernment overspending and a decline of thefree enterprise system will prove detrimental to long-term social and economic prosperity.[35]
According toStephen Moore, influences on Koch includeAlexis de Tocqueville,[36]Adam Smith,Michael Polanyi,[20]Joseph Schumpeter,Julian Simon,Paul Johnson,Thomas Sowell,Charles Murray,Leonard Read, andF. A. Harper.[21] The presidents he most admires includeGeorge Washington,Grover Cleveland, andCalvin Coolidge. In an interview with theAmerican Journal of Business, Koch said he owes "a huge debt of gratitude to the giants who created theAustrian School [of economics]. They developed principles that enabled me to gain an understanding of how the world works, and these ideas were a catalyst in the development of Market-Based Management." In particular, he expresses admiration forLudwig von Mises' bookHuman Action, as well as the writings ofFriedrich Hayek.[20] Koch said "the short-term infatuation with quarterly earnings on Wall Street restricts the earnings potential of Fortune 500 publicly traded firms."[21] He also considers public firms to be "feeding grounds for lawyers and lawsuits," with regulations likeSarbanes–Oxley only increasing the earnings potential of privately held companies.[21]
Koch disdains "big government" and the "political class."[21] He believes billionairesWarren Buffett andGeorge Soros, who fund organizations with different ideologies, "simply haven't been sufficiently exposed to the ideas of liberty."[21] Koch claimed "prosperity is under attack" by theObama administration and sought to warn "of policies that threaten to erode our economic freedom and transfer vast sums of money to the state."[37]
Koch supportscannabis legalization. As of 2021, Koch is "actively funding efforts to endfederal marijuana prohibition."[38]
In an April 2011Wall Street Journal op-ed, Koch wrote:
Government spending on business only aggravates the problem. Too many businesses have successfully lobbied for special favors and treatment by seeking mandates for their products, subsidies (in the form of cash payments from the government), and regulations and tariffs to keep more efficient competitors at bay.Crony capitalism is much easier than competing in an open market. But it erodes our overall standard of living and stifles entrepreneurs by rewarding the politically favored rather than those who provide what consumers want.[39]
His opposition to corporate welfare includes lobbying for an end toethanol subsidies even though Koch Industries is a major ethanol producer. He is quoted as saying: "The first thing we've got to get rid of is business welfare and entitlements."[40]
In an April 2014Wall Street Journal op-ed, Koch wrote, "the fundamental concepts of dignity, respect, equality before the law and personal freedom are under attack by the nation's own government." He criticized theObama administration, saying that its "central belief and fatal conceit" is that people are not capable of running their own lives. "This is the essence of big government and collectivism," he wrote. He cited the "current healthcare debacle" as an example of disastrous government control. He complained that he had been the victim of "character assassination."[41][42]
Koch's business philosophy, "market-based management" (MBM), is described in his 2007 bookThe Science of Success. In an interview with theWichita Eagle,[22] he said that he was motivated to write the book by Koch Industries' 2004 acquisition ofInvista so he could give new employees a "comprehensive picture" of MBM. According to the website of the Market-Based Management Institute, which Koch founded in 2005, MBM is "based on rules of just conduct, economic thinking, and sound mental models", harnessing the dispersed knowledge of employees just as markets harness knowledge in society. "It is organized in and interpreted through five dimensions: vision, virtue and talents, decision rights, incentives, and knowledge processes."[43] In the book, Koch attempts to applyFriedrich Hayek'sspontaneous order theory andAustrian entrepreneurial theory, such as that ofMises andIsrael Kirzner, to organizational management.[40][44]
Koch funds and supports libertarian and free-enterprise policy and advocacy organizations.[37] Two works that have been especially influential upon Koch's philosophy are Ludwig Von Mises'Human Action andF. A. Harper'sWhy Wages Rise. After reading Harper's book, Koch became involved with Harper'sInstitute for Humane Studies, of which he became a principal supporter. He has been on the board of IHS since 1966. Since the 1980s, IHS has been increasingly interested in aiding the careers of aspiring educators, journalists, and policy professionals with an interest in classical liberal thought. Among other projects, the IHS runs the Charles G. Koch Summer Fellow Program, which "has supported more than 900 students during eight-week internships at public policy organizations, both in D.C. and around the country."[45] In addition, almost 200 institutions of higher education in the U.S. are funded by theCharles G. Koch Foundation. What all the Koch-funded programs have in common is an interest in studying free societies with an eye to understanding the mechanisms behind the assumption that economic freedom benefits humanity.[45]
In 1977 he co-founded theCato Institute withEdward H. Crane andMurray Rothbard.[46]
In 2008, Koch was included inBusinessweek's list of top 50 American givers. Between 2004 and 2008, Koch gave $246 million, focusing on "libertarian causes, giving money for academic and public policy research and social welfare."[47] Koch was awarded an Honorary Doctorate fromGeorge Mason University in recognition of his financial support "through scholarships, faculty recruitment, and research grants".[48]
In June 2019, the Charles Koch Foundation announced the foundation of anti-war think tankQuincy Institute for Responsible Statecraft, cosponsored by George Soros'Open Society Foundations.[49] He is a board member at theMercatus Center, a market-oriented researchthink tank atGeorge Mason University.[50]
Koch'sphilanthropic activities have focused on research, policy, and educational projects intended to advance free-market views. He has underwritten scholarships and financed the research of economists such asJames Buchanan,[51] and Friedrich Hayek. He has also "supported efforts to inspire at-risk young people to consider entrepreneurship, to teach American students the principles of limited government, and to connect recent graduates with market-oriented organizations, in an effort to launch their careers in public policy."[45] Koch has given money to support public policy research focused on "developing voluntary, market-based solutions to social problems."[52] He has given to theBill of Rights Institute, a non-profit group that educates teachers, students, and others about theBill of Rights.[52][53] He has also given to theYouth Entrepreneurs, an organization that teaches business skills to at-risk youth in Kansas schools.[54]
Koch acknowledgesanthropogenic climate change, but opposes top-down government regulation as a solution. Rather, he favors bottom-up technological innovation from private entities, saying they can lower emissions while improving efficiency and lowering costs.[55]
He has heavily funded organizations and politicians whodeny or downplay climate change andenvironmental regulations that observers say is due to his business interests in the fossil fuel industry.[56][57][58][59] A leaked 2012 fundraising plan indicated that theCharles G. Koch Charitable Foundation contributed $25,000 in 2011 to theHeartland Institute, an Americanconservative andlibertarian public policy think tank known for climate change denial.[60][61][62] Koch has also supported theBerkeley Earth Surface Temperature project, a scientific effort to compile an open database of the Earth'ssurface temperature records.[63]
ThePacific Legal Foundation, funded by Koch, has litigated against increased environmental regulation.[64][65] TheAmerican Enterprise Institute received $2.1 million over two decades from the Charles Koch Foundation for itsclimate change denialist activities.[64][65] Together withExxonMobil's, Koch's wealth was also supplied to theIndependent Institute, another think-tank known for lobby in favor of climate change denial.[64][65] Koch has also given money to theAmerican Institute for Economic Research, a right-wing libertarian think tank which also lobbies against climate science.[64][65] Koch-backedAmericans for Prosperity has fought efforts by theEnvironmental Protection Agency to regulate carbon emissions.[66] The RepublicanTrump administration adoptedenvironmental policies similar to those advocated for by Koch-funded groups.[56] Koch has backed theCompetitive Enterprise Institute and theCO2 Coalition, both of which also supported former PresidentDonald Trump's 2017 withdrawal from theParis climate agreement.[66]
In 2022, Koch was named one of the US' top 'climate villains' byThe Guardian.[67] As of 2023, his company has received awards from the EPA for three consecutive years.[68]
Koch has also given money to the American Institute for Economic Research, the right-wing libertarian think tank which sponsored theGreat Barrington Declaration.[64][65] His Charles Koch Foundation gave $68,100 in 2018.[64][65] The declaration's sponsor employedEmergent Order, apublic relations firm which itself receives funding from Koch's Foundation, registered as $1.4 million between 2014 and 2019.[64][65]
Koch supported his brother's candidacy for vice president on the Libertarian Party ticket in 1980.[69] After the bid, Koch told a reporter that conventional politics "tends to be a nasty, corrupting business ... I'm interested in advancing libertarian ideas".[69] In addition to funding think tanks, Charles and David also support libertarian academics[70] and Koch funds the Charles G. Koch Summer Fellow Program through theInstitute for Humane Studies which recruits and mentors young libertarians.[71] Koch also organizes twice yearly meetings[21] ofRepublican donors.[37]
Koch supported theTea Party movement. "The way it's grown, the passion, and the intensity, was beyond what I had anticipated," he told an interviewer.[35] He funded groups opposed to Barack Obama's administration.[69]
In 2011, Koch was awarded theWilliam E. Simon Prize for Philanthropic Leadership.[72] The award honors "the ideals and principles which guidedWilliam E. Simon's giving, including personal responsibility, resourcefulness, volunteerism, scholarship, individual freedom, faith in God, and helping people to help themselves."[73]
In July 2015 Charles Koch and his brother were praised by President Obama andAnthony Van Jones for their bipartisan efforts to reform the criminal justice system.[74][75] For roughly a decade Koch has been advocating for several reforms within the prison system, including the reduction of recidivist criminals, easing the employment process for rehabilitated persons, and the defense of private property fromasset forfeiture.[75][76] Aligning with groups such as theACLU, theCenter for American Progress,Families Against Mandatory Minimums, theCoalition for Public Safety, and theMacArthur Foundation, Koch believes the current system has unfairly targeted low-income and minority communities all while wasting substantial government resources.[75]
In February 2016, Koch penned an opinion piece inThe Washington Post, where he said he agreed with presidential candidateBernie Sanders about the unfairness ofcorporate welfare andmass incarceration in the United States.[77]
In 2020, Koch's Koch Industries donated $2.8 million to Republican Party causes through apolitical action committee. Koch Industries donated $221,000 to Democratic Party causes.[78]
On November 13, 2020, reports in several media published statements made during an interview withThe Wall Street Journal by Koch about his regret that he had contributed significantly to the development of hyper-partisanship in the United States. Koch added that he intended to work withDemocrats, moderate Republicans, and liberals to facilitatebipartisanship.[79][80][81]
In 2002, Koch Industries donated $6 million to renovate theWichita State Universitybasketball arena. The gift was given in honor of Koch, and the arena was subsequently renamed theCharles Koch Arena.[82] Koch has continued to be a major donor to both the university andits athletic program. In December 2014, Koch Industries and the Koch family foundation donated $11.25 million to the university, the largest one-time gift in school history, with $4.5 million of that going toward a plan to renovate the arena and expand the athletic program's academic support center.[83] Several months later, whenmen's basketball head coachGregg Marshall was considering an offer to become head coach at theUniversity of Alabama, Koch led a group of local business leaders andWSU boosters that raised Marshall's annual salary from $1.85 million to $3 million and kept him at the school. The raise was seen as an unprecedented move for a school outside thePower Five conferences, and likely to make Marshall among the 10 highest-paid college basketball coaches.[84]
The Koch Cultural Trust, founded by Charles wife, Elizabeth, funds grants for Kansan artists.[85]
Koch has been married to his wife Liz since 1972.[1] He has two children,Chase Koch andElizabeth Koch.[69][2][3] Charles and his three brothers have all suffered fromprostate cancer.[86] Koch "rarely grants media interviews and prefers to keep a low profile".[22]Time magazine included Charles and David Koch among the most influential people of 2011. According to the magazine, the list includes "activists, reformers and researchers, heads of state and captains of industry." The article describes the brothers' commitment to free-market principles, the growth and development of their business, and their support forTea Party organizations and political candidates.[5] Koch lives in Wichita, Kansas,[87] and has homes inIndian Wells, California,[88] and Aspen,Colorado.[89] Koch isirreligious.[90]
Koch has received various awards and honors, including:
Massachusetts Institute of Technology, Bachelor of Arts / Science Massachusetts Institute of Technology, Master of Science Son of Koch Industries founder Fred C. Koch (d. 1967), MIT grad who invented method of refining gasoline from heavy oil. Took refining innovation to Soviet Union 1929; returned home 1930s. Sons Frederick, Charles, David and William inherited Koch Industries after father's death; Charles and David bought out William and Frederick for $1.3 billion in 1983.
And so for many years I've been saying it. Okay, the temperature's been rising for over a century now, and human activity has contributed to it. But the approach is wrong. This top-down approach which they are using supposedly around the world, and emissions keep rising. So it's not accomplishing. What does, what has accomplished and what will accomplish are innovations, bottom-up innovations that, for example, substitute natural gas for coal.... And we're working on inventing things that will do two things: not just have less emissions, but will be cheaper and more affordable rather than much more expensive and unreliable, which makes people's lives worse.(36:37-38:00)
One longtime Koch lieutenant characterized the overall strategy of Koch's libertarian funding over the years with both a theatrical metaphor and an Austrian capital theory one: Politicians, ultimately, are just actors playing out a script. The idea is, one gets better and quicker results aiming not at the actors but at the scriptwriters, to help supply the themes and words for the scripts—to try to influence the areas where policy ideas percolate from: academia and think tanks. Ideas, then, are the capital goods that go into building policy as a finished product—and there are insufficient libertarian capital goods at the top of the structure of production to build the policies libertarians demand.
The Charles G. Koch Summer Fellow Program combines a paid public policy internship with two career skills seminars and weekly policy lectures. You'll gain real-world experience, take a crash course in market-based policy analysis, and hone your professional skills. The intensive ten-week program begins in June and includes a $1,500 stipend and a housing allowance.
Video Interview, recorded March 18, 2016
Video Interview, recorded March 18, 2016
