Shareholder 1 &
roved Imp
st Alumni Magazine, Fall 2013 tio n
N ew
The Raymond J. Harbert College of Business
F ir s t
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PREPARE
ADAPT
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MARK FORCHETTE
Seeing the American Dream
STEVE GOODSON The Best Sax Ever
BOB DUMAS
RAYMOND J.
HARBERT Foresight & Risk
Focusing on Fundamentals The Shareholder, Fall 2013
The Harbert Gift Raymond J. Harbert’s investment in Auburn University’s College of Business marks a new time for us. We now have the resources to achieve our ambitions. We’re already good. Now we can be better. New professorships, research centers and Ph.D. programs — all of which enhance the value of our degree, your degree. Change. Possibility. Opportunity. Growth. Welcome to a new era. Welcome to the Raymond J. Harbert College of Business. For more on Raymond J. Harbert, see page 30.
Shareholder Credits Director, COB Communications & Marketing Troy Johnson
Editor, COB Communications & Marketing Joe McAdory
Design/Production Jason Adams Jenni Hunt
Contributors John DiJulio Jim Earnhardt Bruce Kuerten Tiffany Smith Created by AU Media Production Group
r e d l o h e Shar 1 iness bert College of Bus
The Raymond J. Har
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Alumni Magazine, Fall
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Auburn University Raymond J. Harbert College of Business Office of Communications 023 Lowder Hall Auburn, AL 36849 (334) 844-8847 harbert.auburn.edu cobletters@auburn.edu Auburn is an equal opportunity educational institution/employer © 2013 Auburn University Raymond J. Harbert College of Business
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Over the years, you may have seen quite a few issues of The Shareholder. Now that our college has a new identity, we’ve given the magazine a fresh look. You’ll find new features and content capturing the ways in which Harbert College alumni, faculty and students succeed and lead. We hope you’ll enjoy the changes.
E MARK FOAmRCeriHEcaTT n Dream Seeing the
SON STEVE GOxOD Ever The Best Sa
BOB DUMFuASndamentals Focusing on
4 The ShareholderSpring 2013
Over The Years...
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Todd Van Emst Auburn Athletics Jeff Etheridge AU Photo Services
New &
Additional photography by
RAYMOND J.
HARBERT Foresight & Risk
, Fall 2013 The Shareholder
Tell us what you think. Send your comments and story ideas to cobletters@auburn.edu.
Shareholder
WHAT’S INSIDE
FEATURES 16
20
24
Steve Goodson
Bob Dumas
Terry Windle
26
30
54
Mark Forchette
Raymond J. Harbert
Bill Hardgrave
The Best Sax Ever
Focusing on Fundamentals
Seeing the American Dream
MORE GOOD STUFF
Foresight & Risk
Turning a Profit
Dean’s Last Word
6
Letters
13
Reviews
38 Impacts of Pay Disparity
8
What You’re Up To
14
Travel
40 With Your Dollar
10
How We Think
37 Research
44 Alumni/Student News
The Shareholder, Fall 2013 5
LETTERS Here’s where we publish your letters — where you have the space to comment or critique, reflect or rant. If you’ve got something to say about business, business education, the college or the magazine, let us hear from you. I am one of the early graduates of the College of Business and I have always appreciated the knowledge and sense of values I received from Auburn. I received my BS degree in 1966 and my MBA in 1971 after completing four years in the Air Force. The majority of my career has been spent as a CEO and business owner. I wanted to give something back to the institution that gave me so many good memories and prepared me for my career in business. With this in mind I accepted an invitation in 2008 to serve on the college’s advisory council. As a member of the council, I have seen Auburn grow into one of the leading public university colleges of business. This has been a wonderful experience, but I often feel guilty that I learn more from the group than I am able to contribute back to the council. I take great pride in witnessing the growth of Harbert College and the success of our faculty and graduates. The engagement of more alumni with the college will ensure its future success. There are many ways alumni can assist the college. These include, but are not limited to: student mentoring, student internships, employment opportunity for graduates, and the recommendation of Auburn to future students and potential employers. The Harbert College of Business will also deeply appreciate contributions for scholarships, awards, endowments, and annual program expenditures, all of which will further ensure the future continued success of the college. I would like to encourage all of us to return a small part of the benefits we have received from our alma mater by becoming more engaged with the Harbert College of Business.
Roger Champion ’66
As with so many of us, Auburn runs in my family, and since graduation I’d always wanted to remain involved with the university. Distance, family, securing my career and travel took priority. Finally, decades after graduation, much to my pleasure, I’ve become involved with the advisory board for the Harbert College of Business. I’m a member of the marketing/communications committee. Participating on the committee has totally renewed my enthusiasm for the school and I finally feel I’m giving something back to Auburn for the education that opened so many doors. Working with Harbert College to help achieve its goals for the students, the true assets of the university, has been a fulfilling endeavor. I’ve shared my time, opinions and industry experience with other members of the committee as we strive to increase alumni awareness and participation in the goal of having the college recognized as one of the elite public business schools in the country. Through the advisory board, I also became aware of how important scholarships are for the students and for Auburn long-term. My international business major proved to be a good choice. I’m thankful my education put me in the position to fund an endowed scholarship. It’s exciting to know students and future students will benefit from my contribution for years to come. I realize now that it takes more than a few, it takes a village giving ideas, contributing their time and intellectual capital to be successful. How many of you want to be involved and haven’t made that move yet? I’m finally an active member of the “loveliest village of the plain.” Don’t wait, as I did. Get involved with Auburn and with the newly-named Harbert College during a truly pivotal time in its history.
Cheryl Casey Potter ’83 6 The Shareholder, Fall 2013
“Your feedback and active involvement will help keep Auburn on the cutting edge and on its way to being an elite institution and a great place to get an education.”
I have recognized over the past couple of years that my partnership with Auburn did not end because I graduated from Auburn. Our work and life circumstances constantly demonstrate the value of an education, the value of knowing how to approach and solve problems in a systematic and disciplined manner. These are skills we picked up at Auburn that have paved the way for us to become lifelong learners. The dean and the faculty and staff of the newly-named Harbert College of Business have developed a strategic plan to take it to elite status. The strategy has a few clear goals — to develop highly desired graduates, to produce research that advances the academy, extends business thought and contributes to practice, attracts, develops, supports and retains world-class faculty and staff and actively engages our stakeholders. We have been riding a wave of momentum since the June 21 announcement of Raymond Harbert’s generous gift to the college — one that will carry us into the university’s upcoming comprehensive campaign and beyond. As alumni we are stakeholders. We can actively participate in executing the strategic plan by staying connected to current research, sharing information from our work environments with the college to ensure that the right skills are being developed in current HCOB students.
Your feedback and active involvement will help keep Auburn on the cutting edge and on its way to being an elite institution and a great place to get an education. The HCOB provides numerous opportunities to get engaged and make a difference, such as the mentoring program that aims to pair current students with alumni, the Harbert College placement center, advisory councils, game day tailgates, the communications group and the development group. It has been a great privilege to be on the advisory council, which has taken on a new subcommittee structure under the guidance of Dean Hardgrave. One subcommittee I am a part of has been wrestling with how to communicate and market the college as it establishes its brand under the Harbert name. A key output of the activity has been a recommendation to engage current students in developing the marketing and communications plan for the HCOB. I invite you to join in our effort to making Harbert College an elite business school. The concept of joint ownership is key to our continued success, and your decision to engage will also help us move from our current 7 percent engagement level to a 10 percent engagement level or greater. Let’s do this together.
Abiola Oladopo ’04
To send us your feedback or to get involved with the Harbert College of Business visit us at harbert.auburn.edu or e-mail cobletters@auburn.edu The Shareholder, Fall 2013 7
WHAT WHATYOU’RE YOU’REUPUPTOTO Shoot us a photo. Drop a line. Jot a note. Draw us a picture. Put the message in the bottle and let us know what you’re doing. Here are a few of the things we’ve heard.
Karlin Beck, 2011 Accounting, a former walk-on with the Auburn
University women’s golf team, qualified for the LPGA tour on her first attempt.
Tyler McGill, 2011 Economics (top & center), Eric Shanteau, 2006 Management (right) — both won gold medals at the 2012 Olympics as
members of the U.S. 4 x 100 meter medley relay.
Matt Targett, 2010 Marketing (left), swam for Australia in the 2012 Olympics and won a bronze medal in the 4 x 100 meter medley relay.
Katherine Webb, 2011 Business Management and Administration, was Miss
Alabama USA and has since appeared on television shows including NBC’s reality diving competition, “Splash.” She also received national attention at the BCS National Championship Game as she cheered for her boyfriend, Alabama quarterback AJ McCarron. Photo: Sage Media Group
8 The Shareholder, Fall 2013
Kelly Schenck, 2008 Business Administration, is director of implementation at the growing Chicken Salad Chick restaurant, which already operates seven locations and is looking for franchise expansion.
WHAT WHATWE’RE WE’REUPUPTOTO Stay in touch!
Let us know what you’re up to and keep up to date at harbert.auburn.edu/news and with theshareholderonline.com.
On our side of the world, Harbert College of Business faculty and students are shakin’ it up.
Danny Butler, Thomas Walter Professor in Marketing, (red and white shirt) was given a Fulbright Specialists Program assignment in Croatia and Serbia in May. Butler taught seminars on consumer behavior with MBA students and faculty at the Zagreb School of Economics and Management in Croatia. He also led seminars with business executives in Belgrade on the “Science of Persuasion and Negotiation.”
Kris Frost, Professional Flight Management, is a linebacker on the Tigers’
Seventeen HCOB Students visited South Korea the week of March 3 and got the opportunity to appreciate the business world and the way of life on foreign soil. Some even toured the DMZ.
Twelve graduate and undergraduate students toured the financial
football team. Kris hopes to become a pilot.
district of New York City during the university’s spring break, including stops at Merrill Lynch, the New York Stock Exchange and Goldman Sachs.
The Shareholder, Fall 2013 9
HOW WE THINK Thinking Long Term: Joe Hanna Achieving our stated goal of becoming one of the nation’s top 20 public schools of business hinges on being more productive and purposeful with our research, on answering the questions and solving the problems that matter most to industry. The colleges we intend to overtake, a number of which have been around twice as long as we have, are not stationary targets. If you’re not moving forward, you’re falling behind. Raymond Harbert’s gift allows us to continue producing the level of research that has defined us and enables us to improve and expand our efforts. It’s easy to hear “$40 million,” see a giant Publishers Clearing House check and expect that the funds are put into action the instant they are deposited. As much as we love the idea of instantaneous improvement, we have yet to break ground on the research centers or welcome any of the 15-20 endowed chairs that will represent the core of Raymond Harbert’s investment in our college. These changes will play out over the better part of a decade, but it’s impossible to overstate what Mr. Harbert’s gift means to the college as it seeks to raise its research profile. Success tends to breed success. When an individual with Mr. Harbert’s reputation makes an investment in the “intellectual capital” of a college, it enhances credibility in the eyes of industry leaders. It forces them to take notice of what we are doing and what we plan to do in the future. It opens doors for us to leverage our expertise to form meaningful research partnerships, for our research centers to become self-funding enterprises.
10 The Shareholder, Fall 2013
Even though we are a young college, still a few years shy of our 50th birthday, our accomplishments belie our age. Our faculty shape industry thought and practice in a variety of ways, pursuing lines of inquiry in such areas as business analytics, ethics, entrepreneurship, geospatial technology and retail supply chain. Mr. Harbert’s gift substantially increases our capability to do more, to purposefully recruit and retain top-flight faculty members through endowed chair positions, to incubate new thought leaders in a newlycreated doctoral program. Imagine, for a moment, what the Harbert College research profile might look like 10 years from now as the result of these assets.
Joe Hanna Regions Bank Professor Associate Dean for Research and Outreach
The Moon & The Mop: Jeff Long While touring NASA headquarters in 1961, President John F. Kennedy approached a man diligently mopping the floor. Kennedy briefly spoke with the man and inquired about his work at NASA. He could have said, “I’m the custodian. I take out trash, mop the floors and clean the bathrooms.” But he didn’t. “Sir, I’m helping to put a man on the moon,” the man told the president. In today’s corporate world and here at the Auburn University Harbert College of Business, we’re not necessarily trying to put a man on the moon every day. But it’s important that we realize we are all part of the same team, wherever business takes us, working together for the common good of our business or organization. Everyone has a job to do and everyone is important. Everyone has a purpose. You need every team member every day doing their jobs to reach the goals of the company. It is also important to treat others like you prefer to be treated. The Golden Rule should apply in the workplace. Showing a co-worker respect, no matter if it is the company CEO, a custodian, or a mid-level manager, is important and helps to maintain a healthy work environment. Does showing respect mean ignoring an employee’s poor work performance? Not at all. A manager’s constructive criticism can help mold the employee into a better worker, which is a plus for the overall company. At times, bad apples must be either removed or workplace attitudes must be corrected. Be a respectful, hard-working part of your team. Do your job. Help others. Go the extra mile. Co-workers will realize that you are in it for the company and they will become more apt to do a better job. Respect for others and hard work can be contagious. Spread the word.
Jeff Long Chief Operating Officer Harbert College of Business
The Shareholder, Fall 2013 11
Feeding Scholarship: Jimmy Hilliard Albert Einstein is reported to have remarked that the most powerful force in the universe is compound interest. According to an oft-cited example, the emperor of China was so pleased with the game of chess that he offered the inventor one wish. The inventor replied that he wanted one grain of rice on the first square of the chess board, two grains on the second square, four on the third and so on through the 64th square. The emperor immediately agreed to the seemingly modest request. But two to the 64th power is 18 million trillion grains of rice — more than enough to cover the entire surface of the earth. And so it is with the impact of the Harbert Endowment on research output. The particulars have been cited: Flows from the endowment will be used to fund eminent scholars, establish a Ph.D. program, fund a wealth management center, and provide funds for a supporting infrastructure. There are synergies: Eminent scholars will attract talented Ph.D. students, Ph.D. students will supply energy and talent for original research, and the wealth management center will both enhance outreach into the business community and provide ideas for research. Much like the grain in the chess example, the impact of an important scholarly work compounds. For example, one scholarly paper may generate two papers that, in turn, may generate four papers. The article “The Pricing of Options
12 The Shareholder, Fall 2013
and Corporate Liabilities” by Fisher Black and Nobel Prize winner Myron Scholes presently boasts well over 22,000 citations, meaning that this work has influenced over 22,000 other papers. This number is greatly understated because the term “Black-Scholes” has become generic and is frequently used but not cited. Scholarly research is not an end in itself. Excellent research impacts everyday life. The Black-Scholes model, or a close variant thereof, is used every day as a benchmark for trading hundreds of billions of dollars of financial instruments worldwide. In large measure, this trading is useful in directing the efficient allocation of resources. The immediate impact of the Harbert commitment of $40 million is not small. But it pales in comparison to its eventual impact on research and the visibility of Auburn University and the Harbert College of Business.
Jimmy Hilliard Harbert Eminient Scholar Professor Department of Finance
REVIEWS REVIEWS
Garbology: Book Review For the past decade or so, I have met weekly with a faculty group to discuss books we were reading. Some have forever altered the way I look at the world — Amusing Ourselves to Death, Geography of Nowhere and The Omnivore’s Dilemma — while others have generated significant buyer’s remorse. A recent book that is closer to the former group is Garbology: Our Dirty Love Affair with Trash. Author Edward Humes provides an engaging analysis of the history, the data, and the personalities of the world of garbage. His treatment is both fascinating and depressing. On the fascinating side, we learn about the rise (literally) of sanitary landfills, the municipal and commercial solutions to trash, and the research of the Garbage Project, in which archaeological
techniques are used to examine modern waste. (Who knew that my family was not alone in eating the Halloween candy but throwing away most of the Valentine’s Day fare?) On the depressing side, we learn of the staggering amount of trash we generate and the growing “garbage patch” of the Pacific Ocean. Ultimately, we find that our garbage tells us more about ourselves than we perhaps wish to know. I have often joked with my family that we are talented at producing trash. After reading Humes’ book, the joke is not so funny anymore.
Norman Godwin Associate Dean for Academic Affairs Harbert College of Business
Skype: Beneficial to Education What technology has impacted the various facets of your life? For me, Skype is the technology that has most recently affected both my personal and professional life. As an educator with students located around the globe, I often hear complaints about distance students feeling a bit out of touch by not having the ability to contact the professor in person. While the telephone certainly provides this opportunity, I have on occasion had students contact me via Skype in order to feel better connected to Auburn University. For students located overseas, this means of communication is often invaluable. In addition, being able to conduct video conferences with co-authors has also proven to be an effective means of collaboration. While such collaboration seemed a bit odd to me at first, it is almost second nature to today’s youth.
Recently, I overheard a considerable amount of conversation coming from my son’s room while he was studying. It turns out that my 13-year-old son and his friends had formed a Skype study group. Over the past few months, this “virtual study group” has proven to be an effective and efficient means for him to give and receive peer assistance on his homework assignments. And in the end, anything that saves me from having to revisit eighth-grade geometry is a definite plus.
Jeff Jones Associate Professor School of Accountancy
The Shareholder, Fall 2013 13
Dublin, Ireland
A
Amsterdam
B
Prague, Czech Republic
C
An economic rollercoaster — Celtic Tigers and PIGS. The Book of Kells.
Bicycles everywhere — they have the right-ofway. Pioneering health care developments.
One of the first economies to emerge from the Iron Curtain. The world’s first Pilsner!
A
B C D
Budapest to Munich
D
Florence, Italy
E
Istanbul, Turkey
F
Rio de Janeiro, Brazil
G
Buenos Aires, Argentina
H
A magical train ride across culture, history and geography.
E
An Italian spin on health care. Pasta, wine and sculpture.
As always, a door between different cultures, the gateway to the east.
The World Cup, the Olympics and developing an infrastructure to handle it. Copacabana Beach. Wow!
Doing business in a very different economy. Nobody works early. Coffee, the tango and the best steaks.
H
G
F
TRAVEL
Dubai, UAE
I
A city of dreams. I’m not sure the sky is the limit.
Agra, India
J
Seoul, South Korea
K
Beijing, China
L
An emerging economic giant. The Taj Mahal. Where the tour bus left me!
Racking Up the Miles
K
M
I
N
In this global age, the education of a business professional cannot be complete without an international experience. Over the last 15 years, Kim Kuerten, director of the Executive MBA programs, has taken class after class of executives and physicians to cities and countries around the world — so many cities and countries she’s had to add pages to her passport.
Here are a few travel notes from Kim.
L
You can’t know modern business without a trip to China.
J
On each of these trips, Auburn’s faculty and staff make sure that the students in their charge have the opportunity to get a sense of history, a flavor of culture, and a perspective on how business or medicine is conducted in environments far different from our own.
One of Asia’s leading economies: electronics, automobiles, chemicals, shipbuilding, steel.
Shenzhen, China
M
Bangkok, Thailand
N
Sydney, Australia
O
Foxconn and Apple. How a large American company does business with a large foreign economy.
High-tech, even for Asia. Never enough Thai food. Maybe next time avoid the rainy season.
Interesting combination of public and private medicine. Opera House, whale watching and X-mas in the summer.
O
16 The ShareholderApril 2013
THE
BEST
SAX
EVER Steve Goodson hangs out with rock stars and gets paid for it. He lives in an eightbedroom, five-bathroom, electric purple home in New Orleans with his 6-foot-tall red-headed wife, Sharon. “That’s what happens when old hippies have money,” laughed Goodson (BS ’72), whose business, Saxgourmet Products, sells the most expensive saxophone on the market. $15,000. No lie. “Believe me — if anybody else starts selling something anywhere near that price point I am raising my prices,” Goodson said.
It’s called the Category Five Tenor and its features include a handmade body, bell, bow and neck, proprietary brass alloy, and the largest bore and bell in the industry. “Our Category Five model has a dedicated altissimo octave key, giving the horn a very usable four-octave range rather than the usual two and a half-octave range of most saxophones. “There is absolutely nothing else available which matches our horns for playability, craftsmanship, aesthetics, or price,” he said.
The Shareholder, Fall 2013 17
Saxgourmet: Steve Goodson Goodson, 62, takes great pride in his saxophones, but he also takes pride in his ability to do business. “Something my family always told me was ‘It is called the music business for a reason. Don’t go get a degree in music.’” His business administration degree has served him well, and he’s learned some more lessons along the way. “Of every 100 people that get into the music business, 99 fail because most people treat it like a hobby,” he said. “The music business itself actually works just like any other business.” Goodson’s built his success on a few principles: • “Identify a specific niche of your market and serve it better than anyone else,” he said. “A small company cannot be all things to all customers. Find something unique and do it well.”
• “Remember that customers should never have to have what you do explained to them: your product or services name should tell the whole story in just one word: Saxgourmet equals high-quality saxophones. If it takes more than one word, you have failed in this mission.” • “As a small company, you have the opportunity to be ‘hands on’ with every aspect of the customers’ experience. There is no excuse for quality control problems or service delays and difficulties. They are never so far removed from you that you cannot experience and fine tune them.” A Saxgourmet saxophone doesn’t appeal to just any musician. “We have quite a few of the very biggest names in the business who play our horns, notably Tom Scott, the most-recorded 18 The Shareholder, Fall 2013
saxophone player of all time,” Goodson said. “Most of our clients are wealthy hobbyists or amateur players who simply want to own the best equipment available at any price.” Musicians can have saxophones custom fitted by Goodson, but at a price. “We can do this, and occasionally do,” he said. “However, they need to get out the big, leather-bound checkbook when they order. It’s super expensive to do custom work, and the fact of the matter is that our standard designs have stuff on them that is generally light-years ahead of what they had previously been playing. Of course, the only real limit to what is possible is the customer’s budget.” Originally from Leeds, Ala., Goodson excelled in the high school band — playing the saxophone — and also made a habit out of “hot-rodding” his instrument. “I always had an interest in instrument repair and modification, and that goes back to my high school days because my high school band director [Dewitt Self] was not only a brilliant teacher but he could fix your color TV, your lawn mower or your saxophone,” Goodson said. “He and I maintained the school’s instruments.” “When I wasn’t playing I was modifying my own horn. Other people would ask ‘Can you do that to my horn?’ Before long I had a business that did that.”
“I always believed that I could ‘build a better mousetrap’,” Goodson said. “In reality, saxophones have not really changed much at all since the very first one built in 1840. The manufacturers had become very complacent, and told players just to accept the faults and failings and ‘work with them’. Well, I don’t believe it ought to require you to work hard and burn a lot of calories to play the saxophone, so we set about making instruments that were easier to play, and incorporated features which increased the capabilities.” Goodson began performing when he was just 14 in a number of Birmingham nightclubs, including Charlie Brown’s Lounge and The Pussycat-A-Go-Go. “I was kind of a child prodigy at the saxophone,” Goodson said. “At age 14 I was first chair in the Alabama All-State Band. That’s kind of a big deal.” In college, Goodson spent only a summer quarter in the Auburn band. He had a job. “I was always playing for money,” he said. “Every Friday afternoon I was either going to Columbus or Montgomery to get on an airplane to play somewhere or meet the band [The Reflections] wherever we were playing.” Goodson performed for years after graduating from Auburn, playing with Chubby Checker, Eddie Money, Solomon Burke, and a number of Motown and Atlantic Records artists.
Then he fell in love with a woman from New Orleans. “I was on a gig and this tall 6-foot redhead somehow managed to get a backstage pass,” he said. “I immediately fell in love with her. I figured New Orleans was about as good as any place, so about 20 years ago I followed her home. She worked as a sound engineer, so she understands the music business.” Goodson moved his manufacturing overseas in 2006. His success relies on a thorough understanding of currency exchange rates and international economics, and an awareness of the importance of relationships. “The guys who are really on top of their game over there [in Asia] really wish to build an honest product and are like sponges,” he said. “They absorb all of the information that you will give them. You have to learn to trust the guys.” Domestic saxophone sales have plummeted by 35 percent in the past four years, but that doesn’t bother Goodson. “That’s the overall market. It’s not me. What we try to do is offer saxophones that do things no other saxophones do. They have more keys. They go higher.” Goodson doesn’t perform publicly any more. Two strokes made sure of that. “I haven’t played a gig in front of people in eight years,” he said. “Thank God for wonderful doctors. I have recovered almost completely. I still have some balance issues. I simply don’t play the same and I don’t have time to.” “But they still better treat my butt like a rock star when I walk into a club.”
“Something my family always told me was ‘It is called the music business for a reason. Don’t go get a degree in music.’”
Bob Dumas
20 The Shareholder, Fall 2013
Focusing on fundamentals has served Bob Dumas well, as a champion golfer and as a top bank executive. Dumas, a 1976 College of Business graduate, is president and CEO of AuburnBank, which for six consecutive years has been named one of the top community banks in the nation by U.S. Banker Magazine. AuburnBank has succeeded in a time in which so many banks have not, Dumas said, because of “top-quality customer service” and a policy of “sticking to fundamental products and services that people want and need.” Consistently, good management decisions within the organization have helped keep AuburnBank, which Dumas describes as “a traditional retail bank that offers services people want,” on a sound financial footing, he said. The bank’s primary location is an asset as well. “We live in a very, very vibrant community with stable employment, growth and attracting new industry,” Dumas said. “When there’s an economic downturn, university communities seem to fare better.” AuburnBank was better positioned than many banks to weather tough economic periods, Dumas said, because “our capital base is extremely strong. That’s a nice buffer, or insurance. If something does go wrong, you can absorb it without fundamentally altering the structure of your business.” Because it operated from a strong position, AuburnBank didn’t take federal TARP funds. It didn’t need them. “We maintained our dividends and maintained the value of our stock,” Dumas said. AuburnBank stock is traded on the small-caps NASDAQ exchange under the symbol AUBN.
The Shareholder, Fall 2013 21
“I grew up here as the son of a college professor. I was born an Auburn Tiger.”
Dumas, an Auburn native, had an interest in business from the early stages of his education. He began working in banking while still a student in the College of Business. He wanted to remain in his hometown, where his father taught agricultural engineering at the university. “My dad came to Auburn in 1940, looking for an education,” Dumas said. “He graduated in 1943 and never left, except for his military service in World War II.” Banking appealed to him as both a business opportunity and an opportunity to serve others. A commitment to giving back to the community is evident in Dumas’ numerous civic activities and in business practices that expect bank employees to treat customers as they would like to be treated themselves. “The Golden Rule — that’s one thing we really do well here,” Dumas said. He cites E.L. Spencer Jr., chairman of AuburnBank, as a major influence both as a business mentor and as a personal friend. “He has been a great influence on how to go about making sound business decisions,” Dumas said.
Top: Bob Dumas with his father, William T. Dumas Jr. Left: Bob Dumas, age; 8 years
Dumas also got some crucial preparation for the business world from what he called “my golf journey.” He was a state high school golf champion and attended Auburn on a golf scholarship. He was an all-SEC player for Auburn. The game taught him lessons in “commitment, dedication, learning about disappointment, perseverance and work ethic,” he said. “Golf is an individual sport,” he noted, “in which you are the referee. Playing by the rules is really respected in that game.” And the respect Dumas earned over the years opened many doors. Dumas doesn’t play much competitive golf these days but does still tee it up in tournaments from time to time. He won the 2008 Alabama Senior Amateur championship. Dumas has held various leadership positions in professional organizations, including serving as president and then chairman of the Alabama Bankers Association. The association recently merged with the state’s Community Bankers Association and he remains a board member of the new association. The merger was good for the banking industry in Alabama, he said, because it lets the industry speak with one voice on the challenges facing it. Looking ahead to future challenges for the bank, Dumas said regulatory compliance under the Dodd-Frank law tops the list. This is a bigger challenge for smaller institutions, he said, because of the expertise needed to ensure that all operations comply with the law. It will also be important to stay “on the cutting edge of the electronic economy we live in, offering products that customers desire,” such as mobile banking. Attracting and retaining “good, qualified staff and management” remains critical to the bank’s continuing success, he said.
A new opportunity to serve came in April 2012 when he was confirmed by the Alabama Senate for a seat on the Auburn University Board of Trustees. “It’s an honor and a privilege to serve,” he said. “I grew up here as the son of a college professor. I was born an Auburn Tiger.” Dumas has embraced the challenge of learning the many aspects of the university, which he says has “done a great job financially and academically. We’ve got great people doing great things.” As a trustee, Dumas said he is particularly concerned about rapidly rising tuition rates. “The contribution from the state has continued to decline, which is a function of the economy, and I think Auburn is on the cutting edge working diligently to increase other funding sources, such as gifts and federal grants,” he said. Attracting and retaining top-quality faculty will also be a top priority, he said. A conversation with Bob Dumas makes clear that, at 59, he is in a good place, serving his community and his alma mater. “One of the best decisions for me professionally and personally was joining Auburn Bank in 1984. It’s been a great journey and I look forward to continuing that journey.”
Turning a Profit: Terry Windle The late 1980s. Auburn’s football program was peaking. Not only did the Tigers beat rival Alabama four consecutive seasons, but the team had either won or shared the SEC championship three years in a row. Good times on the Plains. All was right in the Auburn Athletics Department — except it was losing money. The department’s reserves dropped from $7.5 million to $2 million. Pat Dye hired a pro: CPA Terry Windle. Armed with a degree in accounting from Auburn in 1978 and a remarkably simple strategy, Windle has helped the athletic department turn a profit in each of his 22-plus years. “I set up a budgeting system. Our budgets are very, very detailed.” Since a few revenue generating sports support all athletics at Auburn, those details are very important. As chief financial officer, Windle is responsible for all financial aspects of the athletic department. For 2013, that’s a $97 million dollar responsibility. The department is its own financial entity and is not funded with state dollars. “We have to be totally self-sufficient,” Windle said. “We do not depend on any state funding or university funding. We’re expected to generate 100 percent of our revenues. No money is coming from state taxpayers.” The largest sources of revenue are ticket sales (28 percent), SEC distributions and multimedia rights (27 percent), and donors’ gifts (27 percent). Among the sports, football generates 75 percent of the athletic department’s overall revenue. Salaries account for 27 percent of expenses and student aid takes 11 percent. The department also deals with debt incurred in building and expanding facilities — $117 million — which means a debt service of $10.7 million each year. From Windle’s perspective, the overall economy has a bigger effect on revenue than the win-loss tally. “When the economy took the downturn in 2008-09, our ticket sales and seat priorities dropped around 8 percent. That was probably the
24 The Shareholder, Fall 2013
biggest effect I’ve seen on season tickets in my 23 years here. We’ve recovered most of that eight percent in the past couple of years.” Auburn’s 2010 BCS national championship will forever be cherished, but the trip to win the coveted crystal trophy was not an instant financial windfall. “We lost a substantial amount of money going to that bowl in Arizona because it was so far away,” Windle said. “It cost us $700,000 to send our band out there. Then we had to charter planes to take our team. Plus all of our coaches got the maximum bonuses for winning a national championship. “However, there was an enormous intangible benefit that the exposure brought to us that you can’t put a dollar figure on, and there were valuable later windfalls from winning the BCS Championship.” The windfalls? “Royalties that we received the following year,” Windle added. “That’s the 7 percent royalties that somebody pays if they buy a t-shirt, or anything with Auburn logos on them. Our royalties jumped from $1.8 million to $3.2 million.” “The biggest threat I see financially is the competition with television,” Windle says. “Even though that is a big source of revenue for us, competition is much stronger now than it was 20 years ago because people can sit at home and watch games on their 60-inch flat screen HD television. That’s why one of our goals is to make our game day experience as good as it can be.” “Terry has been an invaluable member of the Auburn Athletics leadership team throughout his career here,” said Auburn Athletics director Jay Jacobs. “He is a man of integrity and character who is also dependable and professional in every sense of the word. Auburn Athletics has operated in the black every year since Terry became CFO, and not a lot of schools can say that.”
Growing Budget
1990 — $19 million
Terry Windle hired in September by athletics director and head football coach Pat Dye.
1997 — $25.8 million
Auburn baseball, led by Tim Hudson, reaches the College World Series for second time in a decade.
2003 — $40.7 million
Under coach David Marsh ‘81, the AU men’s and women’s swim teams earn another national title — one of 12 team titles from 1997 - 2007.
2013 — $97 million
New athletic dorms opened this summer; Gus Malzahn returns to the Plains hoping to turn around football fortunes.
$97 Million
The annual budget for the Auburn University Athletic Department has grown exponentially since Terry Windle took the job as CFO in 1990. This chart reflects this gradual growth from $19 million in 1990 to nearly $100 million today.
$40.7 Million $19 million
1990
$25.8 Million
1997
2003
2013
Mark Forchette
26 The Shareholder, Fall 2013
Mark Forchette wasn’t planning to be CEO of a high-tech medical equipment company in Silicon Valley when he left his hometown of Enterprise, Ala., to enroll at Auburn University. He wasn’t thinking he’d one day lead a company that would be acquired by an industry giant in a deal that could reach $400 million. “I came to Auburn thinking I was going to play the guitar and be a rock star,” he said. By the time he graduated in 1981, however, the College of Business had “helped me discover I was way better at marketing and introduced me to professional sales.” As CEO of OptiMedica, which the company’s website describes as a “global ophthalmic device company dedicated to developing performance-driven technologies that improve patient outcomes,” Forchette still relies on the principles he was taught by his Auburn professors. It paid off. OptiMedica was purchased in August by Abbott, a major company in the medical equipment field with about 70,000 employees worldwide. Abbott is “very committed to maintaining the magic of what we created,” Forchette said.
PRECISION The Shareholder, Fall 2013 27
TECHNOLOGY That “magic” is the Catalys Precision Laser System, a highly advanced system for performing cataract surgeries. The equipment can create incisions in the eye “within tens of microns, or a fraction of the thickness of a human hair, of their target,” he said. “This is breakthrough technology that benefits patients by delivering advanced precision and accuracy of cataract surgery that is an order of magnitude more precise than that found in manual procedures. We can do things today that no one had even thought of five years ago.” With 20 million cataract surgeries performed worldwide each year, better surgical equipment offers not only commercial profit, but also improved quality of life for patients. “I see this as a big validation of the quality of work that we do,” Forchette said. “For them to want to acquire us like this and make us a big part of their portfolio of products is really exciting.” The preparation for leading OptiMedica — and eventually drawing Abbott’s attention — began with Auburn classes that taught him “a tremendous amount about analytics,” imparting knowledge that was “very valuable as I thought about how to manage the levers of running our company,” he said. Forchette was drawn to the medical equipment field soon after graduation. “I found the environment surrounding medicine fascinating,” he said. His interest led to a conversation with the president of a Swiss ophthalmic surgical instrument firm at a birthday party for Forchette’s uncle. Two days later he was headed to Florida for his first job in the field.
28 The Shareholder, Fall 2013
“Never, ever, forget that at the other end of our technology is a patient who is entrusting their vision to our technology,” Forchette said. “‘Good enough’ is totally unacceptable to us. We must deliver the performance that we would expect for our own eyes.” The ophthalmology field is far different today than it was when Forchette began his career as a sales representative. Technological advances and equipment of astonishing precision have changed surgical practices and patient outcomes in broadly beneficial ways. “The spectacular capabilities of high technology have opened doors to significant surgical improvement,” he said.
As CEO of OptiMedica, Forchette embraced the challenge of delivering for current customers while also maintaining a cuttingedge position for the future. “Every day the employees of OptiMedica think about the technology that we deliver to benefit patients, and we are constantly focused on driving our capabilities to even higher levels, Never, ever, forget that at the other end of our technology is a patient who is entrusting their vision to our technology.” he said. “‘Good enough’ is totally unacceptable to us. We must deliver the performance that we would expect for our own eyes.” The key to success “was for me to surround myself with the best and brightest talents I can find, give them the tools to perform and let them have room to execute.”
Away from the office, Forchette still plays the guitar, occasionally accompanying his daughter, a singer-songwriter at Musicians Institute in Hollywood, in concerts that are “as close as I get to rock star status.” He also follows football, including his son’s high school games in San Jose. An “obsession” with domestic cars has led to a sizable collection of vehicles. Ever since taking a “wildly impactful ride in an El Dorado convertible that Elvis gave one of his backup singers,” Forchette has been “crazy about Cadillacs” and has owned “a bunch of them.” The latest, a CTS six-speed coupe, is “nasty fast and really rare in California.” Forchette also has a Factory Five Cobra that was a gift from his wife, an Auburn graduate in aviation management who he described as “amazingly tolerant” of his hobby. His most recent addition is a Fisker, an electric hybrid car. “I love domestic cars, and you can never have too much horsepower,” he said.
COMMITMENT
In the short term, Forchette will remain with the company, working to “integrate all the functions” of the company’s acquisition. “I’ll stay to help with that for a period of time and then we’ll see what happens.”
The Shareholder, Fall 2013 29
30 The Shareholder, Fall 2013
Foresight &
RISK The $3 billion Harbert Management Corporation began with an argument — one that Raymond Harbert lost. He had crunched the numbers, weighed the options and came to an inescapable conclusion. He had to initiate a very uncomfortable conversation with his father, John Harbert III, about the future of the global construction conglomerate that, in addition to building highways, power plants and shopping malls, had also assembled the family fortune. The company, though still profitable, was overextended and carrying $300 million in debt. With so much money tied up in power plants, oil and gas and real estate development, banks were reluctant to lend more. The 32-year-old CEO of Harbert Corporation carefully outlined the problems, but the solution was radical: sell the construction business. His father’s response: not printable in this magazine, but the essence of it was “Get out of my office.” “I’ve argued that the key to the successful entrepreneur is the willingness to risk failure,” said Harbert, a 1982 industrial management graduate whose $40 million gift in June 2013 led to the naming of Auburn University’s Raymond J. Harbert College of Business.
Raymond J. Harbert
Back in 1992, however, when the young CEO pondered change and braved his father’s anger, there may not have been that same level of assurance. But the younger Harbert, an avid reader of historiographies and biographies drew on one his favorites for inspiration, Winston Churchill. “A pessimist sees the difficulty in every opportunity,” Churchill once stated. “An optimist sees the opportunity in every difficulty.” Raymond Harbert trusted his preparation and his plan and eventually won over his father. Once the construction business had been sold, he renegotiated the company’s bank debt, restructured underperforming units and refocused the family’s business interests toward finance. In 1993, Harbert Management Corporation was born. Even as the new company charted a new course with Raymond Harbert as chairman and CEO and the elder Harbert as its first client, there were more than a few moments when the son wondered whether he had provided the right counsel at the right time. “I thought I had great ideas with some great people,” Harbert said. “We had some capital to put to work. I figured this would be like falling off of a log. We lost money for five consecutive years. It was one of those things where I was trying to figure out how we were going to make payroll, and then you get over that hump and go on.” John Harbert, who died in 1995, would undoubtedly be pleased with what his son has built. What once seemed like considerable risk has resulted in monumental reward. HMC is an independent investment firm focused on fundamentally-based private and public market strategies. It attracts investors from around the world and from many sectors, including endowments, foundations, fund of funds, family offices, pension plans, banks, insurance companies and high-net worth individuals. In 2012 HMC posted its most significant year since the global financial crisis began in 2008,
returning $232 million to its investors. Harbert Management Corporation may lack the pedigree of Wall Street’s household names, but its performance is noteworthy. “Raymond’s performance has been quite brilliant,” former Bear Stearns chairman Alan “Ace” Greenberg told Bloomberg Markets in a 2012 interview. Over a 16-year period, the company’s management funds produced an annualized rate of return of 11 percent compared to 6.1 percent for the Standard’s & Poor’s 500 Index. HMC, which has grown to include offices in London, Hong Kong, Madrid, Melbourne and Paris in addition to eight U.S. locations, set a company record in 2012 by calling $387 million in capital for new private market investments. A portion of the firm’s success can be traced to how it interacts with clients. Harbert Management Corporation suggests no investment unless its own capital is committed. “That plays a huge part in our message,” said Charlie Miller, HMC’s executive vice president and global head of distribution. “Having skin in the game, in the same things our investors do, we feel their pain and we feel their joy.” Miller holds the key to understanding Raymond Harbert, who shuns the spotlight and rarely participates in interviews. Having worked alongside the family patriarch and the scion, and having been one of Raymond Harbert’s closest friends since their days as Auburn University fraternity brothers, Miller has studied their leadership styles and approaches to decision making. Raymond Harbert may have been shaded by his father’s considerable shadow until refocusing the family’s interests from building structures to building portfolios, but Miller has watched him succeed by virtue of his instincts, his ability to see several moves ahead on the chessboard. Miller also detects what Raymond inherited from his father — the daring, fearlessness and discipline needed for decisions that may be unpopular but necessary.
“A pessimist sees the difficulty in every opportunity,” Churchill once stated. “An optimist sees the opportunity in every difficulty.”
“Raymond is one of the smartest people I know,” said Miller, a 1980 Auburn graduate. “Seeing him operate, he has a phenomenal memory and wisdom and perspective on life. His father would listen, but I think Raymond listens even better than his father. He’s able to assimilate a lot of knowledge and a lot of information in pretty short order and is able to make a decision.” “Harberts are able to make very quick but informed decisions. Being able to make those decisions allows them to get out in front of things.” Miller said. On the cover of HMC’s annual report, the company states the goal of “finding opportunity in the cycles of change.” This has been the Harbert way, the link between father and son. After serving in World War II, John Harbert built Harbert Construction from a mixture of war bonds, borrowed money, surplus equipment and $6,000 won in craps games on his troopship. By the time John Harbert landed on the Forbes 400 list in 1984, his company had poured concrete on practically every continent but Antarctica. He expected his son to follow his lead and sent him to Auburn to become an engineer. John Harbert earned a civil engineering degree from Auburn in 1946 and the Samuel Ginn College of Engineering now counts the Harbert Engineering Center (made possible by his $5 million gift) among its facilities. However, not long after immersing himself in engineering coursework, Raymond was ready to experience a cycle of change. “I was not excelling by any stretch of the imagination,” he said. After a few exchanges with his father about changing majors, Raymond eventually found his way to the College of Business. He planned to work for IBM after graduation, but his father persuaded him to join the family business instead. “I was interested in investments,” Harbert said. “I went to work for them and they didn’t have a clue what to do with me. My first job, I was a computer programmer. I ended up with the construction company and did all of the scheduling for the Riverchase Galleria [project] back in the 80s. Right after that, I moved into the investment side of his business and took over his commercial real estate investment arm.” He was involved in leveraged buyouts before the age of 30 and found himself a CEO at 31. “Raymond wants to see the other people around him win and be successful,” Miller said. “He gets as much joy from that as winning himself. That’s one of the true signs of a fine leader.”
Applause: Raymond Harbert and his wife, Kathryn, a 1981 Auburn graduate, receive a standing ovation during the June Board of Trustees meeting.
The Raymond J. Harbert College of Business. A few days before Auburn University re-introduced the College of Business by that name in June, Harbert couldn’t quite get used to saying the name — his name — aloud. His $40 million commitment to the college — the largest gift in university history and one of the largest to any college of business — has been described by Auburn President Jay Gogue as a “tipping point for the university” and “transformational” by Dean Bill Hardgrave. Harbert sees his gift as “an investment in intellectual capital.” It’s a bold investment, one that traces back to his belief in preparation and adaptation. With the gift, the college — the Raymond J. Harbert College of Business — will create as many as 20 endowed chairs as well as research centers and doctoral programs, all of which will further the college’s goal of becoming one of the nation’s elite public business schools. In reflecting on the nature of his gift, Harbert offers up a Bible verse — Luke 12:48: “…Unto whomsoever much is given, of him shall be much required…” However, the Winston Churchill fan might have also turned to the following: “We make a living by what we get, but we make a life by what we give.”
The Shareholder, Fall 2013 33
THE GIFT
$5 million
$6 million
$10 million
$4 million
Ph.D. programs
Research Centers
Eminent Scholar Chairs
Spendable ($2 million) and Opportunity Fund ($2 million)
How the outright gift gets put to work By design, Raymond Harbert’s $40 million contribution to the college has two parts: an outright gift of $25 million and a matching, challenge gift of $15 million. In accordance with the strategic plan, the college will invest most of the $25 million in outright monies in support of professorships, research centers and Ph.D. programs, all of which will grow the intellectual capital of the college. “Spendable” dollars provide bridge funding until the endowment begins to generate interest, and the “Opportunity Fund” is a reserve that allows the college to respond nimbly to emerging opportunities. 34 The Shareholder, Fall 2013
THE MATCH GIFT
$15 million
$15 million
Endowment
Endowment
With your help we can turn $40 million into $55 million The challenge gift will match new endowments dollar for dollar up to $15 million. In June, three College of Business graduates were among a group of donors who answered the “challenge match” with gifts of $1 million or more. Kerry Bradley `79 and Laura Bradley, Robert M. Broadway Jr. `91 and Julie Broadway, and David Luck ‘71 and Terri Lynn Luck each made commitments in support of endowed and eminent scholar professorships.
The Shareholder, Fall 2013 35
A Look Back With Wayne Alderman Wayne Alderman knows a little something about the Harbert College of Business. He got his undergraduate degree here in 1971, his MBA here in 1972 and then went out into the world to work for a time. He went on to receive his DBA from the University of Tennessee in 1977 and returned to Auburn as a professor in 1979, becoming head of the School of Accountancy and eventually dean of the college for seven years starting in 1993. He was present for the AACSB accreditation, the design and construction of Lowder Hall, the growth of video-based distance education programs and the formation of the Auburn chapter of Beta Alpha Psi, an honorary organization for accounting students. He was also directly responsible for creating The Shareholder magazine. But back in high school, Alderman had a different plan: Go to Georgia Tech and get an engineering degree. Some friends had decided to become engineers and it sounded like a good thing to do. Still, there was always something in the back of his mind drawing him to Auburn. So he and his parents decided to have a look. One Sunday afternoon they’d drive to Georgia Tech. Wayne had a friend there who could show them around. The next Sunday they’d visit Auburn. That fateful day at Tech was a nasty one, “a typical winter day in the South: 45 degrees, windy and rainy.” By contrast, the next Sunday at Auburn was like a day in the park: 70 degrees, balmy and sunny. With no friends there to show them around, they were left to the kindness of strangers. And kind they were. Everyone they met — mostly students — were friendly and helpful. The overall atmosphere was warm and inviting. They even got a classic recommendation on a place to eat and rounded out the day downtown at the old Auburn Grille. That did it. He started in the fall of 1968. Top: Wayne Alderman as Dean of the College of Business. Right: Tichenor Hall, one of the original classroom buildings for the college.
36 The Shareholder, Fall 2013
Engineering wasn’t for him, but accounting was and the recently-created College of Business was a good fit. Alderman got his undergraduate degree — passing his CPA exam the first time — and went on to work for Ernst and Young. “I was as well-prepared technically as anyone from any other school,” he says. But the Auburn education was more than just technical. It also helped him to be “wellrounded as an individual, able to communicate, to deal with people.” And it stressed values like honesty. Alderman has seen the value of the COB degree continue to grow. “If the reputation of the degree increases, it helps you, even if you’re in your 50s.” Of course, the college has gotten bigger due to the demand of students. But the depth and breadth of programs has also greatly increased. “Land grants, in general, were late to the business school game,” he said. “We went from being a new unaccredited school in 1967 to a top-30 business school in a relatively short period of time.” As it turned out, Auburn was a good choice after all. C. Wayne Alderman currently serves as the Dean of Enrollment Services for Auburn University.
RESEARCH But Enough About You... In companies, unity develops through three key processes: collaborative behavior, information exchange and joint decision making. But what if you find that the executives on your top management team don’t collaborate? What if they exchange only the information that serves their particular goals? What if joint decision making is impossible? How do you handle it? You start with the recognition of one simple fact: you work with a bunch of narcissists. According to research by LaKami Baker, assistant professor of management, the narcissist “looks for opportunities to use people to enhance their own self image. The narcissist on the top management team may use the opportunities for the firm to enhance their own personal goals and objectives. They make choices that are good for themselves, but not necessarily for the long-term goals of the company.” Baker and research partner Carla Jones of the University of Houston are looking at how narcissistic personalities influence top management team processes. “If there are a lot of these personalities on the team, decision making could very well suffer. They need autonomy and control and believe they have the best viewpoint or perspective on any situation.” Collaborative behavior occurs when members of the group subordinate their personal interests to those of the group to achieve harmony, cooperation and productivity. Companies that succeed in promoting collaborative behavior are better able to gather information, process it, share it and make the decisions that further company goals.
The narcissist’s need for control, however, overrides any collaborative behavior. In an exchange of information, the narcissist will gather, filter and interpret information which enhances his individual goals — specifically, the need for admiration and attention. Thus, the narcissist’s exchange of information is rarely objective. Joint decision making involving narcissists will also be difficult because of the narcissist’s need to implement agendas which will place them in positive positions. Intellectually, the narcissist has little interest in consulting with or listening to others and believes he already knows the best course of action. “They rarely accept input from others, and function as a committee of one,” says Baker. So is it all bad news? “Not really,” says Baker. “Narcissistic execs are very competitive. This behavior often leads to the discovery of new sources of information and novel approaches to problems. Team members with narcissistic personalities may try to outdo each other and, up to a point, that competition can be good, even creative. Where personal goals can be aligned with company goals, the narcissist may channel a great deal of energy into a particular issue or problem, often with surprising results.” “And if nothing else,” Baker says, “you’ll always know what motivates them, what drives them, what gets them working hard and keeps them fired up… their love of themselves. And that can be a very powerful tool.”
Disparity in Pay Has Short-Term, Long-Term Impacts As a doctoral student at Texas A&M in 2007, Brian Connelly pondered why the pay gap between corporate managers and lower-level workers continued to increase. “But nobody had measured it,” said Connelly, “I wanted to study this further and add a measure of clarity.” Along with associates from Texas A&M, Michigan State and Delaware, Connelly researched the increasing disparity in pay.
The Shareholder: Why is there an increasing disparity in pay between lower and upper-level management employees? Connelly: It hasn’t always been this way. In the 1980s, CEOs earned about 30 or 40 times what their average employees earned. Somewhere around 1990 that number began to balloon upwards and it has steadily increased to about 380 times average employee pay today. In other words, CEOs are earning more on January 1 than the average employee earns for the year. The causes are multifaceted. One thing that could be contributing to this phenomenon is the “Lake Wobegon Effect,” taken from Garrison Keillor’s tale where “all the children are above average.” Most companies feel their own CEO is better than the average CEO and should be compensated accordingly. This results in a “ratcheting up” effect as companies compare what they are paying their CEO with what other companies are paying, and then add to it because they believe their CEO to be better than others.
The Shareholder: What impact does this widening disparity have on an employee’s morale? Connelly: Somewhat surprisingly, widening pay gaps can have competing influences on morale — some good and some bad. On the bright side, it encourages individual performance. The higher your boss’ pay, and the less she or he has to do to earn it, the more you will be motivated to work for a promotion. Economists call this tournament theory. However, there is a potential
38 The Shareholder, Fall 2013
dark side to increasing pay gaps. Research shows that over time, employees may harbor feelings of injustice, and these feelings manifest themselves in their work. The healthy competition brought on by larger pay gaps can devolve into uncooperative — and sometimes even disruptive — behavior as employees fight to achieve promotion. These things don’t happen overnight, but we examine companies over many years, and that’s when you start seeing these negative outcomes pop up.
The Shareholder: What impact do transient shareholders have on pay gaps and how? Connelly: Transient investors are a unique breed of shareholders that are in it for the short haul. These investors own stock in lots of different companies and they are constantly trading in and out in order to realize the fastest near-term gains. We find that when companies have lots of transient shareholders, pay gaps increase. This is likely because transient shareholders impose pressure for short-term results, which is consistent with large pay gaps. They are not concerned about the long-term ramifications of wider gaps in pay because they will probably not hold their stock in the company for that long anyway.
The Shareholder: Is there any reason to believe this trend of increasing disparity in pay will continue? Connelly: I expect it will. Despite large-scale protests on Wall Street, increasingly derisive media attention, and emerging attempts at regulation, our study finds there are actually some important benefits of wider gaps in pay and, further, that this is exactly what many shareholders desire. Although outsized managerial pay may elicit visceral reactions in the popular business press, our study brings a measure of academic insight and finds that the issue is far more complex than it may appear on the surface.
Brian Connelly COB Advisory Council Research Fellow Associate Professor Department of Management
Millennials Also known as “Generation Y,” “Facebookers,” “Screenagers,” the “We Generation,” the “Trophy Generation” and the “MySpace Generation.” They are the fastest-growing workplace commodity — 80 million strong according to the U.S. Bureau of Labor Statistics — and are projected to account for 36 percent of the workforce by 2014 and 46 percent by 2020. However, business leaders often characterize the generation as entitled, arrogant and tech-obsessed. “They are a fascinating group,” said management professor William I. Sauser, Jr., an author and the co-editor of Managing Human Resources for the Millennial Generation. “As children of baby boomers, they were protected, shuttled around from activity to activity and made to feel special. For example, they’re called the “trophy generation” because if you showed up, you got a trophy. They are also very bright and savvy and have lots to offer. It’s up to us to bring out the best in them.” According to Sauser, millennials have different expectations of work and the workplace than previous generations. They want to be socially engaged at and by the workplace and they want their work to be meaningful to the world around them. “Managing and working with this generation can be troublesome only if you don’t understand their needs,” he says. To help shed light on — and ultimately recruit and work more effectively with — this enigmatic group, Sauser offers some advice:
Be prepared to give constant feedback and answer lots of questions.
Because they have been used to their parents’ constant presence and support, they will expect the same type of support from their managers. Annual performance reviews will not work well on millennials. They want constant feedback. Instead, meet with them and evaluate them regularly and answer their questions. If they feel integral to a project, they’ll be loyal and work hard. Also, they always want to know the most expedient way to accomplish a task.
Delegate, delegate, delegate. The whole idea of working your way up as an entry-level hire is foreign to millennials, who want to start managing right away. They are looking for fun and meaningful work that also offers opportunities to work and solve problems creatively. Ideally, assign them clearly defined projects that involve learning and some troubleshooting along the way. Remember, millennials are social animals. If the project offers a team environment, so much the better. Giving them a solitary and tedious data entry project will not bring out their best. Create some job/scheduling flexibility when at all possible. More than any other generation, millennials value the work/life balance. Ultimately, what’s important to them is getting the job done and preserving the balance. The typical 9 to 5 day is not important, nor is a specific number of hours per week. A flexible work schedule is important. Advertise open positions online. When recruiting millennials, don’t spend time and money on fancy advertising or newspaper ads. Go directly to Monster.com or increasingly, LinkedIn. If you can count on anything at all, it’s that this generation will be online and tracking jobs through websites and social networks.
Make It Or Buy It? In any industry, executives must decide whether to create components in-house or purchase them from a supplier. Ford, for example, needs hundreds of parts to build its vehicles. What do they build themselves and what do they outsource? Oliver Williamson won a Nobel Prize in 2009 for his explanation of how these decisions get made. In his “transaction cost theory,” Williamson suggests that executives choose the alternative that is least costly. But a recent study by Auburn’s Dave Ketchen suggests that reality is more complex. Ketchen found that while executives often choose the least cost alternative, the distinctive resources of the firm — patents and brand names — also play a role in the process. Ford executives may build an engine in-house if it protects the brand, even if building is more costly than buying. If future consumer demand for an item is unclear, Ketchen found that executives may prefer to keep their options open and, in the near term, purchase a more expensive manufactured item and avoid capital investment until demand crystallizes. Overall, Ketchen’s findings are consistent with much of Williamson’s theorizing, but Ketchen highlights some important nuances. It’s not every day that one gets to shed new light on a Nobel-winning idea.
Managing Interruptions Harbert College of Business faculty James Long and Jonathan Stanley surveyed a number of CPAs and 85 percent indicated “that they are interrupted at least once per hour.” Those same CPAs thought they could handle the interruptions in spite of the documented fact that interruptions consume 28 percent of the average workday. Some of Long and Stanley’s best practices for managing interruptions:
Education and Training
• Learn and understand the cost of interruption. • Batch your interruptions. • Develop an interruption strategy and communicate it to co-workers and clients. Be sensitive to their strategies.
Technological
• Use technology to let co-workers and clients know your availability. • Change software settings to reduce the frequency of interruption. • Write shorter e-mails. • Expand electronic workspace — one monitor for work, one for email.
Other
• Use notes to indicate where in a task work stopped. • Keep detailed, visible “to do” lists. • Use each form of communication appropriately.
WITH WITHYOUR YOURDOLLAR DOLLAR Your Dollar Goes A Long Way At Lowder Hall Somebody had to take the first step. Somebody had to provide the financial oomph to help the college gain traction on its climb toward becoming one of the nation’s top 20 public schools of business. Raymond Harbert ’82 knows what many people are probably thinking in the wake of his $40 million gift to the college. They can’t possibly need my help now. Harbert said it’s more important than ever for other graduates of the college to invest in its faculty and students. To help the college sustain its momentum as Auburn University prepares to enter a campaign phase, Harbert plans to match new endowments dollar-for-dollar up to $15 million. He said that, although he hopes other alumni will meet or exceed his level of support, any gift — no matter the size — is meaningful and sends a positive message. “I hope this will maybe be a small impetus to get other people to make gifts,” Harbert said. “The way the gift was structured, with $15 million as a challenge match gift, I’m making an investment alongside of you.” Your gifts, large and small, have enhanced the experiences of Harbert College students by creating new academic programs, improving facilities, increasing scholarship opportunities and providing important professional development resources. Professor Dave Ketchen’s class in entrepreneurship opened a new academic and career path for Ashley Yerves, who shifted from biomedical science studies to Harbert College, where she won the Bruce Cox Endowment Scholarship. Cox, a 1985 COB graduate, is president and COO of Sports Challenge Network LLC in Atlanta. He established a scholarship and Fund for Excellence dedicated to students majoring in entrepreneurship. Cox’s Endowment Scholarship was one of 354 scholarships awarded to College of Business students in 2012. Students received nearly $475,000 in scholarship money during the 2012-13 academic year. Contributions to the 2012 Annual Fund also allowed the college to upgrade classroom technology. In addition to new
40 The Shareholder, Fall 2013
data projectors and interactive touchscreens for classrooms and computer labs, the college increased its number of Bloomberg terminals from two to eleven. “The Bloomberg terminals are a great resource for our students, providing them the ability to learn how to navigate through endless firm and financial data, just as practitioners do,” said Keven Yost, associate professor of finance. “For students hoping to pursue careers in securities trading or analysis, I expect — all else equal — knowing how to navigate within the Bloomberg terminals will make our graduates more highly sought after.” With your dollar, the Office of Professional and Career Development increased the number of students it served by 44 percent. The OPCD helps students prepare for the job market with interview training, professional development programs, resumé development and job placement assistance. The office also hosts annual career expos, bringing students into contact with corporate recruiters. “Recruiting opportunities and partnerships that enhance the education and preparation of our students are impacted by the level of support we receive from donors,” said OPCD director Jimmy Lawrence. In August, the college hosted its first leadership summit to orient incoming freshmen who plan to major in business and provide an overview of coursework and an introduction to faculty. Harbert College has also used unrestricted private support to fund its new business analytics major and minor and to improve and increase communication with students, faculty, alumni, donors and industry partners. More changes are coming to Lowder Hall in the form of a renovated Lowder Lounge area, which will include an expanded coffee shop and more plentiful and comfortable seating for guests. For more information on how you can support Harbert College and help it achieve its goals, contact the Office of Advancement at (334) 844-1491.
RENOVATIONS RENOVATIONS Better Than Brand New Almost the minute construction was complete, Lowder Hall started to leak. In 2011, the university undertook a renovation of the building. When the exterior skin was removed, builders found a host of problems. Now, almost two years later, the building has a new roof, new windows and new brick. Lowder’s literally better than brand new.
THREE
STORE FRONT ENTRANCES
FOUR CURTAIN WALL SECTIONS OF GLASS
167
NEW WINDOWS
315,000
NEW BRICKS
Building Timeline 1986
1990
1994
2011
Trustees approve $10 million for a new COB building.
After design and planning, ground is broken.
Construction complete, the building is named for Edward & Catherine Lowder.
Building renovations begin.
The Shareholder, Fall 2013 41
Chart Your Own Course The Harbert College of Business offers a number of programs — on campus and distance, from certificate to Ph.D. — that have proven to add significant value to an undergraduate degree. Not only have these programs been proven to enhance the earning capability of hundreds of graduates, their quality has been recognized nationally and internationally. European CEO Magazine calls Auburn’s Executive MBA Program the “Best Executive Remote Learning Programme, North America;” and U.S. News & World Report places Auburn’s online graduate business programs in the top ten nationwide.
Take a look at what we offer. Expand your skills and chart a course to success.
U.S. News & World Report places Auburn’s online graduate business programs in the top 10 nationwide. 42 The Shareholder, Fall 2013
OUR GRADUATE PROGRAMS
Executive MBA For working professionals with at least eight years experience, the EMBA combines distance study with on-campus residencies to give executives the skills necessary to advance their careers.
Physicians Executive MBA The program prepares physicians for positions of leadership and helps them improve their practices.
Master in Real Estate Development For professionals with three years experience, the program enhances leadership skills and professional knowledge.
Master of Accountancy Graduates have one of the nation’s highest pass rates on the CPA exam. They enjoy a good starting salary and a better chance at promotion once hired.
Graduate Certificate in Accountancy This program — which does not require an entrance exam — enables participants to update accounting skills and prepare for the CPA exam.
Master of Business Administration Auburn’s MBA provides a broad business skill set and the opportunity to choose from six specialization options.
Master of Science in Business Administration/Finance With thesis and non-thesis options, the program offers specialized instruction for students who anticipate a career in finance or plan to pursue further graduate work.
Master of Science in Information Systems This flexible program enables students to develop greater technical expertise while customizing the program to meet their individual career goals.
Ph.D. in Business This program offers two concentrations: Information Systems and Management. Both prepare the graduate to contribute new knowledge to the operation of business organizations and compete for faculty positions at leading universities. The Shareholder, Fall 2013 43
ALUMNI NEWS We’ve got a lot of sharp people in the Harbert College of Business, but we can’t read your minds. Help us help COB alumni keep up with each other by sending information about yourself for this section of The Shareholder magazine. Tell your fellow alums about your work, your life, your location. Thanks to those who responded to our email request; for those who didn’t, you’ll still have a chance in the next edition. Send your info to:
cobalumnews@auburn.edu
The College of Business was formally created in 1967, but we claim these earlier graduates as our own. Bennie Underwood is retired and enjoys
ballroom dancing — especially the swing. 1950 graduate.
William Howle is retired and likes to hike,
golf and travel.
James Marrs retired in Oct 2007. “I was in
repair fields. He enjoys pistol and rifle matches, and off road driving and rock crawling with his Jeep.
the restaurant industry for 35 years.” He enjoys yard work, reading and visiting.
Robert Daniel is a retired homebuilder who does a lot of emailing and fishes a little. He has been married 53 years.
1960s Eugene Cochran has been a woodworker
since 1986 when he opened Wood Studio. Sons Keith and Dylan, both Auburn graduates, joined the family enterprise in 2001. They were working in Nashville at the time and moved back to Alabama in 2005. The business was honored this year with Garden & Gun magazine’s Made in the South award. The company’s website is www.woodstudio.com. He enjoys fishing, hunting and “some other endeavors which might look like work to others.”
44 The Shareholder, Fall 2013
Jerome Olson is retired. “The final job I Eugene McGriff was owner of a State Farm
insurance agency for 36 years. He enjoys playing golf, exercise and travel. He has completed two marathons.
Charles Morris went to law school at the University of Alabama after graduating from Auburn. “I have been in the private practice of law for 42 years. I will be retiring within the next few months. I had the opportunity of serving a nineyear term on the Alabama Commission on Higher Education as well as serving as its chairperson. I am president of the Eastern Shore Democrats.” Russell Murray is retired after 40 years in
the HVAC and heavy industrial machine
held in my professional life was research scientist in the field of economics at the University of Texas.”
Lee Ozley is retired but spent 40-plus years
as coach and adviser to senior executives of 170-plus business organizations in North America and Europe. His focus was on creating and maintaining organizations in which employees work together to achieve exceptional organizational performance because they want to and not because they have to.
Robert Terrell is retired after working in banking for 39 years. He graduated from The School of Banking of the South at LSU in 1974 and was president of Compass Bank in Albertville, Ala., from 1977–1986. He served as president of
the Albertville Chamber of Commerce in 1983. He finished his full-time career with Southtrust Bank of Marshall County in Albertville and spent his last two years with Peoples Independent Bank in Boaz, Ala. He and his wife, Maryetta (Auburn Class of 1960), have been married 52 years, have two sons and three grandchildren.
Guy Young is a consultant with an
insurance broker in human resource and risk management after 45 years in the profession. He is interested in sports of all kinds.
1970s Keith Bailey is a computer operator at Auburn University, where he has worked for 21 years. He is a proud grandfather.
Stephen Brookshire is senior vice president at First Jackson Bank Inc. He enjoys fishing and mowing the grass.
Willis Brown is a vice president of business
development in the aerospace market. He works for an offshore company in Saudi Arabia. He enjoys trout fishing, snow skiing and travel.
Michael Calhoun is managing partner at
McLain, Calhoun, McCullough, Clark & Co., a CPA firm in Vidalia, Ga. He has been with the firm for 33 years. He likes to travel, invest in the stock market, “follow Auburn sports (the 2012 football team excepted),” go to movies, try new restaurants and drink wine. He serves as chairman of Meadows Regional Medical Center in Vidalia.
William Caskey is vice president/general
manager of Lamb Weston, a division of ConAgra Foods responsible for the
manufacture and sale of 2.2 billion pounds of french fries to restaurant chains around the world. He enjoys golf, reading and travel. He lives in Auburn with his wife and two Labs and is a season ticket holder for football, basketball and baseball. He serves on the boards of directors of the National ssociation and Ronald Restaurant A McDonald House of Idaho.
Keith Cox is chief financial officer/treasurer of the North Georgia Conference of the United Methodist Church. The denominational office is responsible for 900 United Methodist churches. He enjoys golf, tennis, travel and Rotary Club. Denny Crumpler is retired afer working as
manager of training and development for MeadWestvaco Corp. After retiring from the company in 2008, he formed a training/consulting firm and continued to conduct leadership training for MWV and other corporations. He enjoys golf, traveling in his motorhome, boating, fishing, singing in the church choir and spending time with his wife and grandson. His division’s training center at MWV is named for him.
Thomas Davis is a retired Army colonel with 30 years of active and reserve service. He worked in the private sector in real estate and health care from 1983 until 2006, and has been a government contractor with the Army since 2006. He has been deployed to Kuwait since February 2011 in support of Army Operations in Iraq and Afghanistan. He lives on Lake Harding west of Auburn. He enjoys boating and time with his grandchildren and his wife, the former Elaine Barnhill. Sally DeMetz is the bookkeeper at
Sav-A-Life, a crisis pregnancy center in Vestavia, Ala.
Frederick Dowdle is a retired accountant
who enjoys fishing, coin collecting and volunteering with various ministries. He worked for some of the largest contractors in the construction industry: Blount International, DuBose Construction, Lowder Construction and Lowder New Homes.
seminars for home health agencies and hospices. He enjoys playing golf, travel and time with friends and family.
Kathleen Ewing is retired from the banking technology business. She enjoys Pilates, golf, chairing a book club and volunteer work with her sorority.
Joe Fortner is a retired federal civil servant. He enjoys fishing, boating, car events and “life on the river.” Hank Galbreath is a development officer at
Auburn University. He has been “married 38 years to the same lovely lady.”
Randall Giles is president and CEO of an Alabama chartered commercial bank. His professional success encompasses a 41-year career in commercial banking. He enjoys hunting and golf. John Gittings is executive vice chairman
and chief financial officer of Keystone Bank in Auburn, Ala. He’s completed 47 years in banking, and just purchased a new John Deere tractor that he loves to share with his 2-year-old grandson.
Ray Gilbert is controller for a small
company. He likes to grow Christmas trees, go to races and attend Auburn football games.
Robert Gilliam is retired after working
in management with the Social Security Administration for 34 years. He likes to read, go to Auburn football games, visit with family, and work with wood. He has been married for 39 years. He and his wife built a log home on the crest of a mountain with a view of over 50 miles.
Richard Dixon is owner of a company that prepares Medicare cost reports and holds The Shareholder, Fall 2013 45
Stephen Goodson owns Saxgourmet
Products, manufacturer of the world’s most expensive saxophones, related equipment. He also writes for various music magazines.
William Grainger is president of a firm that
develops, markets and supports HRIS software applications. He holds a CPA and MBA from Vanderbilt.
James Greer is vice president of human
resources for U-Haul International. He has spent more than 40 years in the human resources field. He likes to fish, play golf, read and use his home workshop.
Randy Ham works in telecommunications consulting. Donald Hart is the chief executive officer
of a not-for-profit in New York City. Pastimes include travel and cooking.
John Hart is a lawyer and writer. His practice concentrates on insurance coverage disputes. He published his first novel, Fielder’s Choice, last fall. Charles Henagan worked a number of years
in Asia and Brazil for Diageo. He recently moved back home to Atlanta and operates a consultancy in addition to mentoring executives and conducting sales and negotiation workshops. His hobbies include golf and bird shooting.
California, Oregon, Washington, Idaho and Alaska.” Kelly has almost 39 years in the federal civil service.
Daniel Kirkland works in media sales-radio. He enjoys reading and playing online games. Kenneth Meyers is a Protestant minister
with studies at Wesley Seminary and Oxford. Interests include family, fitness, and reading. He’s enjoyed 33 years in the local congregation and is about to finish his first book.
John McClellan is an assistant district attorney. He prosecutes “every kind of crime, including murders, burglaries, thefts, forgeries, sex crimes, drug offenses, and traffic crimes.” He is the public address announcer for Rome (Ga.) High School and Shorter University football games and the radio color man for Rome High School’s away football games. He also writes a high school football predictions column for an online news service. W. Morgan is a business lawyer and c ommercial litigator. He enjoys hunting, reading and cooking. Michael Nash is president of Formex
Manufacturing Inc. Pastimes include travel, golf and fishing. He’s both a CPA and a CGMA.
William Ogburn is retired from AT&T. He enjoys Auburn athletics and activities at Lake Jordan. Sanford Owens is the commercial counselor John Hindsman is president of Bay County Trustmark National Bank in Panama City, Fla. He enjoys travel, reading, and “boating and fishing when I can.”
William Johnson is enjoying retirement
after 40-plus years with Alabama Power Company. He loves to travel and spend time at his house on Lake Martin.
Kevin Kelly is a supervisory contract specialist for the Bureau of Indian Affairs. “I manage all of the Bureau of Indian Affairs contracting operations for 46 The Shareholder, Fall 2013
at the U.S. Embassy in Amman, Jordan. “My job is to promote U.S. interests and investment to Jordan and the region. I work specifically with SME companies in the United States.”
Dewey Ray is president of Cognitive
Diligence, LLC, an IT consulting and training firm that specializes in mergers and acquisitions. The firm website is www. cogdil.com. Ray is also the author of The IT Professional’s
Merger and Acquisition Handbook, which describes how to perform due diligence and post-transaction integration. He is an avid fly fisherman and an FAA-certified instructor pilot.
J. Robertson owns and manages a recruiting firm that specializes in placement of professionals in the telecommunications and IT/IP industries. He enjoys working out, travel, snow skiing, kids’ activities, church and fishing.
John Segrest has been “involved with
income property financing for 30 years, which involves completing financial analysis for mortgage loan investments secured by shopping centers, apartment developments, office buildings, hotel and industrial properties. Clients and transactions are located across the country and range in size from $2 million to $50 million.” He enjoys golf, hunting and lake life.
William Vaughan has retired after a 35-year
career as a U.S. Army employee at many worldwide locations. He’s received two awards of the Department of the Army Meritorious Civilian Service Award for outstanding duty performance. He is a member of the Ordinance Order of Samuel Sharpe, the Association of the U.S. Army, and the Army Aviation Association of America. He hopes for better days for the Auburn football team.
William White is an ALDOT payroll administrator. “We are responsible for paying 4,400 employees and all fringe benefits. We monitor leave accruals in ALDOT’s payroll system and the state personnel/ state comptroller payroll system.” His career spans 38-plus years with the state of Alabama, including 34 with ALDOT. He enjoys following Auburn athletics and vacationing in Florida and Tennessee.
Roy Williams is fuels manager for
PowerSouth Energy Cooperative. He is responsible for coal, natural gas and fuel oil procurement for PowerSouth’s power generation units. He enjoys studying the Bible, spending time with family, watching Auburn football, fishing and quail hunting. He has been the preacher for the County Line Church of Christ near Opp, Ala., for the past 17 years.
Jennifer Wilson is director of financial analysis for a major intimate apparel company. She enjoys Auburn football, travel, attending plays and movies, and spending time with family and friends.
1980s
Gail Beaman is a direct mail fundraiser for
a nonprofit in Washington, D.C. “I am responsible for sending 10 million pieces of mail annually with a gross revenue of $5 million.”
Robert Beck is general manager of a
promotional and engraving company. He enjoys watching his children’s activities, playing drums, judging marching percussion and reading Auburn sports blogs.
Kenneth Blackwood works overseas as
a counselor for expatriates who have moved to Asia for business. In his consulting company, he helps clients adjust to a different culture and acclimate to family life overseas. He enjoys photography, travel, spectator sports, and reading Christian biographies and the Bible.
Jo Burkhalter has “sold many things, from
building products (when very few women were doing it) to financial software.” She enjoys gardening and yoga.
William Allen is senior vice president of
human resources for the AP MollerMaersk Group. Maersk is a Fortune Global 130 company with interests in shipping and energy-related businesses. “We currently live in Copenhagen, Denmark, but will soon leave to return to the U.S. to be closer to family and our children.”
dinator and executive director of the Archibald Smith Plantation Home in Roswell, Ga. He’s held this position since November 2000. “The Smith Plantation dates to 1845, has 12 original buildings on eight acres of historic landscaped acres and over 20,000 artifacts that belonged to three generations of the Smith family who were one of six founding families of Roswell.”
Henry Dunlap is a shareholder/partner in a CPA practice. He likes to fish, hunt and golf.
Bryan Fortune is a consultant for
Chick-fil-A. He enjoys art projects and sports, especially Auburn football and his children’s sports.
Samuel Givhan is a real estate and business attorney. He enjoys hunting, farm work and following Auburn athletics. He was a member of Gov. Robert Bentley’s transition team in 2010.
Richard Girdler is vice president of a top
20 independent employee benefits consulting and brokerage firm. He enjoys “fly fishing and travel for recharging the battery, church and volunteer activities to make a difference outside of the work environment.”
James Ard is a senior director in corporate
audit at TSYS, located in Columbus, Ga. “I manage several TSYS global SOC1 initiatives... and am responsible for audit services to TSYS’ merchant segment.” Ard enjoys running, traveling and attending Auburn football games. He’s earned his CiSA and CIA, been happily married for over 26 years and “motivated two children to pursue college educations at Auburn and Mercer.”
Charles Douglas is the historic site coor-
Clifford Burns is owner of a State Farm insurance agency in Niceville, Fla. He enjoys golf, fishing and watching the Tigers.
Thomas Burson works for a NASA contractor as a stowage specialist in support of the science operations on the International Space Station. He previously worked to establish standards for writing operating procedures for ISS crew members. Alan Collier is a senior vice president of investments with Merrill Lynch in Birmingham, Ala. He manages assets and liabilities for high net-worth families, closely-held businesses and public corporations. He enjoys golf, exercise and outdoor sports.
James Hancock is chief financial officer
of The North Highland Company, an employee-owned global management and technology consulting firm headquartered in Atlanta, with 53 offices thoughout the world. “We live on a farm in LaGrange, Ga. So for fun, I do farm chores.”
James Harris is a private real estate/ mortgage investor-lender in Mobile, Ala., and New Orleans. Pastimes include boating, mountain biking, coaching kids’ sports and travel. Craig Heetland manages a global consumer products customer for his organization. “I travel throughout the world (15-20 countries/year) working with this customer.”
The Shareholder, Fall 2013 47
Gregory Heston is an assurance partner
with Ernst & Young, and has been with the firm since graduating from Auburn in 1985. He likes to spend time with his wife and four children, ages 18, 17, 13, and 7. His oldest child is a freshman at Auburn.
James Hoskins is a retired CPA and financial manager. He enjoys playing tennis.
Dale Kiel is wholesale lending operational risk manager for SunTrust Bank. Pastimes include golf, tennis, reading, movies, theater and the arts.
M. Milford is presently in his eighth year serving as Chambers County district judge. “I practiced law for fourteen years prior to that after receiving my law degree from the University of Alabama School of Law in 1988.” Milford was appointed Chambers County district judge by Gov. Bob Riley in 2005 and was elected to subsequent terms in 2006 and 2012. Pastimes include attending Auburn women’s basketball games and tending to a small herd of cattle. James Parker is manager of purchasing and logistics for Howden North America Inc. in Columbia, S.C.
Wesley Laird is retired from computer sales with Dell. He likes to camp and travel. Mark Ledbetter works for SAP, a global i nformation technology firm, as global vice president, retail strategy. “I travel around the globe interfacing with retailers in all geographies. Since travel is the norm, I just relocated back to Auburn and continue to travel out of the Atlanta airport.” He has missed just two home football games since 1978. Douglas Lockhart works for The Boeing
Company in Seattle, Wash. as a subject matter expert in U.S. export regulations and compliance. “I enjoy climbing mountains, snowboarding and still play ice hockey each week. I made the summit of Kilimanjaro in Africa in 2004 when I was 40 years old.”
Michael Marsengill is a partner in an
e mployee benefits/insurance firm. He likes to watch sports and hang out with family.
Darrel Merritt facilitates strategic planning
sessions for chambers of commerce boards of directors, development authority boards, elected official councils and commissions, and private industries in Georgia. She enjoys traveling with her husband — himself an Auburn engineering graduate — and nature photography.
Jerre Pierson is executive vice president and chief financial officer of Tacala LLC, owner of 225 Taco Bells and 66 Sonics. He enjoys spending time with his two kids, travel and Auburn football. Daniel Ryan is administrator for Oak Landing Speciality Care in Attalla, Ala. He enjoys travel and tennis. Wayne Rector is the chief school financial
officer for the Jasper City school system. He is fond of Auburn football games.
Clyde Smith is director of business
development at SunTrust Program Lending Group.
Thomas Stephens is one of the four principals of K2 Enterprises, an organization that develops and presents continuing professional education programs to accounting and financial professionals in the United States, Canada and Bermuda. “Annually, we develop and present over 1,000 educational programs to over 55,000 professionals.” Mark Thibaut is executive vice president, crude oil acquistions and marketing for his company. He manages the buying of domestic crude oil at the wellhead or point of title exchange. He enjoys wingshooting, deer hunting and chasing billfish in North and Central America and being a blessing to others. Teresa Thornton is director of rates and regulation for Alabama Gas Corp. She enjoys pontooning on Lay Lake, watching her younger son play soccer and spending time with grandsons. Warren Turner started a boutique consulting practice, Cardinal Points Group, that works with technology companies and their distribution/ channel partners. He enjoys golf, children’s activities and Auburn football.
Paula Shelley owns two businesses in the
financial services industry. One is dedicated to the design and administration of retirement plans for businesses and individuals. The other provides financial advice and investment services. She also owns a small company that does contract IT labor for industries. She enjoys returning to Auburn for sports events.
Allen Smith is the finance director/trea-
surer for the City of Auburn. “I am a CPA, certified government financial manager, and chartered global management accountant. I am a past president of the Government Finance Officers Association of Alabama.” He likes hiking, movies, reading, and time with family.
David Wespiser owns a real estate development business with concentrations in hospitality, student housing and retail. He likes to spend time with his kids.
David Winters is an engineer in Atlanta.
He frequents the Georgia Aquarium and would love to visit with classmates.
Kent Buchman is a service delivery
manager at Fidelity Investments.
Barton Wood was an internal auditor for
Fulton County Board of Education for 26 years, but recently changed positions. “I’m now responsible for creating and implementing a special unit within our accounting services division which will provide accounting training and support for 100 schools in our district.”
Patrick Visintainer is senior vice president,
corporate accounts at Airgas Inc. Airgas is the largest supplier of industrial, medical and specialty gases, welding equipment, consumables and safety supplies in North America. He enjoys playing golf.
James Zacharias is CEO of The Colum-
bus Clinic, a 40-provider, 250-employee multispecialty group located in Columbus, Ga.
Susan Homan is a marketing manager for building innovations at DuPont. She manages marketing strategies for the Corian and Zodiaq brands. She enjoys travel, golf, exercise and socializing.
Matthew Clegg is a financial planner at
Wilson Investment Group in Auburn. He likes to spend time outdoors.
Dale Cooley is a terminal leader who
oversees a fleet of over 400 trucks and 500 drivers. He likes to “attend football, hockey, and baseball games and hang with my family.”
Courtney Cote is a colonel in the U.S. Army, serving as an acquisition project manager for Army Aviation programs.
at Balch & Bingham LLP in Birmingham, Ala. “I play with my family, play golf and go to Auburn football games.”
Melissa Auck manages business economics and adminstrative services for a steel distributor in Ohio. She earned her CPA in 1994 and has retained it since then. Dakin Beard is director, global planning and compliance at Waters Corp. He enjoys running, sea kayaking and travel.
Samuel Benton is the president of Larry
Blumberg and Associates, developers of Marriott and Hilton hotels throughout the Southeast. He has recently broken ground on 20 Del Taco Restaurants to be located in Alabama and Florida.
Jeffery Jones works in real estate appraisal and development. He enjoys coaching kids’ sports, travel and golf.
Jeffery Harper is executive director and
professor at the Donald W. Scott College of Business at Indiana State University where he directs the graduate programs for their AACSBaccredited college of business.
Albert Johnson is senior vice president
1990s Thomas Amason practices law as a partner
Terrell Haggerty is a juvenile probation officer. Pastimes include hunting, watching TV, Auburn football, and family.
John Davis is a partner in A&R Super Markets Inc., which owns four grocery stores in central Alabama. He likes to “travel, play a little golf, go to any concert close to home, go to any sporting event I may have time to attend locally and Auburn University teams.” Neal Davis works for the statistical agency of the U.S. Department of Energy as an industry economist. Thomas Feary manages a small online
marketing business in Richmond, Va. The company optimizes online advertising spending to convert web traffic into inbound sales leads for customers. He likes to “travel for concerts, discover new craft brews and road trips with my kids.”
Michael Glenn is an investment portfolio officer for the State of Georgia. He manages Georgia Fund 1. Lorenzo Gonzalez is a human resources
leader for a Big 4 firm. He enjoys following his kids’ activities — baseball, cheerleading and piano — as well as singing and watching Auburn football.
for CBRE Inc. in Nashville, Tenn. He consults with companies regarding real estate, relocations and project management.
Mark Keller is vice president of taxes at
Arbitron Inc. He lives in Washington, D.C. and enjoys all the history and culture that the city has to offer.
James Kilgore is CEO of Chainalytics. He enjoys spending time with family at Lake Martin, tennis and mountain biking. Scott Koser is an investment securities analyst who directs research for an investment management firm.
Jeremy Knowles was recently made an
equity partner in the law firm of Morris, Haynes, Hornsby, Wheeles, and Knowles. He specializes in personal injury, wrongful death, products liability and crashworthiness cases. The Shareholder, Fall 2013 49
Brian Krum is a bond analyst in Wells
Fargo’s mutual fund area. Pastimes include watching sports, reading, watching movies and spending time with family.
Spencer Lee is a securities analyst for the
Alabama Securities Commission. He audits investment advisers, broker dealers and money service businesses. He is “a crossword junkie, but that takes second place to spending time with my wife and kids.”
Wesley Laird is the vice president, market strategy at USAA, a Fortune 500 financial services company that serves the military. “Before attending Auburn University, I was a combat veteran, serving in two Airborne Ranger Battalions (1/75th and 3/375th). This is the third Fortune 500 company for whom I’ve worked; however, I’m especially honored and proud to work at USAA because of our mission to help the military and their families.” Randall Logan is the assistant director
of planning at a magazine consulting firm. He runs forecast models and manages budgeting and the financial livelihood of consumer magazines. He enjoys attending the NYC and ABT ballets, Broadway shows, museum special exhibits, and Rangers, Yankees, Giants, and Redbulls games, as well as entertaining and cooking. He is a proud uncle of a niece and nephew.
Robert Miller is CEO of a behavioral
health system with 11 locations and 450 employees. He likes to travel, play rugby, run, bike and read. His company turns 20 this year.
Joel McClinton is a commercial real estate
developer focused primarily on retail development, ownership, brokerage and management arenas throughout the Southeast. Pastimes include travel, fly fishing, hunting, tennis, snow skiing, and coaching his kids. “I am husband to a beautiful Auburn grad and father to four great children (and rabid Auburn fans).” McClinton serves on the Trinity Presbyterian Church Board of Trustees.
Kristy Moore loves her challenging and fast-paced job. “I work for the largest bank in the world — HSBC , in a division called ‘Institutional Private Client Group’. There are only four of us on our team, and together we cover North and South America.” Her focus is on single family office clients that have at least a $1 billion net worth. Travel is her biggest passion. “I’ve been glacier hiking in Iceland, climbed Mt. Kilimanjaro, and skiied across the continental divide.” Ronald Schier is a retired Army officer
currently working for an information technology services and solutions consulting company in Fairfax, Va.
David Shabo owns an insurance agency in Auburn. He likes to run, go to the gym, spend time with family and friends, and travel. Susan Shanahan is a stay-at-home mother. She enjoys exercise, reading and shopping. Leonard Smith is in law school. Pastimes include spending time with four children. Scott Smith is president of We’ve Got Your
Customers, a local mobile social marketing solution that takes the confusion out of online marketing for local businesses.
Tadd Smith is accounting manager for
Optimal Radiology in Birmingham. He also owns Plain Chicken Inc., a food blog with 100,000 hits per day. He writes a food column for the Birmingham News.
Mary Suddeth is a treasury management officer at TD Bank, N.A., calling on businesses to enhance their cash flow cycle. She loves spending time with family, traveling, reading and baking. She has been with her current employer for 15 years. Joseph Walker owns and manages an
inbound tour operator in Hungary. He enjoys spending time with his children and being outdoors.
Megan Watson is an office administrator for a biologics company. Her outside interests include reading, travel and home decor.
2000s Kathryn Adams is a credit products officer at BBVA Compass. “My primary responsibilities are to structure credit based on asset quality and competitiveness, develop financial models for term debt and other transactions, and underwrite credit.” She loves to travel, cook out with friends, go on hikes and be active. She will be getting married next summer. John Akerman is an attorney who practices primarily in computer forensics and electronic discovery consulting. He has coached seven youth baseball teams, four basketball teams, one football team, and one soccer team. Rebecca Anderson is a contract administrator working for the Defense Contract Management Agency. “When I am not working or at the gym, I enjoy taking my dogs to the park, reading, planning getaways and enjoying time with my friends.”
Robert Baker is a casualty litigation claims
adjuster for Farmers Insurance Co. When a client is sued after an accident, he hires defense counsel. In his spare time, he spends time on the lake in the summer or hunts in the fall.
Jennifer Baxter is broker/owner of Residential Brokers Realty in Alpharetta, Ga., and an associate broker at Coldwell Banker RMR in Suwanee, Ga. “My husband and I try to travel as much as possible while eating amazing food and drinking good wine. I also enjoy spending time with our golden doodle Murphy, playing tennis and attempting to be good at yoga.” Thomas Beard is a financial adviser. He
volunteers with charitable organizations, sings in his church choir and enjoys spending time with family and friends.
Glenn Bessinger works as a stockbroker
with Merrill Lynch. His pastimes include golf, raquetball, and fishing.
Michelle Bitonti is a wealth management adviser at Merrill Lynch. She enjoys yoga, “reading as much as I can,” and caring for her two dogs.
Casey Brown sells industrial equipment to
coal fired power plants. He likes to hunt, fish and travel.
Brett Bunch works as a supervisory
procurement analyst with the U.S. Army Corps of Engineers in Mobile, Ala. As a private pilot, he enjoys flying, traveling to foreign countries and hanging out with family and friends.
held cloud computing, IT hosting and managed services provider in Atlanta. He enjoys attending church with family, coaching youth sports, volunteering, vacations and occasionally playing golf.
Joseph Bridges is a construction superintendent for Hoar Program Management. He recently completed the second phase of the Shelby Center, and is the proud father of two children. Amy Canafax is an independent consultant
working with business management firms in Los Angeles. She enjoys playing beach volleyball, playing guitar, baking and watching Auburn football.
Christopher Christian works for Blue Pants Brewery in Madison, Ala., as sales director and investor. Pastimes include drinking beer and outdoor activities.
Russel Clayton is an assistant professor
of management at UNC Asheville. He recently received a $20,000 grant to study workplace wellness, and finished his second full marathon in October. He enjoys being a dad and husband.
Samuel Cobb is a mortgage banker for
BBVA Compass. He enjoys spending time with his children, sports and outdoor activities.
Kyle Cooper is a financial adviser with
Raymond James. He previously worked for a BMW race team and performance company. He and his wife “love anything outdoors, and making a few Auburn games when we get the chance.”
Jeffrey Brown is a Ph.D. student in account-
ing in the Pamplin College of Business ACIS department at Virginia Tech. He has accepted a tenure-track accounting faculty position at Baylor University and will start in fall 2013. He enjoys exercising and spending time with his wife.
Joseph Brown is responsible for sales and account management for a privately-
Matthew Dickerson is the manager of IT care solutions at OptumHealth. “I manage a team of talented, analytical minds located around the country that turn data into information which saves our clients money in the world of health and wellness.” He plays golf and cheers for the Tigers in his spare time.
David Delonardis is chief information security officer for a $4 billion company, where he is responsible for identifying information security risks, improving information security awareness, assessing vendor security and developing information security solutions.
Daniel Donnelly is an application specialist at Parallax Digital Studios.
Ian Edgerton works in sales with Inline
Electric Supply Co. Inc. in Birmingham, Ala. He enjoys playing with his kids, running and spending time with friends and family.
Rachel Ellis works for Starkey Mortgage in Montgomery as a residential mortgage loan processor. She enjoys spending time with her husband and daughter, and watching Auburn football “even though we are a house divided.” Bryan Elmore is the interim director of
budget services for Auburn University. He loves time with family and golf.
Lindsey Fagan is a CPA. She likes to watch sports and spend time with friends.
Marcus Ferguson is a senior analyst
with the United States Government Accountability Office. “I enjoy spending time with my children, coaching them in sports, camping with them, and hauling them down to Auburn for an occasional football or baseball game. However, nothing gives me greater joy than traveling with my wife and kids and watching my boys experience things I wasn’t able to experience at their age.” The Shareholder, Fall 2013 51
James Gibson works at Alabama Timber
in Thomasville, Ala. “We are a manufacturer of wood poles and piling, helping to support North America’s infrastructure. Recently, we have assisted in the effort to restore power to the Northeast after Hurricane Sandy.”
Peter Johnson is back in school as a full-
time student pursuing a degree in geology. He enjoys disc golf, backpacking/ camping/hiking, running and movies.
Jennifer Kessler is a contract negotiator for the Department of Defense at Wright Patterson AFB in Dayton, Ohio.
Bank relationship manager. He enjoys skeet shooting, sporting clays, yard work and hanging out with family.
Patrick Hanna is director, government and political affairs for a lobbying firm.
technology field as a sales consultant and customer service representative. He likes to visit with family, take dance classes, go to movies and spend time outdoors.
Mark Nabors is a financial data analyst for the Florida Board of Governors. He enjoys shopping, traveling and watching sports. He’s graduating with his Ph.D. John Ossenfort is director of operations for DRS, a government contract engineering firm. He spends free time on “triathlons, travel, kids.”
John Grimes an Air Force pilot, flies C-17 cargo aircraft around the world. He holds a master’s degree in business. Cory Guillory is a Regions Commercial
Clayton McEntire works in the health care-
Paula Kierce serves as the director of
development for Auburn University in the Office of University Development and Strategic Priorities.
Jake Lambert lives in the Virgin Islands and operates a refinishing company, Vivid. He works hard and smiles all the time.
James Otto is an Air National Guard pilot and commercial pilot. Pastimes include working out and travel. Troy Pierce went to law school after
graduating from Auburn and now works in real estate in Charleston, S.C.
Julia Hill is a property accountant. She likes to “jog, attend Auburn football and corresponding events,” and spend time with her husband and their dogs.
William Lawrence is a private wealth
Elizabeth Redden recently retired as chief of the Maneuver Center of Excellence Army Research Lab Field Element, which performs research on the design of future Army weapons and equipment. She likes to read, refinish furniture, garden and spend time with grandchildren.
Jennifer Huybrechts is a marketing manager
Lawrence Martin is a vice president for
Richard Reynolds is a North America products/retail consultant with Accenture, currently on the team helping to take Target into Canada.
Nathan Harris is an associate vice president
and claims counsel for Fidelity National Title Group. He enjoys kayaking on the Intracoastal Waterway and is a season ticket holder to the Jacksonville Jaguars.
at an insurance agency in Houston, Texas. She likes to hang out with friends, read, watch TV, dance and go shopping.
Courtney Jankovich is the marketing
manager for Stockton Arena, Bob Hope Theatre and Oak Park Ice Arena, located in northern California.
Greg Laughlin is a senior consultant
with Deloitte. He enjoys college football, basketball and drive-in movie theaters. adviser with Merrill Lynch. Pastimes include golf, hiking, and time with his wife and twin boys.
products development and m anagement. He manages a health care product solution with revenue in excess of $400 million. He enjoys reading and game time.
Zach May is a database administrator. He enjoys playing frisbee, football, grilling and playing music.
Erika Roate is an interior coordinator.
She enjoys playing with her children and workouts.
Kell Rozman works as a Senior Analyst
doing Business Analytics & Simulations work for Lockheed Martin in Texas.
Amanda Maze is a musician in Los Angeles, California. “I have a regular gig in Hollywood singing jazz standards and Broadway melodies.” She just began recording voiceovers for “Umigo.” Scott Stewart has been an aviation insurance senior underwriter at AIG Aerospace in Atlanta for about six years. He likes to snow ski, play guitar, fish, cook, target shoot and take care of dogs.
Travis Jerome works for the State of Alabama Department of Labor.
Lucas Jessen is an Air Force pilot
currently deployed to the Middle East.
Chacolby Johnson works in marketing,
communications, event planning and fundraising for a college institution. 52 The Shareholder, Fall 2013
Thomas McAdams is an IT analyst with oil and gas exploration company, Petro Harvester. He serves on a community board of directors.
Jeremy Smith is assistant merchandising
manager for Marshalls, a division of TJX Companies. He enjoys traveling.
Justin Smith is a senior financial auditor in the Internal Audit Department for Aflac Inc. He enjoys Auburn football, running, gardening and reading. He passed the CPA exam in 2012. Robert Stiles is a financial adviser for
RBC Wealth Management, The Royal Bank of Canada. He builds custom risk-mitigated investment strategies for his clients’ changing needs. Besides following Auburn football, he enjoys hunting, fishing, backpacking, tennis, golf and traveling to concerts.
Christiana Weeks is a senior auditor for
a large advertising and media holding company. She likes to “travel, eat, yoga, spend time with family and friends.”
James Westbrook is a software engineer for
Home Depot at their headquarters in Atlanta.
Matthew White is the marketing director of American Shared Hospital Services. Specializing in high-end radiation therapy technologies, White provides education and marketing support. “[We] often spend our fall weekends traveling back to Auburn to support our Tigers.” Justin Wilson is an account supervisor at Seigenthaler Public Relations in Nashville, Tenn., where he manages strategic communications, branding, and media relations for the company’s clients. He has a particular focus on the highlyregulated banking and financial services sector. Wilson is an avid concert goer. Andrew Wishart is the director of regional
advancement at Syracuse University for New England and Chicago, where he oversees all major gift activities in both areas. He likes to ski, spend time with friends and family, run and travel.
Lindsey Wormley is a digital communica-
tions specialist for a marketing and non-profit fundraising agency in Atlanta. He enjoys softball, golf, volunteering at youth summer camps and staying active in music.
Andrew York is a senior manager for a
Big 4 public accounting firm. He likes to “travel, attend/watch Auburn sporting events and enjoy time with my young children.”
Christian Zimmerman is a neurosurgeon and researcher listed in the U.S. News & World Report top one percent for neurosurgery. He enjoys spending time with family.
William Laffoon is a support analyst for iSirona and a former Navy officer. “I like to play video games, hang out with my wife and going out to dinner with friends.” Matthew McCullough is a pilot in the
U.S. Navy. He was Commander, Patrol, and Reconnaissance Group Pilot of the Year, 2009. He enjoys sports.
Amy Shaffer works for Coastal Living
Magazine as a marketing manager in event coordination. She enjoys calligraphy, reading, cooking through cookbooks, running, traveling, watching baseball and shopping.
Zachary Slocum works for Coca-Cola in
Atlanta as a market development manager. “I live in the city, so I try to go to all of the sporting events I can.”
Farrah Spalding is working for a website.
2010s Barry Brown is an airport operations agent at Southwest Florida International Airport. “I live in Fort Myers, Fla., so the beach is always great. However, whenever I can afford to, I enjoy getting back in the air.” Troy Downey is a insurance underwriter at
a Fortune 500 company. “I ride mountain bikes, bass fish and hike.”
James Emerson is the inventory control
specialist/material buyer for Stryker, a medical device manufacturer. He enjoys golf and movies.
Edward Engerson owns and operates My
Covered Drugs LLC, which helps people save money on prescription medications. He enjoys golf, tennis, basketball, going to the beach, exercise, watching TV, cooking and craft beer.
John Jones underwrites loans for
“I volunteer my time with a softball organization, play tennis, watch Auburn sports, hang out with friends, watch movies.”
Judson Stephenson went to work for a tech
startup called Svpply as a software developer. The company was recently acquired by Ebay. “I build great web products.”
Michelle Waters is a programmer/ana-
lyst for Auburn University’s Office of Alumni & Development. She enjoys sports, hunting and fishing with her children.
J.H. Williams works in sales department for his family’s oil distribution company in Tampa, Fla. He likes to “fish, golf, play the guitar, play basketball and football, go to Bucs and Rays games.”
Patrick Wilson is a fleet manager for
Frito-Lay in Kathleen, Ga. He was recognized for his leadership by FritoLay in 2012. He enjoys golf, music, Auburn football, and Braves baseball.
apartment complexes across the U.S. with Walker and Dunlop in Atlanta. He likes to hang out with friends, watch movies and “try to explore new areas of my new city, Atlanta.” The Shareholder, Fall 2013 53
DEAN’S DEAN’SLAST LASTWORD WORD Take the Money and Run A $40 million gift and a new name for the college. We have crossed the finish line and the race is over — right? Wrong! I am a runner, so I like to think in terms of running. We envision ourselves among the elite public business schools in the U.S. Right now we’re at the start of the race and it’s a marathon, not a sprint. In 2012, we completed our strategic plan. We prepared for the long run. Our plan guides us on a daily basis, keeps us focused on our goals. On a yearly basis we should see progress. In five years, we should see how far we have come and have a much better idea of how much farther we have to go. We are in the early stages of the race. For many years, we have trailed others in endowment and resources. We made up for this lag through the incredible dedication of our faculty and staff. To be ranked in the upper third of the SEC (just as one point of reference), yet be in the bottom 25 percent in resources is nothing short of miraculous. Imagine running a marathon with boots, a three-piece suit and a backpack full of rocks, while everyone else has the latest lightweight running shoes, shorts, and dry-fit shirts. Talk about competitive disadvantages. With the $40 million gift, we can shed the boots, suit and backpack. We can now run in a fair race; but we have a long way to go. We can’t see the finish line yet, although we know what it looks like and we have the roadmap to get there. Now, equipped with the proper gear, we can make up some distance and pass some of our competitors. What happens now? Simple — we work our plan. And we remain flexible and adaptable enough to respond to our environment. Accordingly, we’ll focus on people and programs rather than bricks and mortar. We have already started seeking “franchise player” faculty to join us next year and we have been recruiting students for our new Ph.D. program in Finance. In the next few years, we will fill at least nine endowed chair positions, which will triple our current total. In the next seven years we will increase the total number of endowed chairs to 15 (with a stretch goal of 20). We expect to see the number of Ph.D. students triple during this time, and we will launch at least three research centers.
54 The Shareholder, Fall 2013
Raymond Harbert’s splendid $40 million gift is a visionary down payment on our long-term plans. In the next few years, we will work hard to raise more than $100 million for people and programs — the amount we believe will get us to the finish line. Reaching our vision will not happen overnight. Training for a marathon is not done in a week; but we have prepared. We’re strong and flexible enough to adapt to the everchanging business world. We’re now in the race and we’ll soon be ready to lead the way to the finish line. Come run with us. War Eagle!
Bill C. Hardgrave, Ph.D.
Dean and Wells Fargo Professor
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