A Place toBelong “Breathes there the man with soul so dead, Who never to himself hath said, ‘This is my own, my native land!’
toBelong
Whose heart hath ne’er within him burn’d As home his footsteps he hath turn’d From wandering on a foreign strand?” —Walter Scott
Lay of the Last Minstrel, 1805 Annual Report 2002
ul so dead, said,
and!’
him burn’d
h turn’d
strand?”
—Walter Scott
ast Minstrel, 1805 Annual Report 2002
1959—Ground breaking for new dormitory wings on the Los Angeles campus. Left to right: Kenneth Hahn, George Pepperdine, M. Norvel Young.
1971—Setting the cornerstone of Tyler Campus Center. Left to right: John Tyler, William S. Banowsky, Blanche Seaver, M. Norvel Young, two unidentified guests, George Elkins, William Pereira, Michael DeBakey, Alice Tyler.
Thomas J. Trimble
Chairman’s Message
The Board of Regents is very proud of the wonderful advancements made by Pepperdine during the academic year 2001-2002. Many of those advancements will be mentioned in this report. But beyond all the good news, I am amazed at how our theme this year, “A Place to Belong,” has become so clear and evident. The academic year was barely underway when America was struck by an unprecedented act of war. Even the historic events at Pearl Harbor, with the resulting destruction of military targets, is difficult to compare with the attack on innocent civilians in New York City, Washington, D.C, and Shanksville, Pennsylvania. Like every individual and every organization in America, Pepperdine felt compelled to respond to the tragedies. You will read about some of those responses in the pages that follow. Though the sorrow and anger of 9-11 were nearly overwhelming, the University proved itself to be a place to belong, a place of purpose in the midst of uncertainty and discouragement. Members of the Board of Regents, along with alumni and other supporters, are proud to be participants in this belonging place, which is special because of its special mission. Indeed, Pepperdine tends to resist comparisons and rankings with “peer institutions,” because we view ourselves as like no other organization. Certainly, there are those institutions that may be of similar size or status or endowment. But in reality, Pepperdine is without peer, in that no other university combines our kind of corporate culture and mission with our kind of faculty, students, and curricula. And for many of us, it is truly a place to belong. Toward the end of the academic year, on June 11, 2002, the Board of Regents presented Pepperdine President Andrew K. Benton with a resolution commending him for his outstanding work since becoming president two years earlier. After recounting many of his accomplishments, the resolution concluded: “Now, therefore, be it resolved that the Board of Regents of Pepperdine University commends Andrew K. Benton for exemplary and energetic leadership during his first two years as president and looks forward to his continuing guidance for many years to come.” Pepperdine has been blessed with outstanding leaders throughout its sixty-five years, each leader God-sent for specific tasks at a specific moment in our history. President Benton has brought his own distinctive brand of caring leadership for such a time as this. We are excited about the future and believe that Pepperdine University will serve a unique and dramatic role in our nation and the world in the days ahead. Thomas J. Trimble Chairman Board of Regents
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President’s Message
Pepperdine University is a jewel with facets that make it sparkle and flash with excitement and energy. This year we point attention toward the facet of “belonging.” One of the major goals I enumerated two years ago is the goal of strengthening and enhancing the University as a place where many people, and many different kinds of people, may work and learn together in mutual respect. It is our desire that this enterprise always be a place where our mission calls together a rich variety of people. Mission, rather than rules, motivates our sense of diversity. We have been working diligently in recent years in order that Pepperdine will be a place to belong. By the word “place” I do not mean simply our geographic locations. The University is far more than merely real estate, though we are proud of the beautiful campuses with which we have been blessed. Pepperdine is not so much a place as it is an ideal, a dream. In that sense, it is something like our nation. For all its vast natural wonders, America is far more than land and resources. Long before it was explored, settled, and established as a nation, America existed in the hearts of the people who longed desperately for freedom and opportunity. Part of Pepperdine’s “dream” is articulated in this year’s theme, “A Place to Belong.” When we decided on that theme, we could not have imagined what would transpire on September 11, 2001. The event that changed everything for America seemed to call all citizens to stand together in a national “belonging place.” For Pepperdine, the sense of unity has always been a prized ideal. Our desire is to nurture each individual and affirm each person’s infinite worth. But we also greatly value the cooperative spirit that brings diverse people together into a common mission. At Pepperdine, we believe in time-proven principles and history-tested truths. We honor people of noble character and seek to pattern our lives after them, though we often fall short. Still, like generations before us, we know there is a way that is right and true. We affirm the absoluteness of truth and leave to others the frail frame of relativism. And we acknowledge that the truth that binds Unity with Diversity has come to us from God and not man. I congratulate our faculty, staff, and students, along with those exceptional people who support our educational efforts, including our esteemed alumni, on an outstanding year. Despite the horrendous national tragedies and numerous challenges, it has been another exceptional and triumphal year marked by academic progress and campus advancements. Andrew K. Benton President Pepperdine University
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2002—Rockwell Dining Room in the Tyler Campus Center on the Malibu campus.
Andrew K. Benton
1943—Crowded dining hall at George Pepperdine College on the Los Angeles campus.
Bridging Boundaries:
T
1946—“The Oasis” student center, opened in 1942 on the Los Angeles campus.
OVERVI EW OF A N EVENTFUL YEA R
2002—The new Cyber Café area in the Sandbar Student Lounge on the Malibu campus.
he past year has been one of challenge, of reflection, and of building. When beset with uncertainty, we often long for the protection and the comforting familiarity of home. While there’s “no place like home,” Pepperdine has always endeavored to provide a nurturing and caring environment for students, faculty, and staff, and to be “A Belonging Place.” The 2001-2002 academic year had only begun when the tragic events of 9-11 occurred. Immediately the University formed support groups where any and all could come for information, explanation, consolation, and prayer. This spirit of coming together extended throughout the year and a burst of energy was released that provided extraordinary momentum to our journey together. We have had a proud year of learning, service, and support. As space in this report is limited, the following highlights represent but a few of the interesting and exciting accomplishments of the schools, divisions, and departments of Pepperdine University.
S e rv a n t L eader s h i p
The University received a $4 million grant from the Preservice Educators and Technology Preparation, one of the largest grants it has ever received. The grant will be used to infuse technology into educational programs. In one grant project, the Graduate School of Education and Psychology and Seaver College language faculty made online video case studies to assist teacher education candidates.
In December 2001, Seaver College students, faculty, and staff participated in a drive to collect items for the United States troops in Afghanistan. During spring break 2002, students with Project Serve, a Seaver program that sends ministry and service teams to areas in need, sent a team to Ground Zero in New York City. In March 2002, Seaver students participated for the sixth year in Run/Walk for Hope to benefit the City of Hope in Los Angeles.
In February, the National Science Foundation (NSF) awarded a three-year, $300,000 grant to Dr. Stephen Davis, distinguished professor of biology at Seaver College, to study chaparral, the most abundant native plant life in Southern California. The award represents the largest NSF grant to ever be awarded to Pepperdine.
In June, high school students from throughout Southern California gathered on the Malibu campus for the twenty-fifth annual Youth Citizenship Seminar. This widely acclaimed program, spearheaded by University Chancellor Charles B. Runnels, featured guest speakers Tommy Lasorda, George Foreman, Dr. Laura Schlessinger, Michael Josephson, and others.
The California Sea Grant was awarded to Dr. Karen Martin, professor of biology at Seaver College, for her work with grunion, the only fish in existence to spawn out of water. The almost $10,000 grant allows monitoring and observation on four San Diego beaches.
A record 1,200 volunteers from fifty-five Pepperdine organizations participated in Step Forward Day in September. The Volunteer Center, which organizes the event, reported the best turnout in the fourteen years it has been established. Forty-five locations, including the Los Angeles Mission, the Salvation Army, the Malibu Community Center, area schools, and highways, benefited from their service.
The Straus Institute for Dispute Resolution of the Pepperdine School of Law, which is directed by Dr. L. Randolph Lowry, was recognized with the Special Public Service Award at the ninth Annual Dispute Resolution Services Awards Dinner in January 2002. The Straus Institute also received the American College of Civil Trial Mediators Outstanding Achievement Award for its program of education, publication, and implementation in dispute resolution.
G ra n t s , A w ar ds , R an k i n gs
In December 2001, Pepperdine University received a nearly $2 million grant from the Lilly Endowment, Inc. to support a five-year program for the theological exploration of vocation to advance the goal of living for others as central to the University culture and student thinking. In addition, Pepperdine received a $50,000 planning grant to solicit ideas to include in the implementation grant. The planning grant will study ways to help students, faculty, and staff view their professions or future professions as a calling. Dr. Richard Hughes directs the program.
In April 2002, the California Psychological Association honored Dr. Edward P. Shafranske, professor and director of the doctor of psychology program at the Graduate School of Education and Psychology, with a Distinguished Service Award in Education and Training. Dr. Mercedes Fisher, an associate professor of educational technology at GSEP, was named a Fulbright Senior Specialist Scholar. In September 2002, U.S. News and World Report released its annual university rankings. Once again Pepperdine was listed in the top fifty continued on next page
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National Universities—Doctoral, this year moving up in ranking to number 47. Sixteen of the fifty schools listed are public, state-supported institutions. The Kaplan/Newsweek 2003 How to Get into College guide listed Pepperdine as among the nation’s “hottest schools.” The guide particularly noted Pepperdine’s “strong academic programs, great campus life, and its prime location.” In October 2001, the Graziadio School of Business and Management reached an important new milestone when its Executive MBA Program was ranked eleventh best in the world by BusinessWeek magazine. In the same study, the magazine editors ranked the school number one in teaching ethics and strategy. In April 2002, U.S. News and World Report cited the Graziadio School for excellence in both the fully employed MBA and the Executive MBA programs. In September 2001, the Princeton Review published an article reporting Pepperdine as number 18 on a list of schools of “students who pray regularly” and number 16 on a list of schools with “students who ignore hard liquor on a regular basis.” A lu mn i a n d F ac u l t y Ac hi ev e m ent s
In December 2001, Pierre Prosper, JD 1989, who was appointed special counsel to the Office of War Crimes Issues in 2001, testified before the U.S. Senate Judiciary Committee on the issue of military tribunals in cases relating to the September 11 attacks on the United States. Laura E. Skandera-Trombley was selected by the Pitzer College Board of Trustees to become the fifth president of the college in Claremont, California, beginning July 2002. Skandera-Trombley holds B.A. (’81) and M.A. (’83) degrees from Seaver College, and also is a noted Mark Twain scholar. Jami A. Miscik, BA ’80, was appointed Deputy Director for Intelligence at the CIA in May 2002. In this position, she has oversight responsibility
for all of CIA’s intelligence analysts, the production of all-source analysis, and determining the information in the president’s daily intelligence briefing. She is the highest-ranking woman at the CIA and the first woman to hold the position of DDI. Darwin Horn, a 1949 graduate of George Pepperdine College, has written a book about his more than thirty years as a U.S. Secret Service agent protecting American presidents. Released in April, the book is titled Dar’s Story: Memoirs of A Secret Service Agent. Horn, an allAmerican on Pepperdine’s 1947 small-college national championship football team, is also co-sponsor, with other football alumni, of the Football Players Scholarship. Several faculty members also had books published during the year. In May, Dr. Darlene Rivas, associate professor of history, released a book titled Missionary Capitalist: Nelson Rockefeller in Venezuela. The book examines Rockefeller’s efforts to promote economic development in that country from the late 1930s to the 1950s. Dr. Michael W. Casey, who holds the Carl P. Miller Chair of Communication at Pepperdine, co-edited The Stone Campbell Movement: An International Religious Tradition, the first major review of Stone-Campbell historiography since the 1980s. Casey also has been named visiting fellow at the Institute for Faith and Learning at Baylor University in Waco, Texas, for the 2002-2003 academic year. One of the first to be awarded the fellowship, Casey will take a sabbatical from Seaver College. Three professors from the Pepperdine School of Law, Harry Caldwell, Carol Chase, and Tim Perrin, published The Art and Science of Trial Advocacy to explore both the theoretical and practical dimensions of trial advocacy. Ad d ressi ng C ur r ent Issues
Each year, distinguished academicians, public figures, and theologians find forums for discussion at all five schools of Pepperdine University, and this year was no exception.
William F. Schultz, executive director of Amnesty International, addressed Seaver College students at convocation as part of Peace, Hope, and Justice week, January 21-27, on the Malibu campus. His topic was “Terror, Torment, and Tyranny: The State of Human Rights Today.” Also in January, Senator Barbara Boxer (D-CA) addressed a standing-room-only audience during the kick-off event of the 2002 Dean’s Lecture Series at Seaver College.
focused on reconciling relationships, finding courage to support others, and how to connect deeply with your spouse. Speci al Act i vities a nd Events
In January 2002, the School of Law hosted its second annual Judicial Clerkship Institute. One hundred and thirty federal judicial law clerks from fifty-five law schools assembled on campus and attended classes led by distinguished federal judges, professor Douglas Kmiec, and USC’s Dr. Erwin Chemerinsky.
In February, Supreme Court Justice Ruth Bader Ginsburg was the keynote speaker at the annual School of Law Dinner, and Los Angeles County Sheriff Leroy D. C. Baca spoke on “Law Enforcement in Urban America” at the Dean’s Lecture Series.
In February, the School of Law hosted a conference of religiously affiliated law schools. “Viewing Law through the Eyes of Faith” explored the role of religion in law schools throughout the country. The event included a highlight address by George Marsden, author and professor of history at the University of Notre Dame. Dr. Marsden discussed the increasing secularization of religiously affiliated universities.
The School of Public Policy, in conjunction with the Economic Alliance of the San Fernando Valley, presented an extensive study called The Changing Face of the San Fernando Valley, focusing on ethnic diversity. Joel Kotkin, senior research fellow at the school and author of the report, presented his findings at the Economic Alliance headquarters in February.
In March, the School of Public Policy presented its fifth annual Conference on Faith and Public Policy. “Islam and the West” focused on the theological and cultural implications of last year’s events. Two of the nation’s leading scholars, Michael Novak and William C. Martin, presented topics relating to Judaism, Christianity, Islam, and cultures in conflict.
The student-athlete fellowship, called The GOAL (“God Our Awesome Lord”), and the Pepperdine Department of Athletics hosted James Ryle, co-founder of the Promise Keepers movement, who spoke on the topic, “Victory—The Goal.” In April, Caspar Weinberger, former U.S. secretary of defense and current chairman of Forbes magazine, delivered the keynote address at the Graziadio School commencement ceremony and received the honorary doctor of laws degree.
In April, the Center for Entrepreneurship and Technology Law (CETL) of the Pepperdine School of Law, sponsored an Investment Capital Conference organized by the Los Angeles Venture Association. Also in April, CETL, the School of Law, and Pepperdine Law Review co-sponsored and hosted the biotechnology symposium, “Law and Life Sciences: Partnership for Better Business.” Professor Janet E. Kerr is executive director of CETL.
The annual Thomas F. Staley Distinguished Christian Scholar Lecture Program brought Dr. Peter Kreeft, professor of philosophy at Boston College, to the Pepperdine campus. His series of lectures titled, “C.S. Lewis and J.R. Tolkien on Good and Evil,” proved a popular weaving of Christian ethics, apologetics, theology, and the philosophy of religion.
General H. Norman Schwarzkopf, U.S. Army, retired, was the special keynote speaker in April at the 26th Annual Pepperdine Associates Dinner. In May, Pepperdine hosted the 59th Annual Bible Lectures. “Christ and New Creation: Great Themes from Second Corinthians” attracted nearly
The Center for the Family presented a lecture by Dr. John Trent, wellknown author and speaker, on “Strong Families in Stressful Times,” which
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five thousand attendees from throughout the United States and abroad. Dr. Jerry Rushford was honored for directing the lectures for twenty years. Thanks to the generosity and vision of Pierre Claeyssens of the Seaver Board of Visitors, a Military Honor Garden was dedicated at the Stauffer Chapel plaza in May. The garden pays tribute to the thousands of courageous Pepperdine alumni who served in one of the five branches of the U.S. Armed Forces. In July, the Annie and Grover Sam Cultural Arts Center Wing, which houses Seaver College professors’ offices, upper division history and English classes, and the chair of the Humanities Division suite, was formally dedicated. At the dedication, Pepperdine President Andrew K. Benton spoke of the Sams as “generous and caring friends who shared their resources to enrich the lives of young men and women at Pepperdine.” Opened in August 2002, the “hot spot” on the Malibu campus is the new Tyler Campus Center’s student Sandbar Lounge. The renovated area includes a lounge area with wide-screen television and seating, handsome storage units, a stage area for feature entertainment, a cyber-center with computer kiosks featuring high-speed Internet connections, and Islandz, a fruit smoothie and coffee bar. A Day of Remembrance was held on the Malibu Campus on September 11, 2002. Open to the community, it began at 5:30 a.m. with a sunrise service at Stauffer Chapel. The service included Scripture readings, hymns, and personal recollections of the tragedies a year before, as well as the ringing of a large bell at the precise impact time of the four planes one year ago. The day continued with the celebration of Founder’s Day at the Firestone Fieldhouse, with all the pomp and circumstance of the formal opening of the academic year. The keynote speaker was Dr. Ted Leenerts, Vietnam veteran, Pepperdine alumnus, Alaska Airline pilot and chaplain, chaplain for the Newport Beach Police Department, and Presbyterian pastor.
Leenerts shared his experiences as part of an American Red Cross “Go Team” that counseled rescue workers at Ground Zero in New York City. T h e Art s
Classical guitarist Christopher Parkening joined the Pepperdine University faculty as distinguished professor of classical guitar in the Fine Arts Division of Seaver College. A preeminent virtuoso, Parkening began teaching with the fall 2002 semester. The Frederick R. Weisman Museum of Art on the Pepperdine Malibu campus presented its tenth anniversary celebration with a display of California Art from the Frederick R. Weisman Collection. In June and July, the museum was transformed into a veritable kaleidoscope by Hiro Yamagata, prominent Los Angeles artist, with his laser-light installation Proton Induction Q3. Dr. Michael Zakian is the museum director. The Pepperdine Theatre Department series for 2001-2002 featured the fall musical, 42nd Street; The Diviners, a drama by Jim Leonard in January; and The Matchmaker, a comedy by Thornton Wilder in April. The spring opera was The Barber of Seville by Rossini. “City Limits” was the theme of this spring’s Songfest 2002, which received rave reviews. At h l et i cs
If you are listening to sports reports in other parts of the country, don’t be surprised when you hear Pepperdine University’s name mentioned. In the recently concluded 2001-02 school year, a single-season school record nine Pepperdine teams advanced to respective NCAA Championships in men’s and women’s basketball, golf, tennis, volleyball, and women’s soccer. Seven Pepperdine teams earned national Top 20 rankings in their sport’s respective final national polls, with four teams (men’s tennis, men’s volleyball, women’s volleyball, and water polo) in the Top 10. In March 2002, U.S. News and World Report’s Top 20 list of winning records in all men’s and women’s school-to-school sports
In Memor ia m
George L. Graziadio—The community was saddened with the passing, in June 2002, of longtime Pepperdine University friend George L. Graziadio. Graziadio was one of the University’s chief benefactors and, in 1996, the George L. Graziadio School of Business and Management was named in his honor. Graziadio was chairman of its Board of Visitors. The Executive Center on Pepperdine’s new Drescher Graduate Campus will also bear the Graziadio name.
competitions ranked Pepperdine athletics number 16 with a winning record of 67.4 percent. Men’s basketball Head Coach Paul Westphal, in his first year, led the team to the NCAA tournament through a record-setting season, which included wins against USC and UCLA!
A grandson of Italian immigrants, Graziadio turned his entrepreneurial spirit into a series of successful businesses. He co-founded Imperial Bank, which now has merged with Comerica and is the country’s largest business bank. Graziadio and his wife, Reva, were contributors to many important organizations and received scores of awards and honors for leadership. In April 2002, George joined other great Americans as recipient of the prestigious Horatio Alger Award.
Other honors garnered by Pepperdine athletics included the inaugural Commissioner’s Cup for the 2001-2002 season in the West Coast Conference. The cup is an all-sports award presented to the league’s top performing school in conference play. Pepperdine also took home the men’s and women’s individual All-Sports awards.
Gerald J. Garner, benefactor of Pepperdine University, passed away in April 2002 in a tragic car accident. Supporters of many activities at Pepperdine, Garner and his wife, Joan, funded the Dean’s Conference Room at the Odell McConnell Law Center, the future Garner Plaza on the Malibu Campus, and were members of the George Pepperdine Society Chancellor’s Circle.
Remarkably, seven Pepperdine coaches were named “Coach of the Year” in their respective sports. They include Marv Dunphy, men’s volleyball; John Geiberger, men’s golf; Laurie Gibbs, women’s golf; Nina Matthies, women’s volleyball; Nick Rodionoff, women’s swimming and diving; Peter Smith, men’s tennis; and Mark Trakh, women’s basketball coach.
Gerald Sheppard, long-standing, faithful Pepperdine supporter, passed away in May 2002. An active member of the Pepperdine University Board since 1978, Sheppard also served as a member of the Boards of Visitors of the School of Law, the School of Public Policy, and the Graziadio School. He was a Chancellor’s Circle member of the George Pepperdine Society, and a Founding 400 member and Life Member of the Pepperdine Associates.
The National Association of Collegiate Women Athletic Administrators honored Roxanne Levenson, associate athletic director and senior women’s administrator at Pepperdine, with the Division 1-AAA Administrator of the Year Award.
George A. Evans, life member of the Pepperdine Board of Regents to which he was elected in 1965, passed away in May 2002. Evans was a Founding 400 member and Life Member of the Pepperdine Associates, member of the George Pepperdine Crystal Wave Society, and the Heritage Society. He was also instrumental in interesting the Adamson family of Malibu in providing land for the Malibu campus in 1968.
Seaver College senior, golfer Katherine Hull, shot a single-round 64 to set an NCAA record in March 2002, helping Pepperdine win the team title at the UCLA Pioneer Electronics Bruin Classic Event. The September 7, 2002, edition of Golfweek featured Hull and fellow Pepperdine golfer Lindsey Wright on the cover of the magazine. Pepperdine senior women golfers were preseason ranked number four nationally by Golfweek and number five by Golf World. Wright was also a semifinalist in August at the U.S. Amateur Championships.
Henry A. Braun, husband of University Regent Virginia B. Braun, passed away in March 2002. Longtime friends and supporters of Pepperdine and members of the George Pepperdine Golden Wave Society, their recent gifts include major support for the new Keck Science Center and commitments for the Braun Center for Public Policy on the new Drescher Graduate Campus. They were generous benefactors to the Thornton Administrative Center, the Firestone Fieldhouse renovation, the Ralphs-Straus Tennis Center expansion, and Center for the Arts. Charles Licata, Pepperdine friend and loyal supporter, died at his home in April 2002 after a long illness. Licata and his wife, Rosemary, are Crystal Wave members of the George Pepperdine Society and members of the Heritage Society. They are benefactors of the School of Public Policy and established the Charles and Rosemary Licata Lecture Series at that school.
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Spanning Spaces:
AD VANCI NG A PLA CE TO BELONG
Perhaps, as a university, the most important thing for which we strive is to become better at what we already do well. But we also continually look for the new and the innovative, especially in evolving technologies, strategies, and information that may improve our future lives. And so, as our strategies and educational approaches improve and grow, so too do our physical facilities and infrastructure. The beautiful Keck Science Center, a 33,000-square-foot structure of state-of-the-art laboratory and classroom space, was dedicated last fall. As a result, the science area formerly in the Rockwell Academic Center underwent extensive remodeling, opening up spacious and bright new areas for some in the Social Science Division, Religion Division, Institute for the Study of Archaeology and Religion, and the Pepperdine Voyage project. Increased office and laboratory space also became available for the Sports Medicine program. The Pepperdine Voyage: Nurturing Lives of Purpose, Service, and Leadership began its journey this past year through a grant from the Lilly Endowment, Inc. The five-year project encourages us all—students, faculty, staff, and administration—to recommit ourselves to lives of vocation within the context of a Christian vision of reality. During this past year, the new Drescher Graduate Campus began to take shape on the hillside northwest of John Tyler Drive. Building pads were leveled, retaining walls put in place and—near the top—the main graduate campus buildings are in their early stages of construction. The anticipation is palpable as work progresses. To the south of the Drescher Graduate Campus a space has been set aside as the future site for the University Church of Christ. For thirty years, the church has been meeting in various temporary locations on campus. This year a campaign, “Home for the Heart,” was begun with a vision to fund a permanent worship and service facility for the Church. On September 11, 2002, following the annual Founder’s Day Convocation, hundreds of faculty, staff, students, alumni, and visitors walked in a silent procession from Firestone Fieldhouse to Alumni Park, where a short ceremony was held in dedication of the future site for a Heroes Garden. To be built on a promontory on the new Drescher Graduate Campus, the garden is now in the planning stages. It will serve as a lasting memorial to Graziadio School alumnus Thomas E. Burnett, Jr., and all those who sacrificed their lives on September 11, 2001. Burnett was among the passengers on United Flight 93 who resisted the terrorists, preventing the plane from hitting its intended target in the nation’s capital. The Heroes Garden is made possible through a generous gift from Pepperdine friends Al and Angie Strauss in memory of their son, Gary.
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2001—The Keck Science Center opened for classes in the fall semester with state-of-the-art classrooms and laboratories for 270 students and 35 full-time professors in the Natural Science Division.
Circa 1938—A biology class at George Pepperdine College under the watchful guidance of Associate Professor Edna Deuser. Front table from the left: Jane Harris Jones, Joyce Copeland, Professor Deuser, Oslyn White, Paul Tucker, Alice West.
University Advancement Team from left to right: Front row: Brad Cheves, Larry Hornbaker, Charles Runnels, Ronald Philips
Second row: Lou Drobnick, Helen Young, Claudia Arnold, Keith Hinkle
Third row: Mark Boswell, Lisa Cappelli, Jonathan Kemp, James Campbell, Michael Zakian, Diane Barrett
Fourth row: Sam Lagana, Sharon Linkletter, Hazel Harrington, Margaret Mary Mayer, Pamela Bellew
Spanning Spaces continued
The International Programs introduced a fifth international program in September, when thirty ambitious Seaver students arrived in Lyon, France, to spend the inaugural academic year in that country. The students are placed with “homestay” families while they take classes at Catholic University, a college similar in size to Seaver College, which allows Pepperdine students full use of its facilities including libraries and computer labs. More than one half of all Seaver students participate in International Programs while at Pepperdine. Look for a new residential program in Hong Kong coming soon. In an effort to reach out to a broader community in the San Gabriel Valley, especially fully employed students, Pepperdine began offering graduate classes in Pasadena this fall. The main offices for the Graziadio School and the Graduate School of Education and Psychology are at Pepperdine University Plaza, in Culver City, but Pepperdine now holds classes in five locations other than the Culver City and Malibu campuses. In addition to the new Pasadena center, educational centers are located in Orange County at Irvine, Los Angeles County in Long Beach and Encino, and Ventura County in Westlake Village. In October, over family weekend, the Center for Communication and Business was formally dedicated. Open for classes since September, this spectacular, 60,000-square-foot facility features wireless connectivity to the Internet and includes state-of-the-art facilities for radio and television communication. The offices of the student newspaper, The Graphic, are also located here as are larger classrooms and lecture halls for business programs, Seaver College’s most popular major. The phrase “Pepperdine Advancing” encompasses exciting long-range goals for the future. Included among those goals is a major expansion and upgrade of the Payson Library, which is currently under study. In addition, the final phases of the Pepperdine Athletic Village are being developed and prioritized, and the University will continue the Malibu campus enhancement program, which successfully brought us the renovation of the Joslyn Plaza area in the fall of 2001. Additional chairs and fellowships, professorships, and scholarships are also part of the long-range plan for Pepperdine University. A major campaign to fulfill these dreams is already in the early planning stages.
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Administration
As President Andrew K. Benton entered his third year as the chief executive officer of Pepperdine, the University’s senior administration settled into its work as an effective leadership team. “Team” is a very appropriate description of this group of senior administrators, which includes Brad Cheves, Nancy Magnusson Durham, Gary Hanson, Jeff Pippin, Charles Runnels, and Darryl Tippens. These talented leaders work together in a coordinated and cooperative way to meet objectives and move the University forward under the direction of President Benton. This year we congratulated Chancellor Charles B. Runnels for his thirty-five years of making friends for Pepperdine. We also appreciate the leadership and enthusiasm he has shown for his Youth Citizenship Seminar, mentioned earlier in this report, which has inspired teens for more than a quarter century. Not only has the University had an amazing record of calling outstanding leaders to key roles, but it also has served as a fertile training ground for leadership. Perhaps a dozen or more Pepperdine administrators have moved on to fill presidential and key executive positions at both major state universities and private universities and colleges, large and small. The latest Pepperdine administrator to accept a presidency is Mike E. O’Neal, who resigned his position as vice chancellor to become the chief executive officer of Oklahoma Christian University. Dr. O’Neal served Pepperdine for twenty-six years in a variety of key roles. Dr. Keith Hinkle and other professionals continue his fine work in the important area of planned giving. Planned giving enables people to help Pepperdine in its educational mission while maximizing their assets and improving themselves with a life income plan. After a nationwide search, the University chose Dr. Linda Livingstone as the new dean of the Graziadio School of Business and Management. Dr. Livingstone served as associate dean for graduate programs at the Hankamer School of Business at Baylor University in Texas. She received her B.S., M.B.A., and Ph.D. degrees from Oklahoma State University. The author of business textbooks and numerous scholarly articles for business journals, Dr. Livingstone is an award-winning teacher as well as an experienced administrator. In addition to her support for the school’s faith-based mission, she has been praised for her energy, passion for education, and her effective management style. She takes her place with Pepperdine’s other deans: David Baird, Richardson Lynn, Margaret Weber, and James Wilburn. Great thanks go to Dr. William G. Larson, who served effectively and faithfully as interim dean of the Graziadio School during the search for a permanent dean.
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Andrew K. Benton
Charles B. Runnels
President
Chancellor
Brad E. Cheves
Nancy Magnusson Durham
Gary A. Hanson
Charles J. Pippin
Darryl L. Tippens
Vice President for Advancement and Public Affairs
Vice President for Planning, Information, and Technology
Vice President and General Counsel
Vice President for Finance and Administration
Provost
W. David Baird
Linda A. Livingstone
Richardson R. Lynn
Margaret J. Weber
James R. Wilburn
Dean Seaver College
Dean The George L. Graziadio School of Business and Management
Dean School of Law
Dean Graduate School of Education and Psychology
Dean School of Public Policy
Financial Information F i scal Year 2 0 0 2
Fiscal year 2002 was challenging and rewarding for Pepperdine University. Despite the impact of unfavorable markets on the University’s investment portfolio, the total assets of the University continued to increase and finished 2002 at $974 million. The increase during fiscal 2002 was a result of the expansion of facilities on the Malibu campus. The Center for Communication and Business opened the new academic year to very positive reviews, and the University has made excellent progress on the Drescher Graduate Campus. The University’s investments declined modestly during 2002 and ended at $571 million. Despite difficult markets, management continues its long-term investment strategy based on diversification across asset classes and international markets. Net realized and unrealized losses totaled $22.9 million for fiscal 2002, and resulted in a -4 percent return for the year. While below the University’s long-term investment goal of 5.5 percent plus inflation, the annual loss rate compares favorably to the -24 percent return of the Standard and Poors 500 index, and other comparable endowments. Endowment support for fiscal 2002 increased 31 percent to $18 million as a result of the conservative characteristics of the University’s endowment payout policy, which uses a 5-year moving average of endowment value to smooth volatility in the endowment payout. The University funded the increase in its assets during fiscal 2002 through $6 million generated by operating activities and $57 million in bond issues to finance construction of the Drescher Campus. As a result of the bond issues in 2002, the University’s long term debt increased to $207 million with the University firmly retaining it’s A-1 credit rating due to asset coverage and strength of operations. Net tuition and fee revenues increased 6 percent to $124 million for fiscal 2002, compared to 3 percent increases in each of the prior two years. Increased demand for the University’s degree programs drove the increase for 2002, particularly at Seaver College and the Graduate School of Education and Psychology. The University is committed to providing an outstanding academic experience for its students. As such, operating expenditures for instruction, research, academic support, and student services increased 7 percent and amounted to $116 million for fiscal 2002. Total operating expenses increased to $192 million and included one-time costs to restructure and improve support functions and increase operating cash flow. In summary, the University’s financial position and operating results remain strong, and the University is well positioned for continued asset and operational growth. Pepperdine University has been blessed by God with a solid economic foundation on which we will continue to build academic and spiritual growth in the lives of our students. RE VE NUE S Net Tuition 63%
Charles J. Pippin Vice President for Finance and Administration
E X PE NS E S Private Gifts and Grants 11% Room and Board 9%
Management and General 23% Instruction and Research 36%
Membership Development 1%
Student Services 13%
Endowment Support 9%
Public Services 1% Sales and Services 4% Government Grants 1%
Other 3%
Fundraising 4%
Academic Support 12% Auxiliary Enterprises 10%
consolidated Statements of Activities FOR THE YEARs ENDED July 31 (in thousands) Temporarily Permanently REVENUES Unrestricted Restricted Restricted
consolidated Statements of FINANCIAL POSITION at July 31 (in thousands)
2002
2001
2002
2001
ASSETS
Student tuition and fees
$155,869
$ 13,797
$ 14,278
Less student aid
$163,748 (39,561)
$163,748 (39,561)
(38,556)
Student receivables, less allowance for doubtful accounts of $2,211 and $1,240, respectively
5,870
7,127
Net student tuition and fees
124,187
124,187
117,313
3,245
2,502
Student loans, less allowance for loan losses of $2,454 and $2,204, respectively
24,697
24,145
22,360
25,053
Cash and cash equivalents Other accounts receivable
Room and board
16,990
16,990
17,488
Contributions receivable, net
Private gifts and grants
12,267
21,588
21,829
Prepaid expenses, inventories and other assets
Endowment support
17,961
17,961
13,736
Investments
U.S. government grants
2,876
2,876
3,065
Assets held as trustee or agent
Sales and services
7,943
7,943
7,681
Property, facilities and equipment, net
Other revenue
5,884
313
6,253
4,563
Total assets
Net assets released from restriction
6,222
(6,222) 1,992 197,798
185,675
LIABILITIES AND NET ASSETS
Total revenues
194,330
7,385
1,936
56
1,476
2,796 571,434
3,082 573,537
76,287
80,336
253,557
229,128
$974,043 $959,188
Liabilities EXPENSES
Accounts payable and accrued liabilities
$ 16,894
$ 15,882
Instruction and research
68,654
68,654
65,530
Accrued salaries and wages
2,671
Academic support
23,598
23,598
21,538
Student deposits, advance payments and deferred revenue
7,236
5,506
Student services
23,929
23,929
21,890
U.S. government funded student loans
13,740
12,251
Public service
2,744
2,744
3,182
Trust and agency obligations
Auxiliary enterprises
18,813
18,813
17,292
Long term obligations
Management and general
44,341
44,341
39,334
Membership development
1,585
1,585
1,400
8,230
8,230
7,321
191,894 191,894
177,487
Fundraising Total expenses Change in net assets before non operating revenues and expenses
2,436
1,476
1,992
5,904
8,188
Total liabilities
Appropriations from endowment
Adjustment of actuarial liability
(11,589)
Investment income
(638)
(413)
(11,589)
(5,384)
(1,051)
(1,716)
Dividends
2,242
2,242
3,115
Interest
4,100
256
291
4,647
7,921
Other
1,062
84
493
1,639
1,686
(41,320)
(658)
(37,841)
29,568
(2,216)
(5,150)
Net realized and unrealized (losses) gains from investments
Other Total non operating revenues and expenses
(959)
(349)
(908)
(46,464) (1,305)
change in net assets
(44,028)
net assets at beginning of yeaR
531,607 62,107
net assets at end of year
4,137
171
$487,579 $62,278
3,600 (44,169)
30,040
5,592 (38,265)
38,228
118,171 711,885
673,657
$123,763 $673,620
$711,885
54,270 155,667
Net assets 487,579
Temporarily restricted
Permanently restricted
62,278
Total net assets Total liabilities and net assets
53,359 206,523
300,423 247,303
Unrestricted
Non Operating Revenues and Expenses
3,727
531,607 62,107
123,763
118,171
673,620
711,885
$974,043 $959,188
$1,000
900
800
700
600 This financial information is summarized from the July 31, 2002 Consolidated Financial Statements of Pepperdine University and subsidiaries,
500
which have been audited by PricewaterhouseCoopers LLP. The Consolidated Financial Statements were prepared in accordance with generally accepted accounting principles.
400
300
200 Net assets Total assets Endowment
100 1998 1999 2000 2001 2002
During World War II, Pepperdine Coach Al Duer published a newsletter for men and women in the service called “On the Beam”. This photograph was in a 1945 edition of the newsletter with the caption “Plan to return to college after the war.” Seated (L to R) unidentified, JoAnn Penn, Jack Blackwell; standing (L to R) Barbara Williams, Avis Davis, Irl Stalcup, Jean McKenzie, unidentified.
B oard of Reg ent s Of f i cers Thomas J. Trimble
Thomas P. Kemp
James R. Porter
John D. Katch
Susan F. Rice
Chairman Senior Vice President/General Counsel and Corporate Secretary (Retired) Southwest Gas Corporation
Vice Chairman Chairman and Chief Executive Officer (Retired) Coca-Cola Bottling Company of Los Angeles
Vice Chairman Principal, Porter Capital Partners
Secretary Regional Manager Public Affairs (Retired) Southern California Edison Company
Assistant Secretary Principal SFR Consulting
Board ofRegents
William S. Banowsky
W. L. Fletcher III
Arthur G. Linkletter
Charles B. Runnels
LIFE REGENTS
President Emeritus Pepperdine University
Senior Vice President (Retired) Robert F. Driver Company, Inc.
Chairman Linkletter Enterprises
Chancellor Pepperdine University
Joe R. Barnett
Andrew K. Benton
Matthew K. Fong
Rosemary Raitt
Marilyn D. Simpson
President Pepperdine University
President Strategic Advisory Group
General Partner KVI Corporation and FKC
Rosa Mercado Spivey
Edwin L. Biggers
Lynn C. Fritz
Russell L. Ray, Jr.
President (Retired) Hughes Missile Group
Director General Fritz Institute
Sheila K. Bost
Linda M. Gage
MFT Intern La Vie Center
Airline and Aerospace Executive (Retired) Chairman, Executive Committee World Airways, Inc.
Terry M. Giles
Virginia B. Braun
Owner Giles Enterprises
Janice R. Brown
Glen A. Holden
Associate Justice California Supreme Court
United States Ambassador (Retired)
Jose A. Collazo
Chairman of the Board, President and CEO Infonet Services Corporation
Gail E. Hopkins
Jerry E. Hudson
William H. Swanson
Donald V. Miller
President Reed Investment Corporation
President Raytheon Company
Richard M. Scaife
Carol Richards
Robert L. Walker
Travis E. Reed
Frederick L. Ricker
B. Joseph Rokus
Robert G. Jackson
Robert R. Dockson Gerald R. Ford
Gerald A. Isom
President Cox & Perkins Exploration, Inc.
David Davenport
Chairman of the Board (Retired) Triad Systems Corporation
Orthopaedic Surgeon Hinsdale Orthopaedic Associates
Jerry S. Cox
Lodwrick M. Cook
William W. Stevens
Vice President and Program Director TRW
President (Retired) CIGNA Property & Casualty
Physician Los Angeles Unified School District
Evelyn L. Clark
Chairman Reid Plastics, Inc.
President (Retired) Ford Motor Land Development Corporation
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Vice President for Development Texas A&M University
Jerve M. Jones
Flora Laney Thornton Alton C. Watson William R. Waugh
Edward V. Yang
J. McDonald Williams
Chairman and CEO Spectrum Asia Pacific Ltd.
Helen M. Young
UniversityBoard
Pat Boone – Chairman
Maureen Duffy-Lewis
John S. MacIntosh
Charles B. Runnels, Jr.
Fred A. Ballin, Jr.
Mark W. Dundee
Seiji Masuda
Hiroyuki Saito
Robert Barbera
Paul G. Flynn
Gregory R. McClintock
Richard C. Seaver
Thomas J. Barrack, Jr.
Hank Frazee
Glen McDaniel
Richard L. Stack
William Beazley
Bart M. Hackley, Jr.
Leonard H. McRoskey
Arthur J. Stegall, Jr.
Andrew K. Benton
Bruce Herschensohn
Carl Minton
Dorothy Straus
John S. Broome
Thomas E. Higgins
E. Chadwick Mooney
Terralynn Walters Swift
Viggo Butler
Jim Hill
Velma V. Morrison
Augustus Tagliaferri
Jamal Daniel
James D. Hodgson
William S. Mortensen
Charles A. Taylor
Richard C. David
William T. Huston
Michael T. Okabayashi
Robert A. Virtue
Robert M. Davidson
Edward L. Johnson
Stephen E. Olson
Robert M. Wallace
Edmond R. Davis
Carl J. Lambert
A. Barry Patmore
Lew O. Ward
K. Duane Denney
John T. Lewis
Terry Hamilton Quimby
Jeremy N. White
Edward Di Loreto
Ian R. Linde
Frank E. Raab
Gary L. Wilcox
Robert E. Dudley
Muriel Lipsey
John Ratzenberger
Howard O. Wilson
22
2002—Student mail area in the new Sandbar lounge area.
1946—Student mail area at George Pepperdine College.
HerLamp isStill Raised High
On Tuesday, April 9, 2002, the University hosted the twenty-sixth annual Pepperdine Associates Dinner at the Beverly Hilton Hotel in Los Angeles. It was a warm and patriotic evening that remembered the tragedies of September 11. The following is an excerpt from President Benton’s remarks after the keynote address by U.S. Army General H. Norman Schwarzkopf. In the poem cited by President Benton, its author refers to “the brazen giant of Greek fame, with conquering limbs astride from land to land.” It is a reference to the Colossus of Rhodes, one of the seven wonders of the ancient world. The Colossus was a huge bronze statue built about 304 B.C. in honor of the Greek sun god, Apollo. It stood one hundred feet high, with its feet planted on either side of the entrance to Mandraki harbor. Ships entered and exited the harbor through the legs of the giant statue. It symbolized the strength and wealth of the Rhodian people. It is used by Emma Lazarus as a means of contrast with our own Statue of Liberty. President Benton said: A young woman named Emma Lazarus was a prominent nineteenth century New York poet. When she was only 34, she wrote a poem that has become immortal in America. Written in 1883, her sonnet, called the “New Colossus,” paid tribute to the recently erected landmark in New York harbor. She died only four years later and didn’t live to see the full impact of what she had written. Her words on the Statue of Liberty read as follows: “Keep, ancient lands, your storied pomp!” cries she, with silent lips. Not like the brazen giant of Greek fame, ‘Give me your tired, your poor, with conquering limbs astride from land to land, your huddled masses yearning to breathe free, here at our sea-washed, sunset-gates shall stand the wretched refuse of your teeming shore; a mighty woman with a torch, whose flame Send these, the homeless, tempest-tossed to me, is the imprisoned lightning, and her name Mother of Exiles. I left my lamp beside the golden door! From her beacon-hand glows world-wide welcome, her mild eyes command the air-bridged harbor that twin cities frame. The “Mother of Exiles” watched silently as two of her Manhattan towers collapsed and many of her children were lost. But her lamp is still raised high, the light still streaming—because America will not be cowed into being less than Emma Lazarus visualized in 1883 when she wrote her sonnet.
24
OurAffirmation As a Christian university, Pepperdine affirms:
That God is
That God is revealed uniquely in Christ
That the educational process may not, with impunity, be divorced from the divine process That the student, as a person of infinite dignity, is the heart of the educational enterprise That the quality of student life is a valid concern of the University That truth, having nothing to fear from investigation, should be pursued relentlessly in every discipline That spiritual commitment, tolerating no excuse for mediocrity, demands the highest standards of academic excellence That freedom, whether spiritual, intellectual, or economic, is indivisible That knowledge calls, ultimately, for a life of service
Bill Henegar
Project Director
Heidi Lundgren
Abigail Salaway
Project Coordinator
Ron Hall
Bill Henegar
Writers
Heidi Lundgren
Abigail Salaway
Keith Lungwitz
Creative Director
Blake Dennis
Photography
Keith Lungwitz
Production
Darin Hornbaker
Print Coordinator
Jan Turner
Copy Editor
Charles J. Pippin
All rights reserved Š 2002 by Pepperdine University 24255 Pacific Coast Highway, Malibu, California 90263 310-506-4000 www.pepperdine.edu