2:25 p.m., Nov. 16, 2010----Frank Zarb, one of America's most respected corporate leaders, addressed a full house during the University of Delaware's Annual Corporate Governance Conference on Friday, Nov. 12, in Alfred Lerner Hall on UD's Newark campus.

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The conference, sponsored by the John L. Weinberg Center for Corporate Governance and the Department of Finance in the Alfred Lerner College of Business and Economics, hosted students, business leaders and academics from across the country to study the effects of the financial crisis, government reforms and the changing landscape in U.S. business.

University President Patrick Harker welcomed conference attendees and introduced Zarb.

“There is an unprecedented focus today on the contemporary boardroom due to substantial changes in new legislation, regulation and expectations,” Harker said. “This is a great opportunity to examine the legal, financial and practical ramifications of our new reality.”

Zarb, whose record of corporate accomplishment and government service include CEO of NASDAQ, Smith Barney, the chairman of AIG, and various roles in the Nixon, Ford, Reagan, Bush and Clinton administrations, spoke to conference attendees about the most important considerations future leaders should have to avoid financial or ethical crises.

“It is essential for current and future corporate leadership to maintain a solid, ethical tone at the top and to pay attention to warning signs and red flags,” counseled Zarb. “Always question the status quo, the accepted way of doing things.”

University Provost Tom Apple also spoke to conference attendees about new corporate governance initiatives.

“The influence of the institutional investor class in corporate governance has been significant,” said Apple. “This is evidenced by the adoption of the 2010 Dodd-Frank Act, which contains new governance obligations for all public companies.”

Such new requirements were a focal point of the conference, which featured a panel discussion of influential business leaders including Ken Daly, CEO of the National Association of Corporate Directors; There du Pont, chairman of the Longwood Foundation and board member of DuPont; Harvey Goldschmid, Dwight Professor of Law at Columbia Law School and former SEC commissioner; Joann Lublin, management news editor of the Wall Street Journal; Amy Borrus, deputy director of the Council of Institutional Investors; Susan Blount, general counsel for the Prudential Insurance Company; and Anne Foster, director at Richards, Layton and Finger.

Charles Elson, director of the Weinberg Center and Edgar S. Woolard, Jr., Chair in Corporate Governance, and Roger Coffin, associate director of the Weinberg Center, organized the daylong conference.

Elson explained to attendees the purpose of the center and noted this year marks its 10-year anniversary.

“The Weinberg Center was designed to bring together leaders from academia, business, law and finance to study, educate and work for thoughtful reform in the area of corporate governance,” said Elson. “New governance reforms, while well intentioned, may have unintended consequences and care must be taken to make sure investor protection and long term shareholder value are preserved.”

According to Elson, real growth and economic value are served when the interests of boards of directors and shareholders are aligned.

A. Gilchrist Sparks, chairman of the Board of Trustees of the University of Delaware and of counsel at Morris, Nichols, Arsht and Tunnell, echoed Elson's remarks.

“Delaware corporate law was designed to facilitate corporate transactions and development without costly burden or interference,” said Sparks.

The conference also featured sessions in which leading academics from the finance and legal fields presented new papers that centered on issues stemming from the financial crisis and the legislative response and financial reform.

“There are many lessons to be learned from the financial crisis,” concluded Coffin. “Primarily, strong leadership, proper incentives and good governance can point the way toward economic growth and recovery.”

Conference materials may be downloaded at this website.

Article by Kathryn A. Marrone with Roger Coffin
Photos by Evan Krape and Ambre Alexander