Massachusetts Institute of Technology
Sign in Create Account

Convocation Keynote (1)

10/07/2005 7:45 AM Kresge
John Thain, '77, Chairman and CEO, CIT

Description: John Thain assumed the helm of the New York Stock Exchange following scandals that stunned both the public and the time-honored institution: massive swindles by prestigious exchange members, and the revelation of former NYSE Chairman Richard Grasso's $140-million pay package. Thain has determined to "rebuild confidence, integrity and trust in the world's largest marketplace," by applying "best practices" in the areas of governance, market structure and the strategy of exchanges. Key ingredients include: thinning the board of directors from 26 to 11 and separating the regulatory functions of the NYSE from the business of the exchange; upgrading technology to permit institutional customers "to trade instantaneously, electronically and anonymously," yet maintaining the price discovery process to avoid becoming an "electronic processing network" with its attendant volatility; merging with a for-profit public company to compete globally and to create "a second listing brand for smaller companies." Thain believes he has started to turn the ship around, pointing to such positive market reaction as a tripling in the value of a NYSE seat, from 975 thousand dollars to 2.9 million dollars.

About the Speaker(s): Prior to taking over the NYSE, John Thain was president and chief operating officer of Goldman Sachs Group, Inc. He became president and co-chief operating officer of The Goldman Sachs Group, L.P. in 1999. From 1994 to 1999, he served as chief financial officer and head of operations, technology and finance. From 1995 to 1997, he was also co-chief executive officer for European operations. Thain is a member of The MIT Corporation, the Dean's Advisory Council _ MIT/Sloan School of Management, INSEAD _ U.S. National Advisory Board, the James Madison Council of the Library of Congress and the Federal Reserve Bank of New York's International Capital Markets Advisory Committee. He is also a General Trustee of Howard University. Thain received an M.B.A. from Harvard University in 1979 and a B.S. from MIT in 1977.

Host(s): Sloan School of Management, MIT Sloan School of Management

Comments (0)

It looks like no one has posted a comment yet. You can be the first!

You need to log in, in order to post comments. If you don’t have an account yet, sign up now!

MIT World — special events and lectures

MIT World — special events and lectures

Category: Events | Updated 11 months ago

December 12, 2011 20:46
All Rights Reserved (What is this?)
Additional Files

2185 times

More from MIT World — special events and lectures

Iraq and North Korea: A Former Insider Assesses U.S. Policy

Iraq and North Korea: A Former Insi...

Added almost 4 years ago | 01:35:00 | 2256 views

Scholarly Communication in a Digital World: A Thought Provoking Symposium To Celebrate the World-Wide Launch of DSpace

Scholarly Communication in a Digita...

Added almost 4 years ago | 01:49:00 | 2378 views

Design for Fun: What Makes a Game Good, and a Good Game?

Design for Fun: What Makes a Game G...

Added almost 4 years ago | 00:43:53 | 3760 views

Key Issues In the Department of Defense for the Obama Administration

Key Issues In the Department of Def...

Added almost 4 years ago | 01:36:00 | 5743 views

The Challenge: Meeting Global Energy Demands Sustainably

The Challenge: Meeting Global Energ...

Added almost 4 years ago | 01:35:00 | 3226 views

Leadership Amidst Crisis

Leadership Amidst Crisis

Added almost 4 years ago | 00:49:35 | 11725 views