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Dr. Jose V. "Zito" Sartarelli, a successful pharmaceutical executive at three Fortune 500 companies, has been named the Milan Puskar Dean of the College of Business and Economics at West Virginia University. "We are fortunate to have a person of Dr. Sartarelli's expertise and background to lead the College," Provost and Vice President for Academic Affairs Michele Wheatly said in announcing the appointment May 4. "He brings a wealth of experience in international business, as well as an appreciation of the academic underpinning required to succeed in today's business climate." Sartarelli said he is excited by the College's potential. "I think WVU's College of Business and Economics is poised to grow and become very successful in the future," he said. "The foundations are established, and now we're going to have to take it to the next level. "I think we're going to have to work very hard on funding as we go forward; we're going to have to work very hard on the programs that we currently have to make sure they're focused and targeted and very student-centric, both in terms of providing a quality education as well as opportunities as see DEAN page 2
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Former Johnson & Johnson Executive Named
MAY 2010 4 Student wins Barry M. Moriarty Award 4 WVU captures Corporate Growth Cup 5 Business Plan Competition winners 6 Weese Lecture 6 Federal Reserve President visits WVU 7 Reitman recognized through BΓΣ Award
WVU Maintains Prestigious Accreditation
AACSB
West Virginia University’s College of Business and Economics has maintained its accreditation for both business and accounting programs, one of only 173 schools worldwide to have the dual accreditation. “This upholds an unbroken, 56-year streak of accreditation and shows that our faculty and students continue to perform at the highest levels,” said Nancy McIntyre, the College’s associate dean for academic affairs. “This accreditation comes after an extensive review of the College just concluded this year, and validates the direction in which we have been moving,” McIntyre said. “Our faculty has produced more articles in peer-reviewed journals, we have increased internships and have created model curricula in accounting and fraud investigation programs, among other achievements.” The accreditation comes from the Association to Advance Collegiate Schools of Business, the oldest global accrediting body for business schools that offer undergraduate, master's and doctoral degrees in business and accounting. “This is wonderful news,” said Michele Wheatly, WVU provost and vice president for academic affairs. “The College see AACSB page 2
Dr. Jose V. "Zito" Sartarelli was named Dean on May 4.
College of Business and Economics
AACSB continued has worked diligently to maintain a high quality of instruction and an exceptional learning environment. “The education, research and outreach missions of the College of Business and Economics remain important components as the University fulfills its land-grant mission,” she said. “Retaining accreditation is key to the overall success of the College and the University. “Congratulations to the faculty, staff and students who continue to make this happen day in and day out.” Only 593 schools, or fewer than 5 percent worldwide, have earned this distinguished hallmark of excellence in business education. Of these, only 173 have additional specialized accreditation for their accounting programs. To maintain accreditation both the business program and the accounting program must undergo a rigorous internal review every five years, at which the program must demonstrate its continued commitment to the 21 quality standards relating to faculty qualification, strategic management of resources, interactions of faculty and students, as well as a commitment to continuous improvement and achievement of learning goals in degree programs. “It takes a great deal of self-evaluation and determination to earn and maintain AACSB accreditation,” said Jerry Trapnell, chief accreditation officer of AACSB International. “Schools not only must meet specific standards of excellence, but their deans, faculty, and staff must make a commitment to ongoing improvement to ensure continued delivery of high-quality education to students.” The College of Business & Economics was founded in 1950 and has maintained continuous accreditation by AACSB International since 1954.
DEAN continued they graduate," said Dr. Sartarelli, who was introduced at a May 4 evening reception celebrating the College’s 56 continuous years of AACSB accreditation. He will begin his duties July 30. A native of Brazil, Dr. Sartarelli comes to WVU from Johnson & Johnson, where he has served as pharmaceutical group chairman for Asia-Pacific, Japan and Latin America, overseeing a business of more than $3 billion in annual sales spread over more than 50 countries, and supported by more than 9,000 employees. Previously he served at Bristol-Myers Squibb Co. as president of two international groups and senior vice president of franchise management, business analysis and planning. Sartarelli also held senior positions of increasing responsibilities in marketing and management at Eli Lilly and Co. in the United States, Latin America, and Asia-Pacific. During his tenure with Lilly, he ran Asia-Pacific operations, directed international market planning activities and ran operations in Brazil and Chile. Sartarelli received his bachelor of business administration in marketing from the São Paulo School of Business Administration (Fundação Getulio Vargas), São Paulo, Brazil. He earned his MBA in marketing under a Fulbright
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Scholarship, and his doctorate in business administration from Michigan State University in East Lansing, Michigan. Through March 2010 Dr. Sartarelli was a board member of the Council of the Americas. In addition, he has held leadership positions in the industry in many countries and has served as chairman of the Pharmaceutical Research and Manufacturers of America (PhRMA) International Steering Committee and other significant committee chairmanships such as those for Japan, Canada, Latin America and Asia-Pacific. The WVU College of Business and Economics has 66 full time faculty members, 1,041 undergraduate students and 344 graduate students. William Trumbull has been serving as interim dean since July 2008. Joyce McConnell, dean of the WVU College of Law, led the search committee.
Douglas Van Scoy was the College’s commencement speaker on May 15. A 1968 WVU MBA graduate and retired financial professional, he addressed students, families and friends during the College’s portion of WVU’s 141st Commencement on May 14-16. The College of Business and Economics graduated students in the following: graduate degrees— two Ph.D, 29 Master of Professional Accountancy, four Master of Business Administration and Master of Science in Finance; undergraduate (Bachelor of Science)—24 Economics, 104 Accounting, 108 Business Administration, 68 Finance, 27 Management Information Systems, 80 Marketing.
Dear ALUMNI&FRIENDS,
Morgantown saw an influx of forensic laboratory managers, law enforcement professionals and other forensic service providers for a week in April as WVU B&E hosted the Forensic Management Academy (FMA). The only program of its kind in the country, the FMA began in 2007. Its mission is to help current forensic service providers understand and use contemporary business practices to improve the practice of forensics. This year, the FMA was attended by professionals from 27 agencies in 19 states.
This is my last message to you as the interim dean, and I want to thank everyone for the support I’ve received during the past months. I’ve met many, many of you, and that, perhaps, has been the most rewarding part of my experience in this position.
The Morgantown Economic Outlook Conference was held March 17. According to WVU's forecast, job growth in the Morgantown metropolitan area will rebound this year after unusually slow gains in 2009. “Overall, Morgantown has remained remarkably robust in the face of a severe global and national downturn, but the area did not escape unscathed,” Dr. George Hammond commented. You can view the entire MSA Forecast publication at www.bber.wvu.edu.
I’ve been fortunate to share in some significant accomplishments of the College. Topping the list must certainly be the recent affirmation of AACSB reaccreditation. This “seal-of-approval” is not at all easily acquired, and my thanks go out to our faculty and staff who have worked diligently to make this happen. I especially and sincerely thank Dr. Nancy McIntyre, our associate dean for academic affairs, who worked tirelessly on this effort. Not only were we reaffirmed, but the report from AACSB was positively glowing! I extend a warm welcome to Dr. Jose V. "Zito" Sartarelli, who will take the helm now as Dean. Dr. Sartarelli is a distinguished leader who, I feel certain, will take this College to firm footing and a positive future. I hope you will all join me in making him feel at home and in supporting Dr. Sartarelli in his endeavors on behalf of our students, faculty, staff and West Virginia University. Also, congratulations to Robert Reitman! This alumnus has meant so much to our students as the impetus and financial backing of our Corporate Citizenship Project, which he started with Dr. Gerald Blakely in 2001. He received the Beta Gamma Sigma Business Achievement Award on May 27. This is an award given to only three business persons internationally each year, so we are very proud of him! There are others to congratulate: Among them, students from our MS Finance program who won the Corporate Growth Cup competition (they BEAT PITT!); Ph.D. student Sebastian Leguizamon, who received the 2010 Barry M. Moriarty Student Paper Competition Award, sponsored by the Southern Regional Science Association; winners of our annual Business Plan Competition, and many others – especially all our May graduates! Again, thank you all for what you do for the College of Business and Economics and in particular the support you’ve given me during the past two years I have been interim dean.
May 2010 Bottom Line
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WINS
Student's Paper PRESTIGIOUS AWARD Juan Sebastian Leguizamon, an economics graduate student, was named the Barry M. Moriarty Student Paper Winner for his paper "Yardstick Competition and Government Political Structure: Evidence from State Welfare Spending" at the 2010 Southern Regional Science Association meeting in Washington, D.C. Using per capita data on public welfare expenditures from 1997 to 2006, Leguizamon examined the relationship between political parties in state governments, welfare expenditures and adjoining states’ expenditures for welfare. According to the literature, because of competition for votes and voters,
THEY
politicians look at adjoining states’ expenditures for welfare before making decisions on welfare expenditures in their states. “Based on the data, I find that politicians not only look at neighboring states before setting the levels of public expenditures in their home state, but such interdependence among U.S. states is varied according to the structure of political structure. In other words, when compared to state governments that are politically divided, unified state governments react differently to neighboring states’ policies,” said Leguizamon, who is from Bogota, Colombia. Leguizamon, who is in his fourth year of graduate studies, is a research assistant for the Bureau of Business and Economic Research where he has co-authored several reports, including
two on the work experience of college graduates in West Virginia. He has been teaching undergraduate courses in economics at WVU for three semesters. His research interests are public economics, urban/regional economics, and applied econometrics. He is mentored by Dr. Russ Sobel and Dr. Donald Lacombe. “Sebastian was the first graduate student I worked with at WVU and had learned a lot of spatial econometrics on his own without any formal classes in the subject,” Lacombe said. “WVU has had a long tradition in supporting graduate students interested in spatial analysis, and its continued commitment to this area is bearing fruit. Sebastian's award will hopefully be the start of many successful future endeavors in this area.”
BEAT PITT
In February, Master of Science in Finance students in the WVU College of Business and Economics beat the University of Pittsburgh and Indiana University of Pennsylvania in the inaugural Pittsburgh Chapter of the Association for Corporate Growth (ACG) Cup, and came away with a trophy and $2,500.
The competitors had to work through a common finance scenario: They had been “hired” by an “investment firm” to advise them on whether to buy a successful family-owned business. The judges acted as executives in the investment firm, and the students had one week to prepare their case to present in Pittsburgh. “The time constraint made it hard,” said Caitlin Henning, of Elkins, W.Va. “There was a lot of information to sift through, but we had the advantage of good group dynamics since we’ve worked together so much already.” ACG is a group for business leaders founded in 1954 with 12,000 members in 54 chapters throughout North America, Europe and Asia.
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From left: William Gautreau, Niagra Falls, Ontario, Canada; Frank DeGeorge, faculty advisor and finance professor; Matthew Anstey, Canberra, Australia; Christopher Warash, Morgantown, W.Va.; Caitlin Henning, Elkins, W.Va.; and Ryan Owens, Follansbee, W.Va.
Reality. A pair of West Virginia University students who came up with a way to identify and file blueprints and another who wants to explore decorative and other forms of concrete won the top prizes at West Virginia's Statewide Collegiate Business Plan Competition April 9-10. Jillian Cobb and Chade Lowe, of Shepherdstown, won in the innovation category for their proposed business idea, Plandoms. The idea is to give companies working with blueprints the ability to categorize, label and store their plans quickly and effectively — making organization, identification and access to plans simpler.
Two WVU Teams Win $10,000 in WV Collegiate Business Plan Competition
Logan Hartle, a senior industrial engineering major from Martinsburg, W.Va., won the lifestyle category for DecoKrete, a niche decorative concrete company that specializes in many forms of concrete, including stamped, stenciled and vertical concrete, resurfacing, counter tops and landscape curbing. Each team won $10,000 and also receives a variety of free professional business services, which each will use to build small businesses within the state. Winners receive space to run their businesses from the WVU Incubator, legal services from Spilman, Thomas & Battle and accounting services from Dixon Hughes. “Year in and year out, I’m amazed by the young talent and innovative ideas we have around the state and this year was no exception,” said Mindy Walls, WVU’s Entrepreneurship Center director. “This competition truly brings out the best in West Virginia’s aspiring business leaders. It gives college students from around the state a great opportunity to get real world experience in business and entrepreneurship at a young age.”
Logan Hartle's business plan for DecoKrete won in the Lifestyle category.
The competition, which began as a WVU event but went statewide in 2006, featured 98 students from seven West Virginia institutions of higher education. It began in August, when college students from around the state submitted formal business proposals. Over the course of the school year, the teams honed their plans and presented them during three rounds of competition to a panel of business leaders from around the country. The 10 finalist teams were from WVU, University of Charleston, Marshall University and Glenville State College. On April 10, five teams in both innovation and lifestyle categories presented their plans to the panel, who picked winners in each category. The success of the competition isn’t limited to the winners, Walls said. Prior to this year, 30 teams have competed as finalists in the competition; 13 of those teams have gone on to start businesses in West Virginia based on ideas presented in the Business Plan Competition.
Jillian Cobb and Chade Lowe won the Innovation Category for their invention of Plandoms.
“We do this for the state and the students — it’s a win-win for everyone involved,” Walls said. “Our hope is that there will be 10 more businesses in West Virginia as a result of this year’s competition.” May 2010 Bottom Line
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Top Insurance Executive Gives
WEESE LECTURE John E. Schlifske, president of Northwestern Mutual, spoke on "The Long Run: Driving Sustainable Long-Term Enterprise Value" at this year's Samuel H. Weese Financial Services Lecture.
aspects of the company’s investment products and services business, including annuities, mutual funds, advisory products and the Northwestern Mutual Wealth Management Co.
Schlifske became president of Northwestern Mutual and a member of the company’s board of trustees in 2009. Previously, Schlifske was president and chief executive officer of Russell Investment Co. and Northwestern Mutual’s executive vice president – Investment Products and Services. In that role, he was responsible for all
The Weese lecture was established in honor of Dr. Samuel H. Weese, who earned an undergraduate degree and MBA from the WVU College of Business and Economics and a Ph.D. from the University of Pennsylvania’s Wharton School. He was insurance commissioner for West Virginia from 1969-75. John E. Schlifske, president of Northwestern Mutual Financial Network
Federal Reserve Bank President As he constantly consumed information on the financial crisis that recently pushed the country into a recession, Richmond Federal Reserve Bank President Jeffrey Lacker saw a lot of reports that placed blame on econ omists for failing to predict the factors leading up to it. “I’m going to attack that notion for you today,” Lacker told his April 14 audience of mostly business and politics students. “I’m going to try and demolish that notion.” Calling the assumption that economists should have predicted the details of the recession “unfair,” Lacker pointed to the ways in which economists had tracked and predicted in the last few decades the forces that led to the financial crisis. As he gave the audience a background of economic research, Lacker brought up points of concern that the researchers had noted. As far back as 1977 economists noticed that depository insurance had an influence on the risks taken by banks and consumers. If the 6
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bank was insured, it took on more risk and its consumers were less likely to monitor the bank’s practices. Lacker spoke of other economists who noted that as banks became insured, oversight on their behavior would relax. Also, with the insuring of banks, panic attacks of bank runs were rewarded by the promise of a 100 percent return immediately. An alternative strategy proposed was that of offering something like an 80 percent return on investment after a certain point, which put a penalty on panicking. But what may have been most telling about the most recent financial crisis was that the government took on a role of rescuing large financial institutions, those “too big to fail,” fueled by an undefined perception by the public that these banks would be shepherded by the government in the event of a crisis. “This is a huge problem,” Lacker said. He pointed to two of the biggest names in news in the last two years as an example. Fannie Mae and Freddie
Mac, both mortgage insurers, were not regularly financially supported by the government, but they were bailed out due to a public perception that they would be bailed out.
Robert S. Reitman Wins
BΓΣ Award
Robert S. Reitman, a 1955 accounting graduate, won this year’s Beta Gamma Sigma Business Achievement Award, which honors individuals for significant business achievement during a career or a particular achievement. Reitman, chairman of the Robert S. and Sylvia K. Reitman Philanthropic Fund, was instrumental in starting the College’s Corporate Citizenship Project class, which is offered each spring as an elective and is designed to teach future business leaders the significance of contributing to society. It also teaches students about nonprofit organizations, their contribution to the community, how corporate philanthropists make decisions on which organizations to support, and how to work as a team. He also is responsible for the Cleveland Seminar. Students in the class travel to Cleveland where Reitman is host for two days of seminars with area leaders on philanthropy, plus a visit to the Rock-n-Roll Hall of Fame. Robert Reitman talks to B&E students while Jerrold Wareham, president and CEO of ideastream, listens. Ideastream is host for a seminar on philanthropy students attend each spring in Cleveland, Ohio.
The Cleveland area has benefited greatly from Reitman’s philanthropic philosophy. He has served more than 40 years for the United Way and in other leadership capacities including as director of University Hospital and as chair of Amici Medicine at Case School of Medicine. In May 2009 the Reitman Family Foundation donated $1.5 million to University Hospitals and Case Western Reserve University to support research on cardiovascular disease.
Details Financial Crisis able to borrow at much lower interest rates than competitors in the mortgage securitization market because they were perceived to be too big to fail.” Lacker pointed to how the recent bailout precedents have only enlarged this undefined safety net. In 1999, economists at the Richmond Federal Reserve Bank found that 45 percent of the liabilities in the country’s financial community “enjoyed explicit or implicit government support.” Following the last round of bailouts, that percentage has climbed to 59.
Jeffrey Lacker President, Federal Reserve Bank of Richmond
“Fannie Mae and Freddie Mac have been more expensive than anything else in this crisis,” Lacker said. “Over $100 billion and still there’s more losses to come for us taxpayers. They were
The problem, Lacker believes, is ambiguity and “a lack of clarity.” What policymakers can do to change this is define who is in the safety net and who is not, and to make the safety net smaller in an effort to encourage individual responsibility. Institution failure doesn’t have quite the consequences that some feared, Lacker said. When Lehman Brothers Holdings Inc. filed for bankruptcy protection, the only firm that failed as a
result was a money market investor engaged in fraudulent activity. Lacker said bills are in both the Senate and House sides of Congress now that are attempting to fix this problem, but which offer government leeway with an option for bailout funding to use at Congress’ “discretion.” “That to me just sets up this dynamic, just perpetuates this dynamic that gave us ‘too big to fail’ to begin with, and so I think it would be a mistake,” he said. After discussing the hows and whys of the recession, Lacker underlined his belief that economics has a positive role to play in the discussion. “I hoped to have convinced you not to give up on economics if you ever did,” he said. Lacker’s division of the Federal Reserve oversees Virginia, Maryland, North Carolina, South Carolina, the District of Columbia and West Virginia, except for the northern panhandle. May 2010 Bottom Line
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NEW Career Development Leader Rita R. Sailer was named director of the College’s Center for Career Development in April. Before coming to WVU, Sailer was senior vice president at Healthways International, a health and care support provider in Nashville. She received an undergraduate and master’s degree at WVU and an MBA at the University of Tennessee. Additionally, she is a member of the Society for Human Resources Management.
UPCOMINGEVENTS 2010 Alumni & Friends Golf Tournament September 17
Football Tents: September 18 WVU vs. Maryland
www.be.wvu.edu
October 23 WVU vs. Syracuse
Got JOBS? Or INTERNSHIPS? You can help our students and graduates in today’s tough job market by contacting our Center for Career Development online and listing your jobs and internships. Visit www.be.wvu.edu/career_development and create a company profile under MountaineerTRAK. Or call (304) 293-7818.
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