Alumni
Profile: Frederick Waddell '79
Northern
Trust president reflects on three decades of success
By Romi
Herron
More
than 30 years ago, Frederick
Waddell '79 began what
he calls a "love affair." Fresh out of undergraduate
school, and new to Chicago, he was interviewed by The Northern
Trust Co., offering his compelling desire to learn about the
banking industry.
"They
really took a risk on me and gave me a chance. I wasn't even
from Chicago," says Waddell, a graduate of
The Managers' Program, who in February was named president
and COO of The Northern Trust. As of December, the holding
company had assets under custody of $2.9 trillion and 84 offices
in the United States, as well as 11 international locations.
Now,
helping to steer the organization's overseas growth, Waddell
says continuity remains paramount as the company branches
out further in India, China and Europe.
Currently,
about 90 employees are established in India, and the organization
hopes to increase that number to 200 over the next couple
years.
"Our
asset servicing business is growing rapidly [in India] so
we need an operations center of excellence to support our
client growth there," Waddell says. "Operations
in India provide us with additional duality of process and
support. We have major operations centers in Chicago, London
and Dublin and want another leg to our operations structure
in India so that we are prepared to back one another up."
Opportunity
also presents itself in China's investment market, which is
markedly different, Waddell says.
"China
and India are both growing rapidly, but because India is a
democracy, it is much more open and transparent," says
the Kellogg alum. "China is really still learning how
to operate in the modern economic system, whereas India has
been in that system and operating successfully for much longer.
The comfort level of investing in India is higher than with
China but the opportunities in China cannot be ignored."
To
that end, The Northern Trust has also opened an office in
Beijing, guided by the organization's central philosophy to
keep its service offerings consistent.
"Our
focus is one of the things that differentiates us from other
institutions," says Waddell. "We are not an investment
banking firm, a retail credit card firm or an insurance provider.
We are really focused on the needs of high net worth and institutional
clients and that does differentiate us from others who may
go in and out of business areas due to leadership personalities,
market or climate." Such continuity offers reliable value for clients, says Waddell,
who also notes the dedication of his colleagues, many of whom
have become his closest friends. Central throughout the bank
is an open style of leadership, he says, and those at the
helm are committed to maintaining the founding principles
established in the early years of the then family operated
corporation.
Preceding
Waddell as president was William Osborn '73, today chairman
and CEO of The Northern Trust. "Rick is an exceptional
leader and a highly regarded member of our executive management
team," says Osborn. "As a 30-year Northern Trust
veteran, he has extensive experience successfully managing
and growing our business."
Drawing
on those insights, Waddell emphasizes the strategic value
of The Northern Trust's independent status. "We believe
we can and will remain independent if we continue to focus
on the things we do well, which have translated into a stock
price that has performed very well. Independence is a byproduct
of our strategy, focus and execution. That model is advantageous
because it provides clients with consistency, knowledge of
what we are about." Independence also provides some assurance
that the organization will continue providing its strong,
traditional offerings.
While
Waddell's roles at The Northern Trust, which have included
executive vice president and other management positions have
enriched his career, a well-rounded life remains his greatest
pride, he says.
"I
have balance between my professional career and my family
life. I have enjoyed a wonderful career with many interesting
and challenging assignments, but along the way I have also
been able to be with my wife and our two sons and enjoy their
growth," says Waddell, who also enjoys his roles as a
board member of The Kohl Children's Museum and the Art Institute
of Chicago.
"For
the Kohl Children's Museum, we built a brand-new museum from
the ground up," says Waddell. "We raised the money,
acquired the site and designed the building. There aren't
too many opportunities to do that these days."
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