NOVEMBER 2006

Being a Jerk Is So ’90s

Play to your company’s strengths, don’t set too many goals, and do take advantage of the intelligence you can gather in the ladies’ room. These are some of the lessons Linda Huber, MBA ’86, learned during her first year as chief financial officer of Moody’s Corp., the global provider of credit ratings and analysis on debt issued in domestic and international markets. She also learned that in such a high-powered position, “the opportunities to annoy clients are extraordinary in breadth and scope.”

Speaking in May at the School’s annual CFO lecture, endowed by former dean Arjay Miller, Huber reported that upon moving from U.S. Trust to Moody’s, she helped the company firm up its areas of strength by acquiring new businesses and bolstering its finance team.

She also instituted changes to the company’s balance sheet, including working down Moody’s cash balance from nearly $1 billion to $605 million, reducing the coupon on long-term debt nearly 3 points to about 5 percent, and increasing market capitalization from $13.5 billion to $20.8 billion. In three quarters, Moody’s stock went from $44 to $77.

But, she warned, “You have to keep in mind that sometimes you just have a bad day.” For Huber, that day was last April when, despite Moody’s optimistic earnings call for first quarter 2006, the company’s stock price lost $4.5 billion in value. “It’s a difficult situation to manage through, and you can’t let your emotions get the best of you,” Huber said. Knowing that bad days can come should keep one humble and respectful of everyone in the company. “I get some of my best information in the ladies room by just being approachable and positive,” she said. “Being a jerk is a very nineties thing.”

Stanford Business

Being a Jerk Is So ’90s

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