Gordon Macklin
Encyclopedia
Gordon S. Macklin was an American businessman. He was the first President and CEO of the NASDAQ
from 1971 to 1987. He was also a board member of WorldCom from 1998 to its collapse in 2002.
Macklin was born in Cleveland, Ohio
and raised in Shaker Heights. He graduated with a BA in economics from Brown University
in 1950, and returned to Cleveland to work for McDonald & Company Securities, where he later became a partner. He was elected president of the National Association of Securities Dealers (NASD) in 1970, remaining in office until 1987. He was chairman of the National Clearing Corp from 1970 to 1975, and president of NASDAQ, the world's first electronic stock market, from 1975 to 1987.
He became chairman of investment bank Hambrecht & Quist
, based in Boston
, in 1987, and then chaired the venture capital
firm White River Corporation from 1992 until it was sold to Harvard Private Group in 1998.
He then joined the board of WorldCom as an independent director. Along with his fellow directors, he took little action to prevent the massive accountancy
fraud which led to the company's bankruptcy
in 2002, costing investors and employees billions of dollars. In 2001, the board discussed accountancy concerns five times, but their compensation and share options eleven times. In 2005, he joined nine former WorldCom directors in paying back $18 million as compensation for investor losses, thought to be less than 20% of the personal net assets of the 10 directors.
He joined the board of online retailer Overstock.com
in 1999 and was also a director of the biotechnology companyMedImmune
, and the White Mountains Insurance Group
. He was a director, trustee or managing general partner various companies in the Franklin Templeton group. He was also co-chairman of the Alexis de Tocqueville Institute.
Macklin was predeceased by his wife, Marilyn and survived by two sons and two daughters. He died following a stroke
, aged 78.
NASDAQ
The NASDAQ Stock Market, also known as the NASDAQ, is an American stock exchange. "NASDAQ" originally stood for "National Association of Securities Dealers Automated Quotations". It is the second-largest stock exchange by market capitalization in the world, after the New York Stock Exchange. As of...
from 1971 to 1987. He was also a board member of WorldCom from 1998 to its collapse in 2002.
Macklin was born in Cleveland, Ohio
Cleveland, Ohio
Cleveland is a city in the U.S. state of Ohio and is the county seat of Cuyahoga County, the most populous county in the state. The city is located in northeastern Ohio on the southern shore of Lake Erie, approximately west of the Pennsylvania border...
and raised in Shaker Heights. He graduated with a BA in economics from Brown University
Brown University
Brown University is a private, Ivy League university located in Providence, Rhode Island, United States. Founded in 1764 prior to American independence from the British Empire as the College in the English Colony of Rhode Island and Providence Plantations early in the reign of King George III ,...
in 1950, and returned to Cleveland to work for McDonald & Company Securities, where he later became a partner. He was elected president of the National Association of Securities Dealers (NASD) in 1970, remaining in office until 1987. He was chairman of the National Clearing Corp from 1970 to 1975, and president of NASDAQ, the world's first electronic stock market, from 1975 to 1987.
He became chairman of investment bank Hambrecht & Quist
Hambrecht & Quist
Hambrecht & Quist was an investment bank based in San Francisco, California noted for its focus on the technology and internet sectors. H&Q was founded by William Hambrecht and George Quist in California, 1968....
, based in Boston
Boston
Boston is the capital of and largest city in Massachusetts, and is one of the oldest cities in the United States. The largest city in New England, Boston is regarded as the unofficial "Capital of New England" for its economic and cultural impact on the entire New England region. The city proper had...
, in 1987, and then chaired the venture capital
Venture capital
Venture capital is financial capital provided to early-stage, high-potential, high risk, growth startup companies. The venture capital fund makes money by owning equity in the companies it invests in, which usually have a novel technology or business model in high technology industries, such as...
firm White River Corporation from 1992 until it was sold to Harvard Private Group in 1998.
He then joined the board of WorldCom as an independent director. Along with his fellow directors, he took little action to prevent the massive accountancy
Accountancy
Accountancy is the process of communicating financial information about a business entity to users such as shareholders and managers. The communication is generally in the form of financial statements that show in money terms the economic resources under the control of management; the art lies in...
fraud which led to the company's bankruptcy
Bankruptcy
Bankruptcy is a legal status of an insolvent person or an organisation, that is, one that cannot repay the debts owed to creditors. In most jurisdictions bankruptcy is imposed by a court order, often initiated by the debtor....
in 2002, costing investors and employees billions of dollars. In 2001, the board discussed accountancy concerns five times, but their compensation and share options eleven times. In 2005, he joined nine former WorldCom directors in paying back $18 million as compensation for investor losses, thought to be less than 20% of the personal net assets of the 10 directors.
He joined the board of online retailer Overstock.com
Overstock.com
Overstock.com , also known by its shortcut, O.co, is an online retailer headquartered in Cottonwood Heights, Utah, near Salt Lake City. Founded in 1997 by Robert Brazell, under the name D2: Discounts Direct, it was a pioneering online seller of surplus merchandise which, upon its failure in 1999,...
in 1999 and was also a director of the biotechnology companyMedImmune
MedImmune
MedImmune, LLC, headquartered in Gaithersburg, Maryland, became a wholly owned subsidiary of AstraZeneca in 2007. Since being acquired, MedImmune has remained a Maryland-based biotechnology development enterprise...
, and the White Mountains Insurance Group
White Mountains Insurance Group
White Mountains Insurance Group is a holding company with business interests in property and casualty insurance, and reinsurance. The group owns the direct marketing insurer Esurance and a 75% stake in specialty insurance carrier OneBeacon. In 2008 White Mountains Insurance Group also acquired a...
. He was a director, trustee or managing general partner various companies in the Franklin Templeton group. He was also co-chairman of the Alexis de Tocqueville Institute.
Macklin was predeceased by his wife, Marilyn and survived by two sons and two daughters. He died following a stroke
Stroke
A stroke, previously known medically as a cerebrovascular accident , is the rapidly developing loss of brain function due to disturbance in the blood supply to the brain. This can be due to ischemia caused by blockage , or a hemorrhage...
, aged 78.