Don Knauss, Chairman & CEO, The Clorox Company

That is the path Don Knauss takes in leading The Clorox Company, where he has been chairman and chief executive officer since late 2006. He recently encouraged a group of Full-Time MBA students at Mays Business School to take a similar approach. “It’s the difference between leading with your head, where you do project leadership and envision the future, and leading with your heart, where you lead people and energize others in the future. It seems to drive better employee engagement.”

Knauss has overall responsibility for directing the company’s worldwide business, which produces products ranging from cleansers to cat litter, salad dressings to lip balm. It generated revenues of $5.5 billion in fiscal year 2012. “My guess is if you haven’t used one of his products in your lifetime, you are in sad, sad shape,” Mays Dean Jerry Strawser said when introducing Knauss. “They make just about everything you need in your everyday life.”

In fact, the company’s motto is “We make everyday life better, every day,” and its goal is to gain the strongest percentage of consumer lifetime loyalty, Knauss explains. That starts with pre-purchase marketing, he says, because at least 60 percent of shopping decisions are made in the store.

The company is celebrating its 100th anniversary, a feat Knauss says only ½ of 1 percent of companies ever reach. “We are a leader in mid-sized categories and in a sweet spot with the larger categories, but our company is small enough I can get my entire leadership team together within 10 minutes.”

Knauss is a former Marine officer who spent 12 years with The Coca-Cola Company before joining Clorox. He previously held a variety of positions in marketing and sales with the Frito-Lay and Tropicana divisions of PepsiCo, Inc. He began his business career as a brand manager in the paper products division at Procter & Gamble. He sits on the boards of directors for Kellogg Company and URS Corporation.

His long-standing commitment to promoting workplace equality and embracing diversity was rewarded in 2006 when he was given The Jackie Robinson Foundation’s ROBIE Award for industry achievement. It is the foundation’s highest tribute to an individual who has promoted and expanded opportunities for minorities in the corporate world.

A native of Highland, Ind., Knauss holds a bachelor’s degree in history from Indiana University. One of Knauss’ personal passions is promoting education, which includes serving on the Morehouse College (Atlanta) board of trustees and the Marine Corps University Foundation board of trustees. In addition, he and his wife Ellie launched in 2007, and continue to personally fund, the Knauss Scholars Program that provides 15 children of Clorox employees as much as $10,000 each toward higher education.

Knauss describes real leadership as “taking the people and the assets they are entrusted with and making them more productive and valuable than they were.” He encouraged the MBA students to exude integrity, curiosity, optimism and compassion. He also urged them to be humble and to focus on their employees. “Use authority, not power. Be approachable, and you’ll learn what’s really going on.”

About Mays Business School

Texas A&M University’s Mays Business School educates more than 5,000 undergraduate, master’s and doctoral students in accounting, finance, management, management information systems, marketing and supply chain management. Mays consistently ranks among the top public business schools in the country for its undergraduate and MBA programs, and for faculty research. The mission of Mays Business School is creating knowledge and developing ethical leaders for a global society.

A new study of 365 sell-side financial analysts shows that private phone calls with managers remain an essential source of analysts’ earnings forecasts and stock recommendations – even in light of regulations limiting businesses’ selective disclosure of financial information.

More than half of the analysts surveyed by a team of accounting researchers said they make direct contact with executives of companies they cover five or more times per year. The direct contact with management is so important that one analyst said his company hired an FBI profiler to train analysts “to read management teams, to tell when they’re lying, to tell when they were uncomfortable with a question. That’s how serious this whole issue has become.”

“Our intent was to peer inside the ‘black box’ and provide new insights about the pressures and incentives analysts face. One key finding is that more than a decade after the passage of Regulation Fair Disclosure (FD), analysts report that private conversations with managers are among their most valuable sources of information,” said Nathan Y. Sharp, assistant professor at Texas A&M University’s Mays Business School, who conducted the study with professors at Temple University, The University of Georgia and The University of Texas at Austin.

The survey also finds that accurate earnings forecasts and profitable stock recommendations have relatively little direct impact on analysts’ compensation. These findings are derived from a study titled Inside the Black Box of Sell Side Financial Analysts, which presents results of a 23-question survey focused on analysts’ incentives, as well as 18 detailed follow-up interviews.

The study offers insights into an area that is understudied by researchers of the financial industry. While hundreds of articles have sought to predict financial analysts’ choices using models and statistics, few have peered into the “black box” of the organizational contexts and personal psychologies that drive analysts’ decision-making.

The study’s findings also serve as a potential commentary on the Securities and Exchange Commission’s Regulation Fair Disclosure (Reg FD), launched in 2000 to limit selective disclosure of market-moving information to analysts or other key stakeholders prior to the general public.

But respondents noted that companies’ public conference calls discussing quarterly earnings are often followed by one-on-one conversations between analysts and chief financial officers. According to one analyst: “We’re almost back to where we were pre-Reg FD, but not quite because that backroom chatter is shut down. It’s just now it’s not in the backroom; it’s everywhere.”

More insights from the survey include:

• Approximately one quarter of analysts feel pressured by supervisors to lower their earnings forecasts, presumably because outperforming forecasts pleases investors.
• Approximately one quarter of analysts feel pressured by supervisors to raise their recommendations, presumably because it is easier to get their clients to buy rather than to sell the stocks they recommend.
• While only 35 percent of analysts said the profitability of their stock recommendations were a very important determinant of their compensation, 67 percent cited “standing in analyst rankings or broker votes” as central to their compensation.
• Only half of analysts considered primary research “very useful” in forecasting earnings or recommending stocks.

The study was conducted by Nathan Y. Sharp, Assistant Professor at Texas A&M University’s Mays Business School; Lawrence D. Brown, Seymour Wolfbein Distinguished Professor of Accounting at Temple University’s Fox School of Business; Andrew C. Call, Assistant Professor at University of Georgia’s Terry College of Business; and Michael B. Clement, Professor at the University of Texas at Austin’s McCombs School of Business. The full text is available on Social Science Research Network at http://ssrn.com/abstract=2228373.

About Mays Business School

Texas A&M University’s Mays Business School educates more than 5,000 undergraduate, master’s and doctoral students in accounting, finance, management, management information systems, marketing and supply chain management. Mays consistently ranks among the top public business schools in the country for its undergraduate and MBA programs, and for faculty research. The mission of Mays Business School is creating knowledge and developing ethical leaders for a global society.

Senior finance major and Corps of Cadets member Scott Lovett ’13 received the 2013 Kupfer Distinguished Scholar Award. The award, founded by Gerald Ray ’54 and Donald Zale ’55, was created to recognize students who show outstanding academic achievement and exemplary leadership skills in the Texas A&M Corps of Cadets. Ray and Zale established the award to honor their friend Harold L. Kupfer, who made lasting contributions to the Texas business community.

Lovett serves as the Commanding Officer of 1st Regiment in the Corps of Cadets and as a Squad Leader in the Tree Platoon, Ross Volunteer Company. He is also a member of the Banking Program at Mays Business School, the Senior Operations Chair for this year’s Nichol’s Rising Leaders Conference, and was recently selected to serve as a Texas A&M Foundation Maroon Coat. Lovett plans to pursue a master’s degree at Texas A&M before starting a career in commercial real estate development.

About Mays Business School

Texas A&M University’s Mays Business School educates more than 5,000 undergraduate, master’s and doctoral students in accounting, finance, management, management information systems, marketing and supply chain management. Mays consistently ranks among the top public business schools in the country for its undergraduate and MBA programs, and for faculty research. The mission of Mays Business School is creating knowledge and developing ethical leaders for a global society.

By the end of the night, the event was imprinted in his memory. He was given the Dr. Robert M. Gates Inspiration Award, nominated by his students, who spoke highly of his support and dedication.

When Musoma’s students heard the presenter use their teacher’s catch phrase, “Your network is your net worth,” they erupted in loud cheers and laughter. Afterward, they crowded around him. “No one could even hear a word after that,” Musoma said.

Henry Musoma and Mays Business School Regents’ Scholars

Another emotional aspect of the program for Musoma was that he was honored in the presence of the keynote speaker, Wynn Rosser – the first person he met at Texas A&M and his undergraduate advisor.

Among his many student-oriented activities since his arrival at Mays in Fall 2013, Musoma has worked with a group of about 60 Mays Business School Regents Scholars. Regents Scholars are required to participate in learning communities, and Musoma led his students in a one-hour class that included discussions, field trips and samples at the international food festival. He also asked them to research a world leader.

“I want to open their eyes and increase their awareness of the world around them,” he says. “I have seen a big change in these students’ confidence since I first met them. I am so proud of them.”

Musoma was born and raised in the Southern African nation of Zambia. He completed his high school education in Zambia and Mozambique, respectively. In 1996, Dr. Musoma relocated to the United States to attend college, receiving both his master’s and undergraduate degrees from Texas A&M with a concentration in International Agricultural Development.

He is a recent graduate of the Educational Leadership and Administration Program at TCU. He and his wife of 10 years, Tyra, have three children, Kezia, Joshua and Olivia. Prior to joining TCU, he served on the Texas A&M faculty as lecturer and academic advisor in the College of Agriculture. He also held the lectureship for Texas A&M’s premier multi-disciplinary leadership program, the Academy for Future International Leaders.

Musoma has traveled extensively in Southern Africa, where his parents were posted in the diplomatic corps. His travels have taken him to Great Britain, France, Italy, Germany, Zimbabwe, Mozambique, South Africa, Botswana and most recently Tunisia, where he and his wife led eight Aggies on a five-week multidisciplinary study abroad sponsored by the Norman Borlaug Institute for International Agriculture.

The Gates Inspiration Award was established in 2007 to honor Gates’ legacy and tenure at Texas A&M. It is given through The Division of Scholarships & Financial Aid at Texas A&M University. Gates, who served as president of the university from 2002 to 2006, routinely challenged the faculty and staff to provide support for Regents’ Scholars through mentoring and advising.

The Regents’ Scholarship is designed to assist first-generation college students in achieving their educational goals at Texas A&M University. Up to 600 recipients receive $5,000 per year for up to four years, with the ability to add other scholarships. Each recipient must be a first-generation college student – meaning neither parent has earned a bachelor’s degree – with a family’s adjusted gross income of less than $40,000 per year.

The Regents’ Scholars Organization provides an opportunity for the scholars to form a close-knit community at Texas A&M. It hosts monthly meetings and participates in community service projects, fund-raising events and social events.

Regents’ Scholars must attend an orientation, participate in an Academic Success Program as designated by their college, live on-campus during their first year and attend the spring banquet at the conclusion of the first year.

About Mays Business School

Texas A&M University’s Mays Business School educates more than 5,000 undergraduate, master’s and doctoral students in accounting, finance, management, management information systems, marketing and supply chain management. Mays consistently ranks among the top public business schools in the country for its undergraduate and MBA programs, and for faculty research. The mission of Mays Business School is creating knowledge and developing ethical leaders for a global society.

The Mary Pat and Michael J. Bolner ’73 Business Honors Scholarship, created by a $100,000 donation to Mays Business School, will be used to fund scholarships for students enrolled in the Business Honors program. Bolner runs the sales and marketing arm of the San Antonio-based family business, Fiesta Spices, which distributes cooking spices in 40 states.

“One of the best gifts you can give someone is a helping hand while they are in college,” says Michael Bolner. “I have found if you help students when they need help, they will help someone else later on. It starts a nice chain of events.”

Bolner says he and his wife enjoy meeting the scholarship recipients and their families. He says he chose to support the Business Honors program because he wanted to help Mays retain its high standing. “I think Mays Business School graduates can stand up against any other in the country, and I wanted to help the best of the best.”

“We are so very appreciative of the Bolners for their generosity and support of our students,” said Mays Dean Jerry Strawser. “Because of their support, our School will be in position to attract the very best students to study at Mays and our students will receive critical financial support for their education.”

About Mays Business School

Texas A&M University’s Mays Business School educates more than 5,000 undergraduate, master’s and doctoral students in accounting, finance, management, management information systems, marketing and supply chain management. Mays consistently ranks among the top public business schools in the country for its undergraduate and MBA programs, and for faculty research. The mission of Mays Business School is creating knowledge and developing ethical leaders for a global society.

Frank Raymond

Soon Raymond began exploring ways to connect with Mays on his own, funding scholarships and serving as a judge for the Center for New Ventures and Entrepreneurship’s (CNVE) Ideas Challenge, in which students from across campus vie to pitch their proposals for products or services to a panel of judges. Raymond’s son, who shares his excitement about innovative ideas, typically joins him.

Now, Raymond and his wife Jean have created the Frank J. and Jean Raymond Foundation Ideas Challenge fund, committing to contributions of $50,000 per year for the next 20 years. These funds will support the Raymond Ideas Challenge and allow the CNVE to increase its impact on the entrepreneurial mindset of Texas A&M University students.

In addition to this gift, the Raymonds also provide scholarships for Mays students with an interest in entrepreneurship.

“Frank and Jean are true champions of entrepreneurship and entrepreneurial thinking at Mays,” said Mays Dean Jerry Strawser. “Their generous support of our students and encouragement to have our students develop ‘great ideas’ will have an impact on their lives for many years to come.”

“You always hope what you’re doing will help these outstanding young people to be better students and that it will ease their burdens a little bit,” Frank Raymond said.

Raymond says he hopes his gifts will have another benefit to Mays: “I’m hoping to attract others to building on what I’ve done.”

About Mays Business School

Texas A&M University’s Mays Business School educates more than 5,000 undergraduate, master’s and doctoral students in accounting, finance, management, management information systems, marketing and supply chain management. Mays consistently ranks among the top public business schools in the country for its undergraduate and MBA programs, and for faculty research. The mission of Mays Business School is creating knowledge and developing ethical leaders for a global society.

A new fellowship honoring Stuart W. Murff ’73 has been established to benefit the Finance Department at Texas A&M University’s Mays Business School. Stuart is a Fort Worth businessman who is actively involved in community service.

A $100,000 gift from Stuart Murff’s older brother James D. “Don” Murff ’70 and his wife Jeanie endowed the Stuart W. Murff ’73 Fellowship in Finance. “We are pleased to establish this fellowship to honor my brother’s friendship and to commemorate his highly successful business career and his many contributions to his community,” said Don Murff, a retired civil engineer. The fellowship is greatly enhanced by the generous ExxonMobil matching program.

“Don’s decision to honor his brother is consistent with Texas A&M University’s focus on family,” said Mays Dean Jerry Strawser. “Through his generosity, we will be able to attract top graduate students to our Department of Finance and provide support for them during their studies at Mays.”

Stuart Murff is currently managing partner of a private investment partnership formed in 1997 following the sale of Central Bancorporation to Norwest/Wells Fargo. Prior to that, he was president of Central Bancorporation, a publicly held local banking group with $1.1 billion in assets. Stuart previously owned and operated a bank consulting and data processing firm. Following graduate school, he worked in various corporate finance capacities at Mercantile Texas/MCorp a banking group.

He has a BA in economics, an MBA in finance and doctoral studies in economics from Texas A&M. He has been on the faculty of The Graduate School of Banking at Boulder, Colo.

Stuart is an active member of the Fort Worth Community with a particular interest in organizations serving children, having served on the Boards of Lena Pope Homes, The Boys and Girls Clubs, The Tarrant Metropolitan YMCA and Communities in Schools. He was Chairman of The Metropolitan YMCA and on the Board of Trustees for YMCA Foundation and Chairman of Communities in Schools as well as Chairman of CIS Foundation. Through his work in the community, he has been honored with YMCA’s Chi Rho award and the Fort Worth Star Telegram STARS award recognizing community service.

Stuart and his wife Melissa live on a horse farm outside Fort Worth, where they breed, raise and train Three-Day Eventing Sport Horses. They have four children – two of whom are Aggies – and seven grandsons.

James D. “Don” Murff ’70 served in the U.S. Army for five years and is a retired Exxon Research Engineer. He received his BS from the U.S. Military Academy at West Point, and MS and PhD degrees in civil engineering from Texas A&M. After retirement from Exxon, Don served 10 years as a visiting professor in A&M’s Civil Engineering Department. He now serves as an industry consultant.

Don and Jeanie, a retired nursing home marketing director, live in the Village of the Hills near Austin. They have two sons and two grandchildren.

About Mays Business School

Texas A&M University’s Mays Business School educates more than 5,000 undergraduate, master’s and doctoral students in accounting, finance, management, management information systems, marketing and supply chain management. Mays consistently ranks among the top public business schools in the country for its undergraduate and MBA programs, and for faculty research. The mission of Mays Business School is creating knowledge and developing ethical leaders for a global society.

Epstein earned his degree after serving in the Army. His career began in insurance, then he founded and operated Risktech, an independent risk management consulting firm. He served as CEO until his retirement in 1991.

Stevens served in the Air Force after graduation, then became a CPA. He worked for Arthur Anderson, then in 1999 became managing partner of accounting firm Stevens & Matthews. He previously served as a Regent of the Texas A&M University System.

Mariott began her career in the banking industry, and now owns GCM Designs, a design, build and remodeling firm. She served on the Texas Residential Construction Commission and on the board of the Association of Former Students, where she was the first female chair.

The annual award is reserved for alumni who have made significant contributions to their professions, their local communities and Texas A&M University, and is the highest honor a former student can receive.

“Each one of our 2013 Distinguished Alumni is a true inspiration as they serve as outstanding examples of the impact that Aggies can have on their alma mater, their communities, and the world,” said The Association of Former Students’ 2013 Chair of the Board of Directors David Heath ’76. “They all share the same deep commitment to Texas A&M and epitomize our core values of excellence, integrity, leadership, loyalty, respect and selfless service.”

The association will honor all of the recipients at the annual Distinguished Alumni Gala on Oct. 18 and will also recognize them at the Oct. 19 Texas A&M football game against Auburn.

A detailed profile of all the recipients is available at http://www.aggienetwork.com/DistinguishedAlumni/

Robert A. Epstein, Class of 1944

R. H. “Steve” Stevens, Jr., Class of 1962

Glenda C. Mariott, Class of 1979

About Mays Business School

Texas A&M University’s Mays Business School educates more than 5,000 undergraduate, master’s and doctoral students in accounting, finance, management, management information systems, marketing and supply chain management. Mays consistently ranks among the top public business schools in the country for its undergraduate and MBA programs, and for faculty research. The mission of Mays Business School is creating knowledge and developing ethical leaders for a global society.