News Release

Frank G. Zarb Named Chief Executive Officer of NASD

Washington, DC--The Board of Governors of the National Association of Securities Dealers, Inc. (NASD) today announced that it has elected Frank G. Zarb as the organization's new President and Chief Executive Officer. He will assume his new duties on February 24, 1997.

Mr. Zarb succeeds Joseph R. Hardiman who is retiring on January 31, 1997, after nearly 10 years of service to the NASD as its President and Chief Executive Officer.

Mr. Zarb joins the NASD from Alexander & Alexander Services Inc., where he was Chairman, President, and Chief Executive Officer. The firm was recently acquired by Aon Corporation, an insurance services holding company.

Mr. Zarb was chosen by a Search Committee chaired by Daniel P. Tully, NASD Chairman and Chairman and Chief Executive Officer of Merrill Lynch & Co., Inc. A full listing of the members of the Committee is attached to this release.

"The Board of Governors believes that with his proven leadership abilities and vast experience in both the private and public sectors, Frank is the ideal person to lead the NASD in its next phase of growth and development," said Mr. Tully. "Frank is a person of great character and vision who is committed to making our securities markets the fairest and most efficient in the world, with the highest standards of self-regulation, for the benefit of all who participate in them."

The CEO post is the senior leadership position for the NASD and has ultimate responsibility for all facets of the organization, including the self- regulatory responsibilities vested in it under the 1934 Securities Exchange Act and the market operations it conducts under the umbrella of The Nasdaq Stock MarketSM. As the NASD's top executive, the CEO, together with the Board of Governors, is responsible for setting the overall strategic direction and policy agendas of the total enterprise. In addition, the CEO is also the principal representative of the organization to all its constituents and as such serves as its chief spokesperson.

"I am truly looking forward to the challenges and opportunities for the NASD as we move forward," said Mr. Zarb. "This organization is a leader in the world marketplace and is now poised to meet the new demands of the 21st century."

"Frank Zarb is an excellent choice to succeed me," said Joseph R. Hardiman. "His knowledge of and commitment to fair and efficient markets and to effective self-regulation for the broker/dealer industry, coupled with his experience in running major financial services firms, make him the right choice to run this vital institution at this time."

Prior to joining Alexander & Alexander Services Inc., in 1994, Mr. Zarb was Vice Chairman, Group Chief Executive of The Travelers Inc. Previously, from 1988 to 1993, he was Chairman, President, and Chief Executive Officer of Smith Barney and from 1977 to 1988 he was a General Partner of Lazard Freres & Co.

In 1974, Mr. Zarb was appointed by President Ford as Administrator of the Federal Energy Administration (the Energy Czar), a post he held until 1977 when he returned to the private sector. He also served as the Executive Director of the cabinet level Energy Resources Council and as the Associate Director of the Office of Management and Budget and Assistant Secretary of the Department of Labor.

Prior to his years of government service, Mr. Zarb held a variety of senior executive posts with a number of large, New York-based securities firms including CBWL Hayden Stone and Goodbody & Company. A complete biography is attached.

The NASD is the parent company of NASD Regulation, Inc., and The Nasdaq Stock Market, Inc. These wholly-owned subsidiaries operate pursuant to delegated authority from the parent which has overall responsibility for ensuring that the organization's statutory and self-regulatory obligations are fulfilled.

NASD Regulation, Inc., established in 1996 as a separate independent subsidiary of the NASD, regulates the broker/dealer profession by overseeing the activities of more than 5,500 securities firms, in excess of 62,000 branch offices, and nearly 540,000 registered representatives. In addition, it regulates the markets operated by The Nasdaq Stock Market, Inc.

In February 1996, Mary L. Schapiro, former Chairman of the Commodities Futures TradingCommission (CFTC) and former Commissioner and Acting Chairman of the Securities and Exchange Commission (SEC), joined the NASD Regulation, Inc., subsidiary as its first President.

The Nasdaq Stock Market, with over 5,500 listed companies, is the most active securities market in the nation. It is the flagship market operated by The Nasdaq Stock Market, Inc. Other markets operated by this NASD subsidiary include the OTC Bulletin Boardr for development companies and foreign listings; PORTAL for private placements; and FIPSSM for fixed income securities. Alfred R. Berkeley, former Managing Director and Senior Banker of the Corporate Finance Department of Alex. Brown & Sons Incorporated was elected President to The Nasdaq Stock Market, Inc., subsidiary in May.

Search Committee Members

  • Daniel P. Tully, Chairman and Chief Executive Officer of Merrill Lynch & Co., Inc.
  • John H. Biggs, Chairman and Chief Executive Officer of the Teachers Insurance Annuity Association (TIAA) and the College Retirement Equity Fund (CREF).
  • Elaine L. Chao, Distinguished Fellow, The Heritage Foundation and former President and Chief Executive Officer of the United Way of America, former Director of the Peace Corps, and former Deputy Secretary of the U.S. Department of Transportation.
  • Jon S. Corzine, Chairman of Goldman, Sachs & Company and Chairman of the firm's Management Committee.
  • Richard M. DeMartini, President and Chief Operating Officer of Dean Witter Capital and member of the Management Committee of
  • Dean Witter, Discover & Co., and current Chairman of the Nasdaq Board of Directors.
  • Robert R. Glauber, adjunct lecturer at the Center for Business and Government of the Kennedy School, Harvard University, and former Under Secretary of the U.S. Treasury for Finance in the Bush Administration.
  • James S. Riepe, Managing Director, member of the Management Committee and Director of T. Rowe Price Associates, Inc., a Nasdaq-listed company, and a former Chairman of the Investment Company Institute.

Frank G. Zarb Biography

Frank G. Zarb was Chairman, Chief Executive Officer, and President of Alexander & Alexander Services Inc., a global organization of professional advisers providing risk management, insurance brokerage, and human resource management consulting services from offices in more than 80 countries, from June 1994 through January 1997.

Prior to this appointment, Mr. Zarb was a Vice Chairman and Group Chief Executive of The Travelers Inc. He had previously served as Chairman and Chief Executive Officer of Smith Barney, Travelers' brokerage and investment banking subsidiary, which he joined in 1988. He was named Group Chief Executive on June 24, 1993. Mr. Zarb was elected a Vice Chairman of The Travelers Inc. (formerly Primerica Corporation) on September 25, 1991.

During his tenure at Smith Barney, Mr. Zarb oversaw growth in the firm's diversity and its clientele. But, most important, directed a series of record performances by the firm, from a pre-tax loss of $100 million in 1988 to a run rate of more than $200 million of after tax profits in 1993.

His responsibilities at The Travelers included direct management of Primerica Financial Services, American Capital Management & Research, RCM Capital Management, and corporate administration and legal functions.

Before joining Smith Barney, Mr. Zarb had been a senior partner of Lazard Freres & Co. since 1978, with responsibilities for a broad range of investment banking activities, including international and domestic corporate finance and mergers and acquisitions.

From 1974 through 1977, Mr. Zarb was the senior official for all U.S. government energy-related activities, serving as Executive Director of the Cabinet-level Energy Resources Council, Administrator of the Federal Energy Administration, and Assistant to the President for Energy Affairs. Prior to these appointments, he had been Associate Director of the Office of Management and Budget from 1973 to 1974 and served as Assistant Secretary of Labor between 1971 and 1972. He has served in various assignments with the Carter, Reagan, Bush, and Clinton administrations.

Before entering public service, Mr. Zarb acquired considerable experience in the securities industry, where he began his career with Goodbody and Co. in 1962. He later served in various capacities for predecessor firms to Shearson Lehman Bros., as Executive Vice President of marketing, operations, and investment banking as well as Chairman of the Executive Committee.

In addition, Mr. Zarb is a member of the Boards of Directors of the CS First Boston, Inc. and Rural/Metro Corporation. He is a former Chairman of the New York Stock Exchange Nominating Committee. He currently serves as Chairman of the Long Island Power Authority, the State agency responsible for overseeing the restructuring of the electric power system of Long Island.

Mr. Zarb is a member of the Board of Trustees of the Gerald R. Ford Foundation. He is a former Chairman of the Board of Trustees of his alma mater, Hofstra University, where he still serves as a Board member. Hofstra recently named its business school after Mr. Zarb.

Mr. Zarb was a member of the Mayor's Commission on Homelessness in New York City and led the Privatization Task Force of the New York City Partnership and the New York Chamber of Commerce. He also served as Chairman of the Council for the U.S. and Italy. Mr. Zarb is a member of the New York State Advisory Commission on Racing in the 21st Century, and a director of the Long Island Research Institute.

Mr. Zarb, who earned his bachelor's and master's degrees in business from Hofstra University, was awarded an honorary Doctor of Law degree by the university in 1975, and the school's Outstanding Scholar Award in 1974. In 1976, Quincy College conferred on him an honorary doctor of Conservation degree.