Ace Greenberg

Square Shooter: An unabashed capitalist, Ace Greenberg believes in teaching the art of corporate giving by example

 
by Frances Edwards

 
Writer Tom Wolfe coined the phrase “masters of the universe” to personify the indomitable temperament of Wall Street in his celebrated tome, The Bonfire of the Vanities. Wall Street was, and still remains, the place where Alan “Ace” Greenberg made his mark, beginning as a clerk at Bear Stearns and now serving as chairman of its executive committee.

But Bear Stearns was unlike all the others. Not because it survived while 90 percent of similarly revered firms failed; but because it had a different, even contrarian, philosophy – the philosophy of Ace. With charitable giving at its core, Ace exhorted a creed that can best be described as an intuitive concoction of humility, street smarts, frugality, judiciousness, and relentless vigilance.

An unabashed capitalist, he knew early in his career that the more you make, the more you have to give. “I used to joke that when someone asked me what I wanted to be when I grew up,” he recalls. “I would say I’d like to be a philanthropist because they seem to have a lot of money.”

Alan “Ace” Greenberg was 21 when he set out from the University of Missouri to find a job he would “truly enjoy doing.” He ended up on Wall Street because, he explains, he “liked to gamble, and that was the only way to do it legally at the time.” It was 1949, and he settled in as a clerk at Bear Stearns, making 35 dollars a week. He climbed the proverbial corporate ladder, moving on to trader, partner, and CEO by 1978. When the firm went public in 1985, he was named chairman of the board. Now 76, Greenberg has amassed 55 years of service to Bear, Stearns & Co. Inc. Under his leadership, the firm has become one of the world’s leading Wall Street investment banking and securities trading firms.

Not unexpectedly, being a philanthropist was only part of the equation for Alan Greenberg. He wanted to create more philanthropists, and did so by requiring all his senior executives to allot at least four percent of their salary to charitable contributions. While this idea has not taken root at other firms, it is an integral part of the culture at Bear Stearns. Of course, Greenberg leads by example, generously donating to many small and large charities, which, according to his office, are “far too numerous to list.”

“When choosing charities to support,” he explains, “we will look at administrative costs, but mostly my wife and I like to do things that help people directly; we want to help them eat, sleep, and maybe help a facility get a swimming pool, things that improve people’s lives.”

Some of Greenberg’s major contributions include the American Museum of Natural History; The New York Public Library; The Hospital for Special Surgery in New York, where he recently helped to establish the Center for Skeletal Dysplaisias; and the United Jewish Appeal Federation. For the Federation, he and his wife, Kathy, host an annual cocktail party at their home that, just this past year, yielded over 30 million dollars in donations. Mrs. Greenberg, a philanthropist in her own right, founded the New York Legal Assistance Group, which provides
legal services to low-income persons unable to afford them. “She began with two lawyers and brought it to where the group now numbers over 100 attorneys,” said Greenberg.

Ace’s philanthropy is an extension of his success in business, a success he designed by employing a common sense approach to leadership. And yes, there was always prudence because, as common sense would have it, a penny saved was a penny gained. “There’s no denying that to be a philanthropist, you have to be successful in what you do because you can’t give what you don’t have,” Greenberg imparts. “And success comes not just from luck, but from how you manage your business. Successful businesses need happy people who enjoy coming to work every day.”

Ace had a unique management style. Over the years, he communicated with managers and employees in a stream of memos. Compiled in his book, Memos from the Chairman, Ace’s philosophy is expressed through Haimchinkel Malintz Anaynikal and Itzhak Nanook Pumpernickanaylian, two characters who serve as Greenberg’s humorous alter egos.

Many of Ace’s accomplishments go beyond his professional career and his philanthropic endeavors. Friends and colleagues know him to be a national bridge champion and a superb magician who can deftly display illusions you would gladly pay to see in a theater. He was even knighted by the Queen of Denmark. This Master of the Universe is not the Wall Streeter Tom Wolfe had in mind. Rather, as one of his assistants readily offered, “He’s great; he’s fair; and he’s no-nonsense. Anyone in the entire firm can sit down to talk to him, from the mail clerk to the most senior of people, regarding anything. And he treats everyone with equal respect. He’s not just the chairman; he’s much more. He’s Ace!”

This Ace wants to be remembered as a man who “would always treat you right. A square shooter you could count on to give you a square deal, a better deal.” His peers in business go a lot further than that in describing him. To them, Ace is a true teacher of corporate governance, and an inspiring example of corporate philanthropy.