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Inaugural Raytheon Lecture Stresses Integrity in Business

October 8, 2003

WALTHAM, Mass. - "Integrity goes all the way across and through a company, but only as far as the top leaders carry it through."

That was just one of the key points EMC Executive Chairman Mike Ruettgers stressed during his lecture "The Integrity of Management and the Management of Integrity," before a standing-room only crowd yesterday at Wilder Pavilion. Ruettgers gave the inaugural Raytheon Lecture in Business Ethics, presented by Bentley's Center for Business Ethics through the generous support of Raytheon.

"Businesses are not just economic machines. They're social systems as well," said Ruettgers, a former employee and current board member at Raytheon. He discussed corporate boards and failures in governance - emphasizing how the astronomic increase in CEO compensation packages led to flaws in character and leadership.

He cited a BusinessWeek study that began in the late 1980's. According to the magazine, the median compensation for the top 10 CEOs was $13 million in 1989. That number spiked to $110 million in 1999, at the height of the dot-com revolution. By 2002, it was back down to $56 million.

"This dot-com, under-30 wealth created a frame of reference for compensation, even for the old-line companies," said Ruettgers. "This caused them to lose site of what was going on."

Despite the struggles of Enron and numerous other companies, Ruettgers noted the importance of teaching business ethics on college campuses.

"The classroom is one of the key places where character and judgment are built," he said. "I applaud Bentley for pioneering study in the field of ethics."

Mr. Ruettgers is executive chairman of EMC's board of directors, a position he has held since January 2001. In this role, he focuses on strategic business and technology directions while shaping the composition and expertise of EMC's independent and fully engaged board. Ruettgers has been with EMC since 1988, and served as CEO from 1992-2001, leading the company in a decade-long trajectory of accelerating profitable growth. From his arrival through year-end 2000, EMC's revenues grew more than 74-fold. Ruettgers spent much of his early career with Raytheon, where he played a key role in the Patriot Missile Program He holds a BS from Idaho State University and an MBA from Harvard Business School.

The Raytheon Lectureship in Business Ethics continues on Monday, November 10 with a lecture "Ethics and the Corporate Culture," from Raymond V. Gilmartin, chairman, president & CEO, Merck & Co., Inc.

BENTLEY UNIVERSITY is one of the nation’s leading business schools, dedicated to preparing a new kind of business leader – one with the deep technical skills, broad global perspective, and high ethical standards required to make a difference in an ever-changing world. Our rich, diverse arts and sciences program, combined with an advanced business curriculum, prepares informed professionals who make an impact in their chosen fields. Located on a classic New England campus minutes from Boston, Bentley is a dynamic community of leaders, scholars and creative thinkers. The Graduate School emphasizes the impact of technology on business practice, in offerings that include MBA and Master of Science programs, PhD programs in accountancy and in business, and customized executive education programs. The university enrolls approximately 4,100 full-time undergraduate, 140 adult part-time undergraduate, 1,430 graduate, and 43 doctoral students. Bentley is accredited by the New England Association of Schools and Colleges; AACSB International – The Association to Advance Collegiate Schools of Business; and the European Quality Improvement System, which benchmarks quality in management and business education. For more information, please visit www.bentley.edu

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