when DLJ was the first private investment bank to go public via an IPO. Over time most firms followed and it paved the way to what Wall Street is today.”
The two first met when Cowen was hired to lead the Museum in 2009; Donaldson was the co-chair of the Museum’ s advisory council. He immediately put Cowen at ease by saying,“ Don’ t just tell me the good things, tell me your challenges. That’ s why I’ m here.”
That professional collaboration grew into a friendship, and Cowen would visit Donaldson many times over the years either in New York City or at their family home north of the city.“ Bill was always grounded,” Cowen stressed.“ He would tell the truth and never waiver from that.”
At Donaldson’ s memorial service, Cowen noted that“ there are five worlds— for profit, non-profit, academia, government and military— and Bill is one of the very few people I have met who held a leadership role and made an impact in all five. His non-profit and government service is particularly impressive, including the Aspen Institute, the Carnegie Endowment for Peace, the Ford Foundation, the Financial Services Volunteer Corps, FDIC Advisory Commission, the Grace Commission, Lincoln Center, the Obama Economic Recovery Advisory Board, the Volcker Alliance and the Museum of American Finance.”
Donaldson was“ a Wall Streeter with a conscience,” said Cowen.“ He was good at making money, and also believed in giving back wherever and whenever he could. He was quick on his feet, and very successful, and he always did it ethically.”
Consuelo Mack, executive producer and managing editor of Consuelo Mack WealthTrack, emphasized Donaldson’ s independence of thought.“ He was not an ideologue. He was a Rockefeller Republican, a moderate who reached across the aisle.” He worked in various capacities in both Republican and Democratic administrations, she noted.
“ Bill was already established when I was just getting started,” she said,“ so of course I knew of him. He was just a giant in the industry. It was not until later in his life that I got to know him.”
Mack started as a retail broker out of college in 1974 at the time when“ DLJ was the ultimate firm, the gold standard where young investment bankers and analysts wanted to work,” she recalled.“ It was known for its integrity and excellence in both research and execution and as an entrepreneurial shop where ideas mattered.”
She also got to know Donaldson’ s cofounder at the firm, Dick Jenrette, much later through his philanthropic efforts to restore old historic houses.“ He was an old-school gentleman,” said Mack.“ A real class act.”
It was through the Museum that Mack got to know Donaldson personally, she said.“ He was always low key, very
William H. Donaldson was born and raised in Buffalo, New York. He earned a BA in American Studies in 1953 from Yale University, where he was business manager of the Yale Daily News and played freshman ice hockey. After graduation, he joined the US Marine Corps and became a first lieutenant in the Far Eastern Theater( Japan-Korea).
Donaldson earned an MBA with distinction from the Harvard
Business School in 1958, and the next year he and two friends from grad school, Dan Lufkin and Dick Jenrette, co-founded the investment banking firm of Donaldson, Lufkin & Jenrette. DLJ became the first NYSE firm to sell its shares to the public, a move that reflected their willingness to disrupt the status quo.
In 1973, Donaldson accepted an offer from Secretary of State Henry Kissinger to become Under Secretary of State for International Security Affairs. After Nixon resigned in 1974, Donaldson served as counsel to Vice President Nelson Rockefeller.
The following year, Donaldson was asked by then president of Yale, Kingman Brewster, to found a unique graduate management school that would bridge the gap between the public and private sectors. He became the founding dean of the Yale School of Management, a role he cherished. Donaldson then returned to Wall Street in 1980 to start an international investment fund, Donaldson Enterprises.
In 1990, he was asked to serve as chairman and CEO of the New York Stock Exchange. He appreciated the irony of leading the institution that had originally rejected his plan to make DLJ the first listed firm to go public.
Five years later, after completing his term at the NYSE, Donaldson, a director of the troubled insurance company Aetna, agreed to become CEO. Within two years, he had turned the firm around.
Patrick McMullan
William and Jane Donaldson at Lincoln Center’ s 2016 Fall Gala.
In 2003, President George W. Bush appointed Donaldson, then age 72, as chairman of the Securities and Exchange Commission( SEC). Donaldson’ s leadership became a time for the agency to restore its integrity and purpose. Broadly, Donaldson served as a director of 14 publicly held corporations, as well as several privately held businesses. He served on the boards of numerous philanthropic, arts and educational institutions.
Donaldson died at age 93 at home in Waccabuc, New York, on June 12, 2024. He is survived by his wife, Jane Phillips Donaldson and his three children.
www. MoAF. org | Spring 2025 | FINANCIAL HISTORY 19