|WITHIN A WEEK or so after Myron Scholes won the 1997 Nobel Memorial
Prize in Economics, a couple of his friends and colleagues approached
the GSB seeking to establish a professorship in his name. Within
six months, they had raised gifts totaling $2 million to establish
the Myron Scholes Distinguished Service Professorship.
Leading the fund drive were Douglas Breeden, president and chairman of the board at Smith Breeden Associates Inc., and Eric Rosenfeld, a principal at Long-Term Capital Management with Scholes. Fittingly, gifts from the Chicago Board Options Exchange, Chicago Board of Trade, and Chicago Mercantile Exchangeexchanges that have grown and benefited from the Black-Scholes formulaput the fund over the top.
Breeden, a student of Scholes at M.I.T. in 1971, said there were several reasons why Scholes left the Sloan School for the GSB. "I could tell that one of the most influential was that Mert Miller said, Myron, come home. Chicago needs you. Thats why the Myron Scholes chair is here. Myron loves Chicago and Chicago loves Myron. This one belongs right here."
Scholes, the first GSB M.B.A. and Ph.D. graduate to win the Nobel prize, helped make it possible for others to follow in his footsteps. Along with his former adviser and fellow Nobel laureate Merton H. Miller, Scholes established a doctoral fellowship in memory of his coauthor, and fellow former faculty member, Fischer Black.
"I regret that Fischer Black is not here to share in this," Scholes said. "Im excited that we are able to establish a Fischer Black fellowship. If [the recipients] attempt to live up to his acumen, they will be a credit to his memory.
Dean Robert S. Hamada noted the special significance of the Black fellowship. "Myron is the first Nobel laureate to hold a doctorate from a business school. Ours is the first Ph.D. program in business, and Scholes made it famous,"said Hamada when he announced the fellowship at Management Conference. This fellowship complements and a second one recently established in honor of Arnold Zellner by Sanford Grossman, Steinberg Trustee Professor at the Wharton School of Business, director of Quantitative Financial Strategies, Inc., and President of Grossman Asset Management. Such gifts help students defray the large opportunity costs of foregone income while pursuing their degrees for up to five years, Hamada said. "This is the doctoral program where future laureates are going to come from, and were grateful for this support."
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