President, Chairman and CEO | Stephens Inc.
Warren Stephens was always interested in the family business, Stephens Inc., and hoped someday he could be a part of it. Warren’s father, Jack, and his Uncle Witt were the sole owners of the privately held bank, headquartered in Little Rock. He grew up watching them expand the investment bank’s influence and holdings, and was proud of the impact the business was having, especially in their home state of Arkansas. Still, Warren wondered if starting his career with another firm would give him a perspective that would be useful when he eventually joined Stephens.
His business school mentor, Dr. Thomas Goho, advised Warren that there was no better place for him to learn than under the guidance of his father and uncle. Warren took Dr. Goho’s advice and joined Stephens Inc. in 1981 after earning his MBA at Wake Forest University. Today, he is president, chairman and CEO of the company, which he has guided to be a diversified financial services company with both a national and international presence.
Warren was born in Little Rock in 1957 to Mary and Jack Stephens. After graduating from Trinity Presbyterian School, a private high school in Montgomery, Alabama, Warren attended Washington and Lee University in Virginia, majoring in economics. After receiving his bachelor’s degree, he earned an MBA at Wake Forest University in 1981.
His time at Wake Forest was life changing – not only because of his relationship with Dr. Goho, whose advice proved to be consequential for both Warren and Stephens Inc. As a graduate student, Warren met his future wife, Harriet Calhoun, on a blind date. They married and made their home in Little Rock, raising their three children, Miles, John, and Laura, all of whom work for Stephens.
Stephens Inc.
Warren began working at Stephens as an associate in the Corporate Finance Department. By 1983, two years after joining the firm, Warren was senior vice president of the Capital Markets Group.
In 1986, on Warren’s 29th birthday, Jack Stephens stepped aside as president and chief executive officer, making Warren only the third chief executive officer to run the business. (Jack succeeded Witt as CEO in 1956 while retaining the title of chairman. Warren assumed the title of chairman upon his father’s death in 2005.)
Warren’s vision to grow Stephens beyond its public finance roots and add complementary divisions to its emergent investment banking practice started taking shape almost immediately. Today, the full-service financial services company and its affiliates focus on investment banking, research, public finance, institutional sales and trading, private wealth management, capital management, insurance, and private equity. The company, which Warren acquired sole-ownership of in 2006, is a member of the Securities Investor Protection Corporation, New York Stock Exchange, the NASDAQ Stock Market, and various other exchanges and associations.
The road to growth has not always been easy, but Warren has followed the shrewd advice and example of his father and uncle. “We have never been under the illusion that someone would ride to our rescue so we have always been conscientious about not taking risks that could jeopardize the ability of the firm to survive. Dad and Uncle Witt always impressed on me that one of their corporate goals was to be in business the next day,” says Warren. “While that may sound quaint, we look around and see all the firms that we have outlived by following that maxim, and it will always be part of our culture.”
The value of prudence was never more evident than after the Great Recession, when numerous banking, mortgage, and investment firms either went out of business or needed government money to survive. True to the advice of his father and uncle, Warren has kept Stephens Inc.’s debt ratio at a low 2:1, compared to the 30:1 ratio of many failed investment banks. This modest leverage ratio allowed Stephens Inc. to thrive while peer institutions faltered. Most important to Warren, Stephens did not conduct any layoffs between 2007 and 2009 – a devastating time for many banks and their employees. Instead, the company actually added talent.
Such caution has enabled, rather than inhibited, the company’s growth. When Warren’s tenure as president and CEO began, Stephens employed some 100 workers and had just one location in Little Rock. Over 30 years later, the company has more than 1,000 employees dispersed among 28 locations in the U.S. and its offices in London and Frankfurt. Stephens’ private equity affiliate currently has investments in more than 30 companies and the investment banking group has advised on over $180 billion in transactions since 2008.
A passionate believer and participant in the free enterprise system, Warren has made education about capitalism one of Stephens’ corporate goals through “This is Capitalism,” a multimedia campaign about entrepreneurship, the U.S. economy, and men and women who personify the American dream. As an advocate for understanding the importance of capitalism, he has been a supporter of Economics Arkansas and an invited speaker on the topic at industry and civic events.
Community
Warren currently serves as a board member for the publicly traded retailer Dillard’s Inc. He is past chairman of the Arkansas Arts Center and is a member of its foundation board. He and his wife, Harriet, are co-chairs of the Arts Center’s current capital campaign and they are among the founders of Episcopal Collegiate School. Warren serves as the chair of the school’s foundation.
Previously, Warren served as a member of the Board of Directors for the Central Arkansas Boys & Girls Club as well as a member of the Board of Trustees at Washington and Lee University, co-chairing its 2015 capital campaign.
The Stephens family focuses its charitable giving on the arts, education, and healthcare, especially The Arkansas Arts Center and Episcopal Collegiate School. Warren has invested in revitalizing downtown Little Rock with such initiatives as his ownership and renovation of the historic Capital Hotel.
See more of the Arkansas Business Hall of Fame.
Sign up for Daily E-news
