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2005 ANNUAL DINNER AWARD PRESENTATION
EMCEE LISA LING'S Q&A WITH THE HONOREES
May 31, 2005
LISA LING, MASTER OF CEREMONIES:
Tonight, Asia Society is honoring five prominent Asian American entrepreneurs, each of whom was born overseas and came to this country in their youth. These individuals have made a tremendous difference to American industry and have served as visible symbols of the achievements of Asian Americans in the United States. The Honorees and the business that have worked closely with them can be fairly characterized as some of the most innovative, creative and risk inclined venturers in the world.
Now, before we start, this program's going to be a little different. Instead of having the awardees give acceptance speeches, I will be asking them a couple of questions. In other words, I'll be interrogating them, yes. (LAUGHTER) Unfortunately, I didn't contrive of any of the questions. But we do hope that you find this to be interesting and illuminating all together.
And pay attention. Because there will be a quiz after this! (LAUGHTER)
Presenting the first award tonight is Mr. Terry Lundgren, Chairman and Chief Executive Officer of Federated Department Stores. (APPLAUSE)
TERRY LUNDGREN:
Thank you, Lisa. I was going to begin by singing a Tibetan opera. (LAUGHTER) But that idea was taken already. So I-- instead I'm going to present the outstanding Asian American entrepreneur award to David Chu. And who is more fitting to receive this recognition than David.
David was born in Taiwan. He was educated in high school and college in America, in the New York, Connecticut area. He wanted to be an architect, had a passion for design and the technical understanding that's required in that field, but ended up drifting into my world, into the fashion world. And when he got to FIT, the Fashion Institute of Technology, David worked out this terrific design for these nautical jackets.
He was always inspired by the sea and by sailing. And he took this idea of the functional outwear that sailors wore but turned that into something that had more style and design to it. He took these six jackets that he initially created for Barneys and Bloomingdales. And the buyers responded. He tested this product in the stores.
And that was just the beginning of what is now a billion-dollar business called Nautica. And David was the founder, creator and builder of that–that incredible brand. It's now internationally known and recognized. And he did that–you know, he came to this country without speaking but a few words of English but just had this passion and desire to succeed, and clearly has accomplished that.
David sold his company less than two years ago to VF Corporation which is a major apparel manufacturer that we and others do a lot of business with. And so now, he was free to create something new and on his own. And David is now creating a collection called the DC Design International. It will be launched this August. And unfortunately we play golf, David and I and another guy, Ron Frasch, who used to work for me when I was running Neiman Marcus, and Ron is now the Vice-Chairman of Saks Fifth Avenue. And we all play golf and have a good time. And the next thing I know, they've worked it out that they're going to launch DC Design International at Saks Fifth Avenue right under my nose instead of Bloomingdales. (LAUGHTER) And this all happened right–right before my eyes.
David, besides golf and besides his passion for work has a passion for his family: Gina, Christy, Bianca. He's a wonderful guy. He's a wonderful friend. He's an incredible entrepreneur. I've got a lot of respect for him, David Chu. (APPLAUSE, LUNDGREN PRESENTS CHU WITH AWARD)
LISA LING:
Okay, the first victim. (LAUGHTER) Mr. Chu, first of all, congratulations.
DAVID CHU:
Thank you.
LISA LING:
Thank you so much for being here. I'd like to start off by asking you about a challenge you faced early in your career. You graduated from FIT and went to work for the designing clothing—for a subsidiary of Gulf and Western—a very large conglomerate. But it wasn't a perfect fit. What were some specific challenges to working to such a sizeable company? And what experience led you to set out on your own as an entrepreneur?
DAVID CHU:
Well, early on in my career, I was enjoying doing things, I enjoyed working on the product. Being with a large corporation like the Division of the Gulf and Western gave the ability to learn about business. I think one of the few things designers lack is the knowledge of combination.
To me our business is really all about art and science. Understanding the artistic point of view combined with the understanding of the business is very crucial today. And that's what I learned there. And I really enjoyed it. It was time to move on because I think I was ready at that time to move onto things that I really wanted to do.
LISA LING:
How did your Asian parents feel about you pursuing fashion?
DAVID CHU:
Well, that was the first no. (LAUGHTER) And–as you know, if I had stayed in Taiwan I’d probably be an engineer today. (LAUGHTER)
LISA LING:
Like a good Asian boy.
DAVID CHU:
Yes, you know, have a nice–a good professional job and things that you know your parents always expect you to do. But, you know, I was very fortunate. That's one thing great about being in America. Anything could happen. As long as you set your mind, your heart, things could happen in the United States.
LISA LING:
And he's done alright. (LAUGHTER) (APPLAUSE)
DAVID CHU:
Thank you.
LISA LING:
Two more questions. You have founded two companies—Nautica Incorporated at age 27 (kind of old there David!) and then DC Design International last year—that were comprised of much more than wearable fashion. One could say thought that your concept is to create “lifestyle companies”. However, your original training at FIT was in women's sportswear. For you, what is the importance of technical training in the creative arena and how much does you personal point of view influence the evolution of what you're designing?
DAVID CHU:
Well I think, you know, a lot of people were surprised when I came from the background designing a lot of men's wear and some woman's wear for the last 20 years. But very few people really know that I studied woman's wear, which to me was the most interesting idea. Because usually, woman will accept new ideas. That's one thing that I've learned. And I just look at my wife and I know exactly why. (APPLAUSE) (LAUGHTER)
And–and–one of the things that I find in designing, really going back to school learning is that design is really about the state of mind. It's really about creativity. It's creative thinking. To me entrepreneurialism IS about creative thinking. An idea is not about just designing a collection, but a really idea to put in things in combinations, things together besides the collection. How you put things into the store. How you display the product. How you get the consumer to see the entire overall concept which you try to convey as an expression of the total idea. It's really just satisfying what you get out of this whole thing. So, I'm just back doing what I enjoy doing.
LISA LING:
I can see it now, "Mom and Dad, I'm not just pursuing fashion, women's fashion." (LAUGHTER) That must have gone over well. Now can you share your insight into the future of the industry? What advice do you have for young entrepreneurs?
DAVID CHU:
Early on, you know, when I first went to study, when I came out and when I started Nautica, I never thought I was really working at my job, you know? I think one of the most important things, after graduating college, I think the most important thing is finding your passion. I think for me I just kind of follow my passion. I really wasn't trying to be different, I just enjoyed drawing. I love designing. I love try to figure out ideas and new concept ideas. So I just followed my passion and it turned out to be okay. (LAUGHTER)
LISA LING:
David Chu, thank you so much. Congratulations. (APPLAUSE)
DAVID CHU:
Well, thank you.
LISA LING:
And thank you for supporting the Asia Society.
DAVID CHU:
And I got to say, now because doing my passion—now because my wife, Gina, been supportive, behind 100 percent for me to work in those years. (APPLAUSE) You know 14 hours, early in our industry, is always necessary in our business. Thank you. (APPLAUSE, EXITS STAGE)
LISA LING:
Now, presenting the second award tonight is Mr. Stephen Long, Trustee of Asia Society and President of CitiGroup International. (APPLAUSE)
STEPHEN LONG:
Thank you. Thank you Lisa. With such accomplished Honorees, this is really a way to have one feel so inadequate! However, it really is my pleasure to introduce the next Honoree, Vinod Khosla, who we know as an Asian American representing the world of venture capital.
Now I thought what–how do I do this? What can I talk about? I can talk about what you could read in your program about the fact that he is a Co-Founder of Daisy Systems; CEO of Sun Microsystems in microfinance; that he joined the Venture Capital firm of Kleiner Perkins; that he is a member of many boards around the world; that he was a charter member of TiE. An individual with tremendous passion for what he does. But, you can read all that.
And I had the pleasure of sitting next to Vinod's lovely wife tonight, who really gave me the inside story of what makes him run. As I said, a man of passion. A man who believes that anything can be done. That you have to believe in people. That you have to believe in the courage of your convictions. He looks for uniqueness in people, and in the opportunities that he may see.
He told me that he likes to have fun. Passion. Fun. But his wife tells me he wanted to retire at age 30. He apparently isn't 30 yet. (LAUGHTER) So for many, many years he continues to build on this great passion he has. He doesn't call himself a venture capitalist, but a venture assistant. The world is better off because of what he brings to the world from his commitment to growth, his commitment to people, and his commitment to making this a better place, like through his current passion, which is social entrepreneurship, through microfinance. So it is a great pleasure for me to introduce Vinod Khosla tonight. (APPLAUSE, LONG PRESENTS KHOSLA WITH AWARD)
LISA LING:
This is for you. Congratulations Mr. Khosla!
VINOD KHOSLA:
So I first need to ask you if you didn't ask David Chu about engineering dress malfunctions?
LISA LING:
(LAUGHTER) Well let's not–let's hope we don't have to deal with that tonight. (LAUGHTER) Let’s talk about your childhood. Growing up in India, you read about the start up of Intel when you were 14 years old. And it influenced the whole arch of your early career bringing you to study in the US and then to Silicon Valley. What was it about Intel’s story that was so powerful for you?
VINOD KHOSLA:
Well, Intel was just a dream in a little boy’s eyes back then. To me being able to dream a dream like starting a company was quite unimaginable before then. So, since then I've learned of course entrepreneurs do this all the time. And I've been foolish enough to try and make those dreams come true.
LISA LING:
I wouldn't say it's foolish. What aspects of your Asian heritage and living in India would you say are advantages to you in an entrepreneurial context?
VINOD KHOSLA:
Well, as most of you who have been to Asia know, resources are short. And I think as an Asian entrepreneur you get to have low expectations of the resources there are, and high expectations of what you do with it. And that's what the quintessential entrepreneur is. It's about doing a lot with a little. And I've learned that along the way.
In fact I sort of find that—a little unfortunate that many people who grow up in this country don't realize how great an environment it is that they have. And there's more a sense of entitlement than an appreciation for the environment that lets you do so much by yourself. (APPLAUSE)
LISA LING:
Entitlement in America? Never heard of such a thing. (LAUGHTER) And my next question is–about a topic that's very important to me. In many ways life is about impact. And you've said that the computer business has grown up and that leaders in your industry are looking outward to areas affected by technology such as the global energy and water crises. You yourself understand the responsibility of developing nations, and are acting to underwrite four microfinance institutions in India and one in Africa. Can you tell us about the idea of social entrepreneurship?
VINOD KHOSLA:
To me there is a new breed of entrepreneurs that I have become enamored with. The first of those was Professor Muhammad Yunus, for those of you who know the Grameen Bank in Bangladesh. And these people are applying business principals to make self-sustaining organizations whose goal is to maximize social impact.
So they don't look for money. They generate their own funds to do the things they want to do. Unlike normal business they don't maximize profits. They maximize social impact. And microfinance among those is one of the most powerful that Professor Yunus pioneered.
In that business, for those of you who don't know it, small loans of $20, $50 or $100 are made to generally poor women below the poverty line, those making less than a dollar a day, and this impacts the lives of these women. Yet, because the interest on loans build sustainable businesses.
In fact, one entrepreneur I'm working with in India has by himself over the course of the last few years impacted the lives of 400,000 families with almost no funding. And he's a profitable business with one goal, to reach as many women as he can. So, to me there's nothing more admirable than something as impossible as that might have sounded before you knew it was possible.
LISA LING:
Absolutely. Well thank you so much. Congratulations. And thank you for promoting social entrepreneurship. (APPLAUSE)
VINOD KHOSLA:
Thank you Lisa. Thank you. (APPLAUSE, EXITS STAGE)
LISA LING:
Presenting the third award tonight is Mr. John S. Wadsworth, Jr., Trustee of Asia Society and Chairman of tonight's Annual Dinner. Mr. Wadsworth is Advisory Director of Morgan Stanley and also Honorary Chairman of Morgan Stanley Asia. (APPLAUSE)
JOHN S. WADSWORTH, JR.:
Lisa, thank you. Nothing could really be more special to me personally than to recognize and honor my good friend Chong-Moon Lee. We've been close in California through a number of endeavors including the Asia Society. And Chong-Moon is really, in my view, the personification of the Asian American entrepreneur and philanthropist in one very special human being.
The highlights of his journey through life are in the program so I'd like to tell two stories. Chong-Moon was educated to be a teacher and a librarian, both of which he did become. When one of his two older brothers—who was running the family business—passed away, he was persuaded to give up his librarian life and teaching life to join the family business.
His business acumen came quickly to the fore and the business flourished. His skill came to the attention of the Korean military, which was then running Korea, and they asked him to collaborate with them. He chose not to and struck out for America in 1970. After many tries at different business models, he chose the PC market as the opportunity for him after his daughter showed him the power of the Apple II in 1980.
I hate to think what the cost of that machine was in relation to it's power. But his idea from that exposure was to form a company that would make the machine that would combine the power of the PC with the ease of use of the Apple. He was gonna out-do Steve Jobs at an early stage! But by the late 80s the product was stalled and his first company, Diamond Multimedia Systems, was on the brink and completely out of cash.
He got a notice that there was an important parcel for him at the post office. Having no cash and no car he cleverly borrowed a car and some gas to get to the post office hoping that good news would be there waiting for him in an envelope. In fact it was a certified letter from the Internal Revenue Service notifying that he owed $480,000 of back payroll taxes.
Chong-Moon's integrity, his tenacity and his willingness to see that through is one of the hallmarks of his success. He is philosophical. One of his comments that I like a lot is, “365 days of sunlight would render the Earth a desert.” By 1993 with a changed business model, focused on multi-media and graphics, Diamond Multimedia Systems went public and made Chong-Moon a multi-millionaire.
From this wealth comes a second story. Chong-Moon is more passionate than anyone I know about what he calls “paying back”. For him it's about America helping to liberate and modernize his country, America providing him a personalopportunity for further education and an open field to build a new company. And now more opportunity to continue creating wealth as a very successful venture capitalist. It must be hugely encouraging to at least a few of us here tonight that Chong-Moon's major wealth creation occurred after he entered his 60s.
Chong-Moon loves art. He has a major collection and is the largest single supporter of the Asian Art Museum. His name is on the building. It is the Chong-Moon Lee Center. It was this old San Francisco library that was renovated into an architectural success by Gail Lentey that houses the important Asian art collection. What perfect symmetry for Chong-Moon having first started off as a librarian.
The final story is that in 1994, at the behest of the Korean Consul General Lee Jung Ha, Chong-Moon helped to create an endowment at the Asian Art Museum to insure the permanence of the Korean art department. Through this initiative he was asked to give a speech in Korea and did research at the Asian Art Museum by talking to one of the senior curators. This was probably his first speech passionately making the pitch for giving back as a successful entrepreneur.
But in doing research for this talk, he commented to the curator that he was in fact frustrated by his attempts to be a philanthropist. She suggested he call Jack Bogart, who was then Chairman of the Asian Art Museum, and as they say, "the rest is history." I think that was probably the most important unsolicited call that Jack Bogart ever received! (LAUGHTER)
Finally, Chong-Moon and I are Co-Chairs of the Asia Society Northern California Center. For me this has been a special and rewarding experience. We have been partners, promoters, supporters and entrepreneurs together helping to build and secure a major role for the Asia Society in our community. Chong-Moon Lee, I admire you very much. And it is a great honor to present you with this award. (APPLAUSE, WADSWORTH PRESENTS LEE WITH AWARD)
LISA LING:
Congratulations to you, Mr. Lee, on your award.
CHONG-MOON LEE:
Thank you. Thank you.
LISA LING:
As Jack mentioned, you started out your career as a high school teacher. And then after you finished your graduate school in the US, you taught at a university in Korea and served as an assistant national librarian, earned a six-degree martial arts black belt in Aikido (PAUSE, LAUGHTER), flourished in the pharmaceutical business and then started a computer business from scratch in Silicon Valley. And you've been successful all the way. So, what have the keys to your success been?
CHONG-MOON LEE:
Thank you. When Lisa was asking me the question, it seemed like I’d probably have a job offer from her end with this session, didn't it? (LAUGHTER) You know, only one thing I can say is that I'm not smart. I'm not smart. If you ask this question to my wife, she will instantaneously agree, "He's not smart." (LAUGHTER) I was simply lucky.
One thing I can say comes from Asian Confuciansm, the Chinese philosophy we inherited in Korea. In the famous stories by Sun-Tzu, he is a Chinese strategist making recommendations. One out of the incidents that we all know is, if you wrestle 100 times, how can you win 100 times? It's impossible. Even though you win all of the times, you are second class. What is first class? First class is you win without wrestling. (LAUGHTER)
That has really disciplined me all my life. I went through very hard, tough times in the past. I really tried to kill myself. But due to human relations, wonderful people helped me. I tried to do my best in this country; it educated me to be honest and to work hard and to help other people. That's where I am today in Silicon Valley—35 years today and been in this country 48 years or so. But, 35 years in Silicon Valley working with these principals, except for that single case, I’ve never stumbled. I still try to walk with the people and end up being helped. (APPLAUSE)
LISA LING:
Mr. Lee, you donated $16 million to the Asian Art Museum in San Francisco in 1996, which is the largest Asian art museum outside of Asia. The museum named the building after you, the Chong-Moon Lee Center for Asian Art and Culture, which is believed to be the first public building in the US that has an Asian name on it. What prompted you to donate at that level? And why to an art institution?
CHONG-MOON LEE:
Thank you for asking this. I have been asked this same question and I have the same answer. That is, if I remember the American saying correctly, "You cannot buy happiness with money." I bet they didn't know where to go to shop. (LAUGHTER) (APPLAUSE)
What was my motivation to donate? If you recall the last 100 years of US-Asia relations, particularly the last 60 years after World War II, how America helped Asia, you can appreciate where Asia is today. In the last 30 years, look at the Asians who came to this country as the first generation, walking in this great country. Definitely there are influences on both sides. Today in America we have ten million Asians in this country. But it's only four or five percent of the total population, very minimal.
But if you take a look at educational institutions, the prestigious schools in this country, Harvard is 26 percent Asian students. UC Berkley and UCLA have 40 to 50 percent. Stanford, 23 percent. You name it. So, definitely Asians are here. The ten million Asians in the general population, we have to communicate with this society. We have to have some message to this country as Asians—our traditions, our culture, culture. For me, the Asian Art Museum was the place. One million people a year coming, learning Asian tradition and art and the culture. Museums are communication tools between Americans and Asians and the next generations.
I'm Asian American. Jack Wadsworth is American Asian. (LAUGHTER) So the Asian Americans and American Asians, we all have to work together to build up Asian intellectual communication tools into this society, which can only benefit Asians and Americans and the rest of the world. Thank you. (APPLAUSE)
LISA LING:
Communication and bridge-building certainly is a big part of what the Asia Society is about, too. And by the way, did you know that for UCLA, they call it “University of Caucasians Lost in Asia” these days? (LAUGHTER) Thank you so much Mr. Lee, and congratulations.
CHONG-MOON LEE:
Thank you. (APPLAUSE, EXITS STAGE)
LISA LING:
Presenting the fourth award tonight is Miss Henrietta Holsman Fore, director of the United States Mint. (APPLAUSE)
HENRIETTA HOLSMAN FORE:
Good evening. Some entrepreneurs are not born, but they emerge when the time is right from the influences that they make themselves. In a blend of Asia and America, the celebration of Lulu Chow Wang has brought together three great influences in her life and they are here with us tonight. Her 93-year-old mother, who gave Lulu her grit and her longevity. Wellesley, where Lulu learned and came to embody service and excellence. And her husband Tony, who gave her his confidence and support.
When you first meet Lulu, you are caught by her warmth, grace and charm. Then you notice that she has done her homework and a close analysis and that she is a very, very good listener. And soon she has you and the board persuaded and taking action. Lulu's legion of Asian and American friends will tell you that these are the hallmarks of a good businessperson, a board member or an entrepreneur.
Lulu has been highly respected in the world of professional investment management for many years at Jennison Equitable Associates and at Donaldson, Lufkin & Jenrette. And when Lulu emerged as a entrepreneur with her own Tupelo Capital Management, she paired her mother’s grit and determination with her Wellesley brains and hard work and Tony's confidence and she was unstoppable. Tupelo was an immediate success, and as Tupelo thrived so did Lulu.
She was working very, very hard, but she loved it. And we began to adjust to e-mails sent at 1:43 am. Her gardening may have suffered a little bit and her vintage racecar driving, and those home-cooked meals for Tony. But the world gained an entrepreneur and our pride for Lulu did not stop there.
For Lulu blends Asia and America in a deep responsibility to her family, her friends and her community. In the largest single gift to a women's college, there will be a Lulu Chow Wang campus center at Wellesley College and it will encourage the education of Asians and Americans. And as her fellow philanthropic board members at Wellesley College, at Columbia Business School, at Rockefeller University, at New York Community Trust, at the Lang fund for entrepreneurs, at the Metropolitan Museum of Art and at WNYC, all will attest it is a pleasure to serve with this woman of great accomplishment and commitment. So, on behalf of the Asia Society, will you join me in celebrating this remarkable woman and giving the outstanding entrepreneur award to Lulu Chow Wang. (APPLAUSE, FORE PRESENTS WANG WITH AWARD)
LISA LING:
That's for you. Congratulations, Lulu, on your award.
LULU WANG:
Thank you very much, Lisa.
LISA LING:
Thank you for being here. Now, you were bitten by the entrepreneurial bug at a very young age: you had record sales in cosmetics working at Bloomingdales, before that you had set records selling cookies in the girl scouts, and before that even, you ran lemonade stands as a child. You also acknowledge that being raised in a Chinese American household instilled certain values in you. Can you talk a bit about the factors that helped shape you in the beginning?
LULU WANG:
Well, it all begins with family. It's a bit of a truism that the Chinese work hard and they foster family, but our family was the quintessential family-- Chinese family. All the values attended to a strong core of affection and support. Our family came to the states, really, right in front of the Communists. So we didn't realize we were immigrating when we did.
We started with really very little in the beginning. But my father and mother always instilled in their four girls the values of hard work and education. My father was a great athlete and a businessman and taught us competitiveness.
Now in the area of competition my mother was no slouch. My mother, who's here tonight—Bae Pao Lu Chow—is 93, and strong. (APPLAUSE) My mother's favorite term was, "Why not?" Whatever challenges we faced, her response was, "Why not? Give it a try." And so all her four girls, we always responded to any problems with a, "Why not?" And I think that was so important to our success.
LISA LING:
She's a stunning woman, your mother.
LULU WANG:
Well, thank you.
LISA LING:
Lulu, you have become a visible symbol for both women and Asian Americans in business. However, when you first started in the investment field in the 1970s there were very few women, much less Asians, to hold as role models. Why were you attracted to the field? And how did you become successful in it?
LULU WANG:
I was attracted to investments because it really did appeal to both the left brain and the right brain. Investments give you every opportunity to be quantitative. But at the same time I think a great investor has to be creative to be able to sense a situation beyond the numbers, because everyone has the numbers.
But the opportunity to begin to put together the different pieces—formulate investment strategy and try to be in front of a very smart crowd—always appealed to me. It's humbling. There are times when you get it all wrong. It's kind of like golf. When you think you've just mastered the sport, you hit a terrible round and you start all over again.
If, over the long haul, you can put together a proper game, I think the investment field is so challenging and so rewarding. It's a real meritocracy, too: you are as good as you can deliver. So, connections aside, lineage aside, I think your results are what matter over the time and that's what really appealed to me.
LISA LING:
Was your gender or your ethnicity ever an issue in business?
LULU WANG:
It wasn't. I think some people might say, "Well it must have been a problem." I started in Wall Street in the 70s, and there were very few women and very few Asians. But, again, when you are in a meritocracy, neither your race nor your gender make a difference. And if anything, I think being a woman, being Asian, did differentiate me. And when I went into meet with management to interview them, I was such a novelty that they told me a lot more than they would tell the other guys! So (LAUGHTER) so that was, it was a plus.
LISA LING:
Thank you for supporting Asia Society, and congratulations to you.
LULU WANG:
Well, thank you so much. (APPLAUSE, EXITS STAGE)
LISA LING:
We have one more award to go. Presenting our final award tonight is the brilliant Dr. David Ho, Director and Chief Executive Officer of the Aaron Diamond AIDS Research Center. (APPLAUSE)
DR. DAVID HO:
Thank you, Lisa. Here I am a scientist, about to present the award to an engineer. Our prototypic Chinese parents must be proud. (LAUGHTER) I have the great pleasure of introducing Jerry Yang, my friend who happens to be the Co-Founder and Chief Yahoo at Yahoo. His career is truly a remarkable American success story.
Having coined the name like Yahoo, you might expect some unsophisticated cowboy from the far east. No, not at all. Jerry came to the US from Taiwan like me as a young boy. Did well in school. Went to Stanford. Got his double E degree. And while perusing his doctoral thesis at Stanford he found himself along with his fellow student, David Filo, busy categorizing and sub-categorizing their personal favorite web-sites on the internet. Soon, they found themselves sharing their creation with friends and friends of friends, numbering in the thousand.
It wasn't too long before they realized that they were onto a new business model. It was in this way in 1994 that Jerry and David’s guide to the worldwide web was transformed into what we now know as Yahoo. Still in his mid-20s, Jerry had the foresight to get some adult supervision (LAUGHTER) by hiring two veterans of Silicon Valley to run Yahoo operationally. And together they took the company to great success and made it a public company in 1996.
Yahoo has been a tremendous success despite the dot-com meltdown. Today it is the most highly trafficked website worldwide. And Yahoo is certainly a household to my children. They don't have another definition for the word “yahoo.” As you might expect—for a double E person—Jerry did do a couple nerdy things along the way (LAUGHTER) that we have come to expect from such computer jocks.
First, when their guide to the internet was formed, they modestly called it “YAHOO” thinking that it was rather crude and unsophisticated. But actually, Yahoo is an acronym they created for—here's the official name: “Yet Another Hierarchical Officious Oracle.” (LAUGHTER) To me that's pretty nerdy. (LAUGHTER)
And then the next one is, well we all have our computers, but how many of us give names to our computers? Very few. But Jerry and his co-founder did. And their computers were named “Akebono” and “Koneshiki”. (LAUGHTER) Now, to the world, no one would know what those two names are. But this being an Asia Society crowd, I suspect a number of you do know that those two represent two of the greatest sumo wrestlers in Japan. Pretty nerdy, but it turned out to be a great premonition in two ways.
First, Jerry and his co-founder became the ultimate heavyweights in the information technology world. And second, this fascination with Japan led him to spend some time in Kyoto, where he met his beautiful and wonderful wife Akiko, who as it turned out was a Stanford classmate of his whom he did not know. Probably too busy playing with his computer at the time. (LAUGHTER)
Tonight in Jerry Yang, we honor not only an internet pioneer and a great corporate leader, but someone I regard as a fine person. A person with high intellect, impeccable integrity and gentle compassion, and a great person to have dinner with. Ladies and gentlemen, I present to you the Chief Yahoo. (APPLAUSE, HO PRESENTS YANG WITH AWARD)
LISA LING:
Jerry Yang, everyone.
JERRY YANG:
Thank you. Well I'm guessing people are cheering because Lisa, you and I are the only thing between 600 people and the front door.
LISA LING:
Oh, stop. (LAUGHTER) Everyone's been waiting for this because you are the founder of Yahoo. What is that like to be the founder of a company that's as ubiquitous as McDonald's around the world?
JERRY YANG:
You know, I used to go out and give speeches around the world. I would go to a room and I would say, "How many of you have heard of the internet?" And maybe 20 percent of the people’s hands would go up. And I'd say, "How many people have heard of Yahoo?" About half of those people go up. And it never ceases to amaze me when, now I go somewhere and I talk about the internet and people look at me and say, "Why are you asking me about the internet? We've known that forever."
We talk to young kids these days in their teens or in their early 20s—they don't even know what it was like without the internet. And so it's amazing how fast time has gone and how great it's been for our industry in the last 10 years.
LISA LING:
Jerry, did you ever think, I know you've probably been asked this a million times, but did you ever think that Yahoo would become what it is today?
JERRY YANG:
Just like the other award winners tonight, as entrepreneurs you never think that you are gonna hit it big. You dream about it and you hope, but you just never think that you're gonna be one in a million, and in my case I think, to do what we've done. I think we look at it much more as the journey rather than a destination. We look at how much fun we're having everyday. How we're going through every day and trying to create something that we think is gonna impact people's lives. And I hope if we do our jobs right, we'll get somewhere.
LISA LING:
In 2000 when the internet bubble burst, Silicon Valley was devastated and hundreds of businesses were forced to shut their doors. Investors everywhere were affected and we started to hear word of recession for the first time after a long prosperous period. No doubt it was also challenging for Yahoo as well. How did you and the company's management team navigate through this time and emerge successfully?
JERRY YANG:
I guess you have to bring up the bubble when you're talking to me. But, you know, it was definitely one of the toughest times I think for our industry. In a way the most healthy as well, because the companies that have emerged from the bubble are probably the strongest companies and even probably stronger than they were going in.
As for Yahoo, we never felt that the basic fundamentals of what made Yahoo great and obviously what made the internet great was going away. You look at our users who are now almost 400 million people using Yahoo in a month. That trend always went up and to the right. You look at our brand, even during the toughest times people really felt Yahoo made their lives a little bit better on the internet. We felt those were good bones to build our company around. And now very fortunately thanks to our great management team and others are really able to create a sustainable, growing business model.
LISA LING:
I think you just said 400 million per month?
JERRY YANG:
Yeah, you know, it's astounding.
LISA LING:
That's it?
JERRY YANG:
We just are amazed at how many people continue to find Yahoo worldwide. And we're trying to win them over one at a time.
LISA LING:
Well, it's obviously very successful. Now, Yahoo is ten years old this year. And you've no doubt seen enormous changes in the internet industry in terms of technology, services available and the sophistication of internet users. What kind of pivotal changes do you predict? And how do you keep your company fresh?
JERRY YANG:
I guess we're going to have to end on a nerdy question. (LAUGHTER) Obviously I think in so many ways we've worked ten years to get to where we are today where the most exciting stuff is happening. If you look at what's happening on mobile phones, I–I heard a few going off in here.
And it's become so indispensable, that I think especially as people not only get on for voice but also now for the internet, there are more internet-enabled phones than personal computers in the world these days. As we talk about broadband, the internet is coming to the home and onto your television. And the implications between the personal computer and the television and the mobile phone are where the sweet spot is. For a technologist like me and a business person, I just think that's what we've worked very hard for. Hopefully Yahoo can continue to have a great next ten years as we did the first ten.
LISA LING:
Jerry, thank you so much. (LAUGHTER) Congratulations to you and thank you for supporting the Asia Society.
JERRY YANG:
Thank you, Lisa. (APPLAUSE, EXITS STAGE)
LISA LING:
We want to thank all of you and congratulations are due to all of our award presenters and Honorees as well as all the valuable supporters of Asia Society gathered here tonight. Tonight's Annual Dinner proceedings will be posted on Asia Society's website very soon which I encourage you to view at AsiaSociety.org. And as you leave the ballroom, please accept a special goody bag–compliments of the Asia Society.
This concludes our program for tonight. Thank you so much. And have a lovely rest of your evening. Good night. (APPLAUSE)
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