From “The Way Forward" Conference: Adena Friedman, President and CEO, Nasdaq

Market Resilience and Capital Flows:

• Adina Friedman characterizes capital markets as essential "cure" mechanisms for public health crises, providing permanent capital to companies facing job losses and economic disruption.
• Markets functioned critically in March and April to allow companies to raise capital and enable investors to reposition portfolios during the initial shock of the pandemic.
• NASDAQ's technology infrastructure successfully supported global market operations during the crisis, facilitating a seamless transition to remote work for participants across 120+ market infrastructures in 50+ countries.

Cooperative Capitalism and Stakeholder Strategy:

• Friedman advocates for "cooperative capitalism," defined as public-private partnerships where companies serve shareholders, employees, communities, and customers simultaneously.
• This approach was exemplified by grocery chains using supply chain capabilities to donate unsold food to food banks and 3M scaling PPE manufacturing for community safety.
• The concept aligns with the Business Roundtable's 2019 redefinition of corporate purpose, emphasizing that companies must make a tangible difference for all stakeholders.

IPO Activity and Sector Trends:

• IPO volume dipped significantly in March and April due to global uncertainty but rebounded with 21 listings in June alone.
• Biotech and technology sectors showed resilience, with 25 biotech and 27 healthcare companies going public on NASDAQ this year, compared to a pause in other economic segments.
• Royalty Pharma recorded the largest IPO of the year so far, raising over $2 billion in the healthcare sector.
• Companies with models aligned with current societal needs (e.g., Vroom for online auto sales, ZoomInfo for digital marketing) are finding receptive audiences among investors.
• Analysts anticipate the summer months to be the busiest period for IPOs, though an election year may introduce challenges for listings occurring immediately prior to the vote.
• The composition of major indexes (S&P 500, NASDAQ 100) has shifted, with increasing weighting toward technology and healthcare sectors, reflecting a broader economic transition toward innovation.
• Over the last five years, NASDAQ has hosted 339 healthcare/biotech IPOs and 153 technology company IPOs.

Diversity, Equity, and Governance Initiatives:

• Goldman Sachs announced a new policy requiring NASDAQ-listed companies to have at least one diverse board member starting July 1, with a requirement for two diverse directors by 2021.
• Friedman notes that while intent regarding diversity has deepened in the financial industry, actual numerical representation has not yet matched the level of commitment.
• The Black Lives Matter movement and the pandemic have generated a "true sense of urgency" and purpose for addressing racial diversity and other inclusion issues.
• Friedman identifies key actionable areas for change: broad-based diversity training, internal career development, targeted recruiting, board diversity, and vendor management diversity.
• Friedman views the investor base as the most impactful driver for corporate change, citing the global ESG movement where investors are "voting with their dollars" for better governance and social practices.
• Friedman expresses optimism that other investment banks will follow Goldman Sachs' lead once they assess the market impact of such mandates.

Leadership Evolution and Communication:

• Leading through the crisis required a shift from a perception of "perfect" and "confident" leadership to one of vulnerability and shared uncertainty.
• Friedman instituted a weekly cadence of honest calls with employees to share personal sentiments, fears, and the lack of immediate answers regarding the economic outlook.
• This transparent communication strategy allowed employees to feel understood and fostered a sense of collective problem-solving rather than relying on top-down directives.
• Friedman intends to maintain a weekly or biweekly communication rhythm with staff indefinitely to preserve the high level of connection established during the crisis.