Respected CFO Joins Lewis & Clark

James Walker and his wife, Ginny, just finished building a new house in Sisters. It was supposed to be their retirement oasis; instead, it’s turning out to be their weekend getaway. Walker elected to defer retirement in order to serve as Lewis & Clark’s new vice president for finance and treasurer of the College.

“When I was offered the job, I asked Ginny if I should take it—and I was 90-percent sure she would say no,” says Walker. “But she said, ‘You know, Jim, I think you do need an outlet for your energy. You’re only 55—you’re not ready for retirement.’”

Walker’s energy and financial acumen haveturned out to be valuable assets for Lewis & Clark. His association with the College began in late 2002, when he was approached by board members to analyze the College’s debt structure, financial policies, and financial position in light of an unpaid $10.5-million loan to an environmental technology company (see related story). He expected the consulting assignment to last a month or two. Instead, the board asked him to stay through the spring of 2003. Ultimately, he was offered a permanent full-time position.

“I took the job because I thought I could make a contribution,” says Walker. “I was inspired by the energy and enthusiasm of Lewis & Clark students, and I wanted to help out during what I knew was going to be a difficult period for the College.”

He started his new job on June 2, two days before news of the failed loan hit the press. Despite the steady stream of media attention that followed, Walker never lost faith in the College. “I knew Lewis & Clark was a strong institution with great programs, faculty, and students. I knew the media frenzy would pass.”

Walker is no stranger to working for an institution that attracts headlines. For nine years, he served as executive vice president at Oregon Health & Science University, where he oversaw finance and administration. OHSU, the state’s fourth-largest employer, is often scrutinized in the press for its decisions about health care costs, striking workers, and new construction. Counting his years at OHSU, Walker has nearly three decades of experience in finance—plus, a stellar reputation in the Portland business community.

During his tenure at Lewis & Clark, Walker has focused on three key areas: the institution’s financial strengths, its financial concerns, and its opportunities to address those concerns.

“What I’ve found is that the College’s core business operation is very strong,” says Walker. He notes that since 1995 endowment has doubled; net assets have more than doubled; and plant and equipment value has nearly tripled. In addition, both the quantity and quality of student applications have increased, a fact that reflects positively on the demand for the College’s services and its academic reputation.

Walker says that many of the financial concerns facing Lewis & Clark are the same ones facing other institutions of higher education at this time. “The financial aid packages we’ve been offering have grown at a fast rate,” he says. “We want to attract quality students, but we must do so in a way that is financially responsible.” He adds that the College’s debt load and spending rate of endowment are both higher than average, but ultimately manageable.

Lewis & Clark has already taken steps to address these concerns. In fall 2003, the College successfully restructured its debt to attain more attractive interest rates and to reduce its risk exposure. Walker says the College also plans to decrease its endowment spend-ing rate by reducing expenses, raising net revenue, and increasing endowment to support general operations and scholarship funding, while growing into its debt. “Making headway on these goals will be a three- to five-year project,” he says, “not an immediate achievement.”

But Jim Walker is a patient man. For now, he’s content to help the College chart its financial future. Down the road, he knows that retirement—and the house in Sisters—will be waiting for him.