Since Ron Kruszewski took the helm in 1997, Stifel has boosted revenue from $100 million to $5 billion, while increasing its market cap from $40 million to $8 billion. Yet Kruszewski feels that Stifel is only at the beginning of its growth trajectory. His goals for the coming years are to double annual revenue and manage $1 trillion in client assets. “Clients look at us differently,” he says. “We have become so much more relevant, given all the capabilities that we can provide: wealth management, a bank, institutional advice, capital raising, and M&A.”
PROFESSIONAL ACCOMPLISHMENTS & OPPORTUNITIES
What has been your or your company’s most significant success over the last 12 months? Stifel was ranked No. 1 in the employee advisor segment of the prestigious J.D. Power U.S. Financial Advisor Satisfaction Survey for a second straight year. The firm also ranked first in three individual categories: leadership and culture, products and marketing, and operational support. On the institutional side of the business, Stifel was named “US Mid-Market Equity House of the Year” by International Financing Review for “opening the IPO market and taking public more companies than its competitors.” Stifel also reported the second best quarter in firm history (Q2) and record client assets of nearly $475 million. S&P also raised its long-term rating on Stifel, reflecting sound credit and interest rate risk management. Personally, I was elected vice chairman of SIFMA, the leading trade association for broker-dealers, investment banks, and asset managers operating in global capital markets—a true honor. I was also recognized as a SIFMA “industry luminary” for contributions in the area of youth financial education.
What has you most excited about the future of your company or industry? I believe that the past is prologue. Stifel has gone from $100 million in revenue to nearly $5 billion in revenue, from a $40 million market cap to an $8 billion market cap. Yet I feel we’re just beginning. People will say, “Well, that growth has been phenomenal. What’s next?” My answer: the same amount of growth going forward because we are so well positioned in this marketplace. Clients look at us differently. We have become so much more relevant given all the capabilities that we can provide, whether it’s wealth management, a bank, institutional advice, capital raising, M&A. With this positive momentum, we are setting our sights on a transformative era for the firm, to double our size by attaining $10 billion in annual revenue and managing $1 trillion in client assets.
What’s the toughest business challenge you’ve had to overcome (excluding the pandemic) and why? I’ve been CEO since 1997 and led Stifel through many challenges. Our conservative approach has helped us achieve sound and prudent results during both good and difficult times. For example, we actually grew the firm during the 2008 financial crisis and were one of only a handful of financial services firms that did not accept any federal TARP money. More recently, when the regional banking system was disrupted following the collapse of SVB, we were opportunistic and brought over a group of venture bankers from SVB to help bolster our offerings to the innovation community. A hallmark of our firm’s growth has been to make investments for the future even when the present feels a little scary.
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MENTORS & PEERS
Do you have a business mentor? If so, who and why? A gentleman by the name of Fred Kasten. He taught me to treat people right. After you’ve been at Stifel for a year, I won’t know what school you went to or your grade point average. I won’t even know what your IQ is. What I will know is whether you’re a good team player and whether you get along and treat people right. That’s what Fred taught me and what I try to teach people today. I was the kind of young man who could get most things done. Unfortunately, it’d be like playing football, but I would tackle my own teammates. I’d get things done, but I’d look back, and the carnage on the field would be extensive. In one particular case, back in the 1990s, we were doing a big conversion, and we got it done, but I really trampled over a lot of people. I remember him pulling me aside and saying, ‚”Look, it isn’t just necessarily getting to the finish line. It’s how you get there.” I’ll never forget that.
What piece of advice has had the most significant impact on your career? The best advice I ever received was from my mom, and that’s the Golden Rule—always treat people as you would like to be treated. If you apply that not only to your personal life but to your business life, it pays tremendous dividends.
If you could have dinner with any two area business leaders, who would you choose and why? Jim Kavanaugh and Dave Steward from World Wide Technology
What is one thing you would change about the St. Louis metro area business environment and why? I moved here in 1997 and had the thought that any community—any city—needs to have a strong urban core. So we have been a proponent for downtown. I’ve had many opportunities to move from downtown, but we’ve said no. We believe in downtown. We own our building on Broadway and Washington, and that’s important.
BACKGROUND
Where were you born? Crumstown, Indiana, just west of South Bend
What was your first job, and what did you learn from it? I put myself through college by mowing lawns and working as a bouncer in a bar—a job that taught me to handle adversity with skill!
What educational degrees do you hold, and where were they earned? B.A., Accounting and Finance, Indiana University
HOBBIES & INTERESTS
If you were not in your current profession, what would you be doing and why? Golfing or skiing
What is your favorite St. Louis-area restaurant? Cafe Napoli
What is one item you recently crossed off your bucket list? Playing Pebble Beach
What is one book you think everyone should read (or podcast everyone should listen to) and why? The End of the World Is Just the Beginning: Mapping the Collapse of Globalization by Peter Zeihan. It talks about what’s going on in the world, including the change in world order since 1945. It’s very interesting to put that perspective to what’s happening in the world today, with Russia in Ukraine, and China, Iran, and all of the countries that are really trying to upset the world order.
What’s your hobby/passion? Skiing (and golfing)
What would people be surprised to learn about you—a fun fact? Most people think I’m an extrovert. They see me at various events where I’ll pick up the microphone, and I have no problem talking on television. But I’m more of an introvert than people realize. People who know me will say, “You’re much quieter than you appear.”
What is your go-to karaoke song? During the pandemic lock-down, I did a pretty good video parody of “Hello” by Adele for our employees.
