The Mission thought of our founder George Pepperdine and our late friend and business school benefactor George L. Graziadio, traveling a similar road as they sought the opportunities

the Journey

The Mission OF PePPeRDINe UNIVeRSItY

Pepperdine University is a Christian university committed to the highest standards of academic excellence and Christian values, where students are strengthened for lives of purpose, service, and leadership.

A journey is a person in itself; no two are alike. And all plans, safeguards, policing, and coercion are fruitless. We find that after years of struggle that we do not take a trip; a trip takes us.

—John Steinbeck

the Journey

As we were preparing this annual report, our Malibu campus was tested by a terrible challenge. A fire, driven by fierce Santa Ana winds, ripped through Malibu Canyon and headed for the sleeping Pepperdine campus in the early morning hours of October 21. The fire blackened many acres on campus, destroyed three

University vehicles, and burned lush plant life at the foot of the large cross at the campus entrance. It would be the first of many fires to ravage much of Southern California.

Word on campus spread quickly through door-to-door calls by University Public Safety officers and instant messages sent from Pepperdine’s Emergency Operations Committee to home phones and cell phones. Soon students, faculty, and staff residents—sleepy, startled, and frightened—gathered in Tyler Campus Center or Firestone Fieldhouse.

Los Angeles County Fire Department officials immediately set into motion an emergency preparedness plan that had been developed in cooperation with University administration. First responders from all over the region arrived rapidly on the Drescher Graduate Campus, and by midday, over 1,000 firefighters were engaged along with massive air and ground support.

As the campus community came together, President Benton, whose own campus home remained threatened, addressed the anxious group. As he spoke, a sense of calm settled over the crowd as tension gave way to relief and tears turned to laughter. At 11 a.m., the crowd paused for a time of worship. By 2 p.m. the threat to the campus had diminished and the campus residents returned to their homes.

Before dawn on November 24 this threat returned as wildfire blazed through canyons near the Malibu campus. Like the previous month, the Emergency Operations Committee expertly shepherded campus residents to safety until the threat subsided.

This fire ignited on Thanksgiving weekend, as people throughout Malibu and nationwide gathered in gratitude for their families, health, and blessings. Like you, I watched these stories unfold from my home far away from the campus. I shared in the anxious moments and rejoiced as I learned that the campus was safe and its residents uninjured.

As chair, I must express my deep sense of pride in how the Pepperdine community pulled together in the face of adversity and triumphed. I must also acknowledge the outstanding leadership of President Benton and his administrative team, giving special thanks to Gary Hanson who led the Emergency Operations Committee. Without their experience, planning, and bold leadership, the response to this event could have been much different.

Reflecting on these trying moments, I am particularly reminded that Pepperdine is blessed. In the 35 years that Pepperdine University has stood atop these bluffs in Malibu, providence has spared the campus from natural disaster, allowing it to grow and flourish in this special place. I am reminded of the beauty that surrounds the Pepperdine family each day, the creativity it inspires, and the pursuit of knowledge and spiritual contemplation it supports. I am grateful that Pepperdine stands today to continue its remarkable journey.

So, it is with this story that I introduce this year’s annual report. I hope, as you read through these pages, you will get a sense of the marvelous community of talented people who face all kinds of challenges with skill, courage, gratitude, and love.

Chair, Board of Regents

Trial by Fire

Each year at this time, through this annual report, we pause to reflect upon the year that has just ended so that we may consider our accomplishments and acknowledge our blessings. Moments of thoughtful reflection are very hard to find in these busy days, but they are exceedingly important.

Without them, it is difficult to stay rooted to your true course. On occasion, it is important to pull over to the side of the road to unfold the map, look to the heavens and find true north, take inventory of your resources, and recommit yourself to the journey.

In my seventh year as president, I was afforded such an opportunity. It was a gift. As I have said to several who have asked, I needed rest less than I needed different and through four unique adventures I found exactly what I was looking for and much more.

DISCOVERY AND IMAGINATION.On my third adventure I traveled historic Route 66

and followed the path of the millions who had gone before, seeking the promise of the West. The “mother road,” as John Steinbeck dubbed it, is still a powerful symbol of discovery and imagination. As I drove in silence over countless miles I found traces of our own story along the way. I thought of our founder George Pepperdine and our late friend and business school benefactor George L. Graziadio, traveling a similar road as they sought the opportunities that awaited them in Los Angeles. They had the foresight and imagination

to envision what could be and the personal fortitude to achieve their dreams. I am an heir of their vision. The road was leading me home.

THE WISDOM OF THE OLD ROAD.As I continued my journey, I could, on occasion,

see the modern expressway beside me dotted with large semi trucks, SUVs, minivans, and motor homes occupied by oblivious passengers traveling at great speeds. The ambition of each driver was to put as many miles behind them as quickly as possible. I was saddened when I thought of the rich and textured experiences that they missed with each passing mile. They seemed focused only on their destination as if it alone were the only thing that possessed any value. While the passengers seemed completely unaware, I noticed the highway did not stray too far from the wisdom of the mother road. I chose not to rush but to savor each moment.

At Pepperdine, we are on a similar journey. In a rather short period of time we have traveled many miles, but there is still an endless road of possibilities ahead. Like so many at the University, I am eager to achieve our very ambitious goals and to fulfill our countless dreams. But the wisdom of the road tells me not to sacrifice the rich, textured experience of today’s journey for the sake of speed. So, on this 70th anniversary of Pepperdine University, I invite you to pull to the side of the road, and as you turn each page, savor the experience of Pepperdine today. Consider the outstanding work of our world-class faculty and the strength of our impressive student body. Then, calibrate your compass and ready yourself for the journey ahead. It is a road filled with much hope and promise.

The Journey

President

the Journey

Great ExpectationsW. DAVID BAIRD

Dean of Seaver Collegeand Howard A. White Chair of History

David will conclude his decade-long tenure as dean of Seaver College in

the spring of 2008.

Since its founding in 1937, the raison d’être of Pepperdine University has been educational excellence and Christian transformation. Did George Pepperdine understand how much he was asking of future generations when he declared that the college that would bear his name would commit itself to advancing knowledge while preparing useful lives for service in a needy world? Did he really think that a Christian college, homegrown in Los Angeles, could succeed at being both academically

excellent and faithfully committed to its Christian values? Were his expectations so great? I believe they were.

As I reflect upon my 10 years as dean of Seaver College and look at our accomplishments and at what will remain unfinished at the close of this academic year, I wonder if we have been good stewards of Mr. Pepperdine’s vision of

educational excellence and Christian transformation. Changes within the Seaver faculty are one indication

of our progress. In the last 10 years, the college has hired 80 tenure-track faculty. Among these are exceptionally well

qualified and highly talented, young faculty trained at institutions like Yale, Stanford, Harvard, Vanderbilt, and Notre Dame. Their passion for teaching, excitement about scholarship, and commitment to our Christian mission is infectious and inspiring. Numbered among the new faculty are internationally acclaimed senior scholars, who have added luster and credibility to the academic reputation of Seaver College. This mix of youth and maturity has created an exciting and provocative intellectual community on the Malibu campus.

The Seaver faculty has increased its expectations when it comes to scholarly productivity. Since 2001, 51 members have authored 56 books and produced three CDs of musical recordings. About half of all members of the faculty annually author articles or books.

The Seaver faculty also has high expectations of our students. Through a revised general education program, students demonstrate deeper levels of

learning and greater skills of research and writing. In honors programs, faculty members encourage students to realize their own scholarly agenda and to produce theses worthy of publication. In addition, Regents Scholars and other promising students design a four-year course of study that will enhance their competitiveness for prestigious postgraduate scholarships. Finally, the Seaver faculty asks students who want A grades to do A work, addressing a national epidemic of grade inflation. While it might sound like the kind of thing a dean would like to hide, those in higher education will understand why I am proud of the fact that the average GPA at Seaver College has declined each year since 2002. Our students are earning their grades!

Students come to Pepperdine well prepared to meet these high expectations. Today, the average GPA of incoming students is 3.65 with an SAT of 1228. They have challenged their teachers to provide even more scholarly opportunities through new majors, minors, and honors programs. They have also supported the Dean’s Distinguished Lecture Series, participated in summer research activities, completed internships, and engaged in study-abroad programs.

The results have been dramatic. Three of every four Pepperdine students applying to medical schools are admitted and pursue distinguished careers in medicine. Nearly all of our teacher education students find employment immediately after graduating. Most accounting students have passed the CPA exam and work at major accounting firms. Seaver graduates who are now practicing attorneys are almost too numerous to count. Political science majors are working as policy consultants in Eastern Europe, art history majors are employed by major museums, and history majors have completed their doctorates and taken positions in the academy as distinguished teachers and scholars.

It is especially gratifying that many of our students have competed successfully in national, postgraduate scholarship competitions. Thirteen have won Fulbright Scholarships; four have received Rotary Ambassadorial Scholarships; 18 have won California State Government Fellowships; and others have received National Science Foundation, Woodrow Wilson, Goldwater, Coro, and Jack Kent Cooke scholarships. Equally impressive is that eight Seaver students have been finalists in the Rhodes, Truman, and Marshall competitions.

Winners of these national scholarship competitions are featured on the “Seaver Honor Wall” in the Tyler Campus Center, along with their faculty mentors. With a background of concentric circles radiating outward toward infinity, this display celebrates the realization of higher expectations, the promise of the future, the unique relationship between student and teacher, and the continuing commitment of Seaver College to educational excellence.

So after a decade-long journey these things remain: educational excellence and Christian transformation. The journey continues.

SINCE ITS FOuNDING IN 1937, THE RAISON

D’êTRE OF PEPPERDINE uNIVERSITY HAS BEEN

EDuCATIONAL ExCELLENCE AND CHRISTIAN

TRANSFORMATION.

the Journey

REGAN SCHAFFERAssistant Professor of Management and

Organizational BehaviorExecutive Director,

American Humanics ScholarsAdvisor, Nonprofit Management Minor

I first met Brian Bushway in 2001 during his freshman year at Seaver College. In the first-year seminar course I taught on servant leadership, we explored using one’s gifts and talents to meet a need in the world and bring about change. From the start Brian’s perspective was unique, for at only 14 years old he experienced what many would consider a tragedy: he lost his sight due to optic nerve atrophy. But Brian remained positive and embraced the training, support, and encouragement he received. He learned to use a cane and navigate by echo location.

During his freshman year Brian and I had many conversations about how he adapted to his new surroundings and both the rigor and opportunities of a Pepperdine education. I already knew Brian

was a special person. Just as he had been transformed through losing his sight, he

could transform others.That summer my husband and I

invited a group of students to join us for study in the French language

program. Brian took us up on the offer—and accepted the challenges. He

knew very little French, but traveled with us to Lyon, stayed with a local family,

and freely traveled the city on his own. During frequent museum trips, the

students described paintings to Brian as he toured site after site with patience and humor.

One day in Paris we visited the Rodin Museum. After countless hours spent hearing others describe the art, Brian was given

an opportunity that sighted visitors were

denied. I’ll never forget holding his cane while

Guideposts

he placed both hands on a massive sculpture and explored the art with his touch. He was so serious and thoughtful at first, then this look of amazement came over his face. The art changed from a concept to an experience for him. At that moment I knew that the beauty of art and the creative mind had come alive in Brian. I was overcome with emotion.

Later we went to Louis Braille’s home outside of Paris. To our surprise, the guide opened several glass cases and allowed Brian to touch Braille’s personal items. As he touched the tools Braille used to read, Brian was visibly moved by the connection between these pieces of history and his own experiences. I took photographs for his parents, sensing the moment was too special to miss.

That was not the only summer Brian and I spent together. The following year I taught a nonprofit course in Pepperdine’s European Business program in London and Brian was once again eager to participate.

Since our time in France, Brian had been experiencing life as a sophomore while I was busy developing Pepperdine’s American Humanics (AH) Scholars program, which certifies students in nonprofit management. Brian felt a keen interest in this field. We had spoken numerous times about the organizations that helped him and his family address his unique challenges. I could see his interest in the nonprofit sector strengthen during his time in London, and the following year he served in a leadership capacity in the AH Scholars program.

During Brian’s third summer at Pepperdine we conducted an analysis of nonprofit sector turnover for the Summer Undergraduate Research Project. From that project we decided to reorganize the AH Scholars program from a student club to a professional organization modeled after the organizational structure of a typical nonprofit. We also invited nonprofit professionals to take courses with our students, lending their expertise and experience to the classroom while gaining resources and professional development they may not receive otherwise. This eventually became the Nonprofit Professional Education Project that is a major highlight of our program today.

Through the years Brian and I developed a shared interest in what it truly means to be a servant leader. We discussed faith, career, family, and how we are to walk on life’s journey. Brian’s own journey at Pepperdine was a critical time in both of our lives; we’ve learned so much together and from each other. This fall I invited him back to campus to speak at the induction ceremony of the AH Scholars. Brian shared stories of his work with World Access for the Blind and his faith community known as Mosaic. He now helps other blind people gain mobility through echo location with doses of loving encouragement. At his core, Brian is in the business of transforming lives. I am so grateful that I have been able to walk alongside Brian on his life journey.

I ALREADY kNEW BRIAN WAS A SPECIAL

PERSON. JuST AS HE HAD BEEN

TRANSFORMED THROuGH LOSING HIS

SIGHT, HE COuLD TRANSFORM OTHERS.

Founding Principles

the Journey

EDITOR’S NOTE:

The School of Public Policy (SPP) celebrated a decade of accomplishments and looked to the future at its 10th anniversary dinner on October 2. Former Florida governor Jeb Bush gave the keynote address. The school, led by dean James Wilburn since its inception in 1997, is built on a curriculum committed to free enterprise, faith, and individual liberty, and has earned a reputation for innovative scholarship and outstanding alumni.

In an attempt to share the true success of the school’s first 10 years, Dean Wilburn chose to reflect upon the lives and careers of alumni. Several impressive stories were told during the presentation, but one in particular caught our attention. John Machado’s story captures the very essence of what makes Pepperdine a unique university. First, it speaks of a quality student and academic excellence, but it also highlights one of the University’s most important qualities—community.

The value Pepperdine places upon community and friendship is never as evident as it is during moments of adversity. The story you are about to read is just one example of how members of the Pepperdine faculty easily move from the professor-student relationship to that of mentor and friend.

Dean James Wilburn addresses the audience at the SPP 10th anniversary celebration.

and First Fathers

From the earliest days of the School of Public Policy, the ideas and works of the Founding Fathers have been central to the moral and philosophical training that takes place in the classroom. The stories of gifted men in a time of crisis continue to provide guidance to the men and women who will follow them into national leadership. Such grounding prepares SPP graduates for careers as leaders and seeks also to strengthen the institutions that lie between the federal government and the individual, including the family.

Outside the classroom, there has also been an expectation among SPP students of a spirit that goes beyond mutually respectful collegiality and approaches the idea of an extended family—students wanting the best for each other, encouraging achievement academically and professionally.

While a student, John Machado (SPP ’00) was selected—as several SPP students have been— for the prestigious and coveted Presidential Management Fellows program in Washington, D.C. John fit a certain mold: smart, hard-working, friendly, multilingual, and ambitious. When he left the classroom, though, John broke the mold. At home, he was simply “Dad.”

John would ultimately be recruited by the U.S. Department of State as an intelligence analyst with expertise in Russia and the Middle East. In his position at the State Department, John focused on the former Soviet Union. His role was to provide each morning to the secretary of state concise

and in-depth country analyses requiring from him a broad knowledge of the economics, religion, and cultural history of places like Kazakhstan, Kyrgyzstan, and other parts of the former Soviet Union.

As relevant to his professional life as John’s classroom experience was, it is a story about being a father that sums up his Pepperdine experience.

One day while John was a student, he was shopping with his young daughter when misfortune struck. John’s daughter slipped from her carrier and fell to the ground, literally cracking her skull. She was rushed to intensive care and John waited for news from the doctors diagnosing his little girl.

During the many tense and tentative hours that followed, John experienced firsthand the love and concern his school family had for him, not as a student but as an individual. Some of his professors prayed with the family in the hospital room. SPP staff and students cooked meals, filling the Machados’ freezer full of meals for the week. John’s daughter soon recovered, but his

view of Pepperdine was forever changed. When he reminisces about Pepperdine, John is well versed in the roots of

the American order, de Tocqueville, economic liberty, and the role of the United States in a post-Cold War world. He is equally articulate about his Pepperdine family who were there in a difficult time of need. Pepperdine’s response beyond the classroom may help shape lives of purpose, service, and leadership in ways that

study alone could not.The story of our “first father”—a gifted man in a time of crisis—and his Pepperdine

family’s response will continue to provide guidance for many years to come.

A Portrait of

JOHN MACHADOMPP, School of Public Policy

the Journey

Student Profiles

EVERYONE HAS A STORY TO TELL.

We all have unique journeys—some that take us to other countries and cultures, some that keep us closer to home. Yearly, more than 8,000 students congregate on Pepperdine’s campuses to begin a new chapter in their journeys. Whether it’s an undergraduate student at Seaver College who is just beginning her journey, or a graduate student who has come to Pepperdine as a pit stop in his career, each will experience in a unique way the life that flows through Pepperdine.

Here, we meet six such students who say their lives have forever been changed by their time at Pepperdine. They have each savored the rich experience of Pepperdine, which has included exceptional programs and faculty who have served as guides and mentors, shaping them along their way.

ANDY CANALESSeaver College SGA president Andy Canales is

the oldest son of refugees from the Salvadoran Civil War. “They came here all alone and spoke very little English,” Andy recalls. “They managed to start a small business and own a home. Their hard work and perseverance constantly inspire me in my own life.”

Growing up in a working-class neighborhood of North Hollywood, Andy was a good student and was driven to learn. When he was 14, Andy began attending a new church—one that Pepperdine professor Joel Fetzer also attended. Joel immediately saw potential in Andy and began serving as a mentor to him. “I have been so blessed by Joel’s guidance,” Andy says. “He introduced me to Pepperdine and served as a bridge of opportunity.”

Now in his senior year, Andy manages a very busy schedule, juggling his duties as SGA president; volunteering with Jumpstart, a program that pairs

college students with preschool children for one-to-one tutoring; and the academics of a double major in political science and religion.

Joel encouraged Andy to apply for the Ralph Bunche Summer Institute,

a prestigious and academically intensive program designed

to expand academic opportunities for talented minority students. Because of that experience, Andy is considering pursuing a Ph.D. in hopes of one day becoming a professor of political science. He is also weighing career choices in public service,

either in the political arena or in ministry.“I want to make a

difference, especially in the lives of kids the way Joel has made a difference in mine,” Andy concludes. “Because of my background, underprivileged kids can look at me and believe that they can be successful too.”

kATIE CHANGKatie Chang’s journey began in Hawaii, where as

a triplet, she grew up with an identical twin sister and a fraternal twin brother. Searching for her own unique path, she was drawn to Seaver College for its distinctive blend of academic excellence and Christian faith. “The opportunity to attend Pepperdine sort of fell into my lap when I wasn’t expecting it,” Katie remembers. “It’s amazing what doors God will open when you put your faith in him.”

As a junior, Katie added history to her Asian studies major. She met with history professor Darlene Rivas who offered immediate help. “She was very encouraging,” Katie recalls. “She volunteered to teach a directed studies course just for me so I could catch up on the course work.”

Katie and Darlene struck up a friendship and have since spent many afternoons chatting about history and world affairs. “It was so exciting for me to have direct access to a professor in that way,” notes Katie, now a senior.

Katie balances her school work with responsibilities as a resident advisor and as a member of the Pepperdine Ambassadors Council (PAC). “I really wanted to give back to Pepperdine since I’ve been so blessed by everything here. PAC gives me a way to do that.”

While she hasn’t nailed down a career of choice yet, she knows for sure she wants to be in a position of influence. “I want to make a difference in this world,” Katie says. “I want to continue learning new things, become a world traveler, and tackle learning a foreign language.”

But ultimately, Katie holds true to something Darlene taught her: “No matter what your experiences bring, it’s the people in your life that you ultimately remember.”

Student Profiles

the Journey

JAY MILBRANDTAs the son of a college business professor, Jay

Milbrandt grew up with a solid grasp of business. Jay was drawn to the Pepperdine School of Law for its unique mix of law and entrepreneurship. “I’ve always been interested in bridging the gap between law and business development,” says Jay, now in his final year in Pepperdine’s joint JD/MBA program.

Following his first year, Jay was accepted as a Fellow in the Geoffrey H. Palmer Center for Entrepreneurship and the Law, a program aimed at providing students with course work, mentors, and internships that prepare them to fulfill the overlapping roles of lawyer and entrepreneur.

Jay soon found himself under the guidance of Janet Kerr, a law professor and the executive director of the Palmer Center. “She’s so accessible; she gives a lot of herself,” Jay observes. Through the Palmer Center, Jay

secured a summer internship to work with Nobel Laureate Muhammad Yunus, founder of the Grameen Bank of Bangladesh, which provides “microloans,” collateral-free small loans to help poverty-stricken families

start small businesses.“It was an amazing experience,”

Jay remembers. “Just being part of a greater social good where people’s lives are being changed—what an opportunity for me to have been part of that.”

Jay says that social entrepreneurship wasn’t on his radar before coming to Pepperdine, but now he’s considering a career in it. “That’s what’s been so great about being mentored by someone like Professor Kerr,” Jay notes. “I’ve been able to

bounce ideas off of her and she points things out that I don’t even realize about myself.”

Self-discovery such as Jay’s is part of the educational experience at Pepperdine, where a great deal of learning takes place beyond the classroom. “The faculty here are amazing examples,” Jay says. “I

can only hope to emulate them.”

MEGHAN OWENzThe journey that led Meghan Owenz to the

Pepperdine Graduate School of Education and Psychology began many years ago when she became fascinated with analyzing what makes people tick. “I became very interested in the intimate nature of relationships,” Meghan recalls.

She came to Pepperdine to pursue a master’s degree in clinical psychology. One of Meghan’s first courses upon arrival was taught by Susan Hall. “Professor Hall is so passionate about what she does,” Meghan says. “She takes such an interest in student development.”

Recognizing Meghan’s interest in research, Susan invited Meghan to serve as her research assistant, and together they formed the Research and Practice Team (RAPT), a student-led group aimed at bringing a more scientific research approach to the study of psychology. “It’s been an amazing opportunity for me,” Meghan remarks. “It really couldn’t be

successful without her guidance and support.”

Meghan and Susan meet on a regular basis to discuss research, but Meghan says that often the conversation goes much deeper. “We dive into discussing life issues,” Meghan

describes. “She’s helped me to develop my future plans and my identity as a professional.”

Meghan also serves as a relationship counselor for the Pat and Shirley Boone Center for the Family, where she conducts training sessions in conflict resolution and communication styles. “I’m learning so much more than just classroom education. That speaks of the whole culture of Pepperdine.”

Meghan’s educational journey will continue, as she plans on pursuing a Ph.D. program to earn her credentials as a psychologist. “I’m also considering an academic setting,” she notes. “As a professor, I’d love to be able to help students who aspire to become therapists.”

MARCELLE HOWARDMarcelle Howard’s journey toward the Pepperdine

School of Public Policy began with a love of numbers and a desire to give back to society—a passion she considers to be something of a family trait. “My parents were very involved with the Big Brothers Big Sisters organization,” Marcelle remembers. “They were always teaching us ways in which we could serve and give back.”

Marcelle earned a degree in finance from Miami University in Oxford, Ohio, but wasn’t sure what her future had in store. That’s when she met economist Angela Hawken, a professor at the School of Public Policy. “I came out to the school for an interview, not even sure if it was what I was looking for,” Marcelle recalls. “By the end of the interview, I couldn’t wait to get started. Professor Hawken opened my eyes to a realm of possibilities.”

Now in her second year of graduate school, Marcelle serves as a teaching assistant

for professors Luisa Blanco Raynal and James Prieger, both teachers of economics, which is Marcelle’s chosen specialty within the program. “They’ve given me so many tools on assessment.

I’ve learned argument and advocacy—how to put words behind my data,” Marcelle says. “I feel so incredibly blessed to be able to receive advice from professors who have been where I want to go. They inspire me.”

Marcelle plans to pursue a career in market analysis and forecast. “I want my work to have a greater purpose,” Marcelle concludes. “Whether it’s helping to maintain

ethics in the private sector or creating public programs that effect change, I know I will be making a difference.”

JOSH WALTERWhen Josh Walter began the JD/MBA program in

2004, he wasn’t entirely sure what he wanted to do with his life. “There were so many options for me to consider,” Josh recalls. “I wasn’t sure what direction I wanted to go.”

All of that quickly changed when he was accepted into The Executive Committee (TEC), a unique mentoring program at the Graziadio School of Business and Management led by Presidential/Key Executive MBA (P/KE) alumnus Gary Brinderson. Working with 12 hand-picked students for an entire year, Gary challenges their personal and professional growth and exposes them to top CEOs who share stories of success and failure. “I didn’t exactly know what I was getting into,” Josh admits. “I thought it would be a great way to get exposure to CEOs, but it was so much more than that.”

Gary began the mentorship program by focusing on Josh’s personal life. “He made it a point that in order to have success in business, I first must be comfortable with everything in my personal life. Accordingly, he equipped me with many tools, from dealing with family relationships to my general outlook on life.”

Josh says he now has a clear course for his career. “Gary has given me incredible direction. I have a very specific business model we’ve worked on in the last few months—it has been an incredible journey.”

Because of the impact Gary has had on his life, Josh hopes to one day serve as a mentor himself. “I want to achieve financial independence so I can go out and help people,” Josh says. “Giving of your money is easy. Giving your time—that’s a lot harder, and often a much better way to serve.”

Student Profiles

the Journey

Year in Review

Walter Cronkite Headlines 31st annual PePPerdine assoCiates dinnerMore than 700 students, faculty, staff, alumni, and friends of the University gathered for the 31st annual Pepperdine Associates Dinner. During the black-tie gala Pepperdine student journalists staged a complex, multiple-camera, live news broadcast, coinciding with the evening’s main attraction: a conversation between veteran news anchor Lester Holt, a Seaver College parent, and the “dean of broadcast news” Walter Cronkite.

Each year those associated with Pepperdine witness academic development, athletic achievement, and meaningful service among its students and faculty. Distinguished guests bring knowledge and expertise to our campuses, while outstanding Pepperdine people share their gifts with the world. With so many remarkable moments in a year at Pepperdine University, we pause to look back at some of the memorable things that happened here in 2007.

PEPPERDINE uNIVERSITY

sacred A Cappella Music Fills Pepperdine recital Halls Ascending Voice, the largest and most eclectic gathering ever devoted exclusively to sacred a cappella music took place at Pepperdine. The international four-day festival drew several world-renowned a cappella groups including the Grammy award-winning recording artists Anonymous 4. Provost Darryl Tippens and music professor N. Lincoln Hanks organized the festival, which was of special interest to congregations and groups that maintain a cappella music traditions.

Pepperdine students Give Back through Project serve Volunteer ProgramProject Serve, Pepperdine’s alternative spring break program, sent teams of students to locations within the United States and South and Central America to provide much-needed volunteer service. This year 215 Pepperdine students spent their spring breaks on trips to 14 sites in seven states and six countries.

President Benton launches alumni leadership CouncilIn an effort to enhance the momentum of recent initiatives supporting alumni, President Benton announced the formation of a new Alumni Leadership Council (ALC) and named Bob Clark (Graziadio ’79) as its head. Robert Katch (Seaver ’84) was named vice president. The ALC replaces the University’s Alumni Board, and several named to the ALC were former Alumni Board members.

live-Feed studio Broadcasts Pepperdine Faculty WorldwidePepperdine’s new live-feed broadcast studio headquartered in the Center for Communication and Business (CCB) connected Pepperdine faculty experts with the world’s major news outlets including CNN, MSNBC, the NewsHour with Jim Lehrer, FOX News, and NPR.

Weisman Museum showcases Jim dine exhibitThe first major survey of drawings by American artist Jim Dine was exhibited for three months at the Frederick R. Weisman Museum of Art. One of

the founders of the Pop Art movement in the early 1960s, Dine created colorful images of iconic objects—tools, hearts, trees—that rank among the most memorable works of postwar American art.

Christian scholar lecture series Hosts scot McknightBest-selling author Scot McKnight discussed “The Jesus Creed: Loving God and Loving Others” for the Fall 2006 Frank Pack Distinguished Christian Scholar Lecture Series. McKnight specializes in historical Jesus studies as well as the Gospels and the New Testament.

Year in Review

PePPerdine CoMMunity Builds HaBitat For HuManity HoMeStudents, faculty, staff, and friends opened their hearts to build Pierre’s Place, the first Pepperdine University Habitat for Humanity house. Named in memory of former Seaver College Board of Visitors member Pierre Claeyssens, the home was built for the Saravia family of four in Oxnard, California.

the Journey

SEAVER COLLEGE

Biology Professor stephen davis named Finalist for Prestigious teaching awardStephen Davis, Distinguished Professor of Biology and member of the Pepperdine faculty since 1974, was selected as one of three finalists for the Robert Foster Cherry Award for Great Teaching sponsored by Baylor University. Because of Davis’ selection as a finalist, the Seaver College Natural Science Division will host a special Cherry Award lecture in the 2007-2008 academic year.

First lady laura Bush delivers seaver College 2007 Commencement addressFirst lady Laura Bush delivered the 2007 Seaver College Commencement speech and received Pepperdine’s highest honor, the honorary doctor of laws degree. In her speech, Mrs. Bush commended the call to service that so many Pepperdine students answer, and invoked the University motto as she encouraged the graduates to make the most of their blessings. “I can tell you one thing that’s certain,” she said. “You won’t waste your talents and education if you ‘freely give’ them in service to

Peace Corps recognizes Pepperdine ParticipationPepperdine University earned a Top 25 ranking on the Peace Corps list of Top Producing Colleges and Universities, which announced the institutions that

have the most alumni currently serving as Peace Corps volunteers. Pepperdine was ranked 21 among small colleges and universities.

seaver College introduces new study-abroad opportunitySeaver College students and faculty traveled to beautiful Lausanne, Switzerland, in January for the inaugural semester of Pepperdine’s newest international program. The Lausanne program serves as the University’s French-speaking study abroad opportunity.

Chair of the national endowment for the arts speaks to studentsDana Gioia, chair of the National Endowment for the Arts, presented “Poetry as Enchantment in a Disenchanted Age,” a poetry reading and discussion, to an audience in Raitt Recital Hall. Poet, critic, best-selling anthologist, and winner of the American Book Award, Gioia is one of the nation’s leading contemporary men of letters.

Communication Professor Michael Casey authors new BookMichael Casey, Carl P. Miller Chair of Communication, wrote a new book titled, The Rhetoric of Sir Garfield Todd: Christian Imagination and the Dream of an African Democracy. Published by Baylor University Press,

Casey’s book is a logical commentary demonstrating Sir Garfield Todd’s political contributions to African democracy. (Ed. note: the Pepperdine community was saddened to learn of Professor Casey’s passing in October after a battle with cancer. He was 48.)

Biology Professor receives Grant from national Geographic society Karen Martin, professor of biology and Frank R. Seaver Chair in Natural Science, was awarded a grant by the National Geographic Society for her project, “The Expanding Range of the California Grunion: A Southern California Icon Surfs North.”

Stephen Davis with student

Prominent entrepreneurs share stories, advice with Pepperdine CommunityPepperdine presented a series of lectures exploring what it takes to be a successful business entrepreneur during Entrepreneurship Week. The week began with a special lecture by Josh Berman, cofounder and COO of MySpace.com. John C. Bogle, founder and former CEO of the Vanguard Group, delivered the keynote address. Elliot McGucken, visiting assistant professor at Seaver College, concluded the week with “Hero’s Journey Entrepreneurship,” an online lecture.

dean david Baird inducted into oklahoma Historians Hall of FameHistorian David Baird, dean of Seaver College, was inducted into the Oklahoma Historians Hall of Fame at a banquet in Oklahoma City.

GRAzIADIO SCHOOL OF BuSINESS AND MANAGEMENT

Pepperdine net impact Chapter Wins rookie Chapter of the year award Pepperdine University’s Net Impact chapter received the prestigious Net Impact Rookie Chapter of the Year award during the 2006 Net Impact Conference. Along with a significant growth in membership, in its first year the group also executed many successful projects including an initiative to increase campus environmental

sustainability efforts and the Net Impact Board Fellows and Service Corps programs, which provide opportunities to members to help their communities through pro bono board service and consulting projects.

Graziadio school Copresents 2007 annual directorship Boardroom Forum In partnership with Directorship magazine, the Graziadio School of Business and Management presented the 2007 Annual Directorship Boardroom Forum titled “The New Rules of Board Effectiveness.” Fortune 500 directors, chief executives, and governance experts, as well as Graziadio School faculty, led the first-ever West Coast forum in a unique mix of panel discussions, work groups, and in-depth peer group exchanges. The forum presented more than 35 speakers, 11 executive keynote addresses, six peer-driven break-out sessions, and over 70 companies and organizations, with topics ranging from executive pay to managing risk and complex regulatory complicacy.

dean’s executive leadership series offers new Podcasts The Graziadio School’s Dean’s Executive Leadership Series featured top business practitioners and thought leaders who shared their views on the real world of business. In-depth interviews with these speakers were made available online as podcasts. The 2006-2007 series featured Patricia Sellers,

seaVer ColleGe Presents tHe 2006-2007 dean’s distinGuisHed leCture seriesFormer Democratic presidential nominee and senator John Kerry shared his personal faith and perspective on the role of faith in public life as he kicked off the 2006-2007 Seaver College Dean’s Distinguished Lecture Series. The series also presented laparoscopic surgeon and author Dr. Leonard Shlain; physicist Dr. Richard Muller; and Myrlie Evers-Williams (left), former chair of the National Association for the Advancement of Colored People, along with investigative reporter Jerry Mitchell.

Year in Review

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editor at-large of Fortune magazine; Brian Frons, president of daytime for the Disney-ABC Television Group; Dennis Tito, CEO of Wilshire Associates Incorporated; William George, professor at Harvard Business School and former chair and CEO of Medtronic, Inc.; and Kawanna Brown, managing partner and COO of Magic Johnson Enterprises.

Graziadio school studies investor attitudes Concerning Corporate ethicsOn the heels of the fifth anniversary of Sarbanes-Oxley legislation, the Graziadio School commissioned a study of investor attitudes toward CEOs and their corporate boards. The Sarbanes-Oxley law holds CEOs and senior management personally accountable for the accuracy of their companies’ financial disclosures. The survey received extensive coverage in the media and revealed that most investors (57 percent) believe the requirements imposed by the law are about right, while approximately one-third (32 percent) say its restrictions did not go far enough. Only eight percent say the law went too far.

Business Plan Competition supports entrepreneurial VentureThe 2006 Pepperdine Business Plan Competition drew business plan proposals from 26 teams offering the chance to win $25,000 and the possibility of obtaining venture financing. Full-time MBA student Tim McCormack was on the winning team recognized for iRent2u.com, a “virtual marketplace” for the rental of goods and services for and by individuals.

SCHOOL OF PuBLIC POLICY

Public Policy Professor receives 2007 Bradley Prize James Q. Wilson, Ronald Reagan Professor of Public Policy, was awarded a 2007 Bradley Prize by the Lynde and Harry Bradley Foundation. The Bradley Prizes honor outstanding achievement consistent with the foundation’s mission that includes “strengthening American democratic capitalism and the institutions, principles, and values that sustain and nurture it.”

Professor angela Hawken receives Grant for Probation enforcement researchAngela Hawken, assistant professor of public policy, was awarded a $240,968 research grant from the Smith Richardson Foundation for probation enforcement research. Hawken is the principal investigator of the evaluation of Hawaii’s HOPE program, which uses swiftness and certainty in enforcing probation conditions. As lead economist on an evaluation of the California Substance Abuse and Crime Prevention Act (Proposition 36), Hawken has become an expert in issues of incarceration and rehabilitation.

school of Public Policy Welcomes 2007 distinguished Visiting ProfessorsThe School of Public Policy welcomed two outstanding experts in their field as visiting faculty during the 2006-2007 academic year. The Fall 2006 Distinguished Visiting Professor Joseph Loconte conducted the course Public Policy and Religion and discussed “Jesus in Darfur: A Christian Case for Humanitarian Intervention” as part of the Charles and Rosemary Licata Lecture Series. Daniel Pipes, Spring 2007 William E. Simon Distinguished Visiting Professor, presented a seminar in Islam and politics and lectured on “Radical Islam and the War on Terror.”

school of Public Policy explores emerging Field of deliberative democracyAlong with Common Sense California, the School of Public Policy hosted a conference on the emerging field of deliberative democracy. A number of California civic leaders and experts nationwide joined in the conference’s examination of deliberative democracy and how it might be useful in improving California’s public policy.

Dean Linda Livingstone and Patricia Sellers

SCHOOL OF LAW

renowned legal scholar Grant s. nelson Joins school of law FacultyNationally acclaimed real estate scholar Grant S. Nelson joined the School of Law faculty as the William H. Rehnquist Professor of Law. As one of the leading real estate law professors in the country, Nelson has published numerous books and articles on real estate finance law, property, and remedies, and has taught these subjects for 40 years.

Moot Court team Wins Prestigious international CompetitionThe School of Law Moot Court team won the prestigious Willem C. Vis (East) International Commercial Arbitration Moot in Hong Kong. Pepperdine competed in four preliminary rounds alongside teams from 46 law schools, representing 14 countries on five continents. In the final round, Pepperdine won First Place in a competition against Monash University from Australia.

duane and kelly roberts endow Pepperdine’s First dean’s ChairGenerous benefactors Duane and Kelly Roberts of Laguna Beach endowed Pepperdine’s first dean’s chair with a seven-figure gift to the University. The Roberts’ generosity endowed the chair of the dean of the Pepperdine School of Law currently held by Kenneth W. Starr.

symposium addresses First year of the roberts CourtIn its first major symposium of the year, the School of Law welcomed the nation’s leading Constitutional scholars for “The Rookie Year of the Roberts Court & A Look Ahead.” Panelists included Akhil Reed Amar, Erwin Chemerinsky, Elizabeth Garrett, and Pepperdine’s Doug Kmiec and Dean Ken Starr, who examined the U.S. Supreme Court’s latest term. A nationwide audience watched the proceedings via C-SPAN on a program titled America & the Courts.

Herbert and elinor nootbaar endow institute on law, religion, and ethicsHerbert and Elinor Nootbaar of Laguna Beach, California, endowed the Herbert and Elinor Nootbaar Institute on Law, Religion, and Ethics with a generous $5 million gift. Robert Cochran, director of the institute and the Louis D. Brandeis Professor

PalMer Center Honors noBel laureate MuHaMMad yunusRepresentatives from Pepperdine’s Geoffrey H. Palmer Center for Entrepreneurship and the Law traveled to Bangladesh to present Nobel Laureate Dr. Muhammad Yunus, founder of the Grameen Bank, with the Palmer Center’s 2006 Social Entrepreneur of the Year award. The Grameen/Pepperdine partnership continued this past summer when the Palmer Center sent students Amadea Goresh, Ian Davis, and Jay Milbrandt to Bangladesh to intern with Yunus.

Yunus also addressed in fall 2007 an audience of more than 700 at the School of Law. The renowned economist and visionary spoke on microcredit, an innovative practice he pioneered that has helped lead millions of people out of poverty. It was Yunus’ only Los Angeles-area public appearance.

Year in Review

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of Law, said the endowment will enable the institute to further investigate the nexus between law, religion, and ethics, in addition to providing students and faculty the opportunity to explore these areas through interdisciplinary seminars, conferences, and symposia.

GRADuATE SCHOOL OF EDuCATION AND PSYCHOLOGY

online distance learning Program earns Platinum HonorThe Graduate School of Education and Psychology (GSEP) was honored with the 2007 Platinum Award for Online Distance Learning Programming from the United States Distance Learning Association (USDLA), the world’s premier distance learning association. Each year their prestigious, global awards honor major accomplishments in distance learning and highlight those distance learning

instructors, programs, and professionals who have achieved and demonstrated extraordinary results through the use of online, videoconferencing, satellite, and blended-learning delivery technologies.

doctor of Psychology Program Celebrates 20 yearsGSEP celebrated the 20th anniversary of the founding of the Doctor of Psychology (Psy.D.) program at a special ceremony in October. Alumni and current students of the Psy.D. program gathered along with faculty, staff, and administrators to commemorate 20 years of educating and training service-oriented psychologists who are dedicated to embodying the University mission in their service to others.

Pat and shirley Boone endow Center for the FamilyLegendary entertainer Pat Boone and his wife Shirley, longtime Pepperdine supporters, funded a $3 million endowment in support of the University’s Center for the Family. Founded in 1996 as a branch of the Graduate School of Education and Psychology, the Center for the Family is a community outreach program that promotes healthy relationships and strong families. It provides resources to encourage and equip young adults, couples, parents, and families in their relationships.

suPreMe Court JustiCe saMuel alito Headlines inauGural WilliaM FrenCH sMitH MeMorial leCture The School of Law welcomed U.S. Supreme Court Justice Samuel Alito and attorney Carter G. Phillips for the inaugural William French Smith Memorial Lecture on Law and the Judiciary. Alito and Phillips shared their thoughts on Supreme Court advocacy and deliberation before a full auditorium and live C-SPAN cameras. A gala dinner event marked the establishment of the new annual lecture series, named in honor of the 74th attorney general. Among the distinguished guests were Rudy Giuliani and former first lady Nancy Reagan.

GSEP 20th Anniversary

sultanate of oman invites Professor of education to speak to Ministry of educationDiana Hiatt-Michael, professor of education, visited the Sultanate of Oman to discuss family-school-community partnerships at the invitation of the U.S. Embassy and Oman Ministry of Education. A U.S.-Middle East Educational Partnership Grant was secured by the Oman Ministry of Education to finance her trip.

Psychology Professor Publishes new textPsychology professor Lou Cozolino authored a new book titled The Neuroscience of Human Relationships: Attachment and the Developing Social Brain (W. W. Norton). In the text Cozolino demonstrates how brains are highly social organisms. Balancing cogent explanation with instructive brain diagrams, he presents an atlas illustrating how the architecture and development of brain systems—from before birth through adulthood—determine how humans interact with others.

PEPPERDINE ATHLETICS

Waves athletic teams advance to Championship PlayMen’s baseball, women’s golf, men’s and women’s tennis, and men’s and women’s volleyball teams all competed at the 2006-2007 NCAA Championships. The women’s golf team turned in its fifth-straight Top 10 showing and finished seventh at the NCAA championships. The men’s and women’s tennis teams advanced to the second round of championship play. Pepperdine teams also captured West Coast Conference (WCC) championships in four sports: men’s golf, women’s golf, men’s tennis, and women’s tennis.

student-athletes earn High HonorsNine student-athletes earned All-American honors this season: Jayvie Agojo (women’s golf), Andre Begemann (men’s tennis), Paul Carroll (men’s volleyball), Misun Cho (women’s golf), Bianca Dulgheru (women’s tennis doubles), Barry Enright (baseball), Sylvia Kosakowski (women’s tennis doubles), Eileen Vargas (women’s golf), and Jonathan Winder (men’s volleyball). Winder also was tabbed the National Player of the Year. Scholar-athlete Richard Johnson (men’s tennis) won the WCC Postgraduate Scholarship Award and was selected WCC Defender of the Year. Begemann, Cho, and Winder each won their respective sport’s Player of the Year award.

Pepperdine Coaches recognized as Coaches of the yearWomen’s golf coach Laurie Gibbs was named WCC’s Coach of the Year while Marv Dunphy was tabbed the MPSF’s Coach of the Year in men’s volleyball.

PePPerdine tennis CHaMPions ConduCt tennis CliniC For d.C. youtH Ten members of Pepperdine’s 2006 NCAA Division I National Championship-winning tennis team conducted a tennis skills clinic for disadvantaged youth in southeast Washington, D.C. Held on Father’s Day, the clinic coincided with a White House ceremony where President George W. Bush honored NCAA Division I Champions.

Laurie Gibbs

Year in Review

the Journey

SEAVER COLLEGE

Seaver College welcomed four new members to its exceptional faculty in the Religion Division. dyron daughrity comes to Pepperdine as an assistant professor after earning a Ph.D. from the University of Calgary. He was awarded four research scholarships by the Disciples of Christ (Canada), and his Ph.D. dissertation has been accepted for publication. A book chapter and four scholarly articles have been published by Dryon as well.

kindalee delong (Seaver ’87, ’94) returns to her alma mater after receiving a presidential fellowship and a graduate fellowship at the University of Notre Dame, where she earned her Ph.D. Kindalee has several years of work experience at Pepperdine, including serving as the coordinator of the Christian Higher Education Project. Prior to her new appointment as assistant professor, she served as an adjunct and visiting instructor at Seaver.

Seaver College also welcomed home Chris doran (Seaver ’98, ’02) as an assistant professor of religion. With a Ph.D. in religion from Graduate Theological Union, Chris is the cofounder and president of the Faith and Education Scholarship Fund, providing scholarships to members of Churches of Christ. He brings four years of teaching experience as a summer adjunct faculty member at Seaver.

Rounding out the new additions to the Religion Division is raymond Carr (Seaver ’00). Currently pursuing his Ph.D. from Graduate Theological Union, Raymond served as the speaker at Seaver College’s 2001 baccalaureate ceremony and was also a lecturer at the 63rd Annual Bible Lectures at Pepperdine in 2006. He served as an adjunct instructor at Seaver for six years and was appointed a visiting instructor in the spring of 2007.

Seaver College’s Social Science Division is thrilled to have added three outstanding professors to its faculty. Coming to the division as an associate professor of economics, Jonathan Burke brings several years of teaching experience from academic institutions including Indiana University-Purdue University Indianapolis. Jonathan earned his Ph.D. in economics from Massachusetts Institute of Technology and has authored several published scholarly articles and has written his own textbooks.

theodore Gardner (GSEP ’01) joins the division as an assistant professor of psychology after having earned his Ph.D. from the University of Oregon. Theodore received a predoctoral research fellowship training award from the National Institute of Mental Health and served as an intern at the Cedars-Sinai Medical Center and at Wasatch Mental Health. Additionally, he taught at the University of Oregon.

Welcome New FacultyThe success of any university can be measured most effectively by the people it attracts. This year, Pepperdine welcomed 42 faculty members across all five schools. Each professor possesses unique talents and gifts, a commitment to uphold the highest academic standards, and a common purpose to serve and empower students.

Also coming on board as an assistant professor of psychology is davis Brimberg, who after earning her Ph.D. from Yeshiva University, participated in a postdoctoral fellowship at Harvard University. She brings prior teaching experience from the Graduate School of Education and Psychology and California State University, Los Angeles.

The Seaver College Business Administration Division welcomed andrei duta as an assistant professor of organizational behavior/management. Having earned his Ph.D. from Texas A&M University, Andrei is the founder and president of His Little Ones, Inc. Andrei previously taught at Montgomery College and Texas A&M University.

Vassilis Polimenis joins the Business Division as an associate professor of finance. Vassilis earned his Ph.D. from the Wharton School of the University of Pennsylvania and has written a number of journal articles in addition to several conference presentations in the

United States, Canada, and Europe. He comes with teaching experience from the Wharton School and the University of California, Riverside.

Cheryl Peterson is a welcome addition to the Natural Science Division of Seaver College as a visiting assistant professor of mathematics. Having earned her Ph.D. from Texas Tech University, Cheryl has received numerous scholarships and awards, including the NASA/Texas Space Grant Consortium Fellow award. She brings teaching experience from Claremont McKenna College; California State University, Channel Islands; and Texas Tech University.

rie sasaki joins the Natural Science Division as a visiting assistant professor of sports medicine. Currently pursuing her Ph.D. from the University of Missouri-Columbia, Rie was the recipient of a 2006 American Heart Association predoctoral fellowship. She has many research interests, including cardiovascular physiology and gender physiology. She has previous teaching experience from the University of Missouri-Columbia.

The Humanities and Teacher Education Division is pleased to welcome several new faculty members to their exceptional cadre of professors. damian Jenkins (Seaver ’93, ’98) comes home to Pepperdine as a visiting instructor of teacher education while pursuing her Ph.D. from the University of California, Santa Barbara (UCSB). Damian has served as an adjunct instructor at Seaver College for nine years and is currently a research fellow of the Center for Literacy Inquiry Networking Communities.

Caleb Clanton joins the excellent philosophy faculty as an assistant professor. He comes to Seaver from Vanderbilt University, where as a student he earned his Ph.D., and as a professor he earned several teaching awards, including Pi Beta Phi and Lotus Eaters Sophomore Honorary’s Most Outstanding Professor. Caleb has authored an original manuscript and four scholarly articles.

Joining the division in the English department are three outstanding individuals. John struloeff, assistant professor of creative writing, has just completed a postdoctoral fellowship at Stanford University, serving as the Wallace Stegner Creative Writing Fellow. In addition to his time at Stanford, John brings teaching experience from the University of Nebraska-Lincoln.

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kindalee delongJordan smith

Caleb ClantonJohn Peterson

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While stephen Parmelee, (Seaver ’74, ’83) was recently named an assistant professor of English, his relationship with Pepperdine goes back many years. He has served for 15 years as a visiting instructor at Seaver College, where he has assisted in the curriculum development of English courses. Stephen has also been active in the development and administration of the film studies major in the Humanities and Teacher Education Division.

John Peterson offers his expertise as a visiting instructor of composition while earning his Ph.D. from Claremont Graduate University, where his area of interest includes American comparative literature. John has teaching experience from Mt. San Antonio College; University of California, Riverside; and University of Redlands.

Seaver College Communication Division welcomed a handful of outstanding new members to its fellowship of communication professionals. keli Finnerty (Seaver ’03) joins the team as an assistant professor of communication after earning her Ph.D. from the University of Arizona. Additionally, Keli served as both a teaching associate and research associate at the University of Arizona.

sarah stone-Watt, assistant professor of communication, earned her Ph.D. from The Pennsylvania State University. She has received several debate honors and has served as the debate coach at the Wyoming Forensics Institute, University of Wyoming, and Marist College. She previously taught at The Pennsylvania State University and the University of Wyoming.

In the area of public relations, Valerie terry comes to the division as an assistant professor. With a Ph.D. from

Purdue University, Valerie traveled to the Republic of Kazakhstan as a Fulbright Scholar, and has twice been a U.S. State Department international grant participant. She has prior teaching experience from several universities, including Boston University and Purdue University.

The Communication Division also welcomed three visiting instructors to enhance its outstanding programs. samantha Barrientos (Seaver ’05) returns to Pepperdine as a visiting instructor of communication after earning her master’s degree in speech communication from the University of Georgia. Her areas of interest include interpersonal conflict, relational communication, and intercultural communication. She previously taught at the University of Georgia.

kristen reid (Seaver ’01, ’03), returns to her alma mater as a visiting instructor of communication. Kristen has worked in various institutions at both the high school and university level as a debate instructor and coach. She comes to Seaver with previous teaching experience from Westmont College.

kristine Clancy, visiting instructor of debate, is currently pursuing her Ph.D. from Purdue University. Kristine has made numerous conference presentations and won the Top Paper award at the National Communication Association Conference in 2005. She has previous teaching experience from California State University, Long Beach and Purdue University.

The Fine Arts Division was pleased to add three theatre professors to its reputable program. Benoit Beauchamp comes to the program as a visiting assistant professor of

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Cheryl Petersontheodore GardnerJonathan Burke

theatre after having earned an M.F.A. in theatre design from California Institute of the Arts. Benoit has several years of theatre experience and brings teaching practice from Stony Brook University and California Institute of the Arts.

a. Bryan Humphrey also joins the theatre department as a visiting assistant professor of theatre. Bryan has a master of divinity from Southwestern Seminary and a master’s in directing from Baylor University. He has

authored four adaptations of Shakespeare’s plays and has previous teaching experience from Ohio University, Baylor University, and University of Northern Colorado.

Welcomed into the department as a visiting instructor of theatre, Bill szobody has choreographed shows at Pepperdine, UCLA, and on Broadway, and is the director of Pepperdine’s Dance in Flight. In 1998, Bill won Broadway’s Fred Astaire Dance Award for Best Ensemble. He has previously served as an adjunct instructor at Seaver College and also teaches at UCLA.

The International Studies and Languages Division welcomed three new professors to its distinguished faculty. Jordan smith joins the division as a visiting instructor of Asian studies. While currently pursuing his Ph.D. from UCLA, Jordan has received numerous fellowships to conduct research in Japan and Peru. He brings teaching experience from schools in Korea and Japan as well as UCLA and California State University, Long Beach.

The foreign languages area has brought in Christie Culp (Seaver ’02) as a visiting instructor of Italian. Christie

earned a master’s degree in Italian literature from UCLA, where her areas of interest included Italian theatre and the portrayal of religion in literature. She has previous teaching experience from UCLA.

Completing appointments in the International Studies and Languages Division is tiffany Powell, visiting assistant professor of Spanish. Having earned her Ph.D. in Hispanic literature from The University of Texas at Austin, Tiffany has conducted research in several

locations abroad, including Peru, Ecuador, Brazil, Spain, and Mexico. She brings teaching experience from UCLA, Emory University, Georgia State University, Clark Atlanta University, and The University of Texas at Austin.

GRAzIADIO SCHOOL OF BuSINESS AND MANAGEMENT

Pepperdine’s highly esteemed Graziadio School of Business and Management was successful once again in recruiting several high caliber professors to its already impressive faculty lineup. John Buckingham was welcomed as a practitioner faculty to teach marketing and strategy from his wealth of experience serving as a senior level executive for many years. He has served as an adjunct professor at both Pepperdine and UCI.

John durand (Seaver ’03, Graziadio ’06) was welcomed home to the Graziadio School as a practitioner faculty. John is president and CEO of SUMMA Marketing, Inc., an agency providing marketing, creative, and technical services to growing and start-up businesses. John has

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William laFittedyron daughrity

robert andersonGrant nelson

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John r. Folkeson, Jr.davis Brimberg

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previous experience as a lecturer for courses in the Fully Employed MBA program and the B.S.M. program at Pepperdine.

John r. Folkeson, Jr., was brought on as a practitioner faculty to teach decision science to undergraduates and MBA students. He is a retired senior analyst from the RAND Corporation and he also enjoyed a career in the U.S. Air Force, where he served as a logistics analyst. John earned an MBA from the University of Missouri and a Ph.D. from the University of Houston.

ronald d. Ford has been appointed the director of executive education for the Graziadio School. With a Ph.D. from Case Western Reserve University, Ron is the CEO of St. Clair Entertainment, one of the leading independent providers of video and audio entertainment. Ron has executive-level experience in several industries, including real estate funds, printing and publishing, and private equity.

Maretno agus Harjoto (augus) joins the highly-ranked school as an assistant professor of finance. Augus comes with previous teaching experience from San Jose State University, where he received the Dean’s Academic Research Award, the Graduate Teaching Award, and early promotion to associate professor. His area of expertise is asset and liability management.

H. lynn newman joins the school as practitioner faculty after having worked as an organization consultant in private practice. Lynn has been a facilitator, instructor, and lecturer at several quality universities,

including USC, University of Michigan, and Harvard Business School. She has publications in the areas of organizational change and action research continuum, and earned her Ph.D. from the Marshall School of Business at USC.

The Graziadio School was thrilled to appoint abraham Park as assistant professor of finance. Abraham brings with him an impressive educational background, including a master’s in public policy from Harvard University; a J.D. from UC Berkeley; and a Ph.D. in real estate finance from Cambridge University. Abraham has vast experience in the business world, including serving as a top manager for a Silicon Valley company during the tech boom.

GRADuATE SCHOOL OF EDuCATION AND PSYCHOLOGY

Pepperdine’s prestigious and highly acclaimed Graduate School of Education and Psychology announced four appointments this year. thema Bryant-davis, assistant professor of psychology, earned her Ph.D. from Duke University. Her active research interests include the cultural context of trauma recovery for people of African descent, and other areas that integrate her understanding of, and experience in, psychology, theology, and culture. Thema previously served as an assistant professor at California State University, Long Beach.

GSEP was delighted to appoint eric Hamilton to the role of associate dean for the Education Division. Having earned

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samantha Barrientos luisa Blanco raynalJohn durand amy tuttle

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Maretno agus HarjotoValerie terry

his Ph.D. in mathematics education from Northwestern University, Eric is one of the leading authorities in America on the reform of mathematics education. He is currently director of the USAF Academy Center for research on learning and teaching. Eric previously taught at Loyola University of Chicago.

Currently completing his Ph.D. from Alliant International University, William o. laFitte (GSEP ’82) was recently appointed to the role of research consultant in psychology, where he will assist GSEP with dissertation and presentation methodology. William has been part of the adjunct and visiting faculty at GSEP since 1985.

Rounding out the depth of expertise among new faculty at GSEP is amy r. tuttle, who was named assistant professor of psychology. She has taught in the California State University system for more than three years and is a licensed marriage and family therapist. Amy maintains a clinical practice serving disadvantaged youth, and teaches children in the religious education department at her church.

SCHOOL OF LAW

Pepperdine’s acclaimed School of Law successfully appointed four new members to its diversely talented faculty. With a J.D. from New York University School of Law and a Ph.D. in political science from Stanford University, associate professor robert anderson’s primary research interests are in corporate and securities law, positive political theory of the judiciary, and quantitative and empirical approaches to law.

Appointed professor and associate dean, Herbert e. Cihak comes to Pepperdine with a J.D. from the University of Nebraska. His previous service includes posts as director of the law library and professor of law at the University of Missouri, the University of Kentucky, Louisiana State University in Baton Rouge, and the University of Arkansas in Fayetteville.

Grant nelson comes to Pepperdine as the William H. Rehnquist Professor of Law. Having earned his J.D. from the University of Minnesota, Grant was professor of law at UCLA, where he received the UCLA Distinguished Teaching Award. Additionally, Grant is coauthor of 14 books and author of 35 law review articles and book chapters.

Hilary stirman reed (SOL ’04), returns to her alma mater as an assistant professor after many years of experience in the Adversarial Department and Bankruptcy Group at O’Melveny & Myers LLP. Additionally, she was a Blackstone Fellow at the Liberty Legal Institute in Texas and a National Merit Scholar at ACU.

SCHOOL OF PuBLIC POLICY

Pepperdine’s esteemed School of Public Policy was pleased to announce the addition of luisa Blanco raynal as an assistant professor. Louisa earned an MBA from Midwestern State University and a Ph.D. in economics from University of Oklahoma before teaching courses at University of Oklahoma in macroeconomics theory. Her research interests focus on policy making in Latin American countries.

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tiffany Powellabraham Park

sarah stone-WattHerb Cihak

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Senior AdministrationANDREW k. BENTON President and Chief Executive Officer. Following a desire to work with young people in their pursuit of higher education, Andrew K. Benton embarked on a career path that led to his current role as the seventh president of Pepperdine University. Prior to becoming president in 2000, Andy served as Pepperdine’s executive vice president and chief operational officer. Andy enjoys teaching courses on a regular basis and is deeply involved in the lives of students. He is active in many organizations including the Board of Directors for the Employers Group of California and the executive committee for the West Coast Conference. Most recently, Andy is the vice chair/chair-elect of the board of directors of the American Council on Education (ACE), the major coordinating body for all of the nation’s higher education institutions.

CHARLES B. RuNNELS Chancellor Emeritus. This year Charles B. Runnels celebrates his 40th anniversary as a member of the Pepperdine community. Since 2006, Charlie has served as Chancellor Emeritus, where his primary focus is to maintain relationships with Pepperdine Associates, University Board members, and others, and to bring new friends into the Pepperdine family. Charlie began his career with Pepperdine in 1967, serving on a committee whose work resulted in the establishment of the Malibu campus in 1971. He served as vice chancellor for many years before becoming chancellor in 1985.

DARRYL L. TIPPENS Provost and Chief Academic Officer. Darryl Tippens has ably served as Pepperdine’s provost since 2001. As the chief academic officer, Darryl provides academic leadership to the University and its five schools and colleges, and devotes significant time to issues of academic planning, program development, and the advancement of scholarship. Darryl has been a devoted servant of academia for more than 30 years. Prior to joining the Pepperdine family, he was the James W. Culp Distinguished Professor of English at Abilene Christian University. Darryl is also a prolific writer and has published numerous articles and books, including his two most recent top sellers, Pilgrim Heart: The Way of Jesus in Everyday Life and Shadow and Light: Literature and the Life of Faith.

GARY A. HANSON Executive Vice President and Chief Operating Officer. Gary Hanson has a long history with Pepperdine dating back to 1980, when he graduated from the Pepperdine School of Law. He joined the legal staff at Pepperdine in 1982 and became general counsel in 1984. He was appointed vice president and general counsel in 2000, and since 2006, has had the added responsibility of being chief operating officer, who oversees a wide variety of campus operations. Gary has also taught courses at both the School of Law and Seaver College.

CHARLES J. (JEFF) PIPPIN Senior Vice President for Investments and Chief Investment Officer. Jeff Pippin has been a vital member of the Pepperdine family since 1981. He most recently served for six years as vice president for finance and administration before being appointed to his current role as senior vice president and chief investment officer in 2006. In this position, Jeff is responsible for management of University investment assets including endowment, general reserves, treasury, trusts and annuities, and real estate. He also serves as president of the University’s three affiliated management and holding entities: Wave Enterprises, Wave Properties, and Wave Services. Additionally, Jeff serves on the board of the Common Fund, an organization dedicated to enhancing the financial resources of nonprofit institutions.

NANCY MAGNuSSON DuRHAM Senior Vice President for Planning, Information, and Technology. Since her appointment as vice president for planning, information, and technology in 2000, Nancy Magnusson Durham has been successfully leading the University’s strategic planning efforts, which include developing a program for assessing educational effectiveness, enhancing and remodeling the University libraries, and providing the technology necessary for instruction and administration. Nancy began her career at Pepperdine in 1979 as an assistant professor of psychology at Seaver College. Since then she has served as the dean of the Graduate School of Education and Psychology and the director of the London program.

S. kEITH HINkLE Vice President for Advancement and Public Affairs and Chief Development Officer. A graduate of the Pepperdine School of Law, Keith Hinkle joined Pepperdine’s Center for Estate and Gift Planning in 2000 and later became associate vice chancellor. In 2006, Keith was appointed vice president for advancement and public affairs. His duties include overseeing alumni affairs, the annual fund, major gifts, donor services, planned giving, and public affairs. Licensed in the state of California as an attorney and a certified public accountant, Keith practiced tax law in Orange County, California, and also spent time as a public accountant in Nashville, Tennessee.

Senior Administration

Academic Deans

the Journey

W. DAVID BAIRDDean, Seaver College

After nearly 10 years as the highly regarded dean of Seaver College, David Baird is currently serving his last year in this top leadership position, though he will continue on in his professorial role. David began his service to Pepperdine in 1988 as the Howard A. White Chair of History. He served a four-year term as the chair of the Humanities and Teacher Education Division before becoming dean in 1998. In 2007, David was elected as a member of the Oklahoma Historians Hall of Fame by the Oklahoma Historical Society. He is currently serving a three-year appointment as a member of the Gibson Prize Committee, an organization that offers awards for essays on the history of Native Americans.

LINDA A. LIVINGSTONEDean, Graziadio School of Business and Management

Pepperdine recently announced the reappointment of Linda Livingstone as dean of the Graziadio School of Business and Management for a second five-year term. Linda has served as the first woman dean of the Graziadio School since June 2002. During her tenure, she has overseen a $200 million expansion of the business school’s regional campuses and the opening of the 50-acre Drescher Graduate Campus. Linda has sought to hire and support faculty committed to teaching excellence, quality scholarship, and the University’s Christian mission. Under her leadership, the school has initiated a faculty sabbatical program; the Denney Academic Chair; the Julian Virtue Professorship; and the Rothschild Award to facilitate increased emphasis on applied and relevant academic research.

left to right: kenneth W. starr, W. david Baird, Margaret J. Weber, linda a. livingstone, James r. Wilburn

Drescher Graduate Campus, Malibu

West Los Angeles

Graduate Campus

Westlake Village

Graduate Campus

Pasadena Graduate Campus

School of Law, Malibu

Orange County

Graduate Campus

kENNETH W. STARRDean, School of Law

Ken Starr has served as dean and professor of law at the School of Law since 2004, after a long and distinguished career as a lawyer and judge. Recently he was recognized as one of America’s preeminent legal figures during a ceremony at the United States Court of Appeals for the District of Columbia Circuit, where a portrait of him will remain on view permanently, joining the images of acclaimed judges who have served on that same court. Since coming to Pepperdine, Ken has strengthened the School of Law’s reputation and classroom experience by attracting nationally recognized scholars and professors from around the country. This past year, Ken became the first School of Law dean to hold the Duane and Kelly Roberts Dean’s Chair.

MARGARET J. WEBERDean, Graduate School of Education and Psychology

Since being named dean of the Graduate School of Education and Psychology in 2001, Margaret Weber has brought to Pepperdine a distinguished background in research, teaching, and administration. Margaret has a strong belief in faculty development and program innovation, and has spearheaded a number of GSEP programs including the Urban Initiatives program and the Diversity Council. As part of her scholarly work, she has published articles on such topics as multicultural leadership and diversity; defining scholarship, mentoring, and the socialization of graduate students; and the value of investment in faculty. In 2006, Margaret participated in the fourth annual session on Women’s Leadership at Exeter College of the University of Oxford, where she presented “Leadership Perspectives: Faith Influences on Women.”

JAMES R. WILBuRNDean, School of Public Policy

The School of Public Policy celebrated its 10th anniversary this year. Under the leadership of founding dean, James Wilburn, the School of Public Policy has rapidly gained national and international attention. With a long history at Pepperdine, including serving as the dean of the business school for many years, Jim has been instrumental in recruiting dedicated faculty of the highest caliber. Jim recently announced that widely acclaimed author Os Guinness will be the William E. Simon Distinguished Visiting Professor for 2008. Also essential to the school’s success has been Jim’s dedication to maintaining one of the most robust extracurricular lineups of practitioners and established scholars in the nation.

Academic Deans

Advancement Team

the Journey

ON OCCASION, I will invite a friend or a prospective student and her or his family to take a short “road trip” around the Malibu campus with me. Without fail, my guests will comment on the stunning view and pleasant sea air. Together, we will breathe deeply and note that we are in

a blessed place. But then their attention will turn to those whose names and portraits they see in hallways, classrooms, theatres, and on the side of buildings, and they will ask about these people.

“These are the leading characters in the Pepperdine story,” I tell them. “Many of them stood in this spot when it was a barren hillside and they saw a world-changing possibility. As they surveyed this very place they saw an opportunity to change the world one student at a time. These men and women believed in Pepperdine’s record of providing a distinctive liberal arts education to bright, high-minded undergraduate students. They joined us as we expanded our vision to include purpose-filled yet practical graduate programs in law, public policy, business, education, and psychology.” My guests listen as the story unfolds and they breathe deeply, take in the air, and note that we have been blessed.

A WORLD-CHANGING POSSIBILITYWhen I ponder Pepperdine’s 70-year journey, I

am amazed by how far we have come in such a short period of time. The explanation for this success lies deep within the University’s unique mission that demands that our students receive an education that informs both the heart and the mind. At Pepperdine, the pursuit of truth is informed by both faith and

academic excellence. It is a place where faith is not only tolerated, but encouraged; a place where the concern and love of neighbor is equally relevant in the pursuit of wisdom. I see the potential that flows from this mission every day.

Whether considering our excellent faculty made up of world-class scholars who have not lost their love for teaching, or our talented, purposeful students who have a strong sense of optimism for not only their future but that of the entire planet, or the remarkable impact our alumni are having across the globe, I can’t help but feel that something greater than all of us is at work at Pepperdine University.

It is my personal belief that God has been with this University since its founding. We have been preserved through crisis and elevated during moments of triumph in ways that only divine providence can adequately explain. Today, we stand in a position of strength thanks to a growing endowment, fueled by generous friends and alumni who share the values of this University and its promise for tomorrow.

I give thanks for the outpouring of generous support that we received last year. I am humbled when I think of the many people who continue to give of themselves to empower new opportunities. As I look forward to our best years yet to come, my prayer for Pepperdine is that we will continue to build upon George Pepperdine’s vision in a manner that glorifies God. In the coming year, I invite you to dream with us and to recommit yourself to this special place as we seek to transform the world one student at a time.

Keith HinkleVice President for Advancement and Public Affairs

keith Hinkle, Helen young

Charles runnels, lou drobnick

drew Hoff, lance keene, ann kratz

Jon kemp, Heidi Bernard, Michael neils

ron Phillips, sara Jackson

Claudia Preston, Michael Warder

Curt Portzel, kira Baccari

debi klein, sam lagana

Claudette laCour, Michael Zakian

Cathy kort, John Miller

Advancement Team

the Journey

Preparing for the Road Ahead

If we look carefully at our lives during the past year, we catch glimpses of the hand of God at work. Looking back at the financial year for Pepperdine, we see a remarkable year of blessing. We have been blessed with faculty, staff, and friends who support Pepperdine in the pursuit

of its unique mission. We have been blessed with strong investment returns and dedicated leadership. And, we have been blessed with a sense of purpose that drives us to find new and better ways to positively affect the lives of our students.

Continued positive operating results, strong investment returns, and increased gifts from friends have raised Pepperdine’s total assets by $218 million to total over $1.4 billion. The University’s net assets increased commensurately, growing by $216 million to total over $1 billion.

Pepperdine’s investment portfolio returned approximately 30 percent during fiscal 2007, providing $210 million of support, gains, and income to University operations. Contributing to the significant investment gains in fiscal 2007 was the recognition of a $100 million increase in investments held by external trustees.

At the close of fiscal 2007, University endowment and quasi-endowment funds totaled $712 million, a 37 percent increase from one year ago. Increasing endowment through investment returns as well as new gifts is critically important to expanding financial aid to our students and providing ongoing support for University operations.

Long-term obligations decreased from one year ago as a result of scheduled principal amortization, and totaled $209 million at the end of fiscal 2007. The University’s conservative capital structure is evidenced by the low ratio of long-term debt to total capitalization of only 16 percent at the end of fiscal

2007. The University’s strong debt rating affords the ability to issue additional low-cost debt should a warranted need arise. However, capital expenditures during the next two years are expected to be funded through existing reserve funds and future gifts from friends. Refurbishments are underway for several buildings on the Malibu campus that have provided many years of service, and plans have begun for additional student housing to satisfy accommodation needs in one of the most expensive housing markets in the country.

Improving academic quality places limits on the number of students that we enroll at our five schools. Currently, Pepperdine enrolls a total of approximately 7,600 students. The number of students enrolled is important since approximately 70 percent of operating revenues come directly from students. For fiscal 2007, net tuition revenues totaled $157 million, relatively unchanged from last year. While demand remains strong for most of Pepperdine’s academic offerings, we reduced the number of enrolled students during fiscal 2007 in order to provide a higher quality educational experience. Reducing enrollment has a significant impact on the operations of the University, since student-derived revenues either remain unchanged or decline, while the costs of delivering the educational experience continue to increase.

The impact of declining student enrollment can be seen in the level of change in net assets before non-operating revenues and expenses, which declined $6 million from year-ago levels to total $21 million for fiscal 2007. Increasingly, the University will be looking to endowment support as well as increased gifts from friends to provide the funds necessary for continued strategic investment in academic and capital programs.

While Pepperdine remains dependent on student-derived revenues to support its activities, progress has been made in reducing that dependency. Net tuition revenues accounted for 60 percent of total revenues

A Review of Fiscal Year 2007

REVENuES

A Net Student Tuition and Fees B Room and Board C Private Gifts and Grants D Endowment Support E Government Grants F Sales and Services G Other Revenue

A Instruction and Research B Academic Support C Student Services D Public Service E Auxiliary Enterprises F Management and General G Membership Development H Fundraising

ExPENSES

A

B

C

D

E

F

G

A

B

C

D

E F G H

during fiscal 2007, a significant decline from 66 percent three years ago. At the same time, private gift and grants revenues increased 22 percent from year-ago levels and totaled $34 million for fiscal 2007.

Funds expended on instruction, research, academic support, and student services increased by $5 million to total $151 million for fiscal 2007. As a result, Pepperdine spent $21,643 per full-time equivalent student, or 96 percent of each net tuition and fee dollar in a manner that directly impacts each student’s academic experience.

Pepperdine has been blessed with increasing financial fortune. But truthfully, the fortune of Pepperdine does not lie in the columns of a balance sheet, but is kept in the lives of the people who work here in service to students. So many people have contributed to improve the academic, spiritual, and financial strength of Pepperdine. We are grateful for the many friends who have supported our efforts. Above all, we are grateful to God, who gives strength and purpose to our work.

Financials

Paul B. LasiterChief Financial Officer

ENDOWMENT ASSETS(In 000’s)

NET ASSETS(In 000’s)

TOTAL ASSETS(In 000’s)

Financials

the Journey

This financial information is summarized from the July 31, 2007, Consolidated Financial Statements of Pepperdine University, which have been audited by our independent auditors. The statements were prepared in accordance with generally accepted accounting principles applicable to colleges and universities. A complete copy of the audited financial statements is available free of charge upon request from the Office of the Controller.

In the spirit of the recent Sarbanes-Oxley legislation (not yet required of nonprofit corporations) and consistent with our ongoing efforts to improve corporate governance, the Board of Regents has established an Audit Committee and approved its charter. Five independent members of the Board of Regents comprise the Audit Committee, which meets at least quarterly and is responsible for the selection and retention of the independent auditors, as well as the determination of their independence. The Audit Committee also reviews the University’s systems of internal control and oversees the auditing services function. Finally, the Audit Committee has established a system to receive and investigate confidential and anonymous communications concerning the processing and presentation of financial information.

2007 2006

ASSETS

Cash and cash equivalents $ 11,391 $ 1,226

student receivables, less allowance for doubtful accounts of $1,089 and $1,068, respectively 2,967 3,954

Other accounts receivable 4,716 4,530

student loans, less allowance for loan losses of $1,932 and $1,951, respectively 29,258 27,828

Contributions receivable, net 17,906 21,022

Prepaid expenses, inventories and other assets 6,126 6,557

Investments 917,777 715,455

Assets held as trustee or agent 120,414 109,735

Property, facilities and equipment, net 292,288 294,259

TOTAl AsseTs $ 1,402,843 $ 1,184,566

LIABILITIES AND NET ASSETS liabilities: Accounts payable and accrued liabilities $ $19,558 $ 21,215 Accrued salaries and wages 2,676 3,877 student deposits, advance payments and deferred revenue 10,180 8,779 U.s. government funded student loans 13,638 14,837 Trust and agency obligations 75,626 70,666 long term obligations 209,351 209,563 TOTAl lIAbIlITIes 331,029 328,937

net assets: Unrestricted 715,391 636,266 Temporarily restricted 71,752 68,482 Permanently restricted 284,671 150,881 TOTAl neT AsseTs 1,071,814 855,629

TOTAl lIAbIlITIes And neT AsseTs $ 1,402,843 $ 1,184,566

At July 31,

(In 000’s)

Financials

Temporarily Permanently Unrestricted Restricted Restricted TOTAl TOTAl

REVENUES student tuition and fees $ 214,310 $ - $ - $ 214,310 $ 210,894 less student aid (56,953) - - (56,953) (53,997) net student tuition and fees 157,357 - - 157,357 156,897

Room and board 25,550 - - 25,550 24,362 Private gifts and grants 10,563 2,630 20,600 33,793 27,784 endowment support 25,380 143 500 26,023 24,994 Government grants 2,458 - - 2,458 2,690 sales and services 9,496 - - 9,496 8,787 Other revenue 5,687 2,341 12 8,040 7,615 donor redesignation of restriction - (5,367) 5,367 - - net assets released from restriction 7,432 (7,432) - - - Total revenues 243,923 (7,685) 26,479 262,717 253,129

EXPENSES Instruction and research 79,897 - - 79,897 81,463 Academic support 29,862 - - 29,862 27,220 student services 40,960 - - 40,960 36,913 Public service 11,829 - - 11,829 10,015 Auxiliary enterprises 18,344 - - 18,344 17,664 Management and general 52,311 - - 52,311 43,696 Membership development 1,480 - - 1,480 3,037 Fundraising 6,858 - - 6,858 6,053 Total expenses 241,541 - - 241,541 226,061

Change in net assets before nonoperating revenues and expenses 2,382 (7,685) 26,479 21,176 27,068

NONOPERATING REVENUES AND EXPENSES Adjustment of actuarial liability - 6,560 (415) 6,145 (332) Investment income (loss): dividends 1,671 - 6 1,677 2,633 Interest 4,833 30 179 5,042 3,931 Other 250 - (16) 234 1,304 net realized and unrealized gains from investments 84,693 685 106,572 191,950 42,456 Appropriations from endowment (13,935) (88) (323) (14,346) (16,581) Other (769) 3,768 1,308 4,307 (5,070) Total nonoperating revenues and expenses 76,743 10,955 107,311 195,009 28,341

Change in net assets before cumulative effect of change in accounting principle 79,125 3,270 133,790 216,185 55,409

Cumulative effect of change in accounting principle - - - - (3,958) Change in net assets 79,125 3,270 133,790 216,185 51,451

net assets at beginning of year 636,266 68,482 150,881 855,629 804,178 net assets at end of year $ 715,391 $ 71,752 $ 284,671 $ 1,071,814 $ 855,629

2007 2006

(In 000’s)

For the years ended July 31,

PePPerdine uniVersity Board oF reGents 2006-2007

EDWIN L. BIGGERSChair

President (Retired) Hughes Missile Group

ROBERT G. JACkSONVice Chair

President (Retired) Ford Motor Land Development

SuSAN F. RICESecretary

Principal SFR Consulting

FREDERICk L. RICkERAssistant Secretary

Sector Vice President Northrup Grumman Space Technology

WILLIAM S. BANOWSkYPresident Emeritus Pepperdine University

ANDREW k. BENTONPresident Pepperdine University

SHEILA k. BOSTCertified Family Life Education Primary Relationships Marriage & Family Intern, Private Practice

VIRGINIA B. BRAuN

JANICE R. BROWNCircuit Court Judge United States Court of Appeals for the D.C. Circuit

T. MICHAEL BuCCHIQinetiQ-North America Senior Vice President Mission Solutions Group

JOSE A. COLLAzOChair, President and Chief Executive Officer BT Infonet

JERRY S. COxPresident Cox & Perkins Exploration, Inc.

W. L. FLETCHER IIICo-owner Park Centre Properties, LLC

MATTHEW k. FONGPresident Strategic Advisory Group

LINDA M. GAGE

TERRY M. GILESOwner Giles Enterprises

GLEN A. HOLDENUnited States Ambassador (Retired)

GAIL E. HOPkINSOrthopaedic Surgeon

JOHN D. kATCHRegional Manager, Public Affairs (Retired) Southern California Edison Company

ARTHuR G. LINkLETTERChair Linkletter Enterprises

EFF W. MARTINManaging Director (Retired) Goldman Sachs & Company

MICHAEL T. OkABAYASHIPartner Ernst & Young

TIMOTHY C. PHILLIPSChief Executive Officer Phillips and Company

JAMES R. PORTERPrincipal Porter Capital Partners

ROSEMARY RAITTGeneral Partner KVI Corporation and FKC

RuSSELL L. RAY, JR.Airline and Aerospace Companies Executive (Retired) Chair, Exeltech Corporation Chair, THA Foundation

TRAVIS E. REEDPresident Reed Investment Corporation

CAROL RICHARDS

B. JOSEPH ROkuSChair Packaging Plus

University Boards

the Journey

CHARLES B. RuNNELSChancellor Emeritus Pepperdine University

ROSA MERCADO SPIVEYPhysician Los Angeles Unified School District

WILLIAM W. STEVENSChair (Retired) Triad Systems Corporation

STEPHEN M. STEWARTPresident Stewart Brothers Drilling Company

WILLIAM H. SWANSONChair, CEO, and President Raytheon Company

AuGuSTuS TAGLIAFERRIChair, President Financial Structures, Inc.

THOMAS J. TRIMBLESenior Vice President/General Counsel and Corporate Secretary (Retired) Southwest Gas Corporation

ROBERT L. WALkERVice President for Development Texas A&M University

MARYLYN M. WARRENSenior Vice President (Retired) eHarmony.com

EDWARD V. YANGChair Cross Shore Acquisition Corporation

liFe reGentsJoe R. BarnettLodwrick M. CookRobert R. DocksonHari N. HarilelaJerry E. HudsonJerve M. JonesRichard M. ScaifeFlora Laney ThorntonWilliam R. WaughJ. McDonald WilliamsHelen M. Young

uniVersity BoardPat Boone ChairRobert BarberaThomas J. Barrack, Jr.William W. BeazleyPaul F. BennettAndrew K. BentonA. Ronald BerrymanJohn S. BroomeViggo ButlerRod CampbellRobert M. DavidsonEdmond R. DavisK. Duane DenneyRobert E. Dudley (Bob)Maureen Duffy-LewisMark W. DundeePaul G. FlynnShirley Reid FrahmHank FrazeeG. Louis Graziadio IIIBart M. Hackley, Jr.

Mary HeckmannBruce HerschensohnThomas E. HigginsRobert W. P. HolstromWilliam T. HustonCarl J. LambertJohn T. LewisIan R. LindeMuriel LipseyJim LongSeiji MasudaGregory R. McClintockCarl MintonE. Chadwick MooneyVelma V. MorrisonWilliam S. MortensenAaron NorrisStephen E. OlsonTerry Hamilton QuimbyFrank E. RaabJohn D. RatzenbergerKelly RobertsCharles B. RunnelsMargaret SheppardRichard L. StackWilliam G. StephensDorothy B. StrausTerralynn Walters SwiftCharles H. TaylorGeorge ThomasRobert A. VirtueLew O. WardEllen WeitmanLarry L. WestfallJeremy N. WhiteGary L. Wilcox

The Board of Regents is the legal governing body and chief policy board of the University. Life Regents are

recognized and honored for their extraordinary service as past regents. The University Board is a national

advisory group that provides additional guidance and leadership. The University administration, working

in tandem with the governing and advisory boards, shapes the direction of the University. The guidance

provided by these distinguished and committed men and women is greatly valued.

University Boards

the Journey

As a Christian UniversityPePPerdine affirms

That God is

That God is revealed uniquely in Christ

That the educational process may not, with impunity, be divorced from the divine process

That the student, as a person of infinite dignity, is the heart of the educational enterprise

That the quality of student life is a valid concern of the University

That truth, having nothing to fear from investigation, should be pursued relentlessly in every discipline

That spiritual commitment, tolerating no excuse for mediocrity, demands the highest standards of academic excellence

That freedom, whether spiritual, intellectual, or economic, is indivisible

That knowledge calls, ultimately, for a life of service.

The Annual Report was produced by the Office of Public Affairs.

KeiTh hinKle

Vice President for Advancement and Public Affairs

Editor/Writer

RicK GibsOn Associate Vice President for Public Affairs

Writers

cARin chAPin Writer

AlAn beARd University Marketing

JeRRy deRlOshOn Director, Public Relations and News

MeGAn huARd Managing Editor, Public Relations and News

Copy Editor

VincenT WAy Manager, Editorial Services

Art Direction and Design

KeiTh lunGWiTz Senior Art Director, University Communications

Photography

ROn hAll University Photographer, University Communications

JusTin edWARds Multimedia Producer and Broadcast Engineer,

University Communications

edd eAsOn Eason Photography, Richardson, Texas

sTeVe dAVis Distinguished Professor of Biology

KeiTh lunGWiTz Senior Art Director, University Communications

Production Management

MATT MiduRA Executive Director, University Communications

bRiAn KeARns Production Manager, University Communications

Additional Editorial Assistance

PAM MilleR Executive Assistant to Associate Vice President

MOlly dRObnicK Senior Public Relations Specialist, Public Relations and News

© All rights reserved, 2007 by Pepperdine University24255 Pacific Coast Highway, Malibu, California 90263310.506.4000

WWW.PePPeRdine.edu

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the Journey