Clarke Murphy
Appearances
Redefiners
The Only Certainty Is Change: Nasdaq CEO Adena Friedman on AI, Innovation & Market Evolution
Call them changemakers. Call them rule breakers. We call them Redefiners. Hello, everybody. Welcome back to Redefiners. It's Clark Murphy with Russell Reynolds Associates. We've got a special jolt of caffeine today because we're recording live off the floor of the NASDAQ exchange. If you want some energy, you've got to come here. It's amazing.
Redefiners
The Only Certainty Is Change: Nasdaq CEO Adena Friedman on AI, Innovation & Market Evolution
We'll be right back with Adina Friedman. But first, let's hear from Tristan Jervis, a leadership advisor specializing in AI transformation. Tristan will discuss the four critical steps CEOs can take to build AI-powered organizations.
Redefiners
The Only Certainty Is Change: Nasdaq CEO Adena Friedman on AI, Innovation & Market Evolution
And now back to our conversation with Adina. Recalibrates a great word. 2025, it's a year of change all over the world. And the pace, whether it's technology, geopolitics, balance sheets, etc. Earlier this month, McKinsey said this is probably the greatest moment of uncertainty for investors. Council on Foreign Relations says geopolitical conflict, likelihood high, impact high.
Redefiners
The Only Certainty Is Change: Nasdaq CEO Adena Friedman on AI, Innovation & Market Evolution
And we look at the JP Morgan Healthcare Conference. They talked about investing with uncertainty, resilience and outlook and perseverance. Change, change, change, change. You also talked about 2025 as a moment of change. You're in the markets business. You live the markets. How do you look at change and what's going on in the short to medium term future?
Redefiners
The Only Certainty Is Change: Nasdaq CEO Adena Friedman on AI, Innovation & Market Evolution
Adina, welcome to Redefiners. Thanks for joining us.
Redefiners
The Only Certainty Is Change: Nasdaq CEO Adena Friedman on AI, Innovation & Market Evolution
Well, it's good to be in the same place at the same time. Agreed. I have to laugh. You and I may be some of the rare people that have spent 30 years on and off with the same company. Agreed. Agreed. So maybe we start there. Having started as an intern to become CEO, you started as an intern, became CEO.
Redefiners
The Only Certainty Is Change: Nasdaq CEO Adena Friedman on AI, Innovation & Market Evolution
Okay. So let's talk about grasping it. Those are complex stakeholders. You push too hard, you got a real problem. You don't push hard enough, a trillion dollars doesn't get to the markets. As a leader, how do you think about multiple stakeholders and when to push, when to listen? Others wanna learn how you think about multi-stakeholder engagement.
Redefiners
The Only Certainty Is Change: Nasdaq CEO Adena Friedman on AI, Innovation & Market Evolution
Yeah, I agree.
Redefiners
The Only Certainty Is Change: Nasdaq CEO Adena Friedman on AI, Innovation & Market Evolution
Tell us about the journey and maybe some of the milestones that help you be the leader you are today.
Redefiners
The Only Certainty Is Change: Nasdaq CEO Adena Friedman on AI, Innovation & Market Evolution
Your history, NASDAQ's history, is a disruptor from the day you started the exchange. And now you're a listener, you're a global partner to governments and regulators. Can you still be a disruptor? Are you still a disruptor as an institution? And you have fintechs and you have private equity firms and you have banks who are actually trying to compete with you.
Redefiners
The Only Certainty Is Change: Nasdaq CEO Adena Friedman on AI, Innovation & Market Evolution
How do you stay ahead and are you a disruptor still?
Redefiners
The Only Certainty Is Change: Nasdaq CEO Adena Friedman on AI, Innovation & Market Evolution
I know, I know.
Redefiners
The Only Certainty Is Change: Nasdaq CEO Adena Friedman on AI, Innovation & Market Evolution
Lots of frenemies.
Redefiners
The Only Certainty Is Change: Nasdaq CEO Adena Friedman on AI, Innovation & Market Evolution
So as you manage to the future, and you're a product manager by background. So when you talk about this, you can see the passion. But managing for the future means having the best talent, particularly in a tech-driven business. People grow up here, and I know from our business, they are really, really well-respected. How do you keep talent?
Redefiners
The Only Certainty Is Change: Nasdaq CEO Adena Friedman on AI, Innovation & Market Evolution
What's the culture of we want to win, we want to be here, we want you to stay here for decades, not years? How do you look at talent in the tech world?
Redefiners
The Only Certainty Is Change: Nasdaq CEO Adena Friedman on AI, Innovation & Market Evolution
I love the missionaries versus mercenaries. But you yourself, you've always been an athlete. I think you're a taekwondo black belt, right? You've also been famous for sitting on the third baseline of your family members playing baseball games quite successfully. How do you keep the competitive edge culturally? You are competitive. I've seen it.
Redefiners
The Only Certainty Is Change: Nasdaq CEO Adena Friedman on AI, Innovation & Market Evolution
But we're mission driven because people are trying to find the balance and it's hard.
Redefiners
The Only Certainty Is Change: Nasdaq CEO Adena Friedman on AI, Innovation & Market Evolution
Right, right, right, right.
Redefiners
The Only Certainty Is Change: Nasdaq CEO Adena Friedman on AI, Innovation & Market Evolution
You travel a lot. You speak a lot at conferences. We just talked about staying at the edge of technology and innovation, cloud, AI. How do you learn? How do you professionally keep pushing yourself intellectually or strategically?
Redefiners
The Only Certainty Is Change: Nasdaq CEO Adena Friedman on AI, Innovation & Market Evolution
Right, real future.
Redefiners
The Only Certainty Is Change: Nasdaq CEO Adena Friedman on AI, Innovation & Market Evolution
All jokes aside, you have worked here almost your entire career. There's a thought today, I have four children in their mid to late 20s who ask, do I need to move to be successful? And there is more movement in Gen Z and millennials. Your advice for maximizing career opportunity, I heard one that I asked for it, which not everyone asks for it.
Redefiners
The Only Certainty Is Change: Nasdaq CEO Adena Friedman on AI, Innovation & Market Evolution
But what do you say about someone who stays in one company a long time or how long? or for young leaders to move ahead?
Redefiners
The Only Certainty Is Change: Nasdaq CEO Adena Friedman on AI, Innovation & Market Evolution
Yeah, I agree.
Redefiners
The Only Certainty Is Change: Nasdaq CEO Adena Friedman on AI, Innovation & Market Evolution
I think the learning and the curiosity and the looking ahead, I completely agree. So we end every podcast with some rapid fire questions.
Redefiners
The Only Certainty Is Change: Nasdaq CEO Adena Friedman on AI, Innovation & Market Evolution
Don't even think about it. Just need the answer. You're good at this. Off the training room. Your favorite professional sports team or organization?
Redefiners
The Only Certainty Is Change: Nasdaq CEO Adena Friedman on AI, Innovation & Market Evolution
Yay, mine too. You can tell who grew up outside Washington, D.C. in this crowd. What is a fact about you or a talent that not many people would know?
Redefiners
The Only Certainty Is Change: Nasdaq CEO Adena Friedman on AI, Innovation & Market Evolution
Get back to the risk-taking. Exactly, loved it, yep. Is there a mantra or slogan that sums you up or how you think about making decisions?
Redefiners
The Only Certainty Is Change: Nasdaq CEO Adena Friedman on AI, Innovation & Market Evolution
I'm hugely superstitious. All of our kids have now learned that they, every time I say something, knock on wood, it's hysterical. I have a lot of other superstitions. Who was your mentor that had the biggest impact on you?
Redefiners
The Only Certainty Is Change: Nasdaq CEO Adena Friedman on AI, Innovation & Market Evolution
Best piece of advice they may have given you?
Redefiners
The Only Certainty Is Change: Nasdaq CEO Adena Friedman on AI, Innovation & Market Evolution
Your legacy at NASDAQ? What will it be?
Redefiners
The Only Certainty Is Change: Nasdaq CEO Adena Friedman on AI, Innovation & Market Evolution
Oh, very good. Very good. So listen, thank you for being here. Actually, I should say, thank you for letting us be here. Appreciate it. A lot of lessons learned here. I think what struck me the most was this is a defining moment to put capital to work. The ability to unleash, whether it's 500 million or several trillion in the stakeholder management of regulators and markets is fascinating.
Redefiners
The Only Certainty Is Change: Nasdaq CEO Adena Friedman on AI, Innovation & Market Evolution
NASDAQ at the center of those markets has a unique window to listen and to learn. And in fact, your key moment about listening to stakeholders makes NASDAQ better at what it does. Co-opetition, we're going to take that home. I'm going to borrow that one, I must say. Please do. It's far better than some of the alternatives. The other is, which I think we should all think about, is a forever owner.
Redefiners
The Only Certainty Is Change: Nasdaq CEO Adena Friedman on AI, Innovation & Market Evolution
There aren't many forever owners. We've worked with lots of families around the world and some companies that say they're long-term, but they're not forever owners, which is a distinct competitive advantage. Transparency in markets, liquidity, these are the things that keep markets moving. In a moment of uncertainty, the fact that NASDAQ's committed to that
Redefiners
The Only Certainty Is Change: Nasdaq CEO Adena Friedman on AI, Innovation & Market Evolution
gives a lot of people an easier way to sleep because there is so much uncertainty. And finally, thinking ahead as an individual leader and executive, do you want to be there in five years or not there? And are you learning and taking the toughest assignments you can for visibility, for risk-taking, for success? But also for many people, men and women, ask for it.
Redefiners
The Only Certainty Is Change: Nasdaq CEO Adena Friedman on AI, Innovation & Market Evolution
because it may not be given to you if you don't ask. So lots to learn from. Thank you for having us here. Really appreciate it.
Redefiners
The Only Certainty Is Change: Nasdaq CEO Adena Friedman on AI, Innovation & Market Evolution
Take care.
Redefiners
The Only Certainty Is Change: Nasdaq CEO Adena Friedman on AI, Innovation & Market Evolution
So NASDAQ, particularly for those overseas that don't know the company as well, has redefined itself under that CEO and under you. And it's really a technology company with multiple divisions. Can you give an overview of the company and the divisions?
Redefiners
The Only Certainty Is Change: Nasdaq CEO Adena Friedman on AI, Innovation & Market Evolution
For those who aren't familiar, the exchange was the first electronic exchange founded in 1971. and is home to the listings of some of those high-energy companies like NVIDIA, Microsoft, Amazon, Google, Meta. So you've got the picture. But of course, the exchange is just one of their businesses, and we're going to talk about that a little bit later on.
Redefiners
The Only Certainty Is Change: Nasdaq CEO Adena Friedman on AI, Innovation & Market Evolution
So not many people are head of strategy and become the chief executive. Where the company is today, is this the strategy that you helped develop or has it evolved since you were the head of strategy?
Redefiners
The Only Certainty Is Change: Nasdaq CEO Adena Friedman on AI, Innovation & Market Evolution
Got it.
Redefiners
The Only Certainty Is Change: Nasdaq CEO Adena Friedman on AI, Innovation & Market Evolution
As you reflect on your own career, we ask everybody, was there a redefining or defining moment for you?
Redefiners
The Only Certainty Is Change: Nasdaq CEO Adena Friedman on AI, Innovation & Market Evolution
Before we get started, just a reminder to our listeners, if you are watching this on YouTube, you can go down and hit the subscribe button. And for those of you who are listening, we would love for you to give us some feedback on any questions you have, what you think of it, and keep listening wherever you get your podcasts.
Redefiners
The Only Certainty Is Change: Nasdaq CEO Adena Friedman on AI, Innovation & Market Evolution
So a lot of the work we do at Russell Reynolds Associates with CEOs and board members is talking about the themes today of innovation, pace of change, culture, talent, making sure you're relevant, but keeping the roots of a great culture. We're joined today with a CEO who is doing that at pace and scale as we speak. And we're joined today by Adina Friedman, who's the chair and CEO of NASDAQ.
Redefiners
The Only Certainty Is Change: Nasdaq CEO Adena Friedman on AI, Innovation & Market Evolution
You were out of your comfort zone. Very much so. A lot of stakeholders.
Redefiners
The Only Certainty Is Change: Nasdaq CEO Adena Friedman on AI, Innovation & Market Evolution
For better or worse, a lot of visibility.
Redefiners
The Only Certainty Is Change: Nasdaq CEO Adena Friedman on AI, Innovation & Market Evolution
And a fair bit of both institutional and career risk.
Redefiners
The Only Certainty Is Change: Nasdaq CEO Adena Friedman on AI, Innovation & Market Evolution
Right.
Redefiners
The Only Certainty Is Change: Nasdaq CEO Adena Friedman on AI, Innovation & Market Evolution
I often say to people, take the most difficult project. No one remembers the easy ones.
Redefiners
The Only Certainty Is Change: Nasdaq CEO Adena Friedman on AI, Innovation & Market Evolution
Another thing that people may not realize is NASDAQ is a serial acquirer of business. You do a lot of deals here. You've done a lot of deals. Doing a deal at Carlisle, doing a deal at NASDAQ, very different. How might you juxtapose doing deals in different environments?
Redefiners
The Only Certainty Is Change: Nasdaq CEO Adena Friedman on AI, Innovation & Market Evolution
Yeah, yeah, yeah.
Redefiners
The Only Certainty Is Change: Nasdaq CEO Adena Friedman on AI, Innovation & Market Evolution
It was on the floor. The company just went public, SailPoint. Pretty exciting to see. Excellent. The amount of private capital being put to work is tremendous. Public listings have always been the joy of the destination. How do you look at companies wanting to remain private and those that need to go public for a variety of reasons?
Redefiners
The Only Certainty Is Change: Nasdaq CEO Adena Friedman on AI, Innovation & Market Evolution
Or want to go public.
Redefiners
The Only Certainty Is Change: Nasdaq CEO Adena Friedman on AI, Innovation & Market Evolution
earlier served as president, also COO. She left briefly at one point to be the chief financial officer of the Carlyle Group, in fact, took them public as the CFO. And so she's seen the listings from both sides of the scoreboard. Earlier, she was at NASDAQ running their data products business. And she's done a variety of things, starting by joining the company as an intern out of business school.
Redefiners
The Only Certainty Is Change: Nasdaq CEO Adena Friedman on AI, Innovation & Market Evolution
Right, long-term platforms.