Drake University business school named for former Principal CEO and wife, who are among top donors

Larry Zimpleman says he "won the lottery" when he arrived at Drake University 55 years ago.

The son of a Williamsburg mail carrier, Zimpleman had a penchant for math. A high school counselor suggested he study actuarial science, the calculation of risk that underpins the insurance industry. He didn't know what the topic entailed, but he followed the advice.

Reading down an alphabetical list of colleges that offered the major, Zimpleman couldn't find a school until he hit the letter D.

"I was that naïve at the time," said Zimpleman, who after graduating joined the company that would become Principal Financial Group and rose through the ranks, eventually retiring as CEO in 2015. "But (the decision) changed my life. And it changed our children's lives. And it changed our grandchildren's lives."

On Tuesday, following what the university described as a "multi-million dollar" gift from Zimpleman and his wife, Kathi, also an alum, Drake renamed its college of business and public administration after the couple. The donation is part of a university-wide $225 million fundraising campaign that President Marty Martin hopes will transform the college of 5,000.

In particular, university officials plan to use some of the money to incorporate more environmental, social and governance topics ― a field referred to as ESG ― within the Larry and Kathleen Zimpleman College of Business. Drake hasn't rolled out many specifics about how the school will change, though Martin said the gift will cover scholarships, new courses and faculty training.

More:Expert on corporate responsibility takes helm as Drake's new business dean

"It's a passion for Larry," Martin told the Des Moines Register. "It's how he led Principal. I don't know if ESG was even an acronym when Larry was CEO, president of Principal. But he always led that organization, recognizing that when you have such scope, such influence you carry a responsibility to use that influence responsibly for society."

Principal scholarship pushed Zimpleman through Drake

In an interview before the renaming ceremony, Zimpleman, a Drake board member since 2006, said Martin pitched him on renaming the college after him and his wife during a meeting last fall. He said he was uncomfortable with the idea, aware that such an honor can seem ostentatious to outsiders.

But he said Martin sold him on the idea that his story could inspire future generations of students.

When Zimpleman enrolled at Drake in 1968, annual tuition was $2,000 ― more than his family could afford. A local insurance company called Bankers Life ― now Principal ― covered half his cost with a scholarship. He worked at McDonald's to pay the rest.

By his junior year, Zimpleman was working at Bankers Life, where he advanced through the company's retirement division.

Though not what the company was known for at the time, the division became an important element at Principal as clients needed help understanding the Employee Retirement Income Security Act, a 1974 law that outlines rules for administering benefits for workers. Soon, 401(k)s became Principal's core business.

In the late 1990s, as executives wanted to expand the company and take it public, then-CEO David Drury and President Barry Griswell tapped Zimpleman to establish Principal in new countries. First, though, he needed a passport.

"I had never been anywhere but Canada," he said.

Under his leadership, the company started doing business in places like Chile, Mexico, Hong Kong and Malaysia. Principal promoted him to president in 2006, and he became CEO two years later.

Looking back, he said, the scholarship to Drake enriched his life. If he had stayed home, he likely would have worked for Williamsburg-based Holden Foundation Seeds, like many high school classmates. That would have meant long, hot days in the fields.

"It's not that the work isn't noble," he said. "It's just a whole different career path."

Zimpleman wants to connect local business leaders to Drake

Zimpleman said he wants the business school to connect more with local business leaders, many of whom are fretting about Iowa's tight labor market.

"Where is the best place to find people?" Zimpleman said. "Drake University. They're already here. They like it here. They're well-educated. They're good students."

Though he isn't sure exactly what programs will arise from his family's gift, he said he hopes the school will deliver more "real world" experiences. He wants business students to study ethics and think about how the richest companies in the state can transform Iowa.

In 2015, Zimpleman's last year at Principal, it earned a $1.25 billion profit. That ballooned to $4.8 billion last year.

Zimpleman also wants to bring more business leaders to campus. In addition to running Principal, Zimpleman served on the Greater Des Moines Partnership board and was the group's chair in 2011. He wants to see familiar faces hosting talks and sharing their stories of how they reached the top of the corporate ladder.

"If students in the college of business and Drake today could see a (current Principal CEO) Dan Houston, could see some of the Wells Fargo executives, could see some of the business leaders, it would also have a profound impact on them," Zimpleman said. "That’s something I think I can help facilitate."

Drake president: Gift puts Zimplemans 'at the top of the list' of donors

Announced in October 2021, the university's goal to raise $225 million was ambitious. At the time, it was equivalent to about 80% of Drake's total endowment.

Through Jan. 18, according to a university news release, Drake has raised $164 million. Though the university and the Zimplemans have declined to say how much the family gave as part of the fundraising campaign, Martin told the Register that their gift put them "at the top of the list of donors." (The Zimplemans also have given to other Drake fundraising campaigns over the years.)

Among the publicly disclosed donations that Drake has received as part of the campaign:

• More than $8 million from philanthropist Suzy Glazer Burt.

• $6 million from former DuPont Pioneer President Paul Schickler and his wife, Claudia.

• $3.3 million from Stetler Company owners Larry Stetler and Peggy Fisher.

• $3.3 million from the Harriet and J. Locke Macomber endowment.

• $3 million from Bellevue Capital managing partner Mark Ernst and his wife, LeighAnn Davis.

• $3 million from Dotdash Meredith and the Edwin T. Meredith Foundation.

Martin, who became president when Zimpleman was board chair, called the retired executive a mentor. He described the Zimplemans as unassuming and even-keeled.

"They're both compassionate, kind people," Martin said. "They're diligent. They're respectful. They have great integrity."

Tyler Jett covers jobs and the economy for the Des Moines Register. Reach him at tjett@registermedia.com, 515-284-8215, or on Twitter at @LetsJett.

This article originally appeared on Des Moines Register: Drake business school named for Principal ex-CEO Larry Zimpleman, wife