Epic Systems CEO Judy Faulkner said skipping an MBA was "a really good thing" keeping her from venture capital and markets.
The 82-year-old founder launched Epic in 1979 with $70,000 in seed money from a Wisconsin basement and gradually built it into a company that now generates $5.7 billion in annual revenue.
As a result, it ranks among the five largest private U.S. software and services firms. Epic's electronic health records are installed in about 41% of U.S. hospitals, according to Definitive Healthcare. That footprint has made Faulkner one of the richest women in technology, with Forbes valuing her 43% stake in the company at $7.8 billion.
Don't Miss:
- Would You Have Invested in eBay or Uber Early? The Same Backers Are Betting on This Vacation Home Platform
- They Sold Their Last Real Estate Company for Nearly $1B — Now They're Building the Future of U.S. Industrial Growth
"They would have taught me, ‘Here's how you do venture capital.' We didn't do it," she told CNBC recently.
Succession And Safeguards
Faulkner said that she has never sold any of her voting shares and that the stock will be transferred into a trust after her death. Under that arrangement, a committee of family members and longtime employees will oversee the trust but cannot vote to take Epic public or sell it.
According to CNBC, Epic said it established an oversight group called the "Trust Protector Committee," consisting of health care leaders who can sue the voting committee if rules are not followed. Faulkner said she has identified who should participate, though names remain private.
Trending: ‘Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. You can invest today for just $0.30/share.
Giving Away Her Wealth
Faulkner signed The Giving Pledge in 2015, which was created by Berkshire Hathaway CEO Warren Buffett, Microsoft (NASDAQ:MSFT) co-founder Bill Gates and philanthropist Melinda French Gates.
She committed to donating 99% of her fortune to charity. To fulfill that, she and her husband launched the Roots & Wings Foundation in 2020, which funds nonprofits supporting low-income children and families.
Faulkner told CNBC she sells her nonvoting shares back to Epic, directing proceeds to Roots & Wings. "I've never cashed a single share for myself," she said. Her daughter, Shana Dall'Osto, serves as executive director of the foundation.
See Also: Wealth Managers Charge 1% or More in AUM Fees — Range's AI Platform Does It All for a Flat Fee (and Could Save You $10,000+ Annually). Book Your Demo Today.
Epic's Commandments And Culture
Epic's workplace rules are displayed on signs across its 1,670-acre campus in Verona, Wisconsin, with messages such as, "Do not go public," "Do not acquire," "Do not be acquired," and "Software must work."
Most of Epic's 14,000 employees gather each month in an underground auditorium called Deep Space for meetings that combine company updates with grammar lessons. Faulkner has also participated in themed presentations at Epic's Users Group Meetings, which bring thousands of health care leaders to Verona each year.
Read Next: Bill Gates Invests Billions in Green Tech — This Tree-Free Material Could Be the Next Big Breakthrough
Image: Shutterstock
