Fidelity Investments tightens family control
Boston-based Fidelity Investments has promoted Abigail Johnson, the daughter of the firm’s CEO Edward “Ned” Johnson, to head up the company’s financial services business.
Johnson will oversee Fidelity’s retail and institutional mutual funds, in the newly created position of president of Fidelity Financial Services.
She was previously in charge of Fidelity’s distribution business, and has served as an executive at the company for 24 years.
Ronald O’Hanley will remain president of asset management and corporate services, but will now report to Ms Johnson.
According to reports, the promotion is a clear indication Fidelity has restructured its hierarchy to hand Ms Johnson the reins when her father, who is 82, retires. He remains as CEO of the asset manager.
Employees control 51% of the voting shares in Fidelity, while the Johnson family owns the other 49%. Ned and Abigail Johnson each hold at least 10%, according to regulatory filings.
This article was first published on Investment Week