BlackRock Chairman and CEO Larry Fink spoke about saving money for retirement on “The Craman Countdown.”
Vanguard Group Inc. is preparing to name a former BlackRock executive as its next leader, marking the first time in its nearly 50-year history that an outsider will lead the asset management firm.
Salim Ramzi, who led BlackRock’s exchange-traded funds and index investments until early this year, is expected to be named Vanguard’s chief executive officer soon, the people said, adding that the company does not make any last-minute changes. Assuming that, he is expected to be named Vanguard’s chief executive officer.
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| BLK | BlackRock Co., Ltd. | 803.05 | +12.55 | +1.59% |
Ramji left BlackRock in January after nearly 10 years. He said at the time that he intended to “seek new leadership and entrepreneurial opportunities outside the company.” He is credited with helping grow BlackRock’s multitrillion-dollar iShares ETF business.
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Pennsylvania-based Vanguard announced in February that Chief Executive Officer Mortimer J. “Tim” Buckley was stepping down and the company was beginning the search process for its next leader. The company also promoted Greg Davis, formerly Vanguard’s chief investment officer, to president.
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| VTI | Vanguard Index Fund Total STK MKT ETF | 259.45 | +1.26 | +0.49% |
| IVV | IShares Trust Core S&P 500 | 525.88 | +2.37 | +0.45% |
Ramzi will be the first Vanguard chief not to work directly with the company’s late founder, John C. Bogle. Mr. Bogle founded Vanguard in 1974 and introduced the world’s first index mutual fund in 1975. He passed away in his 2019 year, leaving behind an army of loyal customers who called themselves Bogleheads.
Vanguard Group founder John C. Bogle speaks at the Bloomberg Markets Most Influential Summit on Monday, September 22, 2014 in New York, USA. (Peter Foley/Bloomberg via Getty Images)
Ramji joined BlackRock from McKinsey in 2014 to lead corporate strategy. Prior to his most recent role, he led the firm’s U.S. wealth advisory business. He was one of six executives considered to replace co-founder and CEO Larry Fink, but after a recent reorganization, other candidates are now the frontrunners. It seems that it is.
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On June 16, 2016, Salim Ramji, Head of US Wealth Advisory at BlackRock, gave a speech at the Reuters Global Wealth Management Summit held in New York City, USA. (Reuters/Brendan McDiarmid)
At Vanguard, Mr. Ramji will take over the second largest asset management company after his former employer. While the company has excelled at attracting new assets, it has experienced some growing pains along the way, including technical issues and customer service complaints on its brokerage platform.
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The company is expanding beyond its core business of running ultra-cheap funds that track stock and bond indexes by moving into the more lucrative business of asking customers for financial advice.
Vanguard keeps its financial results private. Unlike many of its competitors, the company is owned by a fund, which allows it to return profits to shareholders in the form of lower fees.
—Jack Pitcher contributed to this article.
Email Cara Lombardo (cara.lombardo@wsj.com) and Justin Baer (justin.baer@wsj.com).
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