Within the last two days, two new reports have come out that major leadership changes are in the works at industry behemoths BlackRock and Vanguard.
The first came from Vanguard, which announced late May 14 that its Board has appointed Salim Ramji as the company's new Chief Executive Officer and a member of the Board, effective July 8, 2024. Ramji succeeds Tim Buckley, who, as previously announced, will retire and step down as Chairman and CEO.
Ramji is a senior financial services executive with more than 25 years of experience in investments, capital markets and wealth management, including a decade as a senior leader at BlackRock, before leaving in January 2024.
Ramji, most recently, was Global Head of iShares & Index Investing, where he was responsible for managing a majority of the firm's client assets and evolving the iShares platform to provide an even broader set of innovative low-cost products for investors globally.
Prior to leading iShares, Ramji was the head of U.S. Wealth Advisory and began his BlackRock career as the Global Head of Corporate Strategy. At BlackRock, he led, among other things, the implementation of a voting choice platform, which “democratizes” client access to the proxy voting process. Before joining BlackRock, Ramji was a Senior Partner at McKinsey & Company in charge of the firm's Asset & Wealth Management Practice.
“The Board welcomes Salim to the leadership team and looks forward to working closely with him as we strengthen and expand our mission and purpose, driven by serving the interests of individual investors,” stated Mark Loughridge, Lead Independent Director. “Salim is an exceptional leader who is aligned with Vanguard's mission-driven culture, making him the ideal candidate. Vanguard has an important future, and we believe he is the best person for the job,” he added.
Stated Ramji upon his appointment, “The current investor landscape is changing, and that presents opportunities for Vanguard to further its mission of giving people the best chance for investment success, which is more relevant today than at any time in the firm's five-decade history. My focus will be to mobilize Vanguard to meet the moment while staying true to that core purpose—remaining the trusted firm that takes a stand for all investors.”
Once Ramji's appointment as CEO becomes effective, Buckley will step down as Chairman and CEO. Mark Loughridge, Vanguard's Lead Independent Director, will be appointed nonexecutive Chairman.
BlackRock’s Ackerley to Shift Roles
In the meantime, news came out that Anne Ackerley will step down as head of BlackRock’s retirement group in early July, as first reported by Pensions & Investments.
This reported change comes just months after the firm finally launched its LifePath target date fund series with an annuity income option, which apparently was five years in the making. It also comes just months after the firm—in recognizing the convergence of wealth and DC plans as a “new frontier” for the DC Advisor channel—announced the launch of the Defined Contribution Practice Management Program, providing tools and resources for retirement plan advisors of all sizes.
According to an internal memo obtained by P&I, BlackRock President Rob Kapito indicated that guiding the LifePath Paycheck option to market “may count as Ackerley’s ‘most consequential’ achievement in a career full of achievements.”
Kapito also reportedly noted that Ackerley should be “particularly proud” of co-founding the Women’s Initiative & Allies Network, an internal networking initiative for women professionals at BlackRock.
Ackerley is set to become a senior adviser for the firm this summer, where she will continue to contribute to BlackRock’s efforts to help 35 million clients in the U.S. achieve financial security in retirement, Kapito reportedly wrote.
Meanwhile, the head of retirement group role that Ackerley has held since 2015 won’t be filled, reflecting the forthcoming launch of new Global Product Solutions and Global Client Business structures for the firm’s retirement business, P&I further reported.
Robert Crothers, managing director and head of product and strategy, retirement group, apparently will take on an expanded role as head of U.S. retirement, reporting to Jessica Tan, according to a separate memo obtained by P&I.
