John Bogle has resigned from his position on the board of directors of Vanguard, a company he founded 24 years ago. Bogle's departure from the Board, which was widely expected, becomes effective December 31.

Bogle will retain a post as president of Bogle Financial Markets Research Center, which is a "Vanguard-supported venture."

The announcement came in the wake of a meeting held today by Vanguard's Board. At the meeting the Board waived a rule that called for mandatory retirement of directors at the end of the year in which they turn seventy years old.

After the Board waived the rule for Bogle at the suggestion of CEO John Brennan, Bogle announced his decision to retire.

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(The complete text of Vanguard's release to follow)

Joint Statement From John C. Bogle and the Independent Directors of The Vanguard Group

John C. Bogle, Senior Chairman and Founder of The Vanguard Group, has decided to step down from the Board of Directors of The Vanguard Group and the Vanguard funds, effective December 31, 1999. At that time, he will become President of a new Vanguard-supported venture, to be known as the Bogle Financial Markets Research Center.

Mr. Bogle's decision to step down came after the Board of Directors - acting upon the recommendation of Vanguard Chairman and CEO John J. Brennan to the Nomination Committee - unanimously passed a resolution waiving, with respect to the company's Founder, its long-standing policy that directors retire in December of the year in which age 70 is attained. Mr. Bogle turned 70 in May of this year.

The new Bogle Research Center will serve as a vehicle for continuing the work Mr. Bogle began when he stepped down as Vanguard's CEO in 1996: to analyze issues affecting the financial markets, mutual funds, and investors, through books, articles, and public speeches. His plans include an extensive public speaking schedule and several more books, as well as associations with the academic community.

Mr. Bogle issued the following comments:

"I am deeply appreciative of the Board's decision. But time marches on, in my life and in Vanguard's. While I am gratified by the Board's gracious offer, I believe the greater good will be served by my decision to step down as a Director.

I hope that this decision will enable us all to move forward in serving the interests of the Vanguard shareholders and crew members. Vanguard today is far greater than any one man, and it is our extraordinary crew, now 10,000 strong, that deserves full credit for Vanguard's success over the years. I have every confidence that the Board and the senior management team will continue to hold high the investment principles and human values that I have invested in Vanguard over the past quarter century.

My heart transplant of 3½ years ago has been an incredible success. My energy is abundant, and in my second chance at life I am prepared to continue my mission: to insure that mutual fund shareholders everywhere get a fair shake."

The Board of Directors accepted Mr. Bogle's decision to step down. J. Lawrence Wilson, Chairman of the Independent Directors, issued the following comments on behalf of the Board:

"The Vanguard Directors are delighted that Mr. Bogle will continue his work through the new Bogle Research Center. We wish him well in this new enterprise, and thank him for his tremendous contributions to Vanguard - as its Founder, as a Director, and as Vanguard's Chief Executive for 20 years. He has instilled in Vanguard a set of core values that will forever be firmly embedded in the firm: our mutual structure, our focus on low cost, and our commitment to disciplined investment strategies, together with our focus on the prudent stewardship of our clients' assets.

We hope that Vanguard shareholders remain assured that the company will continue to be guided by the philosophies and values that Jack Bogle established when he founded Vanguard nearly 25 years ago. We are committed to ensuring that they are."

The Board has made no plans to fill the vacancy created by Mr. Bogle's departure from the Board. 

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