It's not easy replacing a legend. Look at Apple
and then look at Vanguard
That's what InvestmentNews
has done in an article that looks at the challenges Vanguard will likely face replacing its industry legend Gus Sauter
Whereas Tim Cook
has his work cut out for him replacing Steve Jobs
, Tim Buckley
will face his own trials succeeding Sauter.
notes that Vanguard had only two index funds when Mr Sauter started at the company in 1991. Under his leadership as chief investment officer, the number of index funds offered by Vanguard has jumped to 75. Assets in the funds grew from $1.2 billion to more than $1.15 trillion.He also was responsible for the company’s push into exchange-traded funds.
However, the pub reports, Buckley doesn’t come with Sauter's investment pedigree. For example, his previous roles include head of Vanguard’s retail group and chief information officer. Also, he has never worked on a trading desk.
Vangaurd CEO William McNabb
thinks these are plusses.
“We didn’t want someone who looks like Gus,” McNabb tells InvestmentNews
. “You can never have a second Gus. We were looking for someone who’s process-driven and a good developer of talent.”
Nonetheless, the publication argues that Vanguard needs to focus on developing talent simply to keep up with its ballooning assets under management.
To read more about Vanguard's staffing conundrum, read the InvestmentNews
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