The board of directors of The Vanguard Group [profile] revealed today that CEO Bill McNabb, 60, is stepping down. Effective January 1, 2018, Tim Buckley, 48, Vanguard's chief investment officer will succeed McNabb. Buckley was also elected as president and director of Vanguard.

Greg Davis, 46, global head of the firm's fixed income group, will succeed Buckley as chief investment officer.

McNabb, who joined Vanguard in 1986, has served as Vanguard's CEO since 2008 and will remain chairman of the board.

"As the firm continues to grow, evolve and expand globally, it is the right time for a new leader and the board is unanimous in its belief that Tim Buckley is the ideal next chief executive for Vanguard," McNabb states in the news release. "I have worked alongside Tim for many years and he brings a strong passion for serving Vanguard clients and crew, a global mindset, and significant leadership experience in all facets of our operations."

Buckley joined Vanguard in 1991 as assistant to then-chairman John C. Bogle. In 1998, Buckley was elected as a principle of the firm, and held senior leadership roles in two divisions from 2001 to 2012, including chief information officer and head of Vanguard's Information Technology Division, and head of Vanguard's Retail Investor Group.

Buckley earned a Bachelor of Arts in economics from Harvard in 1991, and a Masters of Business Administration from Harvard Business School in 1996.

With his new role as chief investment officer, Davis takes on oversight responsibility for more than $3.8 trillion managed by Vanguard's Fixed Income, Equity Index, and Quantitative Equity Groups, which includes over 300 mutual funds within active and index stock, active and index fixed income, money market, and stable value mandates.

Davis has led the firm's Fixed Income Group since 2014, and previously served as the company's Asia-Pacific chief investment officer and a director of Vanguard Investments Australia. He earned a Bachelor of Science in insurance from The Pennsylvania State University and a Masters of Business Administration in finance from The Wharton School of the University of Pennsylvania.

Check back for more updates as this story develops.  

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