Waddell & Reed Financial CEO Keith A. Tucker is giving up his titles at the Overland Park, Kansas broker-dealer and money manager, but he is not stepping away from the business altogether.
For the next eight years, Tucker stay on as a consultant and a non-voting emeritus member of the board.
Tucker said yesterday that he is resigning as chairman of the board and chief executive officer. As Tucker leaves, the firm is splitting the two roles between two officers. Henry J. Herrmann (62), currently president becomes chief executive officer and Alan W. Kosloff (64), an independent member of the board of directors, becomes the boardís independent, non-executive chairman. Herrmann will remain chairman of the Investment Policy Committee.
Tucker's announcement comes a month after the firm settled regulators allegations that it had improperly converted customer's variable annuity accounts. That settlement with the NASD and a consortium of states, binds Waddell & Reed to pay $7 million in fines and up to $11 million in restitution. The firm has also agreed to a separate settlement with Torchmark Corporation.
"For some time now, I have been devoting significant energy toward resolving matters involving major litigation," Tucker said. "Now that these matters have been essentially resolved, I am comfortable that as I move on to new challenges, Waddell & Reed is on the right path. As a shareholder and as a professional long associated with this Company, I am confident in the firmís future success."
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