Fido Execs 'Never Expected' Fallout from the Marlborough Move
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Wednesday, March 30, 2011

Fido Execs 'Never Expected' Fallout from the Marlborough Move

New Bedford Democrat Mark Montigny, chairman of the Massachusetts Senate Post Audit and Oversight Committee, was reportedly less-than satisfied with Fidelity president Ronald O’Hanley's explanation of the firm's decision to move hundreds of jobs out of Massachusetts, despite receiving tens of millions in tax breaks from the state [see profile].

Specifically, O’Hanley declined to tell Montigny how much the Boston Behemoth has benefited from a tax break in 1996 for the mutual fund industry and said the company did not feel it could tell political leaders earlier of its decision to move for fear the news would leak out and employees would learn of it through the media or other channels.

In summary, O'Hanley added that: “In all honesty, we never expected this kind of reaction. We’re consolidating real estate. This was pretty simple to us."

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