MutualFundWire.com: Abby Succeeds Ned One Last Time

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Tuesday, November 22, 2016

Abby Succeeds Ned One Last Time

Ned Johnson just took off his final Fidelity [profile] hat and passed it to Abby Johnson.

Ned Johnson
Fidelity Investments
Former Chairman

Yesterday Edward C. Johnson III (age 86) sent Fidelity employees a memo announcing that his daughter Abigail Johnson (age 54) is taking over for him as chairman, a host of publications report. The move appears to be the final step in Abby's ascension to the Fidelity thrones, and it comes two years after Abby succeeded her father as CEO of the mutual fund and 401(k) giant. Ned will retire and become chairman emeritus and promises to "continue to consult periodically with Abby and Fidelity's Board of Directors."

Ned's father, Edward C. Johnson II, founded Fidelity in 1946. Ned joined in 1957 and took over as chairman and CEO in 1977. Abby joined in 1988.

Associated Press, Barron's, Bloomberg, the Boston Business Journal, the Boston Herald, the Financial Times, Forbes, Pensions & Investments, Reuters, RIABiz, and the Wall Street Journal all covered the news of Abby's ascension to chairwoman.

MFWire obtained a copy of Ned's memo from yesterday. We've included the text below:

November 21, 2016

Dear Fidelity Colleagues:

I am pleased to announce that Abby Johnson will become Chairman of FMR LLC, Fidelity’s parent company. After nearly 60 wonderful years working at Fidelity, I am retiring.

As Chairman and Chief Executive Officer, Abby will have responsibility for the management of all FMR LLC businesses, including Fidelity Financial Services and Fidelity’s other diversified businesses and investments. This expansion of responsibilities is a natural progression of Abby’s 28-year career at Fidelity, in which she has taken on increasingly more challenging and complex roles.

Although I am retiring, I am not saying goodbye. I will become Chairman Emeritus, maintain office hours at 245 Summer Street in Boston, and continue to consult periodically with Abby and Fidelity’s Board of Directors.

As I step back from my management duties, I think it is appropriate to pause and reflect on where we stand as a company. Throughout Fidelity’s long history of growth, our dual commitments to our customers and to innovation have served us well. By investing in technology and using the kaizen method of continuous improvement, we have built a strong brand, industry-leading positions and multiple profitable businesses. No other company with whom we compete has the breadth of products, services and distribution channels that we offer.

While we have enjoyed much success, evolving customer preferences and new regulatory requirements are transforming the investment management industry. However, we are prepared to seize the opportunities in this changing competitive landscape. I have never felt more confident about Fidelity’s future than I do now.

Please join me in wishing Abby much success in her new role.

Sincerely,

Edward C. Johnson 3d