It came as no surprise that the mutal fund giant split Roger Lawson's old job in two. It was no shocker that it tapped Abby Johnson to handle some of Lawson's former duties. But the hiring of BNY Mellon's Ronald O'Hanley? That was a surprise
Fidelity Investments named Abigail Johnson and Ronald O'Hanley to top roles after splitting responsibility for running the company.
Fidelity created two distinct units as the company has expanded beyond managing mutual funds into stock trading and retirement planning and institutional money management. In their new roles, Ms Johnson and Mr. O'Hanley take over responsibilities previously held by Rodger Lawson, who stepped down at the end of March.
Mr. O'Hanley, president and CEO of BNY Asset Management, will join Fidelity as president of Asset Management and Corporate Services, according to a news release.
Ms. Johnson, who was promoted to president of Fidelity Personal, Workplace and Institutional Services, is now effectively the head of all Fidelity distribution channels.
Ms. Johnson, the daughter of Edward Johnson III, Fidelity chairman and chief executive officer, was also named a vice chairman and director of FMR LLC, the holding company for the businesses of Fidelity Investments. She begins her new duties immediately.
Both Ms. Johnson and Mr. O'Hanley, who plans on joining Fidelity in midsummer, will report directly to Mr. Johnson.
Mr. Johnson, in the news release, said the new distribution structure “will position Fidelity strategically for the future by bringing all of the firm's distribution resources together to focus on providing outstanding products and services to Fidelity's clients and customers.”
Ms. Johnson is taking on more responsibility by overseeing all of Fidelity's intermediary businesses, said Vin Loporchio, a Fidelity spokesman.
That includes all of the firm's distribution channels, which serve banks, broker-dealers, insurers and RIAs.
Michael Durbin, president of institutional wealth services, Fidelity's custody business, remains in charge of that unit, Mr. Loporchio said. He reports to Gerard McGraw, president of Fidelity's institutional products group.
Mr. Durbin had reported to Mr. Lawson. Ms. Johnson and Mr. McGraw had also reported to Mr. Lawson. Mr. McGraw is now reporting to Ms. Johnson.
"Abby and Ron [O'Hanley] will report to Mr. Johnson," Mr. Loporchio said.
The reshuffling is the latest in a series of management moves at Fidelity.
Charles Goldman, the former president of institutional platforms, also left in March. His position was not filled.
Ms. Johnson has run a number of Fidelity businesses over the years and has been rumored as a possible successor to her father.
Mr. Loporchio said Mr. Johnson had no plans to retire, and that the firm has an undisclosed succession plan in place.
Meanwhile, BNY Mellon intends to conduct a “comprehensive search for a permanent head of the asset management business” to replace Mr. O'Hanley. The search will consider both internal and external candidates. In the interim, Jonathan Little, the vice chairman of BNY Mellon Asset Management, and Mitchell Harris, chairman of the fixed income, cash and currency group, will serve as interim co-heads of the firm.
[Douglas Appell, a reporter with IN sister publication Pensions & Investments, contributed to this article.]
