Fidelity Investments promotes Abigail Johnson

[August 29, 2012]  BOSTON (AP) -- Fidelity Investments on Tuesday gave Abigail Johnson a promotion, putting the longtime Fidelity executive in charge of all the company's core financial services businesses. Her 82-year-old father, Edward "Ned" Johnson III, remains CEO and chairman of the privately held company.

Fidelity named 50-year-old Abigail Johnson to the new position of president of financial services. She will oversee management of assets such as mutual funds, as well as Fidelity's brokerage business, retirement and benefits services, and other operations.

Among those reporting to her will be Ronald O'Hanley. Previously, O'Hanley had reported to Ned Johnson as president of asset management and corporate services.

Abigail Johnson has been with the Boston-based company 24 years, and previously had a narrower role in charge of retail and institutional brokerage operations as well as retirement and benefits services.

She took over that role two years ago as part of a restructuring in which she headed one of two organizations overseeing the company's far-flung operations, with O'Hanley hired from outside to run the other. He is a former president and CEO of BNY Mellon Asset Management.

Abigail Johnson has been rumored for years to be heir apparent to Ned Johnson, who has held the CEO and chairman titles since 1977. Speculation about who will replace him has grown in recent years because of his age.

Fidelity says it has a succession plan in place, but won't disclose details. Fidelity spokeswoman Anne Crowley said on Tuesday that Ned Johnson "has no plans to step aside from his leadership roles, and remains active in running the company."

The Johnson family owns a 49 percent stake in Fidelity, with key employees owning the rest. Fidelity was founded in 1946 by Ned Johnson's father, Edward C. Johnson II.

Abigail Johnson will remain vice chairman and director of FMR LLC, the holding company for Fidelity's businesses, and chairman of the board for Fidelity's bond and asset allocation funds.

Ned Johnson said in a statement Tuesday that his daughter "has demonstrated an ability to drive change and innovation in business practices."

He described the creation of her new post as an attempt "to bring all of our resources together to position our firm strategically to optimize our competitive capabilities."

Fidelity managed about $1.6 trillion as of July 31. Total assets under administration -- including money for which Fidelity performs record keeping and other administrative services -- were $3.7 trillion. Fidelity is the nation's second-largest mutual fund company, behind Vanguard Group.

Fidelity had more than 39,700 employees at the end of last year.

[Associated Press; By MARK JEWELL]

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