Vanguard's board of directors says Chief Investment Officer Tim Buckley will take the reins from CEO Bill McNabb on Jan. 1. Effective immediately, Buckley will be the fund family's president and director.
Buckley, 48, will be the firm's fourth CEO since its founding in 1975. McNabb, 60, has been in the CEO slot since 2008 and will remain the group's chairman. Greg Davis, 46, head of Vanguard's Fixed Income Group, will be chief investment officer.
"As the firm continues to grow, evolve and expand globally, it is the right time for a new leader and the board is unanimous in its belief that Tim Buckley is the ideal next chief executive for Vanguard," McNabb said in a statement.
"I have worked alongside Tim for many years and he brings a strong passion for serving Vanguard clients and crew, a global mindset, and significant leadership experience in all facets of our operations," he added.
Fund analysts say the news is not entirely surprising.
"It's not a shock. The timing seems pretty logical, given McNabb's age, and the time he's been in the position," said Kevin McDevitt, Morningstar's lead analyst on Vanguard funds, in an interview with ThinkAdvisor.
McNabb took on the CEO role during the financial crisis, "which was one of the most stressful market environments in a generation or two," explained McDevitt, "and he himself has said this time is the equivalent of adding several years to his tenure."
As for the new CEO, "Tim Buckley is ready," according to the analyst.
