Vanguard Names Former BlackRock Exec as Next CEO
It marks the first time an outsider has been tapped to lead the firm in its 50-year history.
Vanguard Group has named Salim Ramji, a former BlackRock executive, to replace outgoing CEO Tim Buckley, effective July 8, the asset manager announced late Tuesday.
It will mark the first time an outsider has been tapped to lead the asset manager in its roughly 50-year history, according to the Wall Street Journal.
“I have worked with Salim on the Executive Committee of the Investment Company Institute,” Buckley said in a statement. “He cares about advancing the interests of individual investors, has a strong fiduciary ethos, and thinks strategically about solutions.
“Salim understands our organization’s deep sense of purpose and commitment to put clients first, which is a hallmark of Vanguard’s leadership team and culture,” the outgoing CEO added.
Ramji — the former head of iShares ETFs, index investments, U.S. wealth advisory and corporate strategy — left BlackRock earlier this year after a decade with the asset manager. At the time, he said he would “seek a new leadership or entrepreneurial opportunity” outside of the firm.
Prior to his work at BlackRock, he spent 16 years at McKinsey & Company , where he led the consulting group’s asset and wealth management practice areas. He also worked earlier for the law firm Clifford Chance.
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“We congratulate Salim on this accomplishment and thank him for his leadership at our firm,” BlackRock said in a statement, adding that it is “proud to have a track record of our firm’s alumni going on to lead multiple investment management companies and other financial Institutions.”
Vanguard announced in late February that Buckley planned to step down by year-end and that it appointed Chief Investment Officer Greg Davis to the additional role of president.
Effective July 8, Davis will be appointed to Vanguard’s board and have expanded responsibility for regulatory and government affairs, Vanguard announced Tuesday. Mark Loughridge, the firm’s lead independent director, will become executive chairman on that date, and Coca-Cola executive John Murphy will join the board June 1.
Vanguard was founded by John C. Bogle in 1974; he died in 2019.
The firm managed some $9 trillion in assets as of Dec. 31. It counts BlackRock and State Street Global Advisors as its two main competitors in the ETF space, with the three entities representing the “Big Three” asset managers in index investing.
–Katie Rass contributed to this report.
Credit: Bloomberg