More turnover at the top of Waddell & Reed

The latest shake-up includes the departure of a senior vice president

May 31, 2018 @ 2:15 pm

By Bruce Kelly

A further shake-up in senior management has occurred at Waddell & Reed, with a senior vice president leaving the firm and two national market heads stepping down to become financial advisers.

The changes come just weeks after the firm, which has been losing financial advisers at a rapid pace, saw a flurry of departures of senior executives. In April, the company said that its general counsel, its head of distribution and two senior portfolio manager all had left.

The company outlined the latest round of changes in a memo to its advisers late last Friday. Karen Lare, the senior vice president of administration, has left the firm and will be replaced by Phill Fournier, the senior vice president of advisor experience, according to the memo, which was signed by Shawn Mihal, the president of Waddell & Reed.

Meanwhile, John Oestreich and Joel Ockey are stepping down as national market heads — sales management roles — and will be replaced by three new regional vice presidents: Frank Anzalone for the east region; Nick Miskov for the central region; and Kevin Farrell in the west region.

The decision by Mr. Oestreich and Mr. Ockey "was not an easy one," but "both have always maintained a passion for financial planning and a dedication to working with clients," according to the memo.

"These are unrelated to other moves on other parts of the business announced in April," company spokesman Roger Hoadley wrote in an email.

Ms. Lare was instrumental in creating a new brokerage platform through Pershing for Waddell & Reed's advisers when she arrived at the firm in 2010, according to one adviser who asked not to be named.

Waddell & Reed's business model relies primarily on its brokers and advisers selling the parent company's proprietary, actively managed mutual funds. The broker-dealer is a subsidiary of a publicly traded holding company, Waddell & Reed Financial Inc.

The broker-dealer has seen a significant drop in the number of its brokers and advisers over the past year, with head count decreasing 29.6%. At the end of the first quarter this year, the firm had 1,170 advisers, down 492 from the same time a year earlier.

Waddell & Reed this year increased the minimum production requirements for its advisers, which is one of the factors that has led to a reduction in the number of its advisers.

0
Comments

What do you think?

View comments

Recommended for you

Featured video

Events

Financial advisers highlight solutions to increase diversity and inclusion

These Excellence in Diversity & Inclusion award winners suggest short-term changes to help foster D&I in the financial advice profession.

Latest news & opinion

7 things advisers should do today to boost diversity and inclusion

Creating diversity and inclusion within financial advice firms is challenging, but these InvestmentNews Excellence in Diversity & Inclusion award winners have suggestions that firms can put into practice today

The midterm elections: What's at stake for financial advisers

A shift in control of the House could change the course of important issues, including the SEC advice rule, tax reform and retirement policies.

What to tell your clients after they've won the lottery

The current combined Mega Millions and Powerball jackpots are more than $850 million. What should you tell your clients if they have a winning ticket?

2019 Medicare premiums announced

Slight increase in Part B premium to $135.50 per month is in line with expectations.

7 ways states got tough with unregistered individuals and firms in 2017

Rise in digital currency frauds helped trigger a crackdown by state regulators.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print