When Rodger Lawson officially steps down as president of
Fidelity Investments at the end of March, some industry experts predict the company may not act to fill the position immediately.
Edward C. “Ned” Johnson III, chairman and chief executive of the firm, may decide that a president isn't needed, according to sources.
John Bonnanzio, editor of the Fidelity Insight newsletter, noted that Fidelity has operated without a president before, and may do so again.
But if the right candidate “really captured the attention of Ned Johnson” he or she might get the job, Mr. Bonnanzio said.
Anne Crowley, a spokeswoman for Fidelity, noted that the fund company has operated in the past without a president. She would not comment on what will happen when Mr. Lawson departs.
(To read a copy of the letter Mr. Lawson sent to Fidelity employees yesterday, click here.)
Mr. Lawson's predecessor — Bob Reynolds, who is now president and CEO of Putnam Investments — was chief operating officer at Fidelity, but never president.
If Mr. Lawson is replaced, however, the name mentioned most is that of Mr. Johnson's daughter, Abigail, president of Fidelity's personal and workplace investing division. Ms. Johnson also serves as vice chairman of Fidelity's parent company, FMR LLC.
“One has to assume that she is always a candidate,” Mr. Bonnanzio said.
That said, Jeffrey R. Carney, head of global marketing and product development at Putnam Investments would be a good fit for the job, according to one Fidelity adviser who asked not to be identified.
Mr. Carney came to Putnam from Bank of America Corp. where he had been president of Bank of America's retirement division and global wealth and investment management unit.
Prior to working for Bank of America, however, he was president of Fidelity Retirement Services, where advisers said he became a favorite of Mr. Johnson's.
Mr. Carney could not be reached for comment. But a spokesman from Putnam said Mr. Carney had no intention to leave.
“Jeff is fully entrenched and committed to Putnam and likes the firm's long-term prospects,” said Jon Goldstein, a spokesman for the firm.
One industry watcher, however, said it makes little difference who is president of Fidelity given that Mr. Johnson makes the major decisions for the firm.
“I would say it's not really material,” said Matthew Noll, a senior credit officer at Moody's Investors Service.
“When [Mr. Johnson] steps down, its going to be a very substantial change at the company, because he's very involved in the day-to-day operations of the firm,” Mr. Noll said.
