Fidelity’s succession issues puzzle pros

What’s with Fidelity? Is it too big to be managed by any one person? Or is Edward C. “Ned” Johnson — founder, chairman and chief executive of the company — one of those cranky old entrepreneurs who can’t let go of control and can’t decide who should replace him? Fidelity Investments and its parent, FMR Corp. of Boston, have had revolving doors at the top in recent years. When Abigail Johnson was named president of FMR in 2001, she was considered heir apparent to her father at Fidelity. She was replaced in 2005 by Robert L. Reynolds, a longtime Fidelity executive, who was given the title of vice chairman and chief operating officer, and observers thought he would run the company. But Mr. Reynolds, perhaps tired of waiting, retired in April of this year at age 55. Rodger A. Lawson was named president of FMR last month, but at 60, he is thought by some observers too old to be considered the new heir apparent. Mr. Lawson’s appointment apparently has brought about the departure of Ellyn A. McColgan. As president of Fidelity’s distribution business, she was both an advocate for advisers and a candidate to run the whole company. Perhaps Ms. McColgan felt that her way was blocked by Mr. Lawson or that the move signaled a loss of confidence in her on Mr. Johnson’s part. Whatever the cause of her departure, the continuing changes at the top must cause professionals to wonder what’s going on in Fidelity’s top management. Most investment professionals dislike change and uncertainty, and Ned Johnson has been providing both at Fidelity in recent years.