Forbes fires top editor for secret payment from financial advisor ranking firm: New York Times

With ranks and lists of top financial advisors more prominent than ever as cash-hungry business publications look to generate marketing revenue, a leading business magazine and website, Forbes, has fired a leading editor who took $6 million in an undisclosed payment from a consulting firm it used to create such listings, according to a report yesterday in the New York Times.

“Randall Lane, the magazine’s chief content officer, was paid by RJ Shook, whose company, Shook Research, has teamed up with Forbes since 2016 to publish rankings of wealth advisers,” according to the report. “The payment was made after Mr. Shook sold a majority stake in Shook Research to PPC Enterprises, a private equity firm, last August, two of the people familiar with the transaction said.”

The Times reported that it “wasn’t clear” why Shook paid Lane. Citing a person “familiar with” his thinking, Lane regarded the payment as a gift in recognition of the advice he had given Shook over the years, according to the report.

“I made a mistake, and I take responsibility for it,” Lane, 58, said in a statement to The Times. “I should have disclosed the gift, and failing to was a serious error in judgment. I deeply regret that, and I lost the job and team I love because of it. None of this changes how I feel about Forbes and the amazing people there.”

“We will not comment further per company policy regarding the confidentiality of personnel information and other considerations,” a Forbes spokesperson wrote in an email to InvestmentNews.

“We have a strong editorial leadership team in place, including Kerry Lauerman, Executive Editor, Forbes, who is overseeing editorial operations in the interim,” the spokesperson added.

According to the Times’ report, a Forbes spokesperson confirmed that Lane was no longer with the magazine but declined to comment on the payment

With revenue from print ads practically disappearing, Forbes, like many other newspapers and magazines, has turned to rankings, events and awards in order to generate revenue.

The various Forbes lists of financial advisors have gained prominence under Lane’s leadership in the past decade, the same period that private equity investors have focused intently on the industry and acquired numerous wealth management businesses.

“Over the past decade, Forbes has published many co-branded rankings using Shook’s research that highlight the ‘Best-In-State Top Next-Gen Wealth Advisors’ or the ‘Top Wealth Management Teams — Private Wealth,’ according to the Times.

“To build the lists, Shook employees interview and analyze financial advisors across the country and turn their rankings over to Forbes, which reviews and publishes the list,” according to the report.

“Financial advisors don’t pay to be included on the list, but those who make the cut can pay to purchase plaques, logos and detailed online profiles commemorating their inclusion, sometimes for thousands of dollars,” according to the report. “Forbes splits that money with Shook Research, which highlights its affiliation with Forbes on its corporate website.”