Ellyn McColgan Out at Fidelity

The musical chairs continue at Fidelity and the latest to get caught without a chair is Ellyn McColgan. The media seem to think Ned Johnson is letting go of his key people, but I think Ned knows exactly what he is going - revitalizing a rather stagnant giant.

Ellyn McColgan, a contender for the Fidelity crown suddenly left the company, leaving succession to Ned Johnson as much a mystery as ever.  The media seems to think she left because she was dissatisfied with having to report to newly added Roger Lawson, who was an extra layer between her and Mr. Johnson.  The reality is that Fidelity has been getting walloped in the market and maybe Johnson felt the need to hold those running the ship accountable.  Fidelities funds have provided average returns for the last couple of years and its competitors have blown by.  Vanguard is now the larges mutual fund company, having taken the honor from Fidelity.  In addition, fund flows into Vanguard and American Group have been roughly 9 times what has gone into Fidelity through June of this year.

If I were Ned Johnson I'd have to take a hard look at the company's performance and decided if I wanted to stay the course or change ship.  It looks like he has chosen the latter.

Other places to read about this:

Fidelity Press Release Announcing Departure - Fidelity

Dangerous Job Claims One More - Boston Globe

Fidelity's latest executive adieu  - Fortune

Big Fido New - BusinessWeek

 

 

 

 

 

 

 

Sol Nasisi
Sol Nasisi: Sol Nasisi is the co-founder and a past president of BestCashCow, an online resource for comprehensive bank rate information. In this capacity, he closely followed rate trends for all savings-related and loan products and the impact of rate fluctuations on the economy. He specifically focused on how rates impact consumers' ability to borrow and save. He also has authored a wee

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Comments

  • OHM

    February 22, 2008

    Your wrong. It was directly related to Lawson. Get your facts straight before you write BS.
    And yes, I'm an insider.

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