Mutual fund company, Vanguard Group, is making changes to its executive team to address complaints by shareholders about the company’s management. The vote is scheduled for fall at a meeting in Scottsdale.
Chief Executive Bill McNabb will be replaced by Chief Investment Officer Tim Buckley at year end. According to the official announcement, Buckley is being tapped as new chief to oversee a new era of rapid growth.
Reuters reports that Vanguard, the world’s largest mutual fund manager, has suffered a string of technical glitches since last year and has had to add to staff to respond.
The company has also hired former U.S. Treasury official Sarah Bloom Raskin and insurance executive Deanna Mulligan, an African-American, as new directors to its board overseeing mutual funds to “make Vanguard look more like its client base”.
The vote to approve these three new hires is scheduled for November at the shareholder meeting in Scottsdale. The same meeting will also include other votes, including asking for the ability to hire external managers without shareholder permission.
