MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Wednesday, December 28, 2005 Abby to Leave Fido Funds Board What does the future hold for Abby Johnson? Those speculating on that question got more grist for the mill this week when it was reported that the daughter of Fidelity CEO Ned Johnson had been bumped from the board of Fidelity's 366 mutual funds as of mid-January. It is very possible that the move has a non-succession related explanation. Earlier this year Abby moved from Fidelity Management & Research (FMR) to head Fidelity's Employer Services Company (FESCo). Based on that move, there is no reason for her to keep her seat on the funds' board. According to this logic, FESCo has nothing to do with the funds management or operations and it would stretch her too thin to stay up on the issues important for fund shareholders as she tries to master the ins and outs of Fidelity's 401(k) and benefits operations. The move, which was first reported by the Boston Globe, also positions Fidelity to meet the new requirement that three-quarters of board seats belong to independent directors should those rules take effect. Ten of the 14 current members of the Fidelity funds' board are classified as independent. That works out to just 71 percent. Fidelity insiders on the fund boards are Ned Johnson, COO Robert Reynolds and FNR head Stephen Jonas. Abby will not be replaced on the board when she resigns in mid-January, a move that would push the percentage of independent directors up to 77 percent. However, Fidelity spokesperson Anne Crowley told the paper that the independent director rule change was not a reason for the change. Printed from: MFWire.com/story.asp?s=11058 Copyright 2005, InvestmentWires, Inc. All Rights Reserved |