Vanguard Group is poised to appoint a former BlackRock executive as its next leader, marking the first time an outsider will helm the asset manager in its nearly 50-year history.
Salim Ramji, who previously oversaw BlackRock’s exchange-traded funds (ETFs) and index investing, is expected to assume the role of Vanguard’s CEO soon, according to sources familiar with the matter.
Ramji departed BlackRock in January after a decade-long tenure, during which he played a pivotal role in expanding the firm’s iShares ETF business, overseeing a significant portion of BlackRock’s assets under management.
Vanguard announced CEO Mortimer J. “Tim” Buckley’s departure in February and commenced a search for his successor. Greg Davis, formerly Vanguard’s chief investment officer, was promoted to president in the same announcement.
Ramji’s appointment marks a departure from Vanguard’s tradition, as he will be the first CEO who did not directly collaborate with the late founder John C. Bogle. Bogle established Vanguard in 1974 and introduced the world’s first index mutual fund in 1975.
Ramji’s tenure at BlackRock saw him lead various strategic initiatives, including corporate strategy and the U.S. wealth-advisory business. While he was considered a contender for the CEO position at BlackRock, other candidates gained traction following a recent organizational restructuring.
Assuming leadership at Vanguard, Ramji will inherit a significant asset management firm, second only to his former employer.
Despite its success in asset accumulation, Vanguard has encountered challenges such as technology issues and customer service complaints. The company aims to diversify its offerings beyond index fund management by venturing into fee-based financial advisory services.
Unlike its competitors, Vanguard does not disclose its financial performance publicly. As a firm owned by its funds, Vanguard emphasizes its unique ownership structure, which enables it to prioritize shareholder interests by offering lower fees.
