Buckley will succeed McNab as Vanguard CEO at year end

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Ever Ready
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Buckley will succeed McNab as Vanguard CEO at year end

Postby Ever Ready » Thu Jul 13, 2017 3:18 pm

Tim Buckley CIO will succeed Bill McNab as Vanguard CEO at year end. Just announced on Bloomberg.
McNab will remain as Chairman.

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Re: Buckley will succeed McNab as Vanguard CEO at year end

Postby Ever Ready » Thu Jul 13, 2017 3:24 pm

Last edited by Ever Ready on Thu Jul 13, 2017 3:26 pm, edited 1 time in total.

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Re: Buckley will succeed McNab as Vanguard CEO at year end

Postby David Jay » Thu Jul 13, 2017 3:25 pm

CIO?

Yikes! I hope the past is not a predictor of the future.

[edit] nevvverrr mind (I read CIO as chief information officer, not chief investment officer)
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Vanguard CEO McNabb to step down

Postby davidkw » Thu Jul 13, 2017 3:55 pm

New CEO at Vanguard

Tim Buckley, the current chief investment officer of the company that oversees $4.4tn of assets, will take over as CEO.

Buckley, 48, joined the company in 1991 as an assistant to Vanguard’s founder Jack Bogle. He will become the Pennsylvania-based company’s fourth CEO since it was founded in 1975.
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Re: Buckley will succeed McNab as Vanguard CEO at year end

Postby LadyGeek » Thu Jul 13, 2017 4:09 pm

^^^ I merged davidkw's post into here.
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Re: Buckley will succeed McNab as Vanguard CEO at year end

Postby KyleAAA » Thu Jul 13, 2017 4:19 pm

David Jay wrote:CIO?

Yikes! I hope the past is not a predictor of the future.

[edit] nevvverrr mind (I read CIO as chief information officer, not chief investment officer)


Apparently both. I can't believe they have 3,0000 software developers.

http://news.morningstar.com/articlenet/ ... ?id=815746

" During McNabb's tenure, Vanguard has invested heavily in technology and the firm employs about 3,000 software developers."

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Re: Buckley will succeed McNab as Vanguard CEO at year end

Postby Ever Ready » Thu Jul 13, 2017 4:32 pm


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Vanguard CEO Bill McNabb to Step Down

Postby Silence Dogood » Thu Jul 13, 2017 5:30 pm

http://www.cnbc.com/2017/07/13/vanguard-ceo-f-william-mcnabb-to-step-down.html



- McNabb to remain chairman of the firm after January
- Tim Buckley will succeed McNabb as CEO at that time

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Re: Buckley will succeed McNab as Vanguard CEO at year end

Postby triceratop » Thu Jul 13, 2017 5:49 pm

^^^ I merged Benjamin Franklin's post above.
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Re: Buckley will succeed McNab as Vanguard CEO at year end

Postby ProfessorX » Thu Jul 13, 2017 6:00 pm

What do all their sofrtware developers do? Their website and app seem pretty basic. Do they run a lot of their index funds back end stuff with a lot of fancy software?

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Vanguard Leadership Changes Announced

Postby Mel Lindauer » Thu Jul 13, 2017 6:57 pm

Hello Everyone:

Thought I'd share the following news with you in case you haven't already heard.

First, effective today, the Board of Directors of The Vanguard Group unanimously elected Vanguard’s Chief Investment Officer Tim Buckley as president and director of Vanguard and announced plans for him to succeed Bill McNabb as chief executive officer on January 1, 2018.

Under the planned succession, Mr. Buckley, 48, will become the firm’s fourth CEO since its founding in 1975. Mr. McNabb, 60, who has served as Vanguard’s CEO since 2008, will remain as chairman of the board. Greg Davis, 46, global head of Vanguard’s Fixed Income Group, assumes the position of chief investment officer.

Mr. Buckley has been a member of Vanguard’s senior leadership team since 2001 and has served as Vanguard’s chief investment officer since 2013. He joined Vanguard in 1991 as assistant to then Chairman John C. Bogle.


Both of these fine gentlemen have been involved in past Bogleheads Conferences. It's good to see them "moving on up".
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Re: Vanguard Leadership Changes Announced

Postby munemaker » Thu Jul 13, 2017 7:13 pm

Along with that, there was an announcement that Vanguard would hold a vote later this year to vote on several fund policy proposals and elect fund trustees, including Mr. Buckley and two new trustee candidates: Deanna Mulligan, President and Chief Executive Officer of The Guardian Life Insurance Company of America, and Sarah Bloom Raskin, former U.S. Deputy Secretary of the Treasury.

Has Vanguard ever held votes in the past on policy matters? If they did, I don't recall.

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Re: Vanguard Leadership Changes Announced

Postby Case59 » Thu Jul 13, 2017 7:29 pm

I've never really understood (or tried to understand) Vanguard's ownership structure. As a participant in its funds, am I a shareholder entitled to vote on policy changes?
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Re: Buckley will succeed McNab as Vanguard CEO at year end

Postby LadyGeek » Thu Jul 13, 2017 7:58 pm

^^^ I merged Mel Lindauer's thread into here.
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Re: Buckley will succeed McNab as Vanguard CEO at year end

Postby edge » Thu Jul 13, 2017 8:18 pm

That is probably too few. Jpmc has 30,000.

KyleAAA wrote:
David Jay wrote:CIO?

Yikes! I hope the past is not a predictor of the future.

[edit] nevvverrr mind (I read CIO as chief information officer, not chief investment officer)


Apparently both. I can't believe they have 3,0000 software developers.

http://news.morningstar.com/articlenet/ ... ?id=815746

" During McNabb's tenure, Vanguard has invested heavily in technology and the firm employs about 3,000 software developers."

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Re: Buckley will succeed McNab as Vanguard CEO at year end

Postby nisiprius » Thu Jul 13, 2017 8:19 pm

What has been the length of tenure of successive CEO's?

Bogle, 1975-1996? 21 years?

Brennan, 1996-2008? 12 years?

McNabb, 2008-2017? 9 years?

Hmmm...
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Re: Buckley will succeed McNab as Vanguard CEO at year end

Postby HueyLD » Thu Jul 13, 2017 8:25 pm

nisiprius wrote:What has been the length of tenure of successive CEO's?

Bogle, 1975-1996? 21 years?

Brennan, 1996-2008? 12 years?

McNabb, 2008-2017? 9 years?

Hmmm...


My guess is that Buckley will last no more than 5 years based on the above trend. :)

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Tim Buckley to be new Vanguard CEO January 2018

Postby Tyler Aspect » Fri Jul 14, 2017 12:13 am

I received an email notification from Vanguard today.

https://www.nytimes.com/reuters/2017/07/13/business/13reuters-vanguard-buckley.html

[moved this post into the existing thread - moderator prudent]
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Investors Shouldn't Sweat Vanguard CEO Transition

Postby LiveSimple » Fri Jul 14, 2017 7:41 am

[merged LiveSimple's post into this existing thread - moderator prudent]

Just a note on Vanguard CEO succession on Jan. 1, 2018

Seems like Mr Buckley, was overseeing technology, so there may be some changes in the technology area.

http://news.morningstar.com/Cover/video ... ?id=815774


Vanguard CIO Buckley to Take Over as CEO From McNabb on Jan. 1
https://www.nytimes.com/reuters/2017/07 ... ckley.html

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Re: Buckley will succeed McNab as Vanguard CEO at year end

Postby David Jay » Fri Jul 14, 2017 10:16 am

HueyLD wrote:
nisiprius wrote:What has been the length of tenure of successive CEO's?

Bogle, 1975-1996? 21 years?

Brennan, 1996-2008? 12 years?

McNabb, 2008-2017? 9 years?

Hmmm...


My guess is that Buckley will last no more than 5 years based on the above trend. :)

YUP, nothing like a good extrapolation :wink:
Prediction is very difficult, especially about the future - Niels Bohr | To get the "risk premium", you really do have to take the risk - nisiprius

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Re: Buckley will succeed McNab as Vanguard CEO at year end

Postby Whakamole » Fri Jul 14, 2017 3:59 pm

ProfessorX wrote:What do all their sofrtware developers do? Their website and app seem pretty basic. Do they run a lot of their index funds back end stuff with a lot of fancy software?


There's a lot they need to do. Sending the IRS/state income tax boards all those 1099 forms; sending the SEC filing information; complying with whatever other government regulations there are about mutual funds, ETFs, and brokerage houses (remember Vanguard is a brokerage too); security (keeping the hackers away from your accounts); internal auditing; etc.

Even for something as running that index fund, they need to keep track of the cost basis of every share for tax purposes. The last holdings statement for VTSAX indicates they have 3 billion shares in the top 50 holdings alone. That's going to be a decent sized database.

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Re: Buckley will succeed McNab as Vanguard CEO at year end

Postby flamesabers » Fri Jul 14, 2017 4:09 pm

HueyLD wrote:
nisiprius wrote:What has been the length of tenure of successive CEO's?

Bogle, 1975-1996? 21 years?

Brennan, 1996-2008? 12 years?

McNabb, 2008-2017? 9 years?

Hmmm...


My guess is that Buckley will last no more than 5 years based on the above trend. :)


Past performance doesn't guarantee future results. :P

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Re: Buckley will succeed McNab as Vanguard CEO at year end

Postby bayview » Sat Jul 15, 2017 7:50 am

Whakamole wrote:
ProfessorX wrote:What do all their sofrtware developers do? Their website and app seem pretty basic. Do they run a lot of their index funds back end stuff with a lot of fancy software?


There's a lot they need to do. Sending the IRS/state income tax boards all those 1099 forms; sending the SEC filing information; complying with whatever other government regulations there are about mutual funds, ETFs, and brokerage houses (remember Vanguard is a brokerage too); security (keeping the hackers away from your accounts); internal auditing; etc.

Even for something as running that index fund, they need to keep track of the cost basis of every share for tax purposes. The last holdings statement for VTSAX indicates they have 3 billion shares in the top 50 holdings alone. That's going to be a decent sized database.

Perhaps one of them can be spared to deal with the toolbar or heading or whatever it is across the top of my Vanguard page that has shown nothing but random y's and ampersands for the last two days. :oops:
The continuous execution of a sound strategy gives you the benefit of the strategy. That's what it's all about. --Rick Ferri

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Re: Buckley will succeed McNab as Vanguard CEO at year end

Postby LadyGeek » Sat Jul 15, 2017 7:58 am

^^^ Try clearing your browser's cache. If you have any further problems, ask for help in the Personal Consumer Issues forum.
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Re: Buckley will succeed McNab as Vanguard CEO at year end

Postby Dottie57 » Sat Jul 15, 2017 7:59 am

ProfessorX wrote:What do all their sofrtware developers do? Their website and app seem pretty basic. Do they run a lot of their index funds back end stuff with a lot of fancy software?



Back end stuff can be incredibly complex. Think of work needing to be done to rebalance , sell, buy, etc. keeping track of each individual totals. All if govt regs. Not a simple business.

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Re: Buckley will succeed McNab as Vanguard CEO at year end

Postby LadyGeek » Sat Jul 15, 2017 8:02 am

I'm hoping the new CEO understands the need for a strong Quality Assurance team to ensure this complex software maze of:

- design
- development
- test (verification and validation)
- compliance
- configuration management
- maintenance (bug fixes, revision control, etc.)

keeps all of these moving parts working together.
To some, the glass is half full. To others, the glass is half empty. To an engineer, it's twice the size it needs to be.

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Re: Buckley will succeed McNab as Vanguard CEO at year end

Postby nisiprius » Sat Jul 15, 2017 3:49 pm

HueyLD wrote:
nisiprius wrote:What has been the length of tenure of successive CEO's?

Bogle, 1975-1996? 21 years?

Brennan, 1996-2008? 12 years?

McNabb, 2008-2017? 9 years?

Hmmm...


My guess is that Buckley will last no more than 5 years based on the above trend. :)
Giving me an opportunity to cite one of my favorite quotations.
In 'Life on the Mississippi,' Mark Twain wrote:Now, if I wanted to be one of those ponderous scientific people, and ‘let on’ to prove what had occurred in the remote past by what had occurred in a given time in the recent past, or what will occur in the far future by what has occurred in late years, what an opportunity is here! Geology never had such a chance, nor such exact data to argue from! Nor ‘development of species,’ either! Glacial epochs are great things, but they are vague—vague. Please observe:—

In the space of one hundred and seventy-six years the Lower Mississippi has shortened itself two hundred and forty-two miles. That is an average of a trifle over one mile and a third per year. Therefore, any calm person, who is not blind or idiotic, can see that in the Old Oolitic Silurian Period,’ just a million years ago next November, the Lower Mississippi River was upwards of one million three hundred thousand miles long, and stuck out over the Gulf of Mexico like a fishing-rod. And by the same token any person can see that seven hundred and forty-two years from now the Lower Mississippi will be only a mile and three-quarters long, and Cairo and New Orleans will have joined their streets together, and be plodding comfortably along under a single mayor and a mutual board of aldermen. There is something fascinating about science. One gets such wholesale returns of conjecture out of such a trifling investment of fact.
Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness; Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.

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Re: Buckley will succeed McNab as Vanguard CEO at year end

Postby dwickenh » Sat Jul 15, 2017 4:08 pm

nisiprius wrote:
HueyLD wrote:
nisiprius wrote:What has been the length of tenure of successive CEO's?

Bogle, 1975-1996? 21 years?

Brennan, 1996-2008? 12 years?

McNabb, 2008-2017? 9 years?

Hmmm...


My guess is that Buckley will last no more than 5 years based on the above trend. :)
Giving me an opportunity to cite one of my favorite quotations.
In 'Life on the Mississippi,' Mark Twain wrote:Now, if I wanted to be one of those ponderous scientific people, and ‘let on’ to prove what had occurred in the remote past by what had occurred in a given time in the recent past, or what will occur in the far future by what has occurred in late years, what an opportunity is here! Geology never had such a chance, nor such exact data to argue from! Nor ‘development of species,’ either! Glacial epochs are great things, but they are vague—vague. Please observe:—

In the space of one hundred and seventy-six years the Lower Mississippi has shortened itself two hundred and forty-two miles. That is an average of a trifle over one mile and a third per year. Therefore, any calm person, who is not blind or idiotic, can see that in the Old Oolitic Silurian Period,’ just a million years ago next November, the Lower Mississippi River was upwards of one million three hundred thousand miles long, and stuck out over the Gulf of Mexico like a fishing-rod. And by the same token any person can see that seven hundred and forty-two years from now the Lower Mississippi will be only a mile and three-quarters long, and Cairo and New Orleans will have joined their streets together, and be plodding comfortably along under a single mayor and a mutual board of aldermen. There is something fascinating about science. One gets such wholesale returns of conjecture out of such a trifling investment of fact.


+1 Love that quote nisiprius

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Re: Buckley will succeed McNab as Vanguard CEO at year end

Postby bayview » Sun Jul 16, 2017 7:11 am

LadyGeek wrote:^^^ Try clearing your browser's cache. If you have any further problems, ask for help in the Personal Consumer Issues forum.

Bingo, that worked!

Thanks for the memory nudge. I'm so used to periodic problems on VG's end that clearing the cache didn't even occur to me. :D
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Re: Buckley will succeed McNab as Vanguard CEO at year end

Postby badbreath » Sun Jul 16, 2017 9:12 am

Not really a good question and answer but here is 5 question to Buckley from Vanguard

https://advisors.vanguard.com/VGApp/iip ... ws071317_3
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Re: Buckley will succeed McNab as Vanguard CEO at year end

Postby Tommy » Sun Jul 16, 2017 2:23 pm

LadyGeek wrote:I'm hoping the new CEO understands the need for a strong Quality Assurance team to ensure this complex software maze of:

- design
- development
- test (verification and validation)
- compliance
- configuration management
- maintenance (bug fixes, revision control, etc.)

keeps all of these moving parts working together.

Unfortunately, not many companies today understand value of test and, even who understands does not have right test team.

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Re: Buckley will succeed McNab as Vanguard CEO at year end

Postby Phineas J. Whoopee » Sun Jul 16, 2017 9:17 pm

Tommy wrote:...
Unfortunately, not many companies today understand value of test and, even who understands does not have right test team.

One time when such things still were an issue I had to write a formal waiver and get it approved, that is to say physically signed by the next two higher levels of management, to prevent monitor burn-in on the test department's equipment from stopping our shipping working product. The problem report said the 24th line menu should disappear when we turn the computers and monitors off, but it doesn't.
PJW

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Re: Buckley will succeed McNab as Vanguard CEO at year end

Postby Tommy » Mon Jul 17, 2017 9:35 am

Phineas J. Whoopee wrote:
Tommy wrote:...
Unfortunately, not many companies today understand value of test and, even who understands does not have right test team.

One time when such things still were an issue I had to write a formal waiver and get it approved, that is to say physically signed by the next two higher levels of management, to prevent monitor burn-in on the test department's equipment from stopping our shipping working product. The problem report said the 24th line menu should disappear when we turn the computers and monitors off, but it doesn't.
PJW

As I said, many companies don't have right test team. Honestly, I don't think any has


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