Vanguard Preparing to Tap Former BlackRock Executive as CEO

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Vanguard Preparing to Tap Former BlackRock Executive as CEO

Post by RickBoglehead »

Vanguard Group is preparing to name a former BlackRock executive as its next leader, putting an outsider in charge of the asset manager for the first time in its roughly 50-year history.

Salim Ramji—who led BlackRock’s exchange-traded funds and index investing until earlier this year—is expected to be named Vanguard’s chief executive officer soon, people familiar with the matter said, assuming the company doesn’t change course at the last minute.

https://www.wsj.com/articles/vanguard-p ... o-77508e2b
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Rumor: Vanguard to tap Blackrock exec for CEO

Post by Brookside1010 »

https://www.wsj.com/business/c-suite/va ... o-77508e2b

Vanguard Group is preparing to name a former BlackRock executive as its next leader, putting an outsider in charge of the asset manager for the first time in its roughly 50-year history.

Salim Ramji—who led BlackRock’s exchange-traded funds and index investing until earlier this year—is expected to be named Vanguard’s chief executive officer soon, people familiar with the matter said, assuming the company doesn’t change course at the last minute.

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Re: Vanguard Preparing to Tap Former BlackRock Executive as CEO

Post by GP813 »

Very skeptical about this choice. Vanguard needs to work on customer service not launching a bunch of ETFs like Blackrock.
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Re: Vanguard Preparing to Tap Former BlackRock Executive as CEO

Post by marcopolo »

GP813 wrote: Tue May 14, 2024 5:26 pm Very skeptical about this choice. Vanguard needs to work on customer service not launching a bunch of ETFs like Blackrock.
You are assuming Vanguard wants to continue to be a brokerage.

This move would be consistent with some of their other behavior that would indicate they might be shifting to the Blackrock model of being an asset manager.
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Re: Vanguard Preparing to Tap Former BlackRock Executive as CEO

Post by rjbraun »

Salim Ramji was cited by Eric Balchunas at the time of Buckley's retirement announcement as a possible successor, for what it's worth, along with Vanguard's Greg Davis.

https://www.thinkadvisor.com/2024/03/12 ... ment-news/
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Re: Vanguard Preparing to Tap Former BlackRock Executive as CEO

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“How did you go bankrupt?" "Two ways. Gradually, then suddenly.”
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Re: Vanguard Preparing to Tap Former BlackRock Executive as CEO

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4 ... 3 ... 2 ...
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Re: Vanguard Preparing to Tap Former BlackRock Executive as CEO

Post by WhitePuma »

If it drives down the cost (expense ratio) of ETFs, then yay!
If not, then boo!
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Re: Vanguard Preparing to Tap Former BlackRock Executive as CEO

Post by drk »

First order of business: LifeStrategy ETFs and a new fund-of-funds Total World Stock ETF.
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Re: Vanguard Preparing to Tap Former BlackRock Executive as CEO

Post by Cocoa Beach Bum »

This WSJ article was just cited on CNBC. Must be true.
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Re: Vanguard Preparing to Tap Former BlackRock Executive as CEO

Post by bondsr4me »

gonna be interesting…I’ll be watching.
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Re: Vanguard Preparing to Tap Former BlackRock Executive as CEO

Post by nisiprius »

Announcing Buckley's departure on February 29th, and Ramji as successor on May 14th--is not too bad and suggests order rather than chaos. I'm not ready to read much into the news article regarding what it might mean for Vanguard's direction. He obviously has ETF credentials and "led its U.S. wealth-advisory business before taking his most recent role" (I can't figure out if that was at BlackRock or McKinsey).

We don't really know why Buckley is leaving Vanguard, and we don't really know why Ramji is leaving BlackRock.
Last edited by nisiprius on Tue May 14, 2024 6:36 pm, edited 1 time in total.
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Re: Vanguard Preparing to Tap Former BlackRock Executive as CEO

Post by exodusing »

According to the updated WSJ article, it's now official.

Also:
It has excelled at collecting new assets but experienced growing pains along the way, including technology issues and customer-service complaints on its brokerage platform.

The firm is attempting to expand beyond its core business of managing ultracheap funds tracking stock and bond indexes by pushing into the more lucrative business of charging customers for financial advice.
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Re: Vanguard Preparing to Tap Former BlackRock Executive as CEO

Post by UpperNwGuy »

sycamore wrote: Tue May 14, 2024 6:45 pm This is horrible! This is outrageous! It's the last straw. I must leave Vanguard -- no doubt they'll now be pushing ETF advertisements everywhere on their disastrous website.
Vanguard has some great ETFs. It will be great to see them advertised.
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Re: Vanguard Preparing to Tap Former BlackRock Executive as CEO

Post by bondsr4me »

exodusing wrote: Tue May 14, 2024 6:33 pm Official announcement https://corporate.vanguard.com/content/ ... 42024.html
+1…..thanks for the link.
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Re: Vanguard Preparing to Tap Former BlackRock Executive as CEO

Post by WhitePuma »

exodusing wrote: Tue May 14, 2024 6:32 pm
The firm is attempting to expand beyond its core business of managing ultracheap funds tracking stock and bond indexes by pushing into the more lucrative business of charging customers for financial advice.
This is scary, considerIng the incompetence they’ve displayed as evident on the customer service mega-thread and their chronic error rate on making “financial projections”. I would trust Edward Jones or my Labrador retriever to give me financial advice over Vanguard reps.
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Re: Vanguard Preparing to Tap Former BlackRock Executive as CEO

Post by sycamore »

WhitePuma wrote: Tue May 14, 2024 6:51 pm
exodusing wrote: Tue May 14, 2024 6:32 pm
The firm is attempting to expand beyond its core business of managing ultracheap funds tracking stock and bond indexes by pushing into the more lucrative business of charging customers for financial advice.
This is scary, considerIng the incompetence they’ve displayed as evident on the customer service mega-thread and their chronic error rate on making “financial projections”. I would trust Edward Jones or my Labrador retriever to give me financial advice over Vanguard reps.
Yes, over the top! I love it!
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Re: Vanguard Preparing to Tap Former BlackRock Executive as CEO

Post by bondsr4me »

my 2 chihuahuas and white lab, along with my 3 cats, are my investment committee.
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Re: Vanguard Preparing to Tap Former BlackRock Executive as CEO

Post by beyou »

marcopolo wrote: Tue May 14, 2024 5:28 pm
GP813 wrote: Tue May 14, 2024 5:26 pm Very skeptical about this choice. Vanguard needs to work on customer service not launching a bunch of ETFs like Blackrock.
You are assuming Vanguard wants to continue to be a brokerage.

This move would be consistent with some of their other behavior that would indicate they might be shifting to the Blackrock model of being an asset manager.
I don't know what you mean by shifting to the BlackRock model.
This WAS Vanguard's origin, being an asset manager.
Brokerage is a relatively recent part of their history.

The main difference is that direct to consumer was the main sales channel for Vanguard's asset management services and BlackRock mostly sold via other brokers. But both firms had direct to consumer capabilities for open end funds for decades. The main difference is BlackRock saw no reason to start a brokerage just because they now sell ETFs, Vanguard did see a reason. So if anything Vanguard is moving AWAY from the BlackRock model. Just because Vanguard is not the best of the brokers does not mean they are getting rid of it. I see incremental progress at their brokerage, and in fact someone just posted a thread about an improvement that long time open end fund customers were waiting for on the brokerage platform. The addition of Cash Plus is another indication they are NOT going the way of BlackRock, this is something BlackRock would never do.
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Re: Vanguard Preparing to Tap Former BlackRock Executive as CEO

Post by WhitePuma »

nisiprius wrote: Tue May 14, 2024 6:31 pmWe don't really know why Buckley is leaving Vanguard
Wasn’t he canned?
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Re: Vanguard Preparing to Tap Former BlackRock Executive as CEO

Post by nisiprius »

WhitePuma wrote: Tue May 14, 2024 6:58 pm
nisiprius wrote: Tue May 14, 2024 6:31 pmWe don't really know why Buckley is leaving Vanguard
Wasn’t he canned?
That's my guess and that's lots of peoples' guesses, but we don't know. And assuming he was canned, we don't know what was seen as being the problem.
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Re: Vanguard Preparing to Tap Former BlackRock Executive as CEO

Post by rule of law guy »

nisiprius wrote: Tue May 14, 2024 7:08 pm
WhitePuma wrote: Tue May 14, 2024 6:58 pm
nisiprius wrote: Tue May 14, 2024 6:31 pmWe don't really know why Buckley is leaving Vanguard
Wasn’t he canned?
That's my guess and that's lots of peoples' guesses, but we don't know. And assuming he was canned, we don't know what was seen as being the problem.
canned by who? who runs V? who elects the people who run V?
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Re: Vanguard Preparing to Tap Former BlackRock Executive as CEO

Post by nedsaid »

rule of law guy wrote: Tue May 14, 2024 7:13 pm
nisiprius wrote: Tue May 14, 2024 7:08 pm
WhitePuma wrote: Tue May 14, 2024 6:58 pm
nisiprius wrote: Tue May 14, 2024 6:31 pmWe don't really know why Buckley is leaving Vanguard
Wasn’t he canned?
That's my guess and that's lots of peoples' guesses, but we don't know. And assuming he was canned, we don't know what was seen as being the problem.
canned by who? who runs V? who elects the people who run V?
The people who run Vanguard. Not the "owners" of Vanguard. The people who run Vanguard. :wink:
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Re: Vanguard Preparing to Tap Former BlackRock Executive as CEO

Post by telemark »

nisiprius wrote: Tue May 14, 2024 7:08 pm
WhitePuma wrote: Tue May 14, 2024 6:58 pm
nisiprius wrote: Tue May 14, 2024 6:31 pmWe don't really know why Buckley is leaving Vanguard
Wasnt he canned?
That's my guess and that's lots of peoples' guesses, but we don't know. And assuming he was canned, we don't know what was seen as being the problem.
Yes, Vanguard makes the Kremlin look transparent by comparison. For what it's worth, I have some Blackrock funds, all CITs I think, in an old 401K and have always been pleased with them.
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Re: Vanguard Preparing to Tap Former BlackRock Executive as CEO

Post by billaster »

WhitePuma wrote: Tue May 14, 2024 6:58 pm
nisiprius wrote: Tue May 14, 2024 6:31 pmWe don't really know why Buckley is leaving Vanguard
Wasn’t he canned?
It's not often that a CEO is fired but the company announces that the CEO will continue in the position for another 10 months or until a new CEO is identified. That's more typical for a planned transition. Buckley has put in 34 years at Vanguard. It hardly seems that he has been shoved out the door.
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Re: Vanguard Preparing to Tap Former BlackRock Executive as CEO

Post by Cheez-It Guy »

rule of law guy wrote: Tue May 14, 2024 7:13 pm
nisiprius wrote: Tue May 14, 2024 7:08 pm
WhitePuma wrote: Tue May 14, 2024 6:58 pm
nisiprius wrote: Tue May 14, 2024 6:31 pmWe don't really know why Buckley is leaving Vanguard
Wasn’t he canned?
That's my guess and that's lots of peoples' guesses, but we don't know. And assuming he was canned, we don't know what was seen as being the problem.
canned by who? who runs V? who elects the people who run V?
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Re: Vanguard Preparing to Tap Former BlackRock Executive as CEO

Post by rkhusky »

WhitePuma wrote: Tue May 14, 2024 6:58 pm
nisiprius wrote: Tue May 14, 2024 6:31 pmWe don't really know why Buckley is leaving Vanguard
Wasn’t he canned?
When you are canned, don’t they pack up your things, take your keys, remove your network access, and escort you out the door?
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Re: Vanguard Preparing to Tap Former BlackRock Executive as CEO

Post by Fallible »

billaster wrote: Tue May 14, 2024 7:59 pm
WhitePuma wrote: Tue May 14, 2024 6:58 pm
nisiprius wrote: Tue May 14, 2024 6:31 pmWe don't really know why Buckley is leaving Vanguard
Wasn’t he canned?
It's not often that a CEO is fired but the company announces that the CEO will continue in the position for another 10 months or until a new CEO is identified. That's more typical for a planned transition. Buckley has put in 34 years at Vanguard. It hardly seems that he has been shoved out the door.
"Shoved," no. Something more decorous, tactful than that. Maybe shown the door...and for good measure an open door.

Whatever, I think Nisiprius is right that we don't know why Buckley is leaving VG, not really, not yet, maybe never, or at least never have all the facts. And we don't have the facts yet to know the why of Ramji's choice as new CEO, though of course there will be hints or outright signs of that as he settles in. Right now, lots of clues but no certainty what they mean or which are worth watching. But we Bogleheads will be watching.
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Re: Vanguard Preparing to Tap Former BlackRock Executive as CEO

Post by AlwaysLearningMore »

Fallible wrote: Tue May 14, 2024 8:34 pm
billaster wrote: Tue May 14, 2024 7:59 pm
WhitePuma wrote: Tue May 14, 2024 6:58 pm
nisiprius wrote: Tue May 14, 2024 6:31 pmWe don't really know why Buckley is leaving Vanguard
Wasn’t he canned?
It's not often that a CEO is fired but the company announces that the CEO will continue in the position for another 10 months or until a new CEO is identified. That's more typical for a planned transition. Buckley has put in 34 years at Vanguard. It hardly seems that he has been shoved out the door.
"Shoved," no. Something more decorous, tactful than that. Maybe shown the door...and for good measure an open door.

Whatever, I think Nisiprius is right that we don't know why Buckley is leaving VG, not really, not yet, maybe never, or at least never have all the facts. And we don't have the facts yet to know the why of Ramji's choice as new CEO, though of course there will be hints or outright signs of that as he settles in. Right now, lots of clues but no certainty what they mean or which are worth watching. But we Bogleheads will be watching.
Wonder how much resentment there will be among those in the existing Vanguard executive chain who thought they were going to be tapped for the position? Not that they can do anything about it, except perhaps jump ship to a different company.
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Re: Vanguard Preparing to Tap Former BlackRock Executive as CEO

Post by stan1 »

My crystal ball is cloudy but my guess is his charter will be:
- Finish off the IT projects that Buckley started and overran by a billion dollars
- Wring efficiency out of the asset administration business, such as replacing customer service reps by AI at a fast pace
- Get more revenue from asset administration (fees) and advisory services
- Ramp up "firing" of customers who are expensive to maintain and don't generate revenue (already happening)
- Stop being a full service brokerage especially for complex requirements used by a small percentage of customers that can't easily be automated
- If all that fails sell off the brokerage arm (and legacy mutual fund platform) to highest bidder and focus on asset management. Maybe sell asset management business to Blackrock or Fidelity even.

In short they could have brought in an airline executive. And before we say Jack is rolling over in his grave, all of the above is the path Jack Bogle set Vanguard on decades ago with his focus on lowering costs.
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Re: Vanguard Preparing to Tap Former BlackRock Executive as CEO

Post by critterdude311 »

Does this mean we can finally talk about bitcoin without getting banned? :wink:
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Re: Vanguard Preparing to Tap Former BlackRock Executive as CEO

Post by james22 »

nisiprius wrote: Tue May 14, 2024 7:08 pm
WhitePuma wrote: Tue May 14, 2024 6:58 pm
nisiprius wrote: Tue May 14, 2024 6:31 pmWe don't really know why Buckley is leaving Vanguard
Wasn’t he canned?
That's my guess and that's lots of peoples' guesses, but we don't know. And assuming he was canned, we don't know what was seen as being the problem.
Vanguard fires CEO who blocked BTC ETFs and hires the guy who oversaw the largest BTC ETF.

Probably just a coincidence.
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Re: Vanguard Preparing to Tap Former BlackRock Executive as CEO

Post by rogue_economist »

I don't like this at all, in any way shape or form.
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Re: Vanguard Preparing to Tap Former BlackRock Executive as CEO

Post by stan1 »

A few interesting points from this MarketWatch article:

https://www.marketwatch.com/story/who-i ... o-9610716b

- Led Blackrock's Wealth Advisory segment from 2015-2019
- Worked at McKinsey in asset and wealth management for 16 years
- Is an attorney

From the Vanguard announcement:
https://corporate.vanguard.com/content/ ... 42024.html
We have significant opportunities for growth ahead, including how technology and the client experience can drive solutions and extend the benefits of wealth management to more investors.
Pretty clear: more automated wealth management features and fees derived from that. They are going after the 1% AUM advisors, having decimated the 200 basis point mutual fund industry. Never forget Vanguard is a business not a charity or government agency.
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Re: Vanguard Preparing to Tap Former BlackRock Executive as CEO

Post by HanSolo »

stan1 wrote: Tue May 14, 2024 8:45 pm In short they could have brought in an airline executive. And before we say Jack is rolling over in his grave, all of the above is the path Jack Bogle set Vanguard on decades ago with his focus on lowering costs.
I'm not sure the above is fair to Jack Bogle. As far as I could tell, he set the focus on giving ordinary investors a fair shake and decent treatment, and to the extent that it supported that goal, also kept costs low.
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Re: Vanguard Preparing to Tap Former BlackRock Executive as CEO

Post by rogue_economist »

HanSolo wrote: Tue May 14, 2024 9:55 pm
stan1 wrote: Tue May 14, 2024 8:45 pm In short they could have brought in an airline executive. And before we say Jack is rolling over in his grave, all of the above is the path Jack Bogle set Vanguard on decades ago with his focus on lowering costs.
I'm not sure the above is fair to Jack Bogle. As far as I could tell, he set the focus on giving ordinary investors a fair shake and decent treatment, and to the extent that it supported that goal, also kept costs low.
This. It costs money to serve the customer. You should keep the costs low, but not so low that you cannot provide the service.
Vanguard's good name would be irreversibly destroyed if it sold ordinary investors greater fool assets to capitalize on a market fad. Avoiding that overrides any cost concerns.
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Re: Vanguard Preparing to Tap Former BlackRock Executive as CEO

Post by HanSolo »

critterdude311 wrote: Tue May 14, 2024 9:21 pm Does this mean we can finally talk about bitcoin without getting banned?
The forum has its own policies that have good reasons behind them, and don't depend on what Vanguard or its executives (new or old) are doing or did in the past.

I'll echo what Valuethinker said in another thread (in the context of meme stock trading):
Valuethinker wrote: Mon May 06, 2024 6:02 am It is true that, associated with the rise of social media, and of low or no commission stockbroking, that you get "meme stocks".

I think that that forbidden topic here that begins with c and has an r and a y in the word is a similar phenomenon. And Kudos for the prescient decision by moderators to rule it off topic & forbidden.
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Re: Vanguard Preparing to Tap Former BlackRock Executive as CEO

Post by stan1 »

HanSolo wrote: Tue May 14, 2024 9:55 pm
stan1 wrote: Tue May 14, 2024 8:45 pm In short they could have brought in an airline executive. And before we say Jack is rolling over in his grave, all of the above is the path Jack Bogle set Vanguard on decades ago with his focus on lowering costs.
I'm not sure the above is fair to Jack Bogle. As far as I could tell, he set the focus on giving ordinary investors a fair shake and decent treatment, and to the extent that it supported that goal, also kept costs low.

We don't know how Vanguard executives are incentivized now. What we little we have been told is in the past they were incentivized to lower costs under Jack Bogle. Most people align their behaviors to the incentives offered by their employer.

No offense to Mr. Bogle intended. It's not fair to make any assessment of how he might feel about any changes at Vanguard or a new CEO. He was a business person who got fired from CEO jobs twice. I think he would have made the tough decisions necessary to run the company or would have been fired again if he didn't.
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Re: Vanguard Preparing to Tap Former BlackRock Executive as CEO

Post by stan1 »

rogue_economist wrote: Tue May 14, 2024 10:01 pm
HanSolo wrote: Tue May 14, 2024 9:55 pm
stan1 wrote: Tue May 14, 2024 8:45 pm In short they could have brought in an airline executive. And before we say Jack is rolling over in his grave, all of the above is the path Jack Bogle set Vanguard on decades ago with his focus on lowering costs.
I'm not sure the above is fair to Jack Bogle. As far as I could tell, he set the focus on giving ordinary investors a fair shake and decent treatment, and to the extent that it supported that goal, also kept costs low.
This. It costs money to serve the customer. You should keep the costs low, but not so low that you cannot provide the service.
Exactly, this is why Vanguard is trying to get people to pay a reasonable amount for advisory services and asset administration rather than having the funds pay those costs as part of expense ratios. Separate what Vanguard does into three areas: asset management (mutual and exchange traded funds); asset administration (record keeping, trading/buy/sell website, statements, tax forms); and wealth management/advisory services (advice). Vanguard is clearly making this separation; we all should be too.

(the unmentionable has nothing to do with these business realities)
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Re: Vanguard Preparing to Tap Former BlackRock Executive as CEO

Post by HanSolo »

stan1 wrote: Tue May 14, 2024 10:09 pm We don't know how Vanguard executives are incentivized now. What we little we have been told is in the past they were incentivized to lower costs under Jack Bogle. Most people align their behaviors to the incentives offered by their employer.
If people want to invest Bogle-style, and feel that Vanguard doesn't adequately support what they're trying to do, there are other reasonable providers now (and some have left Vanguard for that reason, which is fine, everyone gets to choose). Vanguard still works for what I'm trying to do, so I'm still there. Customer service obviously has issues, but I hardly ever contact them. And the website has gotten uglier (inexplicably large fonts and massive white space), which is annoying, and makes some information harder to get, but it hasn't prevented me from investing the way I want. And while some have complained about VPAS ads, I haven't been getting them, and I think some people may benefit from that service, even while I'm not interested in it. And I'm still not getting hit with fees (other than expense ratios).

My perception is that Buckley wasn't a particularly good fit for the position (and people who know more about the internals of Vanguard have commented on that), so I'm looking forward to this transition (even while not knowing what's on the other side). At the risk of being naive, I try to remain optimistic.
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Re: Vanguard Preparing to Tap Former BlackRock Executive as CEO

Post by stan1 »

HanSolo wrote: Tue May 14, 2024 10:33 pm My perception is that Buckley wasn't a particularly good fit for the position (and people who know more about the internals of Vanguard have commented on that), so I'm looking forward to this transition (even while not knowing what's on the other side). At the risk of being naive, I try to remain optimistic.
Buckley was the Chief Information Officer and Head of Retail Investing. He could have been the right person in 2017 to modernize the IT systems and continue to grow PAS which started in 2015 under his watch. It' is now seven years later and a lot has changed.

I too am still at Vanguard and have figured out how to adjust my browser's settings to mostly compensates for the font size. We haven't called them in years either. I want a lower cost brokerage long term and I don't need/want a lot of extras. Bring on the automation.
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Re: Vanguard Preparing to Tap Former BlackRock Executive as CEO

Post by HanSolo »

stan1 wrote: Tue May 14, 2024 10:42 pm Buckley was the Chief Information Officer and Head of Retail Investing.
And was of questionable effectiveness at that time (according to some insider info that was posted).
Bring on the automation.
What is it that you need automated or think will work better if automated?
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Re: Vanguard Preparing to Tap Former BlackRock Executive as CEO

Post by ee_guy »

exodusing wrote: Tue May 14, 2024 6:33 pm Official announcement https://corporate.vanguard.com/content/ ... 42024.html
In this announcement, new members of the Board of Director were announced. Is there a way to find their compensation? Compensation for board members are available in proxy statements for publicly traded companies. Shareholders also get an opportunity to vote for board members. But I suspect not for Vanguard. Being more transparent would add some meaning to ownership.
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Re: Vanguard Preparing to Tap Former BlackRock Executive as CEO

Post by 1789 »

HanSolo wrote: Tue May 14, 2024 10:33 pm
stan1 wrote: Tue May 14, 2024 10:09 pm We don't know how Vanguard executives are incentivized now. What we little we have been told is in the past they were incentivized to lower costs under Jack Bogle. Most people align their behaviors to the incentives offered by their employer.
If people want to invest Bogle-style, and feel that Vanguard doesn't adequately support what they're trying to do, there are other reasonable providers now (and some have left Vanguard for that reason, which is fine, everyone gets to choose). Vanguard still works for what I'm trying to do, so I'm still there. Customer service obviously has issues, but I hardly ever contact them. And the website has gotten uglier (inexplicably large fonts and massive white space), which is annoying, and makes some information harder to get, but it hasn't prevented me from investing the way I want. And while some have complained about VPAS ads, I haven't been getting them, and I think some people may benefit from that service, even while I'm not interested in it. And I'm still not getting hit with fees (other than expense ratios).

My perception is that Buckley wasn't a particularly good fit for the position (and people who know more about the internals of Vanguard have commented on that), so I'm looking forward to this transition (even while not knowing what's on the other side). At the risk of being naive, I try to remain optimistic.
Totally agree, we have some of our accounts at Vanguard for a while now and did not have any issues. Can website and/or mobile app be improved? Of course, but these are minor needs from our side.
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Re: Vanguard Preparing to Tap Former BlackRock Executive as CEO

Post by whodidntante »

marcopolo wrote: Tue May 14, 2024 5:28 pm
GP813 wrote: Tue May 14, 2024 5:26 pm Very skeptical about this choice. Vanguard needs to work on customer service not launching a bunch of ETFs like Blackrock.
You are assuming Vanguard wants to continue to be a brokerage.

This move would be consistent with some of their other behavior that would indicate they might be shifting to the Blackrock model of being an asset manager.
They might be focusing on the core. If all their funds were liquidated tomorrow, I don't think the line to use their brokerage would be deep. I remember the days when mutual funds would send you literature with glossy pictures of New York men in suits, and when you'd fill out a form and mail a check if you liked their particular process for selecting undervalued securities. These days, investors don't expect anything like that, and asset management has much greater scalability. I'd probably post it on here to make fun of it if I still had those materials.
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Re: Vanguard Preparing to Tap Former BlackRock Executive as CEO

Post by stan1 »

HanSolo wrote: Tue May 14, 2024 10:45 pm
stan1 wrote: Tue May 14, 2024 10:42 pm Bring on the automation.
What is it that you need automated or think will work better if automated?
For me, not much. They have thousands of call center reps and tiers of back office support that are doing things manually for people so there's clearly something more that can be done to improve automation or if that's all done then charge people fees for calling instead of using the automation. No fee to fix errors but if there are errors then the automation needs improving. If it can't be automated affordably let the customer go to another asset administrator who can provide full service.
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Re: Vanguard Preparing to Tap Former BlackRock Executive as CEO

Post by HanSolo »

stan1 wrote: Tue May 14, 2024 11:02 pm
HanSolo wrote: Tue May 14, 2024 10:45 pm
stan1 wrote: Tue May 14, 2024 10:42 pm Bring on the automation.
What is it that you need automated or think will work better if automated?
For me, not much. They have thousands of call center reps and tiers of back office support that are doing things manually for people so there's clearly something more that can be done to improve automation or if that's all done then charge people fees for calling instead of using the automation.
If you mean Vanguard should copy what companies like Citi and AT&T are doing, in terms of automated phone menus that don't do what you need, and prevent you from speaking to a person, then that wouldn't be consistent with the "decent treatment" clause of what I said earlier:
HanSolo wrote: Tue May 14, 2024 9:55 pm As far as I could tell, he set the focus on giving ordinary investors a fair shake and decent treatment, and to the extent that it supported that goal, also kept costs low.
But I'm sure a lot of MBA-types would think it's "just swell".
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Re: Vanguard Preparing to Tap Former BlackRock Executive as CEO

Post by beyou »

james22 wrote: Tue May 14, 2024 9:32 pm
nisiprius wrote: Tue May 14, 2024 7:08 pm
WhitePuma wrote: Tue May 14, 2024 6:58 pm
nisiprius wrote: Tue May 14, 2024 6:31 pmWe don't really know why Buckley is leaving Vanguard
Wasn’t he canned?
That's my guess and that's lots of peoples' guesses, but we don't know. And assuming he was canned, we don't know what was seen as being the problem.
Vanguard fires CEO who blocked BTC ETFs and hires the guy who oversaw the largest BTC ETF.

Probably just a coincidence.
And the guy who claimed there would be no BTC etf at BlackRock, anytime soon (as of 2020).

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Re: Vanguard Preparing to Tap Former BlackRock Executive as CEO

Post by renter »

There was no internal talent to choose from? At least they didn't recruit out of Edward Jones.
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