10 Mar 2017
As Head of Fidelity, Abigail Johnson Is Just Getting StartedTopics:
Photo by Stuart Darsch
After 29 years with the family business, 55-year-old Abigail Johnson (MBA 1988) has been making a series of bold moves since assuming the role of chairman of Fidelity Investments in December 2016, according to a report in the Boston Globe.
The privately held mutual fund and brokerage firm posted a record $3.5 billion operating profit for 2016, in part due to targeted expense cuts. Fidelity recently cut its fees for online brokerage trades on a bold bet it would result in a strong increase in transactions over its closest rival, Charles Schwab Corp.
And last week the firm announced its first buyout plan, looking to trim 3,000 senior staff from its 45,000 employees in order to make room for younger hires.
According to industry analysts, the moves are designed to protect and expand upon Fidelity’s status as the largest American online brokerage, with 17.9 million accounts and $1.7 trillion in client assets.
Class of MBA 1988, Section D