Succession planning at FidelityInvestments calls for the next chairman of the mutual-fund giant to be AbigailJohnson, the daughter of current Chairman and Chief Executive Edward C.”Ned” Johnson III, people familiar with the matter told The WallStreet Journal in a story published today. But she might not run the company as chief executive, they say.
The plan, which would ensure aprominent role at Fidelity for the Johnson family, raises at least twoimportant questions: when the 77-year-old partriarch will depart from his posts,and how much power his daughter will wield if she becomes chairman.
Johnson has expressed doubts inrecent months about his daughter’s readiness to run Fidelity, say some of hisconfidants. Under the plan he has shared with Fidelity’s board, says a personfamiliar with the matter, Abigail Johnson wouldn’t necessarily become CEO atthe same time she assumed the chairman’s post.
Which, if either, of thesescenarios will come to fruition is uncertain, because Mr. Johnson remains incontrol and hasn’t announced any plans to leave.