For the first time since Bogle himself, the Low-Cost Leviathan will soon be led by an executive who doesn't come from its own crew. Watch for the 20,000-employee (as of December 31) fund firm to make several board changes, too.

Salim Ramji Vanguard CEO-Elect

Yesterday, Mark Loughridge, lead independent director of Vanguard [profile], revealed that the Valley, Forge, Pennsylvania-based asset manager's board has chosen Salim Ramji as the next CEO, the fifth in the company's 49-year-history. Loughridge also confirms that Greg Davis, president and chief investment officer of Vanguard, and John Murphy, president and chief financial officer of Coca-Cola, will soon join Vanguard's board of directors, along with Ramji, while Loughridge himself will become the firm's nonexecutive chairman.

Murphy will become a Vanguard board member on June 1. Ramji will take over as chief on July 8, the same day that Loughridge will take over the board.

News of the Vanguard leadership changes comes less than three months after the public revelation of the impending retirement of Vanguard's current chairman and CEO, Tim Buckley, as well as the promotion of Davis to president. (Buckley will now step down on July 8.) And Ramji's ascension will come less than six months after he left BlackRock, where he served as global head of iShares and index investments.

Loughridge lauds Ramji as "an exceptional leader who is aligned with Vanguard's mission-driven culture, making him the ideal candidate." Davis salutes Ramji as "a highly accomplished leader in the world of index investing, but importantly, also someone who shares Vanguard's passion for serving clients." And Buckley notes that he and Ramji have worked together on the executive committee of ICI, a mutual fund industry trade group.

"He cares about advancing the interests of individual investors, has a strong fiduciary ethos, and thinks strategically about solutions," Buckley states. "Salim understands our organization's deep sense of purpose and commitment to put clients first."

"Vanguard's distinctive structure and culture have helped tens of millions of our investor-owners plan for their future and families," Loughridge states. "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."

Ramji describes Vanguard as a firm he has "long admired and respect," highlighting "the firm's clarity and consistency of purpose."

"The current investor landscape is changing, and that presents opportunities for Vanguard to further its mission of giving people the best chance for investment success, which is more relevant today than at any time in the firm's five-decade history," Ramji states. "My focus will be to mobilize Vanguard to meet the moment while staying true to that core purpose — remaining the trusted firm that takes a stand for all investors."

"I look forward to working together with Salim as we continue innovating and improving our capabilities while remaining focused on lowering the cost and complexity of investing for our tens of millions of investors worldwide," Davis states.

Loughridge adds that Davis and Murphy "will be strong additions to the Board" at Vanguard.

Ramji spent nearly a decade at BlackRock, joining in 2014 as corporate strategy chief, then taking over U.S. wealth advisory in 2015, before taking over iShares and index investments in 2019. Earlier, he spent 16 years in the management consulting world as a senior partner at McKinsey, where he led the asset and wealth management practice areas. He also worked as a lawyer at Clifford Chance. He is an alumnus of the University of Cambridge and of the University of Toronto.

Loughridge joined Vanguard's board in 2012, before retiring as IBM's CFO the next year. He spent 36 years with IBM and is an alumnus of the University of Chicago's Booth School of Business and of Stanford University.

Davis has spent more than 24 years with Vanguard. He previously served as head of bond indexing, CIO for Asia Pacific, and global head of fixed income before taking over as CIO of all of Vanguard in 2017. Earlier, he worked with Merrill Lynch, Citi, and State Farm. He is an alumnus of the Wharton School and of Penn State University.

Murphy has spent more than 36 years with the Coca-Cola Company, where he rose to CFO in 2019 and added the job of president in 2022. Earlier, he worked with PricewaterhouseCoopers. He is an alumnus of Trinity College Dublin. 

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