In January, Kunal Kapoor, president of Morningstar, will be promoted to the role of chief executive officer; he will also be appointed to Morningstar’s board of directors.
Both appointments are effective January 1, 2017.
Morningstar announced that company founder Joe Mansueto will become executive chairman and will continue to serve as chairman of the board. To limit the number of inside directors, Don Phillips has voluntarily opted to step down from the board, effective December 31, 2016.
In a memo sent to Morningstar employees, Mansueto expressed optimism about Kapoor’s pending leadership, describing the soon-to-be CEO as a Morningstar veteran “who lives and breathes our mission of creating great products that help investors reach their financial goals.” In the memo, Mansueto commends Kapoor’s 19-year track record with Morningstar, pointing out that he started with the firm as a data analyst.
Kapoor will take the reins as the company and its competition face significant opportunities and challenges in the retirement arena. These include the Department of Labor fiduciary rule and a significant shift in the way financial advisers make recommendations and access products.
Against this backdrop, Kapoor says the firm will be able to leverage its capabilities in research, data, and software to solve problems for investors. “As the recent Department of Labor Fiduciary Rule has confirmed, our strong focus on putting investors’ interests first is as relevant as ever,” he adds. “We’ll continue to invest in our workforce, expand our core strengths in design and technology, and build on our strong position in the industry. I’m committed to aligning our operations to accelerate innovation, focus on execution, and drive long-term results for our stakeholders.”
Kapoor originally joined Morningstar as a data analyst in 1997 and has been president of the company since October 2015. In his current role, he is responsible for product development and innovation, sales and marketing, and driving execution and accountability across the company. He previously served as head of global products and client solutions and has served in a variety of other leadership roles for Morningstar, including director of mutual fund analysis, director of business strategy for international operations, president and chief investment officer of Morningstar Investment Services, and head of Morningstar.com and the company’s data business.
As noted, Don Phillips will step down from the board of directors, effective Dec. 31, 2016, and will be succeeded by Kapoor. He will continue in his role as a managing director for Morningstar, focusing on research innovation.