William McNabb III to Replace Vanguard Top Exec

The Board of Directors of The Vanguard Group has elected F. William McNabb III as President and Director of Vanguard, effective March 1.

According to a company announcement, McNabb, 50, will succeed Jack Brennan as Chief Executive Officer within a year. He has been with Vanguard since 1986, serving in several different senior management roles and leading each of the Vanguard client-facing business divisions during his 22-year career.

As a Managing Director, McNabb currently oversees Vanguard’s Institutional and International businesses, the announcement said.

In an interview on Vanguard’s Web site, Brennan said the change may be a surprise because “I’m “only’ 53, and I’m very healthy,” but that it is not surprising for the Vanguard board to oversee the leadership succession process in such an orderly fashion. “[W]hen it comes time to change leaders, there’s nothing more comforting than an orderly, internal succession,” Brennan commented.

Brennan has served as Vanguard’s President since 1989 and CEO since 1996. He said he will remain as Chairman of the Board “to help ensure a smooth transition,’ and will be “devoting substantial energy to some key strategic initiatives.’

“I’m a believer that change is a critical part of keeping an organization vibrant and evolving for the better. So change in our leadership should be a good thing for Vanguard and our clients,’ Brennan remarked.

The full interview with Brennan is available at www.vanguard.com.