BlackRock Veteran Salim Ramji Named Vanguard Group CEO, Marking Historic Leadership Shift

  Vanguard Group Appoints Salim Ramji as CEO, Succeeding Tim Buckley

Vanguard Group has announced that Salim Ramji, a veteran from BlackRock Inc., will take over as its new chief executive officer, replacing Tim Buckley. This marks the first time an external candidate will lead the company, known for its revolutionary index fund investments.

Ramji, who has extensive experience managing exchange-traded funds (ETFs) and index investments at BlackRock, will officially join Vanguard in July. Founded nearly 50 years ago by Jack Bogle, Vanguard managed approximately $9.3 trillion as of March. In an emailed statement on Tuesday, Ramji expressed his enthusiasm for the role, stating, "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. 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."

In February, Vanguard revealed that Buckley planned to retire by the end of the year, prompting a search for his successor. Buckley, a Vanguard veteran of three decades, has been CEO since 2018.

Salim Ramji spent nearly a decade at BlackRock, the world's largest asset manager, and was considered a potential successor to CEO Larry Fink before leaving in January. As the global head of iShares and index investments, he played a crucial role in expanding BlackRock’s ETF business, which now oversees about $3.7 trillion.

Ed Sweeney, a spokesperson for BlackRock, congratulated Ramji on his new role, stating, "We congratulate Salim on this accomplishment and thank him for his leadership at our firm. BlackRock is proud to have a track record of our firm’s alumni going on to lead multiple investment management companies and financial institutions."

BlackRock, managing $10.5 trillion in assets, is a direct competitor to Vanguard in the ETF market. These two firms, along with State Street Global Advisors, are often referred to as the "Big Three" of index investing, collectively holding significant stakes in almost all S&P 500 companies. This dominance has drawn scrutiny from politicians and regulators concerned about their influence over the markets.

The Legacy of Jack Bogle

Jack Bogle, Vanguard’s founder and CEO from 1975 to 1995, championed the concept of an index fund tied to the broader stock market, which was both low-cost and accessible to the average investor. This innovation led to significant fee reductions across the industry, fundamentally transforming modern investing. Bogle passed away in 2019 at the age of 89.

Vanguard, headquartered over 100 miles from Wall Street in the Philadelphia suburbs, has continually emphasized low fees and investor ownership. This structure ensures that the firm is owned by its member funds, which are, in turn, owned by fund shareholders, rather than outside investors.

In recent years, Vanguard has expanded beyond its core index funds, venturing into financial advisory services to attract new clients and stimulate growth. While the firm continues to offer some actively managed funds, its presence in the rapidly growing private assets market, including private equity, remains limited.

Internationally, Vanguard aims to spread its low-cost investment philosophy to new markets, offering index funds and ETFs worldwide. However, it has also made strategic withdrawals, notably scaling back its business operations in China.