Fidelity Investments is one of the world’s most powerful investment firms, managing trillions of dollars and serving millions of customers in the US. But its growth has not just been about markets - it has also been shaped by family tensions.
Back in 2005, the company faced a major internal crisis involving the Johnson family, which controls Fidelity.
At the centre was Abigail Johnson, daughter of then chairman Edward Ned Johnson III. At the time, she was running Fidelity’s main mutual funds business.
However, things were not going well. According to a report by the Wall Street Journal, the division was struggling with poor fund performance, investors pulling out money, and the impact of a trading scandal.
Concerns inside the company had been building for months. The situation reached a breaking point when trustee Marvin Mann visited Abigail Johnson at her home.
As per the report, he told her directly that she was not doing a good job.
Soon after, her father informed her that she would be removed from her role. She was instead offered a position handling the company’s philanthropy - a move widely seen as a demotion.
Abigail responded with, “I quit,” according to the report.
But the story didn’t end there.
A few days later, Ned Johnson offered her a new role - heading Fidelity Employer Services Company (FESCO), which handled the firm’s fast-growing 401(k) retirement business.
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