JPMorgan's Michael Clark to lead new Fidelity unit

Fidelity Investments yesterday named Michael K. Clark to head its new institutional services business, tapping another outsider as part of the company's continuing reorganization.

Clark, 50, will leave JPMorgan Chase & Co. and report to Rodger A. Lawson, who was named Fidelity's president in July after nearly two decades away from the closely held Boston mutual fund giant.

Last week, Lawson began an extensive reorganization that included putting more sales and marketing power in the hands of Abigail Johnson, daughter of Fidelity chairman Edward C. "Ned" Johnson III.

In a memo to employees, Lawson also said he had started an outside search for an executive to lead the company's technology operations, and that he was close to naming a new leader to oversee business Fidelity conducts with intermediaries such as banks, insurers, and registered investment advisers - the position Clark is filling as head of Fidelity Institutional Services. He will be based in Boston.

Until yesterday, Clark led JPMorgan's Worldwide Securities Services business, which has $15.2 trillion in assets under custody, 30 percent more than a year ago, and which generated $3.3 billion in revenue last year, up 17 percent from 2005, JPMorgan said.

Representatives from Fidelity and JPMorgan said Clark was not available to be interviewed.

"Mike Clark is an industry leader who brought innovation and outstanding performance" to the JPMorgan unit, Lawson said in a statement.

"Fidelity's strong presence with banks, broker-dealers, insurers, registered investment advisers, and other intermediaries opens huge growth possibilities for us as we align the businesses that serve these clients under Mike's leadership. We are very committed to these markets and to building on our past successes in them," Lawson said.

About 6,000 of Fidelity's more than 44,000 employees fall under Institutional Services.

It includes some of the company's more complex operations, such as Fidelity Investments Institutional Services, which provides investment products for other institutions to sell to consumers, and National Financial, which provides services like trade processing, and tax reporting for trading activities.

Greg Carlson, who follows Fidelity for the Morningstar research firm in Chicago, said he is curious to see if Fidelity also names someone new to head its Fidelity Management and Research Co. unit , which manages its mutual funds, or if it allows the unit to continue reporting directly to Johnson himself, following the departure of division leader Stephen P. Jonas in January.

Ross Kerber can be reached at kerber@globe.com.