Fidelity says no search for Lawson replacement

By Todd Wallack, Globe Staff

Fidelity Investments yesterday it is not searching for a replacement for its number two executive, president Rodger Lawson.

The mutual fund company's comments were in response to Wall Street Journal report that Lawson hopes to step down by year-end, but is waiting for Fidelity to find a successor, citing an unnamed Lawson acquaintance.

Spokeswoman Anne Crowley said Lawson hasn't resigned and isn't being fired, but declined to comment on whether he plans to leave Fidelity later this year.

"I'm not going to participate in speculation about hypothetical departure dates," Crowley said.

Lawson, who joined the privately held company in 2007, holds the No. 2 position behind Fidelity Chairman Edward C. “Ned” Johnson III. Two people who were briefed on developments within Fidelity's executive suites told the Globe in recent weeks that Johnson was unhappy with Lawson for making certain decisions without his approval, such as hiring a management consultant to advise the company on restructuring moves.

Crowley declined to comment on the matter, saying instead that, "Rodger has the full confidence of the chairman."

Lawson is on vacation and could not be reached for comment.

Other high-level executives have left Fidelity recently. In April, Walter Donovan, Fidelity's former head of equities, left to become chief investment officer for Putnam Investments. And Marvin Adams, who oversaw Fidelity's technology and real estate operations, left Fidelity last month to take on "new challenges."

Crowley did say Fidelity had an executive recruiter trying to fill other senior jobs, and said the company is constantly trying to refresh its pool of talented executives as part of its normal succession planning. But she said disputed the Journal's report that the recruiter has been trying to find candidates for Lawson's job.

Fidelity watchers have not generally considered Lawson, 62, a top candidate to replace Johnson because of Lawson's age and because another Johnson family member is waiting in the wings. Johnson's daughter, Abigail, runs Fidelity's personal and workplace investing unit, the company's largest division, and has been vice chairman of Fidelity's board for several years. Still, the elder Johnson, 78, has not announced any plans to retire.

To read some Globe coverage about Lawson and Fidelity, please click here.