What's next at Fidelity?

FROM THE BOSTON GLOBE

While few other companies identify successors to their leaders, Fidelity is an unusual case because of Johnson's age and the fact the family holds 49 percent of its stock, giving the Johnsons effective control of a business that manages the retirement accounts of millions of clients.

Generally speaking, any firm in such a situation can expect questions about its intentions, said Carlos Rivero, a senior partner at the Delta Organization & Leadership unit of Oliver Wyman in New York.

"Succession becomes a legitimate issue for stakeholders because of issues like the movement of talent out of the company or the age of the CEO," he said.

Ted Clark, head of Northeastern University's Center for Family Business, said the various scenarios outlined in the published report are typical of a company struggling to settle on a succession acceptable to all family members.

The best plans, Clark said, "find a way to give the current leadership generation an opportunity to remain vital within the business, while giving the next generation the power and authority they need to operate the business." As things stand, he said, Fidelity's uncertainty could pose a problem if competitors cite it to poach company executives.

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