A top executive at Fidelity quits

BOSTON — Ellyn McColgan, a top Fidelity Investments executive, resigned immediately Tuesday, eliminating one of two candidates considered the most likely to eventually replace the 77-year-old head of the nation's largest mutual-fund company, Edward "Ned" Johnson III.

McColgan, who had risen through the ranks since joining Fidelity in 1990, left "to pursue opportunities outside of the company," the Boston-based firm said.

While the 53-year-old's sudden departure boosts the chance that the family-run firm will someday be led by Johnson's daughter Abigail Johnson, observers say it's too early to regard her as a lock for the top job — especially since her father has given no indication when he'll step down from the chairman and chief-executive posts he has held since 1977.

Observers say succession remains murky after an April management reshuffling that had left McColgan with added responsibilities and included the surprise retirement of another potential CEO successor, Chief Operating Officer Robert Reynolds, 55.

Last month, the picture became further clouded by the return of Rodger Lawson, 60, who ran Fidelity's retail sales from 1985 to 1991 before joining Prudential Financial. On July 16, Fidelity said Lawson would oversee Fidelity's sales and retirement services and become president of FMR, the holding company for Fidelity's far-flung businesses.

He assumed his new duties Monday, and on Tuesday, Fidelity said he would also temporarily pick up McColgan's responsibilities overseeing Fidelity's distributions and operations unit until her permanent replacement is named.

While outsiders who follow the privately held company speculate that Abigail Johnson may now be the favorite to succeed her father, they say Lawson shouldn't be counted out.

"I think you can't dismiss Lawson at this point," said Dan Lefkovitz, a Morningstar analyst who follows Fidelity's mutual-funds business.

However, McColgan's departure "demonstrates the futility of trying to play the parlor game of figuring out succession at Fidelity," Lefkovitz said. "It's more proof that the executive ranks there are fluid, and the only constant there over the years has been Ned Johnson."

McColgan had been considered a rising star after leading Fidelity's retail-brokerage business since 2002 and overseeing the unit's strong growth.

Fidelity spokesman Anne Crowley said McColgan was on vacation Tuesday and unavailable for comment on her departure.