Vanguard's Jack Brennan has resigned as global chief executive of the US-based index fund manager, but will remain chairman of the board.
Managing director Bill McNabb will succeed Brennan. McNabb has worked at Vanguard for 22 years.
As head of the firm's institutional business, McNabb oversaw $700 billion in assets under management. He was also a director on Vanguard's Australian board.
"Bill is the ideal person to lead Vanguard into the future. I am thrilled that our directors have named him as my successor," Brennan said.
Brennan has been Vanguard president since 1989 and chief executive since 1996.
As chairman of the board, Brennan will continue to provide strategic advice to the firm.
"Jack Brennan has been an experienced leader of the company. It was important that he implemented an orderly succession plan. Bill McNabb is experienced to lead the company," Vanguard Australia head of retail Robin Bowerman said.
In 2007 Brennan spoke at a Sydney lunch organised by the Association of Superannuation Funds of Australia.
At the event he said it was important for companies to nurture their people and put proper succession plans in place.
