Waddell & Reed
said its chairman and chief executive, Keith Tucker, will step down -- but not out -- following recent regulatory issues.
Last month, the Overland Park, Kan.-based company submitted to pay $7 million in fines and up to $11 million in restitution to settle charges that it aggressively pressured customers into buying unnecessary annuity products.
The company said it would divide Tucker's former responsibilities, naming President Henry Herrmann as chief executive and Alan Kosloff, an independent member of the board, as nonexecutive chairman.
Tucker will continue to serve Waddell & Reed as a consultant for eight years, and during that time also will serve as a nonvoting emeritus member of the board.
"For some time now, I have been devoting significant energy toward resolving matters involving major litigation," Tucker said in a prepared statement. "Now that these matters have been essentially resolved, I am comfortable that as I move on to new challenges, Waddell & Reed is on the right path. As a shareholder and as a professional long associated with this Company, I am confident in the firm's future success."
Waddell shares traded down 13 cents on Wednesday to $17.59.