## **Governance of Fidelity Investments**
Fidelity Investments is a privately held, employee-owned investment management company headquartered in Boston, Massachusetts. The company offers a wide range of financial products and services, including investment advice, brokerage, and retirement planning. Fidelity is one of the largest asset managers in the world, with over $7.2 trillion in assets under management.
### **Legal Structure**
Fidelity Investments is organized as a limited liability company (LLC). This type of legal structure provides several advantages, including:
* **Limited liability:** LLC members are not personally liable for the debts and liabilities of the company.
* **Pass-through taxation:** LLCs are not subject to corporate income tax. Instead, the profits and losses of the company are passed through to the individual members.
* **Flexibility:** LLCs can be tailored to meet the specific needs of the owners.
### **Ownership Structure**
Fidelity Investments is 100% owned by its employees. This unique ownership structure has several benefits, including:
* **Alignment of interests:** Employee ownership ensures that the interests of the company are aligned with the interests of the employees.
* **Long-term focus:** Employee ownership encourages a long-term focus, as employees are invested in the success of the company over the long term.
* **Stability:** Employee ownership provides stability, as the company is not subject to the whims of outside shareholders.
### **Board of Directors**
Fidelity Investments is governed by a board of directors. The board is responsible for overseeing the company’s strategic direction and ensuring that the company is in compliance with all applicable laws and regulations. The board is composed of a mix of internal and external directors.
#### **Internal Directors**
The internal directors of Fidelity Investments are all senior executives of the company. This ensures that the board has a deep understanding of the company’s business and operations. The internal directors include:
* **Abigail Johnson,** **Chairwoman and CEO**
* **Ronald O’Hanley,** **Vice Chairman and President of Personal Investing**
* **Thomas McGraw,** **President of Investment Solutions**
* **Catherine Keating,** **President of Human Resources**
* **Ann Kaplan,** **Head of Fidelity Labs**
#### **External Directors**
The external directors of Fidelity Investments are individuals who are not employed by the company. This provides the board with an independent perspective and ensures that the company is operating in the best interests of all shareholders. The external directors include:
* **Sheila Bair,** **Former Chairwoman of the Federal Deposit Insurance Corporation**
* **Stephen Burke,** **Former CEO of NBCUniversal**
* **Kenneth Chenault,** **Former CEO of American Express**
* **Roger Ferguson,** **Former Vice Chairman of the Federal Reserve**
* **Robert Rubin,** **Former Secretary of the Treasury**
### **Management Team**
The management team of Fidelity Investments is responsible for the day-to-day operations of the company. The management team is led by Abigail Johnson, the company’s Chairwoman and CEO. Other members of the management team include:
* **Ronald O’Hanley,** **Vice Chairman and President of Personal Investing**
* **Thomas McGraw,** **President of Investment Solutions**
* **Catherine Keating,** **President of Human Resources**
* **Ann Kaplan,** **Head of Fidelity Labs**
### **Corporate Governance Principles**
Fidelity Investments is committed to the highest standards of corporate governance. The company has adopted a number of corporate governance principles, including:
* **Transparency:** Fidelity Investments is committed to transparency in all aspects of its business. The company provides regular financial disclosures to shareholders and the public.
* **Accountability:** Fidelity Investments is accountable to its shareholders, employees, and customers. The company has a strong system of internal controls and risk management practices.
* **Fairness:** Fidelity Investments is committed to treating all shareholders, employees, and customers fairly. The company has a strong track record of social responsibility and ethical conduct.
### **Conclusion**
Fidelity Investments is a well-governed company with a long history of success. The company’s employee ownership structure, strong board of directors, and experienced management team have all contributed to Fidelity’s success. Fidelity is committed to the highest standards of corporate governance and is a trusted partner for investors around the world.