Franklin Resources Inc. CEO Martin Flanagan is leaving the family fold to head to another mutual fund company due to the lack of a sense of position, according to a July 14 Associated Press report.
Flanagan's decision to leave Franklin for the top job at AMVESCAP, leaves Greg Johnson, grandson of Franklin founder Rupert Johnson, as sole chief executive of the San Mateo-based company, which operates the Franklin Templeton mutual funds. The decision becomes effective July 31.
According to the AP report, the Johnson family's grip on the company played a major role in Flanagan's departure.
"[Flanagan] never really felt like he was a true No. 1," CIBC World Markets analyst Kenneth Worthington said. "Now he can go to a place where he can really be the No. 1 guy."
Franklin Resources ranks among the nation's largest mutual fund companies with assets under management of $425 billion through June, up from $225 billion when Flanagan and Greg Johnson became co-presidents.