Fidelity lands RIA whisperer from Schwab in a coup, apparently using quality-of-life perks as lure
Kelly Smith chose the Boston rival for greater flexibility, better pay and a chance to move upmarket to sell family office services to RIAs that mix with the ultra-high-net-worth elite.
5 min read- Fidelity poached top Schwab RIA relationship manager, Kelly Smith, as a new VP.
- Schwab insiders express upset, citing work-life balance as a key factor.
- Smith's move highlights Fidelity's focus on attracting talent with quality-of-life perks.
Brooke's Note: Never read too much into one talent move. High-level talent leaves Schwab for Fidelity and vice versa all the time. Yet this poach stood out for the upset expressed by sources inside Schwab. They felt like Schwab had let a bit of its better soul walk out the door when it didn't need to end that way. Kelly Smith would likely have stayed, they contend, had she been given a little more work-life balance and more recognition of her immeasurable value. We know Fidelity has pulled out the stops to draw talent and that Abby Johnson is especially keen to make Fidelity work for women. Sources for this story believe that a progressive Fidelity mindset may have played a large role here.
Fidelity Institutional just poached Kelly Smith, one of Schwab Advisor Services's top RIA relationship managers, in a coup that has some of her former Schwab colleagues reeling.
The move sent shock waves beyond her Chicago base after the Boston broker-dealer appointed Smith as a new vice president. She'll be tasked with helping cat-herd its family office clients.
"We are thrilled to have Kelly join Fidelity as a key member of our sales team, responsible for cultivating and managing relationships with Family Office clients," says John Phillips, Fidelity executive vice president and head of platform sales, via email.
"Given the demand for our offering from increasingly larger firms serving the ultra-high-net-worth, we continue to build … and Kelly’s hiring is one example of that. Her unique perspective and skill sets will bring tremendous value," Phillips adds.
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Schwab did not respond to three requests for comment on Smith's departure, but an executive at the company describes its staff as “very upset,” “angry,” “shocked,” and “frustrated.”
“Ask any multi billion dollar RIA in Chicago or the mid-West about her, and it would blow your mind how much they respected her," the source states, speaking anonymously in order to be candid.
Fidelity plows ahead in the RIA business with overhauls of service, technology and management
"It will be near impossible to replace her … there wasn’t a year when she didn't overachieve,” the source adds in an email exchange. See: Suddenly onboarding is a hot RIA game, and Schwab Advisor Services leaps ahead with a 'digital ' process that one expert says beats Fidelity and bodes well for a post-merger 'Schwabitrade'.
Prior to joining Fidelity, Smith served as Schwab managing director for relationship management.
Her brief at Schwab included managing Schwab's interactions with all greater-Chicago-area RIAs -- and many in the wider mid-West -- with more than $2 billion under their management.
She was also a member of the leadership committee at Schwab's RIA custodian, Schwab Advisor Services, and was trusted by very large RIAs.
"Smith brings [Fidelity] a tremendous knowledge of the business, leadership, and a strong connection and an 'in' with some of the largest RIA firms in the country," the source confirms.
“She was the most senior female in the relationship manager organization chart … she had relationships with all the top leadership," the source adds.
Story Timeline
Talk of the town
Smith finally ended her near 20-year association with Schwab largely because Fidelity was willing to give her more flexibility and support better work-life balance; and it was willing to pay more, too, according to the source. See: Fidelity Investments' plan to hire 12,000 by October hit wall of macro-headwinds; no problem, it landed at 15,000; Schwab keeps hiring, too.
"Fidelity offered her a tremendous opportunity … that Schwab wouldn’t," the source explains. See: Ashley Arrington is leaving Fidelity for one of its hottest RIA clients, but she'll have to start cold in Nashville to keep her and her boss in the giant's good graces.
Former Fidelity rainmaker lands at Schwab after both big custodians reshuffle their East Coast staffing
Fidelity’s “culture." its “diverse business model” and the “opportunity to focus more on family office services” than bread-and-butter RIAs also turned Smith's head, according to a second source familiar with the matter, via email.
She will, however, be sorely missed at Schwab.
“Schwab staff are very upset and angry at the company for not trying harder to save her as she was invaluable,” says the executive source at the company.
“She was tremendously successful, deeply woven into the fabric … [and her departure] was the talk of the entire Schwab Advisor Services organization for days post resignation," the source says.
Fidelity declined to provide details about the package it offered Smith to convince her to jump ship to a rival.
Nor would it compare its general compensation scheme for relationship managers with Schwab's, although it is higher, albeit with lower sales bonuses, according to a source.
Passion included
Described as “collaborative,” “compassionate,” and “a mentor to many,” Smith first joined Schwab in 2000, after just under three years as a sales assistant for Merrill Lynch, based out of Tuscon, Ariz.
She left the following year to spend time in Taiwan and worked for two years as an investment consultant at TD Waterhouse, before rejoining Schwab in 2005, according to her LinkedIn profile.
Before her most recent departure, Smith was one of the leaders of its diversity and inclusion (D&I) initiatives -- a passion, according to two sources.
She also led overall D&I projects in Chicago -- not just in the Advisor Services silo -- and she contributed to D&I projects across the whole company.
Smith is already working with Fidelity “employee resources groups” and “volunteer programs” that address D&I issues, according to a source.
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