Envestnet, a renowned wealth management technology company, announced on Monday morning that Bill Crager will be stepping down as the CEO. Crager, who took on the role after the tragic passing of co-founder Jud Bergman in 2019, will officially leave his position on March 31. The company’s chairman, James L. Fox, will assume the role of interim CEO until a suitable successor is found.
As of April, Crager will transition into a senior advisor role at Envestnet, where he will focus on nurturing client and partner relationships. In a statement, Crager expressed his gratitude for the privilege and honor of working with Envestnet for over 24 years. He highlighted the company’s growth and its position as an industry leader, serving more assets, financial advisors, and accounts than any other player in the marketplace. Crager also acknowledged the creation of a more integrated organization with a connected operating platform, which he believes secures a bright future for the industry.
Fox extended his appreciation to Crager for his significant contributions to Envestnet. He recognized Crager as a driving force behind the company since its inception in 1999 and credited him for championing the firm’s innovative financial wellness network. Fox further praised Crager as an inspirational leader who set high standards for client solutions and services.
Envestnet’s stock was trading slightly lower at $47.92 on Monday morning, experiencing a 0.7% dip. Over the past year, the stock has faced challenges, falling by 24%. Envestnet primarily provides technology and software services to wealth management companies, including a comprehensive turnkey-asset-management program.
Recently, activist investor Impactive Capital voiced concerns about Envestnet’s performance. In response, the company appointed three new directors in March 2023, with two of them chosen in coordination with Impactive.
Envestnet’s Recent Challenges and Growth
September was a tough month for Envestnet, as the company had to make the difficult decision to conduct layoffs. This was followed by another setback in November, when Envestnet lowered its revenue guidance for 2023. Furthermore, Bloomberg News recently reported that Envestnet is contemplating the sale of its data aggregator Yodlee, although the company has refrained from providing any official comment on this matter.
Envestnet has a rich history of expansion and success. It first went public in 2010 and has since experienced steady growth, paralleling the independent wealth management industry’s rise. Over the years, Envestnet has made strategic acquisitions, including FolioDynamix in 2017 and MoneyGuide in 2019. MoneyGuide, a financial-planning software used by advisors at wealth management firms of all sizes, has played a pivotal role in Envestnet’s overall offerings. The company proudly states that it currently serves over 103,000 advisors at more than 4,900 firms, managing an impressive $5.3 trillion in assets on its platform.
Envestnet faced a significant leadership crisis when its co-founder, Jud Bergman, and his wife tragically passed away in a car accident in San Francisco. To address this unexpected turn of events, Envestnet activated its emergency succession plan and appointed its then-president, Bill Crager, as interim CEO. In a heartfelt interview with ’s Advisor in 2020, Crager reflected on the challenging period, acknowledging the personal struggles he faced while also ensuring the company’s continuity. He emphasized Envestnet’s resilience, crediting both Jud Bergman and the entire Envestnet team for their unwavering commitment to the company’s success and growth.
Envestnet continues to navigate through these challenging times while remaining optimistic about its future prospects. As it moves forward, the company will undoubtedly draw upon its rich history, strong leadership, and steadfast dedication to serving the needs of its advisors and clients.
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