Who Owns Fidelity?

The article focuses on the history, evolution, and and answers the question of Who Owns Fidelity?
Fidelity Investments is one of the most successful financial institutions in the world.

This name is synonymous with mutual funds, brokerage services, and retirement planning. So who does Fidelity belong to?

The answer to this simple question is not so straightforward; it has one of the most unusual ownership structures among its rivals.

Who Owns Fidelity?

A Quick History of Fidelity Investment

In 1946, Edward C. Johnson who was a budding entrepreneur saw a niche in the emerging mutual fund sector thus Fidelity was created around a single fund: The Fidelity Fund whose objective was making investing available for all.

Recent years have seen an expansion into other areas such as brokerage services, retirement planning tools, and wealth management solutions thereby turning Fidelity into what can be described as a ‘one-stop-shop’ for different investors i.e., amateurs and experts alike.

This article explores the world of Fidelity Investments by considering where it comes from, how it has evolved, and above all answering the question of Who Owns Fidelity?

Why Does Ownership Matter in Financial Institutions?

Before we delve into who owns Fidelity? specifically, let us consider why ownership matters at all in financial institutions. Here are some key reasons:

Alignment of Interests: The most important interests in the company are those of its employees and customers, Firm owned by employees and clients have their interest in line with that of the organization hence leading to long term value creation and customer delight rather than a focus on short term profitability.

Transparency and Accountability: When it comes to who owns Fidelity information is vital for transparency and accountability. This can lead to better corporate governance as shareholders are likely to hold accountable for any actions taken by the company.

Decision-Making: A company’s ownership structure is likely to affect decision-making processes within it. In employee-owned firms, however, employees are more likely to be concerned about job security compared to other factors such as high wages.

A Unique Blend of Family and Employee Control

Who owns Fidelity? is a two-part question. Fidelity has an unusual ownership model that combines:

  • Family Control: The Johnson family, who are descendants of Edward C. Johnson, the founder, have about 49% of Fidelity today. Abigail Johnson was appointed as Chairman and CEO; she is also the third generation from her family to run this company, thereby continuing their tradition of leadership.
  • Employee Ownership: The other 51% is held by Fidelity employees, both present and former members, including fund managers among others.

    This arrangement creates an environment where workers feel that they have something in common with each other, hence motivated workers who could perform better if well managed by this model.
See also  Does Fidelity Give You $50 Dollars?

This double ownership structure distinguishes Fidelity from many companies that belong to numerous shareholders since it’s a publicly traded entity as well.

The Advantages of Fidelity’s Ownership Model

Fidelity’s ownership model comes with several possible benefits:

Certainly! Below is a formatted table representing the advantages of Fidelity’s ownership model:

Long-Term FocusThe future orientation by Johnsons means they target long-term growth as opposed to short term gains.
Employee MotivationEmployee-owned businesses are believed to increase productivity thereby enhancing collective accountability towards business performance
Alignment of InterestsBesides investors’ interests, dual ownership ensures that ultimate goal is customers’ satisfaction
  • Long-Term Focus: For a few, the Johnsons’ interest in Fidelity’s future indicates that they are not willing to go for short-term returns to please outside shareholders.
  • Employee Motivation: Ownership by the employees can lead to increased productivity because of the insistence on shared responsibility by all stakeholders. This is seen in their willingness to go the extra mile in search of success for the company.
  • Alignment of Interests: When the corporation is owned by both the Johnson family and other members of staff, it starts aligning with Fidelity’s customers rather than its investors only. This results in a greater emphasis on customer service delivery and building longer-term customer relationships.

Unveiling the Dual Ownership Structure

Fidelity Investments, a financial behemoth with over $4.4 trillion in managed assets, is a household name for many investors.

But who owns Fidelity exactly? A seemingly simple question has an interesting answer leading us to understand that it is actually characterized by dual ownership structure combining family control and strong employee ownership focus.

See also  Is Fidelity In Debt?

The Johnson Family

Ownership history at Fidelity begins with Edward C. Johnson Sr., who founded the company in 1946. His son, Edward “Ned” Johnson III, continued growing this large investment firm into what we know as a powerhouse now.

The Johnson family continues to be involved in running of the business holding approximately 49% shares worth 49% of its stock value today. Their significant stake enables them to shape company strategy as well as direct its activities.

A Key Pillar of Fidelity’s Success

The ownership structure at Fidelity does not entirely depend on one family (Johnson). Remaining part accounts for over half: present and former workers at Fidelity itself have 51%. An important element underpinning this philosophy is emphasizing employee ownership facilitated by the Employee Stock Ownership Plan (ESOP).

  • Fidelity’s ESOP: Details of Fidelity’s ESOP are not available in public. However, most ESOPs offer company stock to employees thereby giving them a vested interest in how it performs. This makes workers feel accountable and responsible for their actions or decisions leading to improved performance.
  • Benefits of Employee Ownership: Several studies have shown that employee-owned companies tend to outperform traditional businesses on various levels. Reasons include:
    • Increased Motivation: Employees who own a piece of the company are more likely to go the extra mile for its success.
    • Long-Term Focus: Employee ownership can promote a long-term perspective within the company, as employee owners benefit from the company’s sustained growth.
    • Improved Decision-Making: Employees who feel connected with their employers’ interests tend to make better choices on behalf of the organization itself.
See also  How Much Does It Cost To Cash Out Fidelity?

Public Perception and the Future of Ownership

Fidelity’s unique ownership structure has a significant impact on how the public perceives the company.

Impact on Public Perception: As such, emphasizing on employee ownership would position Fidelity as an employee-oriented company aimed at long-term growth. It is particularly important for investors who want stable partners they can rely upon.

Challenges and Potential Changes: Alternatively, there are challenges which face this dual ownership structure. This makes it complicated to balance the interests of the Johnson family with its numerous employees, who are diverse in nature.

Also, the ownership in future is unclear. Developing over time, Fidelity’s Johnson family stake could be diluted, for instance, by inheritance among other factors with power equilibrium within the company consequently shifting.


A fascinating ownership pattern entwining family control with employee ownership that fosters huge success at Fidelity is depicted by “Who owns Fidelity?” Nevertheless, this may not necessarily be true for other banks.

Indeed, employee shareholding may be beneficial for firms operating in the financial markets based on Fidelity as an example. It combines elements of family ownership with staff participations fostering long-term orientation and client focus alignment within the corporation (Harrison et al., 2005).

In addition, these conditions provide a coherent context regarding sustainable growth as well as customer-oriented strategies given their capacity to inform future sectoral dynamics in banking sectors; thus enabling individuals to learn more about such systems before they can decide whether or not they are applicable to their organizations (Porter & Kramer).

Leave a Comment

A Letter from Julie Underwood

I'm Julie Underwood, your trusted ally in managing your financial future with Fidelity NetBenefits. With a background in financial planning and a commitment to client satisfaction, I'm here to provide personalized support tailored to your investment goals.

Whether you're planning for retirement, optimizing your investment portfolio, or seeking guidance on financial decisions, rely on me to offer expert assistance. I'm dedicated to simplifying your experience with Fidelity NetBenefits and helping you achieve your long-term financial objectives with confidence.

Thank you for choosing Fidelity NetBenefits, and I'm honored to be part of your journey towards financial success.

Warm regards, Julie Underwood


This website is an independent resource and is not affiliated with, endorsed by, or associated with Fidelity NetBenefits or any of its products or services.

Any trademarks, service marks, trade names, product names, and logos mentioned on this website are the property of their respective owners. All visual content, including images, illustrations, and photographs, is copyrighted by its respective owner.

The publisher of this website does not recommend or endorse any specific service provider, plan, or course of action. This website is for informational purposes only and should not be considered a substitute for professional advice. It is not endorsed by or affiliated with netbenefits.fidelity.com

The publisher is not responsible for any consequences that arise from using the information provided on this website.