TIAA-CREF Taps Ferguson As New Chief

The nation's main retirement plan for academia, TIAA-CREF, named economist and former Federal Reserve Vice Chairman Roger Ferguson its new chief executive, as the sprawling nonprofit that manages $435 billion in assets tries to fend off challenges to its position. TIAA, which invests in bonds and real estate, stands for Teachers Insurance and Annuity Association. CREF, or College Retirement Equities Fund, invests in stocks. TIAA-CREF's assets under management have grown dramatically since Mr. Allison took over in 2002, when the firm had $264 billion in under management. Mr. Allison tried to transform TIAA-CREF into a more diverse, full-service financial-services company. He worked to expand the firm's mutual-fund lineup, hire more financial advisers, and add client centers and online-brokerage operations. He also slashed 8% of the work force early on, spreading fear through the paternalistic firm. He would later take heat for pushing aggressively to raise fees on several mutual funds it offered, angering clients who had long viewed the firm as a low-cost, shareholder-friendly fund provider. Mr. Davis said that "undemocratic, un-shareholder friendly action" was the "biggest stain on his legacy." TIAA-CREF has said the move was necessary to stop the funds from operating at a loss.