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Edelman Financial Engines Names New CEO

By Jeff Berman

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Edelman Financial Engines said Wednesday that its board of directors has named Jay Shah to become the firm’s new CEO.

Shah will assume the role on Aug. 18. Current CEO Larry Raffone will become the firm’s board chairman while “remaining a meaningful shareholder,” the company said.

Shah was most recently with the Silicon Valley-based wealth management firm Personal Capital for 13 years and served as its CEO and president from April 2017 through December 2022, according to his LinkedIn profile.

Shah has focused his career on building growth companies at the intersection of financial services and technology, according to EFE. Personal Capital serves clients through a model that combines independent advisors with new digital tools. Shah went on to guide that firm’s acquisition by Empower, a retirement plan recordkeeper, EFE noted.

Raffone, who has been with EFE for over two decades, has served as president since November 2012 and as CEO and board member since January 2015.

“He helped evolve legacy Financial Engines from a small, venture-backed Silicon Valley startup to the largest independent registered investment advisor in America, with more than $246 billion in assets under management today, approximately 1.3 million clients and key relationships with the largest employers and retirement plan recordkeepers in America,” according to EFE.

Raffone led the firm “through some of its most transformational moments, including the buildout of the Financial Engines retail capability, and the merger with Edelman Financial Services in 2018, resulting in what is now Edelman Financial Engines,” the company said.

“For the past two decades, Larry has been an integral part of the growth and success” of EFE, according to Allen Thorpe, a partner at Hellman & Friedman, majority shareholder in EFE. “Jay is a proven leader who brings an incredible depth of new skills and experiences to build on Larry’s legacy as we accelerate our next phase of growth,” Thorpe said in a statement.

He added: “Jay has been well known for years among our shareholders and board members, and we were united in our selection. He is the ideal candidate to build on our successful foundation, while complementing the capabilities of our strong, existing leadership team.”

As CEO, Shah will lead a nationwide workforce with about 1,500 employees, including over 650 planners, client service associates and analysts, EFE said.

EFE now has more than 1.3 million clients, and its advisors manage more than $246 billion in assets, it said.

The firm was founded by Ric Edelman and his wife, Jean. He stepped down from his role as chairman of financial education and client experience for the firm at the end of 2021 and served as strategic advisor to the firm the following year, while remaining on its board of directors. He also continued to be the firm’s largest individual shareholder.

Edelman also went on to found the Digital Assets Council of Financial Professionals in 2018 and created the Certificate in Blockchain and Digital Assets.

(Pictured: Incoming Edelman Financial Engines CEO Jay Shah)

Jeff Berman

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