Principal, T. Rowe Price Extend Retirement Planning, Product Solution Distribution Divisions

Principal Financial Group and T. Rowe Price Inc., both retirement recordkeepers with robust investment management businesses, have expanded their retirement planning and product distribution capabilities to plan sponsors in the last month, both with internal promotions and through outside hiring.

Principal promoted Chris Stout to the position of managing director, retirement solutions, from a prior role in institutional sales. Principal also announced it had expanded its retirement business last week with four new hires.

Stout reports to Randall Blanchetti, national sales director for core and mid-market sales, according to a spokesperson. Stout, who was formerly managing director of institutional, replaces Blanchetti, who was promoted to his new role in January.

“Stout is responsible for leading and coaching the firm’s mid-market, north region sales team, with a focus on nurturing high-performing talent to support customer experiences and business growth strategies,” the spokesperson wrote via email.

The Principals Involved

Principal has reinforced its commitment “to working with businesses, advisers, and consultants in strategic and thoughtful ways” with the personnel moves, said Teresa Hassara, senior vice president for workplace savings and retirement solutions, in a statement.

Among the new hires, Principal hired Sean Jordan as head of small and midsize market segments, a new position created  following the decision to divide small, midsize and large market segments into two leadership roles. Small and midsize market segments are defined as plans with $200 million or less in assets, according to the  spokesperson.

Principal’s retirement hires followed the Des Moines, Iowa-based firm’s integration of the global asset management and international pension business under the Principal Asset Management brand. Owais Rana was appointed head of investment solutions as part of the combined businesses, with renewed focus on retirement.

Principal hired Hassara to lead the firm’s workplace savings and retirement business in 2022.

T. Rowe Tactics

T. Rowe Price also made moves to execute the firm’s adviser-focused business model to distribute retirement plan solutions to plan sponsors, increasing distribution touch points through retirement plan advisers.

Retirement plan advisers in the core market segment—$50 million or fewer in plan assets—have increased interest in retirement income options, explains Michael Doshier, a senior retirement strategist at T. Rowe Price.

“T. Rowe Price is a very adviser-centric model: Every time we’re thinking about this [retirement income] conversation, you’re first starting with the adviser, then going to the plan sponsor, then to the participant,” Doshier says. “On retirement income … with advisers, [internal] research shows that about [one]-third of the advisory firms are ready to really be front-footed on retirement income.”

The Baltimore-based recordkeeper and investment manager will also add headcount in retirement income distribution, expanding the core market field sales team to more than 30 going into 2024, said Mike Shamburger, head of core markets, by email.  

“We will likely add one additional divisional manager this year or in early 2024 to add additional depth to our sales leadership team,” he said.

Earlier this month, T. Rowe Price promoted Bryan McCain and Emma Tookey to divisional sales representatives for core market retirement plan solutions to extend product distribution, a spokesperson for T. Rowe Price confirmed via email.

McCain and Tookey will have “critical roles in the execution of T. Rowe’s multi-year growth strategy for the core market,” the spokesperson explained. “This includes expanding our sales footprint supporting advisers and [third-party administrators] in the core market segment.”

Each is responsible for a team of senior sales executives, he added.

“In 2023, we have added five new territories year-to-date and anticipate adding seven additional territories, plus backfills for Bryan and Emma, by year-end,” Shamburger says. “Bryan and Emma will play key roles attracting top tier talent and leading their teams with a focus on execution.”

McCain and Tookey report to Nick Pagano, head of core market sales for retirement plan services. McCain oversees the newly defined Southern division, and Tookey the newly defined Western division, according to a T. Rowe Price spokesperson.