Allworth Financial Seeks New CEO

Allworth Financial, a prominent registered investment advisor based in Folsom, Calif., is on the lookout for a new CEO. Founders and current co-CEOs Scott Hanson and Pat McClain have made the decision to step back from their roles once a suitable candidate is found.

"We've experienced significant growth in recent years, and we believe it's now time for the organization to have professional management take the reins," states Hanson.

Importantly, this decision was driven solely by Hanson and McClain themselves, independent of any pressure from Allworth's board of directors or its private-equity backer, Lightyear Capital. Hanson quips, "I must say there wasn't a lot of pushback."

Hanson emphasizes that the topic of stepping down was raised by him a month ago, indicating that it was their own choice. They are committed to the transition and its success.

Upon the appointment of a new CEO, Hanson will assume the role of vice chairman, devoting his attention to the advisor side of the business. Meanwhile, McClain will take charge as the head of mergers and acquisitions, a primary focus of his as co-CEO.

As a result, Hanson's day-to-day tasks will undergo a significant shift, and he welcomes this change since it will let him return to the work he is truly passionate about.

"I never aspired to be a CEO of a company. I entered this field because I highly value the financial planning process," Hanson reveals. "However, I found that I was spending most of my time in executive roles, distancing myself from clients."

While Hanson will continue to work directly with clients in his new position, he sees his primary role as advocating for the advisory operations within the company.

A Visionary Advocate for Advisors

"I see myself being a bit of an advocate for our advisors," says the co-founder of the advisory firm that would eventually become Allworth. With nearly 30 years of experience, he understands the mind of advisors well.

Steady Growth and Expansion

Allworth has experienced a remarkable growth spurt under the leadership of its founders. Five years ago, the firm had 60 associates, but today that number has grown to an impressive 400. And it doesn't stop there. The ambitious goal is to reach 1,000 associates in the near future.

To support this growth, Allworth has successfully acquired 29 firms, which has resulted in an impressive $18 billion in managed client assets.

Selecting The Next CEO

Recognizing the need for a leader who can continue this impressive trajectory, Allworth has partnered with the renowned executive search firm Heidrick & Struggles to find their next CEO. The co-founder emphasizes his involvement in the selection process, highlighting the importance of finding an individual with a balanced skill set. This individual must possess strong execution abilities while also being able to thrive within Allworth's collaborative culture.

"I think the biggest challenge is making sure they gel well with the leadership team," he says. "We still need to have someone who's quite collaborative."

While the news of the CEO search was recently announced internally at Allworth, the process is just getting started. Candidates both from within and outside the company will be considered, although there is currently no list of potential successors.

"We're really just kicking things off," he explains. "We have no specific names at all right now. If we did, we probably wouldn't have to go through the big search."