BenefitStreet Names Jerry Bramlett Chief Executive Officer
SAN RAMON, CA, February 4, 2008 -- BenefitStreet, Inc. announced today that 401k industry veteran and visionary, Jerry Bramlett, has been named as the Company's new President and Chief Executive Officer, replacing interim CEO, Alex Hehmeyer.
Bramlett, widely regarded as a thought leader and visionary within the 401k space, most recently served as the Founder/CEO of The 401k Company until its recent sale to Charles Schwab and Company in early 2007. At the time of the sale, The 401k Company had grown to 350 employees and served over 100 clients with approximately $25 billion in plan assets and more than 425,000 plan participants.
"I'm very excited to join BenefitStreet at this important stage in the Company's evolution," said Bramlett, who takes over as CEO effective February 1. "The BenefitStreet story is quite compelling, and the opportunity to do something special within the industry is very real. The Company has roots in innovation and thought leadership, which I value tremendously. And even though BenefitStreet has been around for over 14 years, it's been constantly evolving and continues to operate in an entrepreneurial fashion. Given my experience and skill set, I believe this is a great match."
One of the keys to driving the future success of BenefitStreet, explained Bramlett, will be to further leverage the advisor-centric distribution model and build an industry-leading service and support platform for advisor networks and other key RIAs across the country. "The number of advisor relationships BenefitStreet has cultivated over the years – and the quality of those relationships – is impressive. We need to strengthen those ties by providing the information, resources, tools and support necessary for our partners to do their jobs and serve their clients effectively. The market is set to enter a period of radical change and plan sponsors, more then ever, will be relying on their investment advisors to lead the way through the many challenges that lie ahead."
He also identified technology enhancements and customer service improvements as areas of strategic focus. "BenefitStreet has always been at the forefront from a technology standpoint, and we'll continue to look for ways to make improvements, automate, and deliver what our clients and partners need," explained Bramlett. "What I learned during my 25-year tenure of building The 401k Company is that a firm's success is built on top-rate customer service, superior technology and a culture based on client advocacy. In addition to providing a world class service offering, going forward it will be critical to give investment advisors access to an infinite source of investment content, especially highly efficient investment vehicles such as Exchange Traded Funds (ETFs)."
Bramlett's track record is one marked by an entrepreneurial spirit, a knack for generating results, a penchant for continuous innovation and a continual shift upward toward serving larger, more complex 401k plan sponsors.
The 401k Company was founded as a start-up TPA in 1983, first developing a balance-forward system in 1984 and then a daily valuation DC platform in 1986. In 1991 it was one of the first adopters of the practice of revenue sharing, and shifted from a small-market focus and the use of insurance-based investment products toward offering retail mutual funds, thus moving up market to primarily serve mid-size plans with over $50 million in assets. That same year The 401k Company also began developing an investment consulting practice, ultimately launching a web-based advisory platform for DC plans called FiduciaryDirect. In 2003, The 401k Company began advocating collective trusts and separate accounts, and moved into the jumbo 401k market ($1 billion plus). As a result of this shift toward larger plans, The 401k Company's assets under administration began growing at over 40% annually. Last year, Bramlett was voted #18 in 401kWire's 2007 "50 Most Influential", an annual ranking of the defined contribution industry's premier movers and shakers. In early 2007 Schwab, addressing the need to establish a footprint in the jumbo 401k marketplace, acquired The 401k Company for a purchase price of $115 million.
"Jerry is a natural leader and a true captain of industry within the defined contribution space," said Hehmeyer, who retains his position as BenefitStreet's Chairman. "His previous experience will be invaluable in helping to shape the evolution of BenefitStreet and drive the Company's future success. Our Board members, executive team, employees and shareholders are all very excited to have him as our CEO and look forward to working with him."
About BenefitStreet
BenefitStreet is a pioneer in the creation and delivery of innovative solutions for corporate benefits, and is constantly improving the way corporations provide and manage benefits. As a leading independent, unbundled provider of 401k recordkeeping solutions and administrative services, BenefitStreet is committed to improving the value of benefits to employees while reducing the complexity and cost businesses face in offering those benefits. Founded in 1993, BenefitStreet serves more than 6,500 corporate clients from its headquarters in San Ramon, Calif., and several locations throughout the United States. For more information, please visit www.benefitstreet.com.
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