Financial Engines is replacing its CEO in the wake of a lackluster earnings report, and as it fights a lawsuit claiming the Sunnyvale, Calif.-based managed account provider built its business on pirated software.
Jeffrey Maggioncalda, 45, has served as Financial Engines CEO since the company's founding in 1996. Lawrence Raffone, who currently serves as the company's president, will replace him, effective Jan. 1, 2015.
The technology-based advisory serves 9 million participants across more than 580 plans, and oversees more than $100 billion in assets.
Recommended For You
The company was co-founded by William Sharpe, a noble laureate.
"It was a rare opportunity to work with one of my heroes, Bill Sharpe, to build a company that has helped change the lives of millions of people," said Maggioncalda in a statement. He will also step down from the board of directors, but will continue with the company in an advisory role.
Raffone joined Financial Engines in 2001 and was appointed president in 2012. He previously served as vice president of Fidelity Investments' Institutional Brokerage Group.
"I strongly believe in our purpose to provide our customers with the retirement help they deserve and as CEO will see that we continue to fulfill it for many years to come. Jeff's (Maggioncalda) vision and energy have helped Financial Engines become the market leader in retirement help, providing real benefits to millions of Americans," said Raffone.
The company reported third quarter earnings of $0.23 per share, slightly missing analysts' estimates. Revenue projects for next year were downwardly revised.
In August, GRQ Investment Management filed suit against Financial Engines, claiming patent infringement and seeking a permanent injunction against the use of the software the company was built on.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
