Orion, a leader in the Advisor Services industry, declared an 8.9% fee increase for Registered Investment Advisors (RIAs) effective from April 1, attributing the hike to ‘extreme inflation.’ This decision has prompted worries among RIAs about its impact on their profits.
The company’s leader, Brian McLaughlin, despite the rate increase, has promised to maintain service quality. Based in Omaha, Nebraska, Orion is strategizing for possible implications of the price rise.
In addition to the rate increase, there have been key changes in Orion’s leadership. Following Charles Goldman’s appointment as the chairman of Eric Clarke’s committee, he will now oversee the search for Orion’s future CEO. This is seen as a strategic move to foster innovation and growth within Orion.
Orion has faced some internal issues recently. CEO Natalie Wolfsen had to scrap her return-to-office plan following employee disagreement and a misuse of the company’s mailing list. In response, Wolfsen has pledged to devise a more flexible plan that caters for employee needs in the wake of COVID.
Orion also plans a 6% workforce reduction, labeling it a ‘final action.’ After a staffing increase of over 40% since 2020, the company aims to streamline operations by reducing positions, cutting staff from roughly 1,400 to 1,320. Affected employees will receive support, including severance packages and job search assistance.
In conclusion, Orion is experiencing a period of change, both internal and external. Their ability to adapt, streamline operations, and anticipate market trends will play a crucial role in navigating these shifts. The transition’s impacts on its market position and competitiveness are yet to be seen. Orion’s commitment to innovation, coupled with strategic decision-making, promises a strong future, albeit dependent on fluctuating market scenarios and evolving customer preferences.
