Latest news with #PrincipalFinancialGroup
Fast Company
3 days ago
- Business
- Fast Company
Deanna Strable's journey from intern to CEO of Principal Financial Group is inspiring—but may become increasingly rare
Hello and welcome to Modern CEO! I'm Stephanie Mehta, CEO and chief content officer of Mansueto Ventures. Each week this newsletter explores inclusive approaches to leadership drawn from conversations with executives and entrepreneurs, and from the pages of Inc. and Fast Company. If you received this newsletter from a friend, you can sign up to get it yourself every Monday morning. As a new crop of summer interns arrive at your company, it's worth considering: Will one of them rise to CEO? Deanna Strable, who became CEO of Principal Financial Group in January, interned at the company during college. After graduating from Northwestern University, she joined Principal as an actuarial assistant, the start of a 35-year journey that included a stint abroad and senior roles including chief financial officer (CFO) and president and chief operating officer (COO). (Disclosure: Principal is a longtime Inc. advertising and sponsorship partner.) 'People love to ask, 'Why'd you originally come to Principal?' but I think a fundamental question is, 'Why did you stay here for 35 years?'' Strable says of the insurance and benefits company, which last year reported $16.2 billion in revenue, up 18% from 2023. 'It ultimately comes back to the work, the company, and the people.' From entry-level to executive The intern-to-CEO path isn't unheard of, especially at family-led companies. Comcast chairman and CEO Brian Roberts, whose father founded the cable company, first interned at its Storecast marketing unit in 1974. J. Patrick Gallagher Jr., CEO of Arthur J. Gallagher and Co., a global insurance brokerage founded by his grandfather, interned at the business in 1972. Some prominent CEOs are 'lifers,' having spent their whole careers at one company. Tricia Griffith, CEO of the insurer Progressive, started as an entry-level claims representative, and Mary Barra, CEO of GM, started at the carmaker as a co-op student. And while research suggests that CEOs hired from within an organization slightly outperformed external hires during the pandemic, and performed on par with one another before the pandemic, more boards are turning to outsiders to run companies. Spencer Stuart's ' 2024 CEO Transitions ' report found that 44% of all new S&P 1500 CEO appointments last year were external hires, up from 32% in 2023 and the highest rate since 2000, when the executive search firm started tracking the data. 'The CEO role has never been harder or more complex, and I do believe that you really need multiple experiences to be an effective leader in today's world,' says Janice Ellig, CEO of executive search firm Ellig Group. 'I don't want to predict that the intern-to-CEO [trend] is going to decrease, but I'm not sure it's going to increase.' Many roles, one vision Ellig says boards and investors want their chief executives to bring a range of relevant experiences to the role. Insiders who get the top job have typically led different departments and excelled in areas that are important to the company. GM's Barra, for example, led manufacturing engineering, global human resources, and global product development—critical divisions at a major automaker with 90,000 employees in the U.S. alone. Principal's Strable helped build and lead the company's benefits and protection business, which encompasses employee benefits, business owner solutions (life insurance and disability insurance), and nonqualified deferred compensation. As CFO, she worked alongside previous CEO Daniel Houston to develop a growth strategy that included discontinuing the sale of consumer life insurance products and focusing on higher-growth businesses such as retirement and global asset management. As a result, Strable says, she was 'able to hit the ground running,' adding: 'You know the people, you know the products, you know the business, you know the strategy.' The insider's double-edge sword Strable, who retains the president title at Principal, counts the familiarity and support of longtime colleagues as a 'plus' of being an internal candidate. But 'where it can be hard is there are times that people just expect that you're comfortable with things the way they are today,' she says. Strable says she encourages the company to 'lean into' its strengths but also evaluate the areas where Principal has not been effective. She strives to find ways to learn from people outside the company. 'I reinforce that with a lot of our leaders, too,' she says. 'You need to have a network of peers outside of the organization, both within and outside the industry.' At a lunch meeting in New York shortly after she became CEO, Strable reflected on the corporate milestones she's observed throughout her three-decades-plus at Principal. Of note: Some of the first 'graduates' of Principal's on-site daycare center at its Des Moines headquarters, which opened 17 years ago, will soon be eligible for internships at the company. Perhaps one of them might even become CEO someday. Are you an 'insider' CEO? Are you a company lifer who has ascended to the CEO role? What unique insights do you possess that outsiders or newcomers don't have? Please send your experiences to me at stephaniemehta@ And while I have your attention, please spread the word that Fast Company's annual Brands That Matter program is extending its deadline to June 6. If your brand excels in making emotional connections, communicating purpose, and maintaining cultural relevance, consider applying via this link.
Yahoo
20-05-2025
- Business
- Yahoo
Principal® Names Joel Pitz Executive Vice President and Chief Financial Officer
Pitz fills role previously held by Deanna Strable, President & CEO DES MOINES, Iowa, May 20, 2025--(BUSINESS WIRE)--Principal Financial Group® (Nasdaq: PFG) today announced the appointment of Joel Pitz as executive vice president and chief financial officer, effective immediately. Pitz steps into the role after 30 years with Principal and brings extensive experience in successfully aligning financial strategy to business goals. "Joel has demonstrated strong leadership throughout his time at Principal and during his tenure as interim CFO which will continue to serve the company well," said Deanna Strable, Principal president and CEO. "Not only is his expertise highly valued by the organization, but he has also proven to be a trusted advisor to me personally." Pitz served Principal as senior vice president and controller prior to his appointment to interim CFO in August 2024. Before taking on the role of controller, he served as the CFO for international businesses, where he oversaw global finance and strategy for emerging market operations. He's held several leadership positions during his tenure with Principal, including chief accounting officer. "I'm honored to step into the role of chief financial officer," said Pitz. "I look forward to working alongside our talented teams as we continue to drive sustainable growth and create value for our stakeholders now and into the future." Pitz succeeds Deanna Strable, who was named president and chief operating officer in August of 2024 and president and chief executive officer in January 2025. About Principal Financial Group® Principal Financial Group® (Nasdaq: PFG) is a global financial company with approximately 20,000 employees1 passionate about improving the wealth and well-being of people and businesses. In business for 145 years, we're helping approximately 70 million customers1 plan, protect, invest, and retire, while working to support the communities where we do business. Principal is proud to be recognized as one of the 2024 World's Most Ethical Companies2 and named as a Best Places to Work in Money Management3. Learn more about Principal and our commitment to building a better future at 1 As of March 31, 20252 Ethisphere, 20253 Pensions & Investments, 2024 View source version on Contacts Media contact: Sara Bonney, 515-878-0835, Investor contact: Humphrey Lee, 515-235-9500, Sign in to access your portfolio
Business Wire
20-05-2025
- Business
- Business Wire
Principal ® Names Joel Pitz Executive Vice President and Chief Financial Officer
DES MOINES, Iowa--(BUSINESS WIRE)-- Principal Financial Group ® (Nasdaq: PFG) today announced the appointment of Joel Pitz as executive vice president and chief financial officer, effective immediately. Pitz steps into the role after 30 years with Principal and brings extensive experience in successfully aligning financial strategy to business goals. 'Joel has demonstrated strong leadership throughout his time at Principal and during his tenure as interim CFO which will continue to serve the company well,' said Deanna Strable, Principal president and CEO. 'Not only is his expertise highly valued by the organization, but he has also proven to be a trusted advisor to me personally.' Pitz served Principal as senior vice president and controller prior to his appointment to interim CFO in August 2024. Before taking on the role of controller, he served as the CFO for international businesses, where he oversaw global finance and strategy for emerging market operations. He's held several leadership positions during his tenure with Principal, including chief accounting officer. 'I'm honored to step into the role of chief financial officer,' said Pitz. 'I look forward to working alongside our talented teams as we continue to drive sustainable growth and create value for our stakeholders now and into the future.' Pitz succeeds Deanna Strable, who was named president and chief operating officer in August of 2024 and president and chief executive officer in January 2025. About Principal Financial Group® Principal Financial Group® (Nasdaq: PFG) is a global financial company with approximately 20,000 employees 1 passionate about improving the wealth and well-being of people and businesses. In business for 145 years, we're helping approximately 70 million customers 1 plan, protect, invest, and retire, while working to support the communities where we do business. Principal is proud to be recognized as one of the 2024 World's Most Ethical Companies 2 and named as a Best Places to Work in Money Management 3. Learn more about Principal and our commitment to building a better future at 1 As of March 31, 2025 2 Ethisphere, 2025 3 Pensions & Investments, 2024
Yahoo
04-05-2025
- Business
- Yahoo
Smart retirement moves to make in your 40s and 50s
Listen and subscribe to Decoding Retirement on Apple Podcasts, Spotify, or wherever you find your favorite podcasts. If you're in your 40s or 50s, and you're worried about all the ups and downs in the stock and bond markets, Chris Littlefield, the president of retirement and income solutions at Principal Financial Group, has some advice for you. 'I think obviously with the uncertainty, the market volatility, I think people that have got a financial plan ... should stick to their financial plan and not overreact to what's happening in the market at any particular time,' Littlefield said in a recent episode of Decoding Retirement (see video above or listen below). This embedded content is not available in your region. And if you don't have a plan, get one. Best case, you should get professional advice, as everyone would benefit from some 'holistic advice' about how to address the needs that they will have in retirement, he said. 'They should be working with somebody,' he added. 'They can either speak to their employer and their retirement plan service provider, or they can also speak with an adviser.' Read more: Retirement planning: A step-by-step guide No matter what, especially during times of market volatility, Littlefield cautioned retirement savers to avoid one of the biggest mistakes investors make. 'I think one of the biggest mistakes that I see people make is they try to time the market,' he said. For example, investors often attempt to adjust their asset allocations — their mix of stocks, bonds, and cash — in response to short-term market swings. The problem with that approach, Littlefield explained, is that it requires two critical decisions. 'It's one thing to sell,' he said, 'but you also have to figure out when to buy, ... and if you're out of the market in the first couple days after the market rebounds, you missed a very large percentage of the returns.' His advice: 'If you've got a good asset allocation, you've got a good plan, stay the course. Don't let the short-term news affect what is a long-term horizon.' Littlefield also recommended maximizing every opportunity to save on a tax-free basis and, if you can afford it, making catch-up contributions. 'There are still significant opportunities for you when you achieve the age of 50 to save even more than the limits that are provided by the 401(k) plan,' he said. The standard annual employee contribution limit for 401(k) plans in 2025 is $23,500. For participants ages 50 and older, the standard catch-up contribution limit in 2025 is $7,500. This means individuals over 50 can contribute up to $31,000 to their 401(k) plan for the year. And starting in 2025, individuals ages 60, 61, 62, or 63 are eligible for a higher catch-up contribution limit under the SECURE 2.0 Act. Read more: How much money should I have saved by 50? According to Littlefield, it's best practice for individuals to have an investment policy statement to guide their investment strategies, but very few are truly equipped to do it on their own. And that's where professional guidance can help. One option is to seek out a managed account, which is an arrangement 'where you have somebody who's advising on the asset allocation and helping you with the rebalancing,' Littlefield said. However, professional guidance is also often built into products like target-date funds. These funds, he said, provide professional asset allocation, automatic rebalancing over time, and exposure to a wide range of asset classes. Littlefield suggested using a target-date fund while you're young, and then moving to a managed account when you're approaching retirement might be a sound strategy. It's a more 'personalized' approach, he said, adding, 'It takes into account your individual circumstance as opposed to just your age.' That said, 'there is a cost for providing that advice,' he said about managed accounts. Target-date funds typically have an expense ratio, which is an annual fee expressed as a percentage of your total investment in the fund. This fee covers the costs of managing the underlying investments and the rebalancing of the portfolio over time. Of note, the average expense ratio for target-date funds has been trending downward. Data from Morningstar in 2023 indicated an average asset-weighted fee of just 0.30%. However, fees can range from as low as 0.08% to over 1%. Managed accounts usually have a fee that is separate from the investment management fees of the underlying funds. Fees for managed accounts can vary considerably but often range from 0.25% to 0.75% of the account's total balance per year. Some sources indicate a common range of 0.35% to 0.50%, while others note fees can go as high as 0.80% Littlefield acknowledged that many in their 40s and 50s have competing demands on their money, such as paying down debt, saving for a down payment on a house or children's education, and saving for retirement. But, he said, 'it's really important for people to take a balanced approach to their financial wellness and not focus on any one particular goal.' Littlefield also suggested that the one mistake you ought to avoid is not saving for retirement in your 401(k). He said the ability to save on a tax-deferred basis is extremely valuable. Even before considering the benefits of maximizing an employer match, Littlefield said it's important to note that a significant portion of workers — close to 50% across the industry — aren't participating in their retirement plans at all, and that's a major concern. Each Tuesday, retirement expert and financial educator Robert Powell gives you the tools to plan for your future on Decoding Retirement. You can find more episodes on our video hub or watch on your preferred streaming service. Sign in to access your portfolio
Yahoo
28-03-2025
- Business
- Yahoo
If You Make More Than $150K, Having a 401(k) Isn't Enough — Here's Why
If you have access to a 401(k) plan, you should certainly be taking advantage of it to build up your retirement nest egg. However, you may reach a point when you will want to consider other vehicles for long-term savings. Find Out: Read Next: According to a new study by Principal Financial Group, that tipping point seems to be an annual household income of $150,000. Americans who have reached this threshold are more likely to add an IRA to their retirement strategy than those who earn less. Here's why you should look beyond your 401(k) if you make $150,000 or more. Ideally, your retirement strategy will include multiple accounts outside of your workplace retirement account. 'Regardless of income level, many Americans tend to underestimate the financial resources required to maintain their lifestyle and manage expenses once they transition from earning a paycheck to living off their retirement savings,' said Heather Winston, assistant vice president of individual retirement solutions at Principal. 'While retirement plan accounts like 401(k) [plans] often represent one of the largest assets in a household, relying solely on a 401(k) may not adequately fulfill long-term savings needs and aspirations,' she continued. 'By diversifying their investment strategies, workers can enhance their financial flexibility, optimize tax efficiency and better align their savings with their retirement goals.' The first step in creating a robust retirement plan should be calculating how much you will realistically need, and then figuring out the tools you can use to get there. 'By utilizing financial wellness programs and tools, and engaging with financial professionals, individuals can prioritize their savings goals and identify the most suitable accounts for their circumstances,' Winston said. 'This is why I advocate for a comprehensive savings approach — individuals should strive to save as much as possible, through a variety of methods, for as long as possible. 'There are numerous savings options and products available,' she continued. 'Akin to navigating to an unfamiliar destination, having a clear vision of one's goals and developing a structured plan can significantly aid in achieving financial security.' Be Aware: There are several reasons that having both an IRA and 401(k) is beneficial for those earning $150,000 and above. For starters, the accounts have different contribution limits and tax benefits. 'High earners may reach the 401(k) annual contribution limits quickly,' Winston said. 'Excess income saved within IRAs, and even health savings accounts, can help adhere to saving as much as possible.' Another benefit to adding an IRA to your retirement savings plan is that it provides more choice for your investments. '401(k) plans often have limited investment options,' Winston said. 'By investing in other accounts, like IRAs, individuals have access to a wider array of investment options and can improve their overall investment diversification.' Having more than one account also provides greater financial security. 'Relying solely on a 401(k) may not provide sufficient funds for retirement, particularly as living expenses and healthcare costs rise,' Winston said. 'Supplementing retirement savings with an IRA can help ensure a more comfortable and secure retirement.' In addition to 401(k) plans and IRAs, high-income earners should look into other types of accounts to create healthy nest eggs. 'By utilizing HSAs, Roth accounts, taxable brokerage accounts, real estate and 529 plans, individuals can optimize their investment portfolios, enhance tax efficiency and better align their financial strategies with their long-term goals,' Winston said. Health savings accounts (HSAs) provide triple tax benefits. 'HSA contributions are tax-deductible, earnings grow tax-free and withdrawals for qualified medical expenses are tax and penalty-free,' Winston said. 'This makes HSAs an effective tool for both current healthcare costs and future medical expenses in retirement.' HSAs can be especially useful for those with a household income of $150,000 or more. 'Many individuals view HSAs merely as transactional accounts; however, those with higher incomes should consider using HSAs as long-term investment vehicles,' Winston said. 'Funds can be invested in various assets, allowing for potential growth over time, similar to a retirement account. 'They also offer even more flexibility once individuals reach age 65,' she continued. 'Withdrawals can be made for any purpose without incurring penalties, although they will be subject to ordinary income tax if used for nonmedical expenses. This feature can further enhance retirement planning and cash flow management.' Roth IRAs and Roth 401(k) plans are funded with after-tax dollars, allowing for tax-free withdrawals in retirement. 'This is particularly advantageous for high-income earners who may face higher tax rates in the future,' Winston said. 'There are income limits for direct Roth IRA contributions. However, the 'backdoor Roth IRA' strategy allows individuals over the income threshold to convert traditional IRA funds into a Roth, thereby taking advantage of its tax benefits.' Taxable brokerage accounts allow for a wide range of investments, including stocks, bonds and mutual funds. This is a great way to diversify your retirement funds. 'There are no contribution limits, making them ideal for high-income earners looking to invest beyond tax-advantaged accounts,' Winston said. 'Investors can strategically manage capital gains and losses to optimize their tax situation, providing greater control over their taxable income.' Real estate can provide a steady income stream and potential appreciation in value. 'It offers diversification away from traditional stock and bond markets, which can be especially beneficial for high-income earners,' Winston said. 'Additionally, real estate investors can take advantage of various tax deductions, such as mortgage interest, property taxes and depreciation, enhancing overall tax efficiency.' College savings plans are beneficial for those with children to save for future education expenses. 'Contributions [to 529 plans] grow tax-free, and withdrawals for qualified education expenses are also tax-free,' Winston said. 'High earners can take advantage of gifting strategies through 529 plans, potentially reducing their taxable estate while helping to fund their children's education.' More From GOBankingRates4 Things You Should Do if You Want To Retire Early 6 Big Shakeups Coming to Social Security in 2025 10 Genius Things Warren Buffett Says To Do With Your Money This article originally appeared on If You Make More Than $150K, Having a 401(k) Isn't Enough — Here's Why Sign in to access your portfolio
