In an era marked by unprecedented consolidation in the financial services industry, mergers and acquisitions are reshaping the wealth management landscape. This wave of M&A activity presents unique challenges and opportunities for women in the sector, particularly as they navigate career transitions in a historically male-dominated industry. During RIA Edge West, Charles Schwab and WealthManagement.com hosted the Female Advisor Breakfast to unpack these issues. The discussion centered on the realities of women forging their career paths amidst a whirlwind of M&A activity, offering strategies and insights on how firms and female professionals can thrive in this environment.
“We know that cultivating community is essential to supporting women in our industry. Providing safe spaces to share our stories, inspire ideas and uplift one another lays the foundation to promoting career pathways that attract and retain women to this profession.”
—Leslie Tabor, director, Schwab Advisor Services Business Consulting and Education.
The M&A Landscape: A Double-Edged Sword
M&A has been gaining momentum, as indicated by a striking statistic shared during the event. According to a study done by DeVoe & Co., from January 2021 to June of this year, our industry has completed 882 transactions, and that's 20% more transactions than the previous eight years combined. Schwab’s recent benchmarking study also showed that women hold 46% of the roles in our industry, largely non-client facing, but nonetheless, almost half. While this consolidation offers firms the potential for expanded resources and market share, the impact on women’s career trajectories—particularly those in non-leadership roles—has been mixed.
One of the event's attendees highlighted a common experience: women, especially in administrative or non-client-facing roles, are often overlooked in the wake of these transactions. The "boys' club" dynamic continues to prevail in decision-making circles, with men often prioritized for key leadership roles. As one attendee shared, this gender dynamic has not disappeared, and women can find themselves marginalized during acquisitions, leading to feelings of disempowerment and stunted career growth.
The challenge is particularly acute for women of color, who face an added layer of complexity. As one speaker reflected, their mother’s career in international banking was shaped by a lack of mentors and advocates, a situation that remains all too familiar for many women today.
The Challenge of Reinvention
M&A activity often requires professionals to reinvent themselves. One attendee discussed her experience of constantly adapting to new roles amid acquisitions. Although her adaptability made her indispensable, it ultimately hindered her long-term career growth. “I couldn’t capitalize on it,” she said, noting that the assumption she could "do everything" left her without the support needed to ascend to leadership positions.
This points to a larger issue in wealth management: while hard work and resilience are essential, they are not always enough. Women must navigate a delicate balance of proving their worthwhile also advocating for themselves in an environment that still favors men in many decision-making capacities.
Building the Support Structures Women Need
The FAB event underscored a critical truth: mentorship, sponsorship and networking are essential for women to thrive in the M&A-heavy landscape of wealth management. However, it’s clear that many firms still lack the formal structures to offer these vital supports. As one attendee lamented, she grew tired of hearing senior leadership say, “I want to support you, but I don’t know how.” Women must take charge, not only by seeking mentorship and sponsorship themselves but also by creating communities of support within their organizations.
Cary Carbonaro, another panelist, emphasized the importance of advocating for oneself in such transitions. After enduring multiple acquisitions, she found herself needing to advocate fiercely for her clients, her business and her value. Despite facing discrimination and marginalization during the process, she successfully navigated four career moves in five years, ultimately regaining control of her business and reputation. Her experience underscores the necessity for women to speak up and push for their place in the industry, even in the face of institutional obstacles.
Changing the Model: Sponsorship and Advocacy
One of the key takeaways from the FAB event was the need for a paradigm shift in how women are supported during M&A transitions. It’s not enough for women to quietly excel at their jobs. Women in leadership must purposefully sponsor and advocate for other women during periods of organizational change. This includes making deliberate efforts to ensure that women are given opportunities to step into leadership roles post-merger and are not overlooked in favor of their male counterparts.
As several speakers pointed out, the current model in wealth management needs to evolve. The notion that it takes “seven years” of hard work before seeing tangible results is not sustainable, especially for women who may be juggling family and caregiving responsibilities. Women in leadership roles must push their firms to create new pathways for growth that don’t rely on outdated models of career progression.
Moving Forward: Actionable Steps
To better support women navigating their careers during M&A transitions, firms should adopt a few key practices:
- Sponsorship Programs: Women in leadership should intentionally sponsor other women, ensuring they are not only mentored but actively advocated for in key meetings and decisions. Men should also be encouraged to sponsor and support women in their teams.
- Flexible Career Paths: Firms need to offer more flexible career models that recognize the realities of modern life. This includes creating pathways that allow women to step into leadership without needing to follow a rigid, linear progression.
- Retaining Ownership and Identity: Women who have built strong personal brands and client bases should be allowed to retain elements of their brand identity including name, personality, history and visual identifiers post-acquisition. This is especially important as many female advisors find themselves lost in the shuffle of larger, more bureaucratic firms.
- Creating Community: Firms should foster networking opportunities for women, not only to provide support but to allow them to learn from one another and share best practices. Whether it’s through formal mentorship programs or informal networks, creating a community is key to retaining female talent.
“Each of us is on a unique journey—and therein lies the value we each bring to our firms. The practices shared by the women leaders at this event represents their lived experiences and opportunities firms have to engage the women at their firms—bringing their value to life in ways that are meaningful to their team and clients.”
—Tabor
Conclusion: Embracing Change and Building for the Future
While the road ahead is full of challenges, it also offers opportunities for women to reshape their career trajectories. With the right support structures in place—mentorship, sponsorship, and community—women can not only survive but thrive in this environment. By pushing for change within their firms and advocating for one another, they have the potential to redefine the future of wealth management for themselves and for future generations.
