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 waited for the female counselor's breakfast to break down these issues. The discussion focused on the realities of women forging their career paths amid 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 lift each other up lays the foundation for promoting career paths that attract and keep women in the profession.”
—Leslie Tabor, director, Schwab Advisor Services Consulting Business and Education.

The M&A Landscape: A Double-Edged Sword

M&A has gained momentum, as shown 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 this is 20% more transactions than the previous eight years combined. Schwab's recent comparative study also showed that women hold 46% of roles in our industry, mostly non-customer facing, but still almost half. While this consolidation offers firms the potential for expanded resources and market share, the impact on women's career trajectories—especially those in non-management roles—has been mixed.

One event attendee highlighted a common experience: women, especially in administrative or non-customer roles, are often overlooked after these transactions. The “boys club” dynamic continues to prevail in decision-making circles, with men often prioritized for key leadership roles. As one participant indicated, this gender dynamic has not gone away and women can find themselves marginalized when shopping, leading to feelings of disempowerment and increased career stagnation.

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 to many women today.

The challenge of reinvention

M&A activity often requires professionals to reinvent themselves. One attendee discussed her experience of constantly adjusting to new roles between acquisitions. Although her adaptability made her indispensable, it ultimately hindered her long-term career growth. “I couldn't tap into that,” she said, noting that the assumption that she could “do anything” left her without the support she needed to rise 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 to prove themselves worth even defending 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 is clear that many firms still lack the formal structures to provide these vital supports. As one attendee complained, she was 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 supportive communities within their organizations.

Cary Carbonaro, another panelist, emphasized the importance of self-advocacy in such transitions. After enduring multiple acquisitions, she found herself having to fiercely advocate for her customers, her business and her value. Despite facing discrimination and marginalization in the process, she successfully made four career moves in five years, eventually 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 barriers.

Changing the Model: Sponsorship and Advocacy

One of the key points of the FAB event was the need for a paradigm shift in how women are supported during the M&A transition. It is not enough for women to quietly excel in 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 after 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 tangible results are seen is not sustainable, especially for women who may juggle family and caregiving responsibilities. Women in leadership roles must push their firms to create new paths for growth that do not rely on outdated models of career progression.

Moving Forward: Action Steps

To better support women navigating their careers during the M&A transition, firms should adopt several key practices:

1. Sponsorship programs: Women in leadership should intentionally sponsor other women, ensuring that they are not only led, but also actively advocated in key meetings and decisions. Men should also be encouraged to sponsor and support women in their teams.
2. Flexible career paths: Firms must offer more flexible career models that recognize the realities of modern life. This includes creating pathways that allow women to enter leadership without having to follow a rigid, linear progression.
3. Preservation of ownership and identity: Women who have built strong personal brands and customer bases should be allowed to retain elements of their brand identity including name, personality, story and visual identifiers after purchase. This is especially important as many female advisors find themselves lost in the shuffle of larger, more bureaucratic firms.
4. Community Creation: Firms should promote networking opportunities for women, not only to provide support, but to allow them to learn from each other and share best practices. Whether through formal mentoring 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 women leaders at this event represent their lived experiences and the opportunities firms have to engage women in their firms – bringing their value to life in ways that are meaningful to their team and clients.”

–battalion

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—mentoring, sponsorship, and community—women can not only survive, but thrive in this environment. By driving change within their firms and advocating for each other, they have the potential to redefine the future of wealth management for themselves and for generations to come.