BenefitStreet’s Founder and CEO Departs

Although BenefitStreet’s spokesman acknowledged that Drury had left the company, no reason was given for his departure. However, sources told PLANADVISER that he had been dismissed.

Alex Hehmeyer, board member since 2004, currently serving as general counsel for BenefitStreet as a consultant, has been named as interim CEO and Chairman. BenefitStreet has retained an executive recruiting firm to conduct a national search for a permanent CEO.

The firm says that Hehmeyer assumes his role at a time when the firm “is focusing on growth opportunities’ following the introduction of various products.

Earlier this year, BenefitStreet announced it would offer Barclays Global Investors’ iShares exchange-traded funds (ETFs) via a new 401(k) platform (See BenefitStreet Offers Barclays’ iShares on New 401(k) Platform). BenefitStreet’s spokesman said that the relationship there is “business as usual.’ A spokeswoman for BGI said that iShares is “very committed” to ETFs in the 401(k) space and therefore will continue to work with BenefitStreet but will also be pursuing other relationships in this space as well.

Reliance Trust Company was added as a custodian to the 401(k) product in September (See Reliance Signs on as Custodian for BenefitStreet ETF 401(k) Platform) and then the platform was broadened, enabling investors to choose both exchange traded funds (ETFs) and mutual funds in the same plan (See BenefitStreet Expands 401(k) Platform to Include Mutual Funds).