Betterment founder Jon Stein is stepping down as chief executive and will be succeeded by Sarah Kirshbaum Levy, a former executive of ViacomCBS. The New York based firm that was founded in 2010 manages $25 billion with more than 550,000 customers.
The company’s value was most recently estimated at $800 million at its last funding round in 2017. In its digital portfolio advisory service, Betterment charges 0.25% of assets annually. It charges an additional 0.15% for customers who want access to human advisers. Mr. Stein said he was looking for someone from outside the financial services industry to take Betterment to the next level. Industry insiders often lack the perspective needed “to disrupt services in a more customer-focused direction,” he said. Mr. Stein said he may play a role in tasks including recruiting and customer events, but wants “to make sure I am not in Sarah’s way.” “I may have another business in me but it won’t be in financial services.”