TIAA

TIAA
Non-profit Corporation owning for-profit subsidiaries
Founded 1918 (1918)
Headquarters New York City, New York, United States
Key people
 Roger W. Ferguson, Jr. (CEO)
Products Financial services
Revenue US$37.105 billion (FY 2016)[1]
US$1.492 billion (FY 2016)
AUM US$1 trillion (Q4 2017)[2]
Total assets US$523.194 billion (FY 2016)
Number of employees
 16,500 (Q4 2017)[2]
Website tiaa.org

TIAA, formerly TIAA-CREF (Teachers Insurance and Annuity Association-College Retirement Equities Fund), is a Fortune 100 financial services organization that is the leading provider of financial services in the academic, research, medical, cultural and governmental fields. TIAA serves over 5 million active and retired employees participating at more than 15,000 institutions and has $1 trillion[2] in combined assets under management with holdings in more than 50 countries (as of 31 December 2017).

TIAA is headquartered in New York City and has major offices in Denver, Colorado; Charlotte, North Carolina; and Dallas, Texas; as well as seventy local offices throughout the U.S.. In 2017, TIAA ranked 80th on Fortune's list of the 500 largest corporations in America.[3] As of 2017, TIAA is the largest global investor in agriculture, the 2nd largest grower of wine grapes in the United States (by acreage), and the 3rd largest commercial real estate manager in the world.[2]

Profile

Long organized as a tax-exempt non-profit organization, a 1997 tax bill removed TIAA's tax exemption.[4] It is now organized as a non-profit organization, the TIAA Board of Overseers, with taxable subsidiaries; all profits are returned to policy holders.

History

730 Third Avenue

In 1918, Andrew Carnegie and his Carnegie Foundation for the Advancement of Teaching, under the leadership of Henry S. Pritchett, created the Teachers Insurance and Annuity Association of America (TIAA), a fully funded system of pensions for professors. Funding was provided by a combination of grants from the foundation and Carnegie Corporation of New York, as well as ongoing contributions from participating institutions and individuals.[5]

In 1921, the policyholders voted to nominate Professor Samuel M. Lindsay of Columbia University to represent them on the TIAA board of trustees. Policyholder representation on the TIAA board was consistent with the Carnegie Foundation desire that educators assume a role in running the organization.[6]

Conservative investing allowed TIAA to survive the 1929 stock market crash and the Great Depression.[5]

In 1933, Albert Einstein became a participant, a fact that TIAA-CREF later used in a notable 2001 advertising campaign.[7]

After World War II, in reaction to rising inflation and lengthening life expectancies, and a dramatic expansion of the education sector with the G.I. Bill, TIAA recognized the need for its participants to invest in equities in order to diversify its retirement funds. In 1952, TIAA created the College Retirement Equities Fund (CREF), a variable annuity, for that purpose.

On June 15, 2007, TIAA became one of the first U.S. companies to voluntarily adopt, and the first to implement, a policyholder advisory vote on executive compensation policy.

On September 14, 2012, TIAA-CREF bought Festival Place, a shopping center in Basingstoke, England for £280 million.[8]

On May 16, 2013, TIAA-CREF purchased a 50% stake in the Grand Canal Shoppes, including the Shoppes at the Palazzo, in Las Vegas for net proceeds of $410 million USD as part of a new joint venture with General Growth Properties. GGP will continue to oversee the asset management of the project.

On April 14, 2014, TIAA-CREF announced that it would acquire Nuveen Investments in a deal valued at $6.25 billion.[9]

On February 22, 2016, TIAA-CREF rebranded as simply TIAA as part of a new marketing and imaging campaign. CMO Connie Weaver explained that the old name was perceived by customers as being complicated, and that the new branding scheme was meant to portray a simpler and friendlier image of the organization.[10][11]

On August 8, 2016, TIAA reached a deal to buy EverBank Financial Corp. for $2.5 billion in cash.[12]

On June 12, 2017, TIAA completed the acquisition of EverBank. At the time of the press release, the combined bank's legal entity name is TIAA, FSB.[13]

On October 17, 2017, the New York Times published a story alleging that TIAA investment advisors had conflicts of interest when making financial recommendations to clients. This was based on a whistle-blower complaint and class action lawsuit, both instigated by former employees.[14][15]

As of February 2018, TIAA was providing parental-leave irrespective of the parent's gender.[16]

Nearly a year after the acquisition of Everbank TIAA began rebranding all of its banking activities under the TIAA Bank name on June 4, 2018.[17][17]

See also

References

  1. ↑ "TIAA Fortune 80". Fortune Magazine. Retrieved 1 November 2017.
  2. 1 2 3 4 https://www.tiaa.org/public/pdf/facts_stats.pdf
  3. ↑ Fortune 500 2013: Full List - Fortune. Money.cnn.com. Retrieved on 2013-08-21.
  4. ↑ Reed Abelson, "Budget Deal to Cost T.I.A.A.-C.R.E.F. Its Tax Exemption", New York Times 20 July 1997
  5. 1 2 Lowell, Jim. "TIAA-CREF's 401(k) Options". Forbes. Retrieved 2018-01-23.
  6. ↑ "Company History". Retrieved November 26, 2009.
  7. ↑ "TIAA-CREF campaign: Managing money for people with other things to think about: Albert Einstein".
  8. ↑ "Festival Place is sold for £280million". Basingstoke Gazette. Retrieved 2017-11-02.
  9. ↑ "TIAA-CREF to Buy Nuveen Investments in $6.25 Billion Deal". Bloomberg News. Retrieved 24 February 2016.
  10. ↑ "Denver employer TIAA-CREF dropping second half of name". The Denver Post. Retrieved 24 February 2016.
  11. ↑ "Rebranded TIAA Hopes Its Shortened Name Makes Financial Planning Seem Simpler". Adweek. Retrieved 24 February 2016.
  12. ↑ Louise Ensign, Rachel; Demos, Telis. "TIAA to buy EverBank for $2.5 billion". MarketWatch. Retrieved 2017-11-22.
  13. ↑ TIAA. "TIAA Completes Acquisition of EverBank | TIAA". www.tiaa.org. Retrieved 2017-11-22.
  14. ↑ Morgenson, Gretchen (2017-10-21). "The Finger-Pointing at the Finance Firm TIAA". The New York Times. ISSN 0362-4331. Retrieved 2018-02-09.
  15. ↑ "TIAACREF Whistleblower". TIAACREF Whistleblower. Retrieved 2018-02-09.
  16. ↑ Webber, Lauren (February 21, 2018). "Some Companies Move to Gender-Blind Leave for New Parents". The Wall Street Journal. The New York Times, New York City, United States. Retrieved February 22, 2018.
  17. 1 2 Gibbons, Timothy. "As TIAA Bank becomes official, merger 'favorable' to Jacksonville job market". bizjournals.com/jax. Jacksonville Business Journal. Retrieved 13 June 2018.
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