Updated
Updated · RIABiz · Aug 14
Forbes, Shook Defend Advisor Rankings After $6 Million Payment Triggered Editor's Firing
Updated
Updated · RIABiz · Aug 14

Forbes, Shook Defend Advisor Rankings After $6 Million Payment Triggered Editor's Firing

3 articles · Updated · RIABiz · Aug 14

Summary

  • Shook Research told financial advisors the Forbes rankings were untouched by the undisclosed $6 million payment from founder R.J. Shook to former Forbes content chief Randall Lane, calling the controversy a non-event for the lists.
  • Molly Bennard said joint reviews by Forbes, Shook and outside counsel found no link between the payment and rankings, and that neither Lane nor Forbes participated in Shook’s research process.
  • The reassurance campaign followed Lane’s firing and Shook’s June exit from day-to-day operations; PPC Enterprises said it uncovered clues to the payment in Shook’s company emails after buying a majority stake last August.
  • The dispute strikes at a lucrative rankings business Forbes has run with Shook since 2016, with advisers often paying after winning for advertising, licensing and promotional rights tied to the Forbes seal.
  • Critics say the unexplained payment deepens long-running doubts about whether advisor lists marketed as editorial judgments can remain independent when they also generate downstream revenue.

Insights

If a $6 million gift didn't influence Forbes rankings, what are advisors actually paying for in those marketing packages?
Could the entire business model of media best-of lists be nothing more than a sophisticated pay-to-play illusion?