Dan Weiner makes that point clearly in this article in the Philly Inquirer today, Vanguard partnership profits up 15% over 2016, by Erin Arvedlund. A few interesting notes,
*Wiener estimates current CEO William McNabb takes home between $12 million and $21 million, based on how partnership units were awarded to previous leaders such as Bogle and Jack Brennan.
…’In his latest newsletter, Wiener writes: “Since its first year, the Partnership Plan’s dividend has risen 62 times. The value of one share of 500 Index has, with all distributions reinvested, grown 27 times over the same period. The takeaway for a Vanguard investor is pretty clear: Vanguard is not, and has never been, a nonprofit, though much of the language around ‘operating at cost’ does, at times, make it sound as though it is. The company is exceedingly profitable, and hence has the ability to pay its captains millions of dollars every year,” he writes, adding that 90 percent of the top executives’ compensation comes as dividends from the Partnership Plan.”
Vanguard is a for profit company .