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Brokerage Charles Schwab's long-time CEO Bettinger to retire

investing.com 01/10/2024 - 12:13 PM

Charles Schwab Announces CEO Transition

By Niket Nishant

(Reuters) – Charles Schwab has announced that President Rick Wurster will succeed long-time CEO Walt Bettinger, marking a significant leadership change after 16 years.

Bettinger, who took the helm in late 2008, will retire at the end of the year but will remain as executive co-chair of the board. This transition occurs amid rising interest rates, which have impacted the brokerage firm’s earnings in the latest quarter.

Despite a rally in equities, Schwab’s stock has dropped nearly 6% this year. Under Bettinger’s leadership, the firm’s market capitalization soared from $18 billion to $119 billion since 2008, while client assets increased more than eightfold.

He spearheaded the $26 billion acquisition of TD Ameritrade and ended trading commissions, strategies that attracted more retail clients. In a recent CNBC interview, Bettinger mentioned that he had planned his retirement for 2025, emphasizing the importance of overseeing the Ameritrade integration.

Wurster, set to take over on January 1, joined Schwab in 2016 with prior leadership experience at Wellington Management and McKinsey. Analysts from TD Cowen noted that Bettinger’s retirement followed recent senior leadership changes and that Wurster’s transition was largely anticipated.

Schwab has also seen other changes in its upper management, including a new CFO and a new role for Chief Operating Officer Joe Martinetto.




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