Schwab Announces Pay Increase for Employees

Rhea-AI Summary

The Charles Schwab Corporation announced a special five percent pay increase for employees, effective late September 2021. This increase recognizes their dedication during the pandemic, which has driven robust business growth. For the first half of 2021, Schwab reported a record $257 billion in net new assets, more than double the previous year, and opened 4.8 million new brokerage accounts. The company will also maintain flexible work arrangements, delaying a full Return to Office until January 2022, allowing employees to work from home or return voluntarily.

Positive

• 5% pay increase for employees to acknowledge their service during the pandemic.
• Record $257 billion in net new assets for the first half of 2021, doubling previous year's results.
• 4.8 million new brokerage accounts opened in the same period.

Negative

• Delays in returning to the office may impact team cohesion and productivity.

The Charles Schwab Corporation today announced it is implementing a special five percent pay increase for employees in recognition of their unwavering service to clients and each other throughout the pandemic.

“Our teams’ focus and dedication have resulted in outstanding results for our clients and growth for the company,” said Walt Bettinger, President and CEO, The Charles Schwab Corporation. “This increase is a way to reward our talented employees for their contributions and their relentless commitment to see the world through clients’ eyes, even during the most challenging times.”

In a note to employees on Thursday, the company’s Executive Council added, “You all have gone above and beyond to ensure our clients are well cared for, our culture remains strong, and our business remains sound under the most extraordinary circumstances. Thank you once more from all of us on the Executive Council for helping this company live up to its promise.”

This year a record number of investors turned to Schwab for help in navigating unprecedented market conditions. The firm’s core net new assets reached a record $257.0 billion for the first half 2021, more than double the results achieved during the same period last year. During the same period, clients opened 4.8 million new brokerage accounts representing the company’s second and third consecutive quarters in excess of a million new accounts.

This special increase will be applied to the vast majority of the company’s employees, effective late September 2021. It will not include the company’s Executive Council or colleagues participating in Schwab’s incentive compensation plans.

The firm also announced additional steps it is taking to address pandemic concerns and provide workplace flexibility for its employees going forward. In light of current circumstances, the firm has delayed a full Return to Office until January 2022, at the earliest. In the meantime, employees can continue to work from home, or return to the office on a voluntary basis. Once back in the office, Schwab employees will enjoy additional workplace flexibility, based on a hybrid work schedule. Employees will also have the ability to work with their manager to determine an approach that works for their individual situation, should they need additional flexibility.

To learn more information about Schwab or to apply to join the team, visit here.

About The Charles Schwab Corporation

The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with 32.4 million active brokerage accounts, 2.2 million corporate retirement plan participants, 1.6 million banking accounts, and $7.6 trillion in client assets as of July 31, 2021. Through its operating subsidiaries, the company provides a full range of wealth management, securities brokerage, banking, asset management, custody, and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiaries, Charles Schwab & Co., Inc., TD Ameritrade, Inc., and TD Ameritrade Clearing, Inc., (members SIPC, www.sipc.org), and their affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; referrals to independent, fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through Schwab Advisor Services. Its primary banking subsidiary, Charles Schwab Bank, SSB (member FDIC and an Equal Housing Lender), provides banking and lending services and products. More information is available at www.aboutschwab.com.

TD Ameritrade, Inc. and TD Ameritrade Clearing, Inc. are separate but affiliated companies and subsidiaries of TD Ameritrade Holding Corporation. TD Ameritrade Holding Corporation is a wholly owned subsidiary of The Charles Schwab Corporation. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210819005693/en/

FAQ

What is the recent pay increase percentage for Schwab employees?

Charles Schwab announced a special five percent pay increase for employees.

What record did Schwab achieve in net new assets for the first half of 2021?

Schwab achieved a record $257 billion in net new assets for the first half of 2021.

How many new brokerage accounts did Schwab open in 2021?

Schwab opened 4.8 million new brokerage accounts in the first half of 2021.

When will Schwab fully return employees to the office?

Schwab has delayed a full Return to Office until January 2022, at the earliest.

Will Schwab employees have flexible work arrangements?

Yes, Schwab will offer flexible work arrangements, allowing employees to work from home or return voluntarily.