Walt Bettinger to Retire as CEO

Rhea-AI Summary

The Charles Schwab has announced that Walt Bettinger will retire as CEO on December 31, 2024, as part of a multi-year succession plan. Rick Wurster, currently President of Schwab, will become President and CEO and join the Board of Directors on January 1, 2025. Bettinger will continue as Executive Co-Chairman of the Board alongside founder Charles R. Schwab.

During Bettinger's tenure as CEO since 2008, Schwab has seen significant growth:

• Client assets grew from $1.14 trillion to $9.74 trillion
• Client accounts increased from 9.3 million to 43.2 million
• Schwab's stock value rose 400% to approximately $65 per share
• Market capitalization grew 660% to about $119 billion

Bettinger expressed confidence in Wurster's leadership, citing his intelligence, integrity, and character. Charles Schwab praised Bettinger's successful tenure and supported Wurster as the next CEO, ensuring continuity for clients, employees, and stockholders.

Positive

• Planned CEO succession ensures leadership continuity
• Client assets grew from $1.14 trillion to $9.74 trillion under Bettinger's leadership
• Client accounts increased from 9.3 million to 43.2 million
• Stock value rose 400% to approximately $65 per share
• Market capitalization grew 660% to about $119 billion
• Successful acquisition and integration of Ameritrade

Negative

• None.

Insights

Financial Analyst

Walt Bettinger's retirement as CEO of Charles Schwab marks the end of an era characterized by remarkable growth and expansion. Under his leadership, client assets grew by an impressive 754% to $9.74 trillion, while client accounts increased by 364% to 43.2 million. The company's market capitalization surged by 660% to approximately $119 billion.

The succession plan, naming Rick Wurster as the new CEO, appears well-orchestrated and should provide continuity. Wurster's experience as President since 2021 and his eight-year collaboration with Bettinger suggest a smooth transition. This change in leadership, while significant, is unlikely to result in drastic strategic shifts given Bettinger's continued involvement as Executive Co-Chairman.

For investors, this transition represents both stability and the potential for fresh perspectives. Wurster's commitment to the "Through Clients' Eyes" strategy indicates a continuation of Schwab's client-centric approach, which has been important to its success. However, the financial services landscape is rapidly evolving and Wurster will face challenges in maintaining Schwab's growth trajectory amidst increasing competition and technological disruption.

Will Continue Serving as Executive Co-Chairman of the Board of Directors

Rick Wurster Named CEO to Succeed Bettinger

WESTLAKE, Texas--(BUSINESS WIRE)-- The Charles Schwab Corporation today announced, as part of its multi-year succession plan, that Walt Bettinger has notified the Board of Directors of his intention to retire as Chief Executive Officer effective December 31, 2024. Rick Wurster, President of Schwab since 2021, will be named President and CEO and will join the Schwab Board of Directors, effective January 1, 2025. Bettinger will continue to serve as Executive Co-Chairman of the Board of Directors, along with founder Charles R. Schwab.

Bettinger has successfully led Schwab as CEO since late 2008. Some of the major accomplishments during his tenure to date include (figures through the end of August 2024, the last publicly available data):

• Client assets grew from $1.14 trillion to $9.74 trillion.
• Client brokerage, banking, and workplace participant accounts grew from 9.3 million to 43.2 million.
• The value of a common share of Schwab stock grew from approximately $16 at the end of 2008 to approximately $65—a 400% increase.
• The market capitalization of Schwab grew from approximately $18 billion at the end of 2008 to approximately $119 billion—a 660% increase.
• Schwab has consistently been recognized by third parties for the quality of its client service and solutions.
• Schwab acquired and integrated Ameritrade, the largest investment management brokerage service acquisition in the history of the industry.
• Bettinger has been recognized multiple times by Fortune as a global business leader.

In announcing his decision to retire as CEO, Bettinger said, “As I approach my 65^th birthday in 2025, the time is right for me to transition from day-to-day duties and focus on my role as Executive Co-Chairman of the Schwab Board of Directors. Serving the clients, employees and stockholders of Schwab as CEO for the past 16 years has been the honor and privilege of my more than 40-year business career. My deep belief in servant leadership has guided me throughout my career, while the support of Schwab’s Board of Directors and the incredibly talented 33,000 Schwab employees helped us navigate through multiple economic cycles while serving our clients and rewarding our stockholders.”

Bettinger added, “The Schwab Board’s thoughtful and disciplined approach to succession planning helps make this transition smooth. Rick Wurster and I have worked together on a daily basis for more than eight years. I have complete confidence in his leadership, and I am thrilled that the Schwab Board of Directors has selected him as my successor. In addition to being incredibly bright, Rick possesses a balance of intellectual honesty and curiosity, combined with high personal integrity and character. In my ongoing role as Executive Co-Chairman of the Board of Directors, I will support Rick, just as Chuck Schwab has supported me during my tenure as CEO.”

Co-Chairman Charles R. Schwab shared, “Walt’s successful tenure as CEO saw the most significant growth in the company’s history in terms of clients, assets, revenue, profits, and market capitalization. He has earned the right to determine the timing of his retirement as CEO, and I am delighted that he will continue to serve as Executive Co-Chairman of the Board of Directors with me. Moving forward, Rick Wurster is ideally prepared to assume the duties as our next CEO. He possesses all the attributes to be a successful CEO, and he has the full confidence and support of myself and the Board. This next step in our long-term succession plan ensures continuity for our clients, employees, and stockholders.”

Wurster said, “I am honored to succeed Walt as Schwab’s CEO. He has led Schwab to record results over the last 16 years and has done so with humility, exceptional character, and a servant mindset. I am fortunate to continue to work with Walt in my new role and am humbled by the confidence that Walt, Chuck, the Schwab Board of Directors, and our dedicated employees have placed in me. My belief in our long-term ‘Through Clients’ Eyes’ strategy will continue to guide Schwab in the coming years.”

About Charles Schwab

The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with 35.9 million active brokerage accounts, 5.4 million workplace plan participant accounts, 1.9 million banking accounts, and $9.74 trillion in client assets as of August 31, 2024. 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 subsidiary, Charles Schwab & Co., Inc. (member SIPC, www.sipc.org), and its 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241001628888/en/

MEDIA:

Kate Pulley

Charles Schwab

kate.pulley@schwab.com

Phone: 551-277-8688



INVESTORS/ANALYSTS:

Jeff Edwards

Charles Schwab

jeff.edwards@schwab.com

Phone: 415-667-1524

Source: The Charles Schwab Corporation

FAQ

When will Walt Bettinger retire as CEO of Charles Schwab (SCHW)?

Walt Bettinger will retire as CEO of Charles Schwab (SCHW) on December 31, 2024.

Who will succeed Walt Bettinger as CEO of Charles Schwab (SCHW)?

Rick Wurster, currently President of Schwab, will succeed Walt Bettinger as CEO of Charles Schwab (SCHW) effective January 1, 2025.

What role will Walt Bettinger have after retiring as CEO of Charles Schwab (SCHW)?

After retiring as CEO, Walt Bettinger will continue to serve as Executive Co-Chairman of the Board of Directors of Charles Schwab (SCHW).

How much did Charles Schwab's (SCHW) client assets grow under Walt Bettinger's leadership?

Under Walt Bettinger's leadership, Charles Schwab's (SCHW) client assets grew from $1.14 trillion to $9.74 trillion.