Close
  • Latest News
  • Artificial Intelligence
  • Video
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Artificial Intelligence
  • Video
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Latest News

      Schwab Says Sayonara to CEO

      Written by

      Theresa Carey
      Published July 20, 2004
      Share
      Facebook
      Twitter
      Linkedin

        eWEEK content and product recommendations are editorially independent. We may make money when you click on links to our partners. Learn More.

        Shortly after announcing disappointing earnings for the quarter ended June 30, 2004, Charles Schwab and Company announced that David S. Pottruck, who has served as CEO since January 1998, has resigned. Former CEO Charles Schwab will retake the corporate reins and continue to serve as board chairman.

        “During his two decades here at Schwab, David has been a valued partner to me and has worked tirelessly to help this Company pursue its vision,” Mr. Schwab said. “As I see the opportunities ahead for Schwab, I want to underscore my confidence in the strength of our franchise, the value we provide our clients, the dedication of our employees, and the depth of our management team.” The company said Schwab, 66, will remain its CEO indefinitely.

        For the quarter ended June 30, 2004, Schwab posted earnings of $113 million, down from $126 million for the second quarter of 2003 and well off the $161 million posted for the first quarter of 2004. For the first half of 2004, thanks to the strong first-quarter showing, the Companys net income was $274 million, compared with $197 million earned during the same period in 2003.

        Christopher Dodds, Schwabs chief financial officer, said that Schwab continues to work to reduce its annual expenses by $150 million to $200 million annually. Dodds told analysts during a conference call Tuesday that job cuts will continue during this phase of cutting costs; the company has eliminated more than 10,000 jobs since its revenue peaked nearly four years ago.

        Daniel C. Goldberg, Managing Director of Bear, Stearns & Co. Incs Equity Research views Pottrucks resignation as a “strategic positive,” and believes it could heighten speculation of a sale of the entire company. While acknowledging Mr. Pottrucks success at the firm, Bear, Stearns believes Schwab is currently pursuing too many strategies in its attempt to be all things to all people. “We would not be surprised to see a paring back of some underperforming businesses at Schwab,” Goldberg states.

        Several chunks of Schwab are currently being shopped around, primarily institutional research and trade execution services. One of the pieces to be sold is the trading and research shop SoundView Technology Group, which has only been part of Schwab for a few months. Schwab paid $321 million for SoundView last fall.

        Another piece on the block is Schwab Capital Markets, which is a market maker in over 11,000 Nasdaq equities. The three components of Schwab Capital Markets for sale include the broker-dealer business, program trading, and trade execution business.

        Also reported on the market is Schwabs Washington-based research office and quantitative research group Chicago Investment Analytics. Sources close to the sale say that Schwab expects to reap $250-400 million for the entire sale.

        While Schwab reported margin balances unchanged from the first to the second quarter, some of their competitors were showing growth. BrownCo, JPMorgans online broker, has seen a 40% jump in margin balances between June 2003 and June 2004, which represents continued confidence in the markets, says Ken Klipper, CEO of BrownCo. Ameritrade, an online brokerage based in Omaha, Nebraska, reported a 25% increase in earnings between the second quarter of 2003 and 2004.

        Theresa Carey
        Theresa Carey
        Theresa Carey is the Editor of CIOInsight.com's Finance Industry Center and a Contributing Editor at Barron’s, where she writes the ‘Electronic Investor’ column. She has been covering financial technology, investing, and trading platforms since 1990 for publications such as PC Magazine, Newsweek, Fortune, and Fortune Small Business. With decades of experience analyzing financial software, online trading, and market trends, she is a recognized authority in the field. She holds a B.A. from the University of California, Berkeley, and an M.S. from the University of Santa Clara.

        Get the Free Newsletter!

        Subscribe to Daily Tech Insider for top news, trends & analysis

        Get the Free Newsletter!

        Subscribe to Daily Tech Insider for top news, trends & analysis

        MOST POPULAR ARTICLES

        Artificial Intelligence

        9 Best AI 3D Generators You Need...

        Sam Rinko - June 25, 2024 0
        AI 3D Generators are powerful tools for many different industries. Discover the best AI 3D Generators, and learn which is best for your specific use case.
        Read more
        Cloud

        RingCentral Expands Its Collaboration Platform

        Zeus Kerravala - November 22, 2023 0
        RingCentral adds AI-enabled contact center and hybrid event products to its suite of collaboration services.
        Read more
        Artificial Intelligence

        8 Best AI Data Analytics Software &...

        Aminu Abdullahi - January 18, 2024 0
        Learn the top AI data analytics software to use. Compare AI data analytics solutions & features to make the best choice for your business.
        Read more
        Latest News

        Zeus Kerravala on Networking: Multicloud, 5G, and...

        James Maguire - December 16, 2022 0
        I spoke with Zeus Kerravala, industry analyst at ZK Research, about the rapid changes in enterprise networking, as tech advances and digital transformation prompt...
        Read more
        Video

        Datadog President Amit Agarwal on Trends in...

        James Maguire - November 11, 2022 0
        I spoke with Amit Agarwal, President of Datadog, about infrastructure observability, from current trends to key challenges to the future of this rapidly growing...
        Read more
        Logo

        eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

        Facebook
        Linkedin
        RSS
        Twitter
        Youtube

        Advertisers

        Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

        Advertise with Us

        Menu

        • About eWeek
        • Subscribe to our Newsletter
        • Latest News

        Our Brands

        • Privacy Policy
        • Terms
        • About
        • Contact
        • Advertise
        • Sitemap
        • California – Do Not Sell My Information

        Property of TechnologyAdvice.
        © 2024 TechnologyAdvice. All Rights Reserved

        Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

        ×