Schwab Announces Organizational Changes to Reflect Company's Growing Scale,Scope and Opportunity
SAN FRANCISCO, Oct. 3 /PRNewswire/ -- The Charles Schwab Corporation (NYSE: SCH) today announced a number of organizational changes that will support the company's continued growth as it builds on its leadership position in the rapidly evolving global financial services industry.
Since the beginning of 1999, the company completed its merger with U.S. Trust, one of the nation's leading wealth management firms, acquired CyBerCorp, an electronic trading and brokerage firm, and expanded its international operations to seven regions by adding capabilities in Japan, Canada and Australia. Schwab is currently growing at a rate of over $2.0 billion in net new client assets per week. As of the end of August, 2000, the company had added $121 billion in net new assets year-to-date and passed $1.0 trillion in total assets held in client accounts.
"Thanks to the trust that our clients place in us, Schwab has seen fabulous growth and expansion in a highly competitive and increasingly complex business environment," said Charles R. Schwab, Chairman and Co-CEO. "Today, Schwab is significantly different from our discount brokerage origins, and the Schwab of tomorrow must continue to adapt to our clients' needs. One of the underpinnings of our success has been enterprise-wide coordination centered on the client. The organizational changes we are announcing today will help us stay focused on the evolving needs of investors, provide our clients with an even richer suite of integrated products and services, and assure that we have the team in place to support Schwab's continued growth."
In support of these objectives, Mr. Schwab described the following new organizational developments.
David S. Pottruck, President and Co-CEO has formed a new Office of the President to provide strategic direction to the Corporation and to facilitate client-focused, company-wide integration. Reporting to and joining Mr. Pottruck in the Office of the President is Linnet F. Deily, Vice Chair and previously the head of the Schwab Retail Enterprise.
Ms. Deily will help guide the company's strategic direction and drive a series of initiatives designed to leverage the strengths and capabilities of Schwab's various business units.
Deily will focus her energies on a number of areas, including the following strategic initiatives.
-- Leading the development of new offerings for the affluent investor
through the integration of the company's multi-faceted effort, which
includes Schwab's Signature Services and AdvisorSource programs and
Services for Investment Managers, as well as U.S. Trust's comprehensive
wealth management offering.
-- Developing banking services that leverage and expand on the
capabilities of U.S. Trust, Schwab's recent alliance with E-LOAN, and
Schwab's Retail Enterprise.
-- Advancing the company's advice offering and integrating it across the
company's various enterprises and new acquisitions, including Schwab's
Retail, Retirement Plan Services and Services for Investment Managers
organizations, as well as CyBerCorp.
-- Driving cross-enterprise service quality initiatives.
The new position takes advantage of Ms. Deily's broad exposure to Schwab's business and client segments, both institutional and retail, and her extensive banking experience. Under Deily's leadership, Schwab expanded its retail account base nearly 40% and saw a growth in retail assets of over $250 billion since June 1998. Before leading the Retail Enterprise, Ms. Deily led Schwab's Services for Investment Managers unit, and prior to that was Chairman, President and Chief Executive Officer of First Interstate Bank of Texas.
"We chose Linnet to join me in the Office of the President in recognition of her tremendous accomplishments leading Schwab's retail and institutional businesses," said Mr. Pottruck. "Linnet has a unique breadth and depth of experience, and the skill to lead collaborative efforts among our enterprises. Our corporate-wide opportunities are greater than ever and her talent will help assure we maximize our potential."
Assuming Ms. Deily's post as the President of the Retail Enterprise is Steven L. Scheid, Vice Chair, and formerly head of Schwab's Financial Products and Services Enterprise. The Retail Enterprise is Schwab's largest, comprising approximately 50% of Schwab's total client assets. Schwab Retail delivers client services through 368 branches, six national investor call centers, and the nation's leading online brokerage Web site, Schwab.com. A seasoned Schwab executive, Scheid has overseen several key business units including the firm's Mutual Fund Enterprise, which currently houses $312 billion in client assets; the Consumer Products Group, charged with product engineering and management; Schwab's Global Risk Management organization; and operational units including Brokerage Operations and internal Corporate Services. Scheid was Schwab's Chief Financial Officer from 1996 to 1999 and was formerly the Principal Financial Officer for First Interstate Bancorp.
"The changes we are making today are a reflection of the extraordinary opportunities before us, made possible by the exceptional quality of people like Linnet and Steve," said Mr. Pottruck. "We are very lucky to have men and women of this caliber with such deep understanding of our business and sensitivity to our customers' needs. That is what has enabled us to be so nimble and innovative in the past, and it is the key to our continued success in the future."
Other Related Organizational Changes
The Company also announced a number of related organizational changes designed to position Schwab for continued growth.
-- A new executive management structure has been created to streamline
executive decision-making and move decision-making deeper into the
organization and closer to the customer. An Executive Committee that
includes Mr. Schwab, Mr. Pottruck, Ms. Deily, Mr. Scheid and
Mr. Pottruck's other direct reports will focus on strategic
decision-making. This committee will be augmented by a group of
functional committees focusing on key operational issues such as human
resources, marketing, public affairs, and global risk management.
-- Dawn G. Lepore, Vice Chair and Chief Information Officer now also has
responsibility for the newly formed Global Wireless Solutions Group,
which focuses on developing and delivering new wireless services for
Schwab clients.
-- John P. Coghlan, Vice Chair and Enterprise President, Schwab
Institutional, now also oversees Schwab's Mutual Funds Enterprise,
which formerly reported to Mr. Scheid.
-- Christopher V. Dodds, Executive Vice President and Chief Financial
Officer now also oversees Global Risk Management and reports to Mr.
Pottruck. He formerly reported to Mr. Scheid.
-- Corporate Services, which comprises the company's real estate and other
internal administrative services, now reports to Beth G. Sawi,
Executive Vice President and Chief Administration Officer.
About The Charles Schwab Corporation
The Charles Schwab Corporation, one of the nation's leading financial services companies, serves 7.3 million active accounts with $1.003 trillion in client assets. Through its principal operating companies including Charles Schwab & Co., Inc., U.S. Trust and CyBerCorp, Schwab serves its clients through the Internet, 398 branch offices, speech recognition, touch-tone telephone, e-mail and wireless technologies, multilingual and international services including operations in seven regions globally, and direct access to professionals day or night. About 25% of Schwab's customer assets and 10% of its customer accounts are managed by the 6000 third-party, fee-based investment advisors served through its Schwab Institutional Enterprise. Led by its customers, Schwab is creating a new model of full-service investing in which information flows freely, and investors make their own decisions with objective help and advice when they need it. The Charles Schwab, U.S. Trust and CyBerCorp Web sites can be reached at www.schwab.com, www.ustrust.com and www.cybercorp.com, respectively. (0010-8907)
SOURCE Charles Schwab & Co., Inc. |
