according to this bloomberg piece, the blurb at the bottom says earnings will be out august 19.
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E*Trade Hires Waterhouse President to Run Brokerage
Bloomberg News
July 26, 1999, 1:44 p.m. PT
Menlo Park, California, July 26 (Bloomberg) -- E*Trade Group
Inc., the second-biggest Internet brokerage, hired Frank J.
Petrilli, the president and chief operating officer of No. 3 TD
Waterhouse Group Inc., to run its brokerage business.
Petrilli, 48, had been chief executive of Waterhouse
Investor Services, the U.S. brokerage unit of Toronto-Dominion
Bank. When the firm reorganized as TD Waterhouse Group Inc. in
preparation for a June share sale, it named Stephen McDonald, a
16-year veteran of the parent company, as CEO.
''Frank was disappointed he didn't get the CEO spot,'' said
Bill Burnham, an analyst with Credit Suisse First Boston.
''E*Trade was pretty opportunistic: they saw the opportunity to
recruit someone from a major competitor and they jumped at it.''
Petrilli told McDonald, who is also vice chairman of Toronto-
Dominion, about his decision to resign late Friday. The change in
position wasn't the main factor, Petrilli said.
''I want to be 6-foot-6 and handsome, but I'm not,''
Petrilli said. ''I think I would have considered this job no
matter what position I held at Waterhouse.''
The move comes as online brokers shift from an environment
of rapid trading volume growth, peaking at 47 percent in the
first quarter, to building manpower and computers for longer-term
battles with traditional brokerages like Merrill Lynch & Co.
Falling Stocks
E*Trade shares fell 1 3/4 to 30 1/4, its lowest closing
price since March 31. Still, the stock is up 159 percent this
year and 346 percent in the last 12 months.
TD Waterhouse fell 2 13/16, or 13 percent, to 18 1/4. That's
down 24 percent from a month ago, when the firm sold 42 million
shares at $24 apiece. Its New York Stock Exchange opening was
delayed today because of an order imbalance.
TD Waterhouse said retired executive Keith Gray, 64, will
assume Petrilli's role as chief operating officer temporarily,
while the firm begins a search for a new COO. McDonald said
candidates inside and outside the firm will be considered.
Petrilli succeeds Kathy Levinson as president of E*Trade
Securities Inc., the brokerage arm of the company. Levinson
remains president and chief operating officer of the Menlo Park,
California-based parent company, posts she gained in January. She
joined E*Trade in 1996 from Charles Schwab Corp.
Petrilli, will be responsible for retail brokerage and and
clearing operations, as well as expanding its mutual fund and
financial advisor businesses, Levinson said. Just as he helped
manage acquisitions at Waterhouse, Petrilli also will oversee the
firm's move into institutional brokerage through its $122 million
purchase of TIR Holdings Ltd., and other potential acquisitions.
E*Trade started its first mutual fund in February and
attracted $30 million in assets through June. Three other house
brand funds are awaiting Securities and Exchange Commission
approval.
Speedier Products
''We want to get that business moving faster, to launch
products more quickly,''Levinson said. ''We've actively been
looking to getting people with asset management and clearing
experience, and Waterhouse is also known for its outstanding
customer service.''
Petrilli recently met with E*Trade chief executive, Christos
Cotsakos, about possible corporate joint ventures, and ''when I
left we had a handshake deal,'' Petrilli said. ''It reallyw as
not that difficult a decision if you look at who the leader is.''
Petrilli joined TD Waterhouse in 1995 after seven years at
American Express Co., including service as president of its
Centurion Bank subsidiary.
''There's really limited direct retail brokerage experience
out there, and if you can get a guy who ran a billion-dollar
company you should grab him,'' said Scott Appleby, an analyst
with BancBoston Robertson Stephens. ''With the way E*Trade is
growing, they need to really deepen their bench.''
Petrilli received $1.3 million in salary and bonus in 1998,
as well as $205,220 in restricted stock. He also received options
from TD Waterhouse with a present value of $502,211 at the IPO,
according to company filings. His salary will be ''comparable''
with those of other E*Trade executives, said Levinson. ''The
opportunity is equity.''
Petrilli declined to say whether he will attempt to recruit
co-workers from Waterhouse. He didn't sign a severance settlement
with the firm, he said.
'Good Catch'
''It's a good catch for them,'' said Steve Franco, analyst
with U.S. Bancorp Piper Jaffray. ''It gives them a relatively
seasoned brokerage executive which they pretty much have been
lacking ever since they were founded.''
Online brokerage stocks have declined in the past 10 days
because some second-quarter earnings reports showed that trading
growth had slowed to as little as 15 percent in the second
quarter compared with 47 percent in the first, McDonald said.
Also declining was Ameritrade Holding Corp., down 2 11/16 to
26 1/4, its lowest close since April 1. Knight/Trimark Group
Inc., which gets half of its trading volume from companies like
E*Trade, Ameritrade and TD Waterhouse, fell 4 17/32, or 9.3
percent, to 44 3/16.
Petrilli will relocate to California within three to six
months, he said.
Toronto-Dominion owns 89 percent of TD Waterhouse, which
reports quarterly earnings Aug. 19. |
