Tuesday, December 24, 2024

Schwab CEO Bettinger to Step Down as Firm Revamps Banking Unit

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(Bloomberg) — Charles Schwab Corp. Chief Executive Officer Walt Bettinger will step down at the end of this year, handing the role to President Rick Wurster amid a series of management changes and a revamp of the bank unit. 

Bettinger, who turns 65 next year and has led Schwab since 2008, will make the move on Jan. 1, the company said in a statement. The firm also replaced its chief financial officer, a previously announced decision that took effect Tuesday.

“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,” Bettinger said in the statement, adding that he had “complete confidence” in Wurster’s leadership. 

Schwab told investors in July that it’s considering ways to rely less heavily on its own balance sheet after being swept up in last year’s regional banking turmoil, which saw the company’s paper losses mount as its bond investments plummeted. It’s also prioritizing paying down costlier debts, after describing last year as one of its most challenging in decades.

Read More: Charles Schwab Sinks After Vowing to Shrink Bank Over Time

Bettinger will continue to serve on Schwab’s board of directors as executive co-chairman. The firm’s namesake, Charles “Chuck” Schwab, is the other co-chairman. He founded the firm in 1971.

Outgoing CFO Peter Crawford is assisting his replacement, Mike Verdeschi, during a transition period. In addition to its internal challenges, Schwab is grappling with an increasingly competitive retail brokerage industry that features existing rivals such as Interactive Brokers Group Inc. and newer upstarts, including Robinhood Markets Inc.

In May, Schwab announced that Bernie Clark, the head of Schwab Advisor Services, was stepping down, to be replaced by Jon Beatty, then the COO for the unit. In addition, Tom Bradley, who joined Schwab shortly after the acquisition of TD Ameritrade in 2020, was named chief client officer.

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