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Charles Schwab transformed the brokerage industry by introducing discount stock trading during the 1970s financial deregulation.
As CEO and founder of Charles Schwab from 1971 to 1998, he built his company through technology adoption, offering 24-hour trading and quotes.
Though the firm paid a $200,000 fine in 1997 for trading violations, Schwab grew it from a newsletter into a financial giant.
His business insight showed in 1983 when he sold to Bank of America for $55 million, then bought it back three years later for $280 million!
In 1998, Charles Schwab shared his CEO position with David Pottruck, his deputy of 20 years.
Schwab stepped down in 2003, making Pottruck sole CEO.
The company launched web trading in 1996 and bought the U.S. Trust for $2.73 billion in 2000.
This acquisition proved problematic when U.S. Trust received a $10 million fine for violating bank secrecy laws in 2001.
Despite this setback, the Schwab-Pottruck partnership led the company's expansion into online investing.
David Pottruck served as Charles Schwab Corporation's CEO from 2003 to 2004.
After co-leading with founder Charles Schwab for five years, Pottruck's solo leadership damaged the company.
He raised fees and lost individual investors' trust.
Profits fell 10% to $113 million in Q2 2004, with customer trading revenue dropping 26%.
The board removed Pottruck and reinstated Charles Schwab as CEO.
In 2004, Charles Schwab returned as CEO after David Pottruck's dismissal.
He reversed Pottruck's fee increases and refocused the company on individual investors.
The company's earnings recovered in 2005, with stock prices rising 151% post-Pottruck.
In 2007, Schwab faced criticism when the YieldPlus fund lost $1.1 billion, posting a -31.7% return during the financial crisis.
Walter Bettinger became Charles Schwab CEO in 2008, after serving as COO.
He led the company through the 2008 financial crisis and modernized its services.
Key actions included acquiring USAA's investment accounts for $1.8 billion and launching fractional shares in 2020.
In 2022, the SEC fined Schwab $187 million for concealing robo-advisor fees and fund allocations.
Bettinger's leadership has grown the company's market position in financial services.
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