Chuck Schwab Plans to Stay

Schwab was optimistic about his company’s present and future, though he admitted that the firm had priced its services “higher than it should have,” especially coming out of the bull market. He said the company was well “on a path” to reducing overall corporate costs by 20% as part of its plan to increase its margins and market share. Schwab has about $1 trillion in assets, he said, or a 6% market share of the $17 trillion of investable assets held by U.S. households; he wants to get that share to 8% or 9%. Responding to some speculation that Schwab might sell its U.S. Trust unit, he said the company has no intention of selling the company.

As for advisors, Schwab noted that a reorganization that left Schwab Services for Investment Managers’ president Deborah McWhinney reporting directly to him reflected the importance of the advisor channel to Schwab’s fortunes–”Deb has done a great job,” he said–but also was part of his move to “flatten” the management structure of the company.