As part of Charles Schwab’s $26 billion purchase of rival TD Ameritrade, the combined firm plans to move its headquarters to Texas from California, as it looks for ways to cut costs in light of its move to embrace zero commissions and gobble up a sizable competitor.
Schwab, which has large offices in both Austin and Dallas-Fort Worth, says that its new campus in Westlake, Texas — near DFW — is the preferred site of its new headquarters. “Both [Schwab and TD Ameritrade] have a sizable presence in the Dallas-Fort Worth area,” the firm explained in a press release last week.
“Huge news: Charles Schwab is moving its headquarters to Texas. The Dallas-Fort Worth area in particular is becoming a financial sector behemoth. Texas, in particular, is a jobs juggernaut,” said Texas Governor Greg Abbott on Twitter.
If approved by regulators, “Schwabitrade” integration could take 18 to 36 months. COO Joe Martinetto is set to oversee this process.
Schwab was founded in San Francisco in 1971 by Charles Schwab. Joe Ricketts and three partners opened First Omaha Securities — the predecessor firm of TD Ameitrade — in Omaha, Nebraska, in 1975.
The new entity is likely to keep many current roles in the Bay Area. “A small percentage of roles may move from San Francisco to Westlake over time, either through relocation or attrition,” according to Schwab. “The vast majority of San Francisco-based roles, however, are not anticipated to be impacted by this decision.”
Unlike California, Texas does not have a corporate or individual income tax. The state does impose property taxes and gross-receipts taxes.