Charles Robert Schwab (born July 29, 1937) is an American investor, finance executive, and philanthropist. He is the founder and chairman of Charles Schwab Corporation. He pioneered the sale of discounts from equity securities beginning in 1975. His company became the largest discounted goods dealer in the United States. He retired as CEO in 2008, but remains the largest chairman and shareholder.
In February 2017, his net worth was estimated by Forbes to $ 8.2 billion, making him the 76th richest person in Forbes 400.
Video Charles R. Schwab
Early life and education
Schwab was born in Sacramento, California, son of Terrie and Lloyd Schwab. He attended Santa Barbara High School in Santa Barbara, California, and became captain of the golf team. He attended the pre-college school at Holy Rosary Academy in Woodland, California. Schwab graduated from Stanford University in 1959 with a B.A. in the economy. In 1961, he graduated from Stanford Graduate School of Business with an MBA. Schwab is a knight of the brotherhood of Sigma Nu.
Maps Charles R. Schwab
Investment career
In 1963, Charles R. Schwab and three other partners launched the Investment Indicator , an investment bulletin. At its peak, the bulletin had 3,000 subscribers, each paying $ 84 per year to subscribe. In April 1971, the California company was First Commander Corporation, a wholly owned subsidiary of Commander Industries, Inc., to offer traditional brokerage services and publish Schwab's investment bulletin. In November of that year, Schwab and four others purchased all shares of Commander Industries, Inc. In 1972, Schwab bought all the shares from what was once Commander Industries.
Charles O'Hwab & amp; Co.
In 1973, First Commander changed his name to Charles Schwab & amp; Co., Inc. . The decisive turning point came in 1975, when the federal Securities and Exchange Commission deregulated the securities industry, freeing companies to charge whatever they wanted. Schwab has long complained that established companies show little concern for their customers' needs: at that time the securities are not bought by consumers, they are sold by salesmen, who make higher commissions and profits by selling risky securities regardless of the possibility of harm to consumers. Schwab devised a very different set of policies. First, the cost to consumers is cut in half. Second, salesmen (and still today) pay hourly salaries, rather than commissions on total sales price. Third, Schwab refuses to give any advice to customers. It also sets up a toll-free number to receive orders nationwide and then sets up a 24/7 phone system that will allow customers to order from anywhere, anytime. Well-established companies are very angry by these innovations, and try to block Schwab's expansion.
Bank expansion
In September 1975, Schwab opened its first branch in Sacramento, California. It's expanded across the state and cuts its spending with a very heavy emphasis on automation. In 1981, Bank of America offered Schwab $ 53 million in shares for 37 percent ownership. He sells, but remains as president of a semi-autonomous unit. At this point the unit has annual sales of $ 41 million, 600 employees, and 220,000 subscribers through 40 branches. The expansion was rapid, reaching 1.6 million subscribers in 1986, with sales of $ 308 million. Bank of America, however, has its own severe problems apart, and its inventory falls. The SEC investigated Charles Schwab about the possibility of him selling shares to take advantage of inside information; he denied it, and no allegations were filed. Tensions between Schwab and Bank of America units increased until 1987, when the deal was cut for Schwab to buy back a $ 230 million brokerage firm. Schwab took over the company openly. In 1988, however, the company was forced to lend 2 million dollars to customers whose funds had been used illegally.
In 1977, Schwab began offering seminars to clients. In 1978, the company had 45,000 client accounts, and the number became 84,000 in 1979. In 1980, Schwab established the industry's first 24 hour supply service, and the total client account grew to 147,000. In 1981 Schwab became a member of the NYSE, and the total client account grew to 222,000. In 1982, Schwab became the first firm to offer acceptance of orders and 24/7 offerings. It opened its first international office in Hong Kong, and the number of client accounts totaled 374,000. In 1995, the company was the largest discount broker, with revenues of $ 1.4 billion and $ 200 billion in total managed assets. In 1996 there were 3.6 million active accounts.
David S. Pottruck, who spent the majority of 20 years on the broker as Schwab's right-hand man, shared his CEO title with Schwab from 1998 to 2003. In May 2003, Schwab resigned, and gave Pottruck a sole control as CEO. A year later, on July 24, 2004, the company board fired Pottruck, replacing him with Schwab. News of Pottruck's removal came as the company announced that its overall profit had fallen by 10 percent, to $ 113 million, for the second quarter, driven by a 26 percent drop in revenue from trading in customer stocks. Once again in control, Schwab acknowledged that the company had "lost contact with our legacy", and quickly refocused the business on providing financial advice to individual investors. He also rolled the rising cost of Pottruck. The company rebounded, and revenues began to reverse in 2005, just like shares.
Schwab always emphasizes advanced technology, and pioneered computerization to replace documents. The emergence of the World Wide Web in the mid-1990s posed a new threat to new companies trying to exploit their software. Schwab responded in 1996 by becoming the first major financial services company to sell stocks listed and sold freely, as well as mutual funds and bonds. Startups charge $ 36 per transaction, and Schwab charges $ 39 per Internet trade, compared to $ 160 charged by traditional brokers using old technology. In 1984, the company was innovating with the Mutual Fund Market, which gave customers 140 unlimited options. It was expanded to 500 free-of-charge funds in 1992. In 2000 Schwab introduced mobile/wireless trading with its PocketBroker mobile app that works on RIM (BlackBerry), Palm, Windows CE, and WAP-enabled phones, with deployments in the United States , UK, and Hong Kong. Schwab also introduced Schwab Bank (Charles Schwab Bank, National Association), a leading federal retail bank headquartered in Reno, Nevada. Applications for Banks were approved in February 2003 by the Office of Financial Currency Supervisory ("OCC").
Investment philosophy
In 2014, Schwab denounced the increase from 50,000 to 300,000 per second in the amount of trade demand from 2007 to 2013. He warned that this high-speed trade is a "growing cancer" that threatens to destroy justice in the market. "He wants this practice to be taxed or made illegal.
Personal life
Schwab has been married twice. She has three children from her first marriage to Susan Schwab: Charles Jr. (known as "Sandy"), Carrie, and Virginia. Chuck and Susan Schwab then divorced. Schwab remarried, with Helen O'Neill, with whom he had two children: Michael and Helen. Her daughter Carrie is married to writer Gary Pomerantz She is president of the Charles Foundation and Helen Schwab and also serves as a board member on President Obama's Advisory Board on Financial Capabilities. His son Sandy, who played quarterback at Northwestern University, is also the father of four children: Haley, Samantha, Sydney, and Charlie.
Schwab also serves as chair of the supervisory board for the San Francisco Museum of Modern Art.
As a practicing Roman Catholic, he and his wife Helen currently live in Woodside, California, and are involved in philanthropy. He is a diligent golfer with 7.4 handicap, and has membership in the San Francisco Golf Club and Cypress Point Club. Schwab suffered from dyslexia, but did not realize it until the age of 40, when he learned that his son also suffered from dyslexia. The Charles and Helen Schwab Foundation aims to help children with this disorder.
Political and economic views
Schwab is an active Republican who has contributed heavily to the Party (including the National Republican Senatorial Committee and National Congressional Committees) and, through the RNC, pays Donald Trump's legal bills related to Russian collusion investigations.
Wealth and philanthropy
Schwab per February 2017 is worth $ 8.2 billion according to Forbes . The Charles and Helen Schwab Foundation was formed in 1987. In 2013, they reported assets of $ 270 million and generated $ 13 million in grants. He serves as its chairman; his wife is president.
References
Further reading
- Cronin, Mary J. Banking and Finance on the Internet (John Wiley & Sons, 1998). online
- Ingham, John N., and Lynne B. Feldman. Contemporary American business leader: biographical dictionary (Greenwood, 1990). pp 566-71.
- Kador, John. Charles Schwab: How one company beat Wall Street and reinvented the brokerage industry (John Wiley & Sons, 2002). quote.
- Silver, A. David. Entrepreneurial Megabucks: The 100 Biggest Entrepreneurs in the Last 25 Years (1985).
- Willis, Rod. "Charles Schwab: Horatio High-Tech Alger?" Management Review (September 1986) 75 # 9 pp 17-20
External links
- Charles Schwab - an official biography, Charles Schwab Corp.
- Charles and Helen Schwab Foundation
Source of the article : Wikipedia
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