Charles Schwab names ex-Citi exec as next CFO after exit of three top managers

By Steve Gelsi

Upper-echelon leader steps down after four-year effort to complete Ameritrade integration

Charles Schwab Corp.'s longtime chief financial officer said Thursday he plans to retire as part of a trio of senior departures after wrapping up a four-year integration of TD Ameritrade.

Peter Crawford, whose 22 years at Schwab (SCHW) included seven years as CFO, will be replaced after a transition period by Mike Verdeschi, who departed Citigroup Inc. (C) late last year after 33 years at the bank, including about seven years as treasurer. Verdeschi will start work at Schwab on May 20.

In other big changes, Joe Martinetto will become executive chairperson of Schwab Banks after working as chief operating officer at the firm and leading what the firm describes as the "largest integration in the history of the investment brokerage industry." The company has no immediate plan to name another chief operating officer.

In a third major people move at Schwab, Bernie Clark will become an advisor after working at the firm for 25 years, most recently as head of advisor services. Jon Beatty, who is currently chief operating officer of advisors services, will become head of advisor services and join Schwab's executive council.

Schwab co-chairman and Chief Executive Walt Bettinger said Crawford, Martinetto and Clark have been among his closest colleagues.

"I've been blessed with the opportunity to serve with many exceptionally talented, dedicated people of high character and integrity," Bettinger said. "Without a doubt, Peter Crawford, Joe Martinetto, and Bernie Clark are three of those people."

Schwab president Rick Wurster could be a potential successor to Bettinger, who has been in the job since 2008, according to a source.

The firm has not commented on succession beyond a statement that its board has backup plans in place for all key executives at the company.

Schwab paid about $26 billion for TD Ameritrade in a deal that closed in 2020 after it was initially announced in 2019.

Schwab has 34.8 million customers in brokerage accounts and 5.2 million workplace-plan accounts, with $8.5 trillion in client assets. TD Ameritrade's business amounted to about $1.85 trillion in total assets under management.

Earlier this week, Schwab said it completed its last group of TD Ameritrade customers to its platform with 1.8 million clients with roughly $350 billion in assets. The group was the final 10% of Ameritrade's client population.

Schwab said the move was smooth, but some TD Ameritrade customers complained on social media and to MarketWatch about the switch.

For its part, ex-Citi executive Verdeschi is part of a large number of senior employees that have left that bank amid its restructuring efforts.

Among the fresh departures at the bank, Titi Cole, who carried out Citi's latest restructuring plan as head of legacy franchises, is leaving Citi after a 30-year career in financial services and will work for a non-profit focused on women and healthcare, according to an internal memo seen by MarketWatch.

"She executed our mandate to simplify the firm with excellence and empathy," Citi Chief Executive Jane Fraser said in the memo.

Mike Whitaker, who led Citi's operations and technology team for the past six years, plans to leave the bank to pursue other opportunities.

Also read: Charles Schwab website 'is a mess': Hundreds of TD Ameritrade users complain about their new online home.

-Steve Gelsi

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05-16-24 0907ET

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