8-KLeadership ChangesExhibits & Filings

SCHWAB CHARLES CORP 8-K Report, Executive Changes (Feb 23, 2007)

Filed February 23, 2007For Securities:SCHWSCHW-PDSCHW-PJ

Summary

This Form 8-K filing from The Charles Schwab Corporation (CSC) on February 23, 2007, primarily announces a significant leadership change: the appointment of Walter W. Bettinger II as President and Chief Operating Officer, effective February 20, 2007. Mr. Bettinger, a long-tenured executive with extensive experience across various Schwab divisions, steps into this elevated role, signaling a continued focus on internal talent development and operational leadership. The filing also details the compensation package approved for Mr. Bettinger, which includes a substantial base salary, a high target bonus percentage, a one-time cash payment, and significant long-term equity awards (stock options and restricted shares). Additionally, the Compensation Committee of the Board of Directors approved the performance criteria for the 2007 Corporate Executive Bonus Plan, focusing on revenue growth, pre-tax profit margins, and net income for specific units. These disclosures provide insight into executive incentives and the company's performance metrics for the upcoming year.

Key Highlights

  • 1Walter W. Bettinger II appointed President and Chief Operating Officer of The Charles Schwab Corporation (CSC) on February 20, 2007.
  • 2Mr. Bettinger has a long history with Schwab, having joined in 1995 and held various senior executive roles.
  • 3New compensation for Mr. Bettinger includes an annual base salary of $700,000.
  • 4Target annual cash incentive bonus of 250% of base salary under the Corporate Executive Bonus Plan (CEBP).
  • 5Special one-time cash payment of $1,400,000 and a significant long-term equity award (1,000,000 stock options, 250,000 restricted shares).
  • 6Stock options vest over four years with a seven-year term, and restricted shares vest over three to four years.
  • 7Performance criteria for the 2007 Corporate Executive Bonus Plan were approved, focusing on revenue growth and profit margins.

Frequently Asked Questions

Walter W. Bettinger II has been appointed as the President and Chief Operating Officer of The Charles Schwab Corporation, effective February 20, 2007.

Mr. Bettinger's compensation includes an annual base salary of $700,000, a target bonus of 250% of his base salary, a special one-time cash payment of $1,400,000, and long-term equity awards consisting of 1,000,000 stock options and 250,000 restricted shares.

The stock options vest 25% annually over four years, and the restricted shares vest 25% on the second and third anniversaries of the grant date, and 50% on the fourth anniversary.

The approved performance criteria for the 2007 Corporate Executive Bonus Plan include revenue growth, pre-tax profit margins, and, for U.S. Trust Corporation, net income.