8-KLeadership Changes

SCHWAB CHARLES CORP 8-K Report, Executive Changes (Apr 10, 2007)

Filed April 10, 2007For Securities:SCHWSCHW-PDSCHW-PJ

Summary

This 8-K filing from The Charles Schwab Corporation reports on a significant leadership change within its U.S. Trust Corporation subsidiary. Peter K. Scaturro has stepped down from his role as Chief Executive Officer of U.S. Trust and is no longer a member of The Charles Schwab Corporation's Management Committee. This departure is linked to the pending sale of U.S. Trust to Bank of America, which is anticipated to close in early Q3 2007. Investors should note that while Mr. Scaturro has vacated his executive officer positions, he is expected to continue with the company in a non-executive capacity until the U.S. Trust sale is finalized. This announcement clarifies the leadership structure during a period of transition for a major business segment, providing transparency to stakeholders.

Key Highlights

  • 1Peter K. Scaturro has resigned as CEO of U.S. Trust Corporation.
  • 2Mr. Scaturro has also stepped down from The Charles Schwab Corporation's Management Committee.
  • 3The departure coincides with the expected closing of the U.S. Trust sale to Bank of America.
  • 4The sale of U.S. Trust is projected to close early in the third quarter of 2007.
  • 5Mr. Scaturro will remain employed in a non-executive capacity until the U.S. Trust transaction is completed.

Frequently Asked Questions

Peter Scaturro is stepping down as CEO of U.S. Trust as part of the planned sale of U.S. Trust Corporation to Bank of America. His role change is a consequence of this strategic divestiture.

No, Mr. Scaturro is expected to remain employed with The Charles Schwab Corporation in a non-executive officer capacity until the sale of U.S. Trust Corporation to Bank of America is finalized.

The sale of U.S. Trust Corporation to Bank of America is expected to close early in the third quarter of 2007.

Mr. Scaturro's departure from the Management Committee indicates a reduction in his direct strategic influence over The Charles Schwab Corporation's overall operations, reflecting his shifting role and the divestiture of U.S. Trust.