Charles Schwab Prepares for New CFO

Charles Schwab hires Citi veteran Mike Verdeschi as deputy CFO, set to take over when current CFO retires. Strong financial results expected.

Discount broker Charles Schwab has made a strategic move by hiring Mike Verdeschi, a seasoned veteran with 33 years at Citi, as managing director and deputy CFO. Verdeschi's impressive track record as Citi's treasurer, overseeing a $2 trillion balance sheet and implementing effective governance measures, positions him as a strong candidate to succeed Peter Crawford as CFO when he retires after 23 years at Schwab.

Verdeschi's role will encompass a wide range of responsibilities, including treasury and control functions, financial planning and analysis, investor relations, corporate development and strategy, vendor management, and corporate real estate. Schwab's co-chairman and CEO, Walt Bettinger, praised Verdeschi's appointment, highlighting his experience and leadership qualities that will contribute to the firm's growth and success.

This strategic move comes at a pivotal time for Schwab, as it nears the completion of its $26 billion acquisition of TD Ameritrade. The successful transition of approximately 1.8 million Ameritrade accounts to Schwab, totaling $350 billion in assets, marks a significant milestone for the firm.

Despite facing some challenges, such as a -7.35% growth rate and a 0.26% return on assets in the first quarter, Schwab has continued to outperform expectations. With a 3.85% return on equity and a strong net margin of 26.39%, Schwab remains well-positioned for future growth. Analysts like Kenneth Worthington from J.P. Morgan are optimistic about Schwab's prospects, predicting further cost synergies from the Ameritrade acquisition and sustained growth in the coming years.

Overall, Verdeschi's appointment signals Schwab's commitment to strengthening its financial management and strategic capabilities, setting the stage for continued success and growth in the competitive investment services industry.