Schwab Retail Chief Kallsen Leaves in Restructuring
Charles Schwab & Co. confirmed Wednesday that Terri Kallsen, who has run the brokerage giant’s direct-to-investor retail brokerage business since 2014, is leaving the firm this week as part of a reorganization.
Andy Gill, Schwab’s chief marketing officer and one of Kallsen’s predecessors in running the investor services division that operates through more than 300 branches and call centers, also is departing, according to company spokesman Glen Mathison.
Jonathan Craig, a senior executive vice president who was their boss, will assume direct leadership of both their areas in addition to other responsibilities, the spokesman said. Craig joined Schwab 18 years ago, and made his mark at the investor-savvy firm as its first chief marketing officer.
Kallsen, who earned $3.28 million last year, joined Schwab in 2012 from First Command Financial Services, and previously was senior vice president of wealth management at USAA Investment Management Company, both of which are Texas-based. The Wall Street Journal reported last week that Schwab is negotiating a possible $2 billion acquisition of USAA, which has $100 billion of assets.
Schwab ended this year’s second quarter with $3.70 trillion of customer assets, 53% of which were held in Kallsen’s investors services division and the rest in Schwab’s advisor services division for independent registered investment advisers. Assets in Kallsen’s business as of June 30 declined 39% from the end of this year’s first quarter but were up 31% from the end of the 2018 second quarter.
Mathison declined to comment on the reasons for the reorganization, or on the departures.
The restructuring at San Francisco-based Schwab, which last week reported an 8% annual jump in second-quarter profit to $937 million, was reported earlier by “Business Insider.”