What's a discount brokerage to do when the competition continues to advance from both sides?
, now again at the helm of his company, is considering a variety of ways to answer that question and bring Schwab back to the top, reports the New York Times
At the top of his list is reestablishing the firm's message and value to customers: "Schwab in early 2004 got disconnected from our value proposition … People tend to come to you for price and stay for service," Schwab told the Times
. "Since I returned to my position, the company has made a vow to offer better value to customers," said Schwab.
Schwab will stay on at the firm until at least January 2007 to turn the firm around, reports the Times
. He assumed his role after Schwab's board fired David Pottruck
in July of 2004.
While the firm has recently been playing catch-up with Fidelity and other brokerages in cutting trading commissions, Schwab is fine with his firm's higher fees because customers get the message that the firm is back on track with its customers, said Schwab.
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