A former portfolio manager and fundster is poised to take over a brokerage giant next year. As a big retail discount brokerage and RIA custodian, the publicly traded firm is a key distribution platform for fundsters, and the firm also has a $1.2-trillion-AM (as of March 31) asset management arm formerly led by the ascending chief.

Richard A. "Rick" Wurster The Charles Schwab Corporation President, CEO-Elect

Yesterday, Chuck Schwab, founder of the Charles Schwab Corporation, confirmed that current president Rick Wurster will succeed the Westlake, Texas-based firm's longtime CEO Walt Bettinger on January 1. Bettinger will stay on as executive co-chairman, alongside Schwab himself.

Wurster's ascension will come about three years after he rose to president of the Charles Schwab Corporation, after leading Schwab Asset Management as a managing director. And before joining Schwab eight years ago, he served as a PM at Wellington Management, powering Wellington-subadvised mutual funds for firms like Hartford and SunAmerica.

"Rick Wurster and I have together on a daily basis for more than eight years. I have complete confidence in his leadership, and I am thrilled that the Schwab Board of Directors has selected him as my successor," Bettinger states. "In addition to being incredibly bright, Rick possesses a balance of intellectual honesty and curiosity, combined with high personal integrity and character. In my ongoing role as Executive Co-Chairman of the Board of Directors, I will support Rick, just as Chuck Schwab has supported me during my tenure as CEO."

Chuck Schwab calls Wurster "ideally prepared to assume the duties as our next CEO."

"He possesses all the attributes to be a successful CEO, and he has the full confidence and support of myself and the Board," Chuck Schwab states.

Wurster, for his part, praises Bettinger for leading the firm "with humility, exceptional character, and a servant mindset."

"I am fortunate to continue to work with Walt in my new role and am humbled by the confidence that Walt, Chuck, the Schwab Board of Directors, and our dedicated employees have placed in me," Wurster states. "My belief in our long-term 'Through Clients' Eyes' strategy will continue to guide Schwab in the coming years."

Bettinger, who has led Schwab as CEO for 16 years, puts the handoff in the context of him turning 65 next year.

"The time is right for me to transition from day-to-day duties and focus on my role as Executive Co-Chairman of the Schwab Board of Directors," Bettinger states. "Serving the clients, employees and stockholders of Schwab as CEO for the past 16 years has been the honor and privilege of my more than 40-year business career."

Chuck Schwab says that "Walt's successful tenure as CEO saw the most significant growth in the company's history in terms of clients, assets, revenue, profits, and market capitalization." The Schwab team notes that, in the 16 years since Bettinger took over as CEO, the company's market capitalization has grown by 660 percent to $119 billion, total client assets at the firm are 8.5 times higher ($9.74 trillion now), and its banking, brokerage, and workplace participant account total (that includes Schwab's recordkeeping business) is 4.6 times higher (now 43.2 million).

"He has earned the right to determine the timing of his retirement as CEO, and I am delighted that he will continue to serve as Executive Co-Chairman of the Board of Directors with me," Chuck Schwab states.

Wurster joined Schwab in 2016, after a decade with Wellington. Earlier, he served as an associate principal at McKinsey. He is an alumnus of Dartmouth's Tuck School of Business and of Villanova University.

Bettinger joined Schwab in 1995 thanks to the company's acquisition of the Hampton Company, an Ohio retirement plan provider he led as president and CEO. Over the next 13 years, he rose through Schwab's leadership ranks, serving as COO of Schwab Retirement Plan Services, president of RPS, president of the corporate services, to head of retail, and president and COO of the Charles Schwab Corporation, before becoming CEO in 2008. Before that, he founded Hampton in 1983 after working for Westfield Insurance. He is an alumnus of Ohio University. 

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