San Francisco — After announcing a 10 percent drop in earnings for the second quarter, discount brokerage Charles Schwab said that chief executive David S. Pottruck would be stepping aside in favor of company founder and chairman Charles R. Schwab.
Pottruck, who had served as co-CEO with Schwab from 1998 to 2003, was not due to step down until 2006. “The last few years have been difficult in the securities markets,” he said in a statement, “and I accept the board’s decision that it’s time for me to step aside.”
The discount brokerage has experienced rough times, cutting more than 10,000 jobs over the past four years. Chief financial officer Christopher Dodd told analysts that the company would look for ways to reduce expenses by $150 million to $250 million a year, suggesting the possibility of more cuts.
The company reported second quarter income of $113 million, down from the previous quarter’s $161 million.
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