CEO Watch Charles Schwab Names New C.E.O.
Bettinger, 47, will take over the San Francisco-based brokerage from founder Charles Schwab, who increased the company's value 158 percent since coming out of retirement and returning to the C.E.O. post in 2004.
Analysts have lauded Schwab for steering clear of the economic turmoil – and heavy losses – that have plagued its competitors.
"Our steady growth and financial strength are testaments to his skills," said Schwab, referring to Bettinger, according to MarketWatch.
Added Bettinger, in a written statement: "Chuck and I have worked closely over the years preparing for this transition, and we will continue to work closely together in our respective roles."
Over the past year, Schwab shares have spiked 14 percent as the credit crunch has plagued rivals like E*Trade Financial Corp. and Lehman Brothers Holdings Inc., who have seen their stock plummet by 82 percent and 70 percent respectively during the same time period, according to Bloomberg News.
"Charles Schwab is a guy who came back to the company when it was foundering after the Internet bubble burst and really led it to a new business model and has been knocking the cover off the ball," Adam Honore, an analyst at Aite Group LLC, told Bloomberg. "If Bettinger doesn't have a shake-things-up philosophy, the path is pretty well set for them."
Last week, Schwab reported that second-quarter profits grew by 1 percent, and yesterday the company announced that it increased its quarterly dividend by 20 percent, to 6 cents a share.
Bettinger, who has been a standout at Schwab for years, joined the company in 1995 when Schwab purchased The Hampton Co., a retirement services company Bettinger founded when he was 22.
