Charles Schwab 2006 Annual Report Download - page 21

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T HE C H A R LE S S C H WAB C O RPO R ATI O N 200 6
L ET T E R F RO M T H E C H I E F EXE C U T I VE O F F I C ER
funds between banking and brokerage, or
check their account balances on a single web
page. Continued online improvements will help
schwab.com become the ultimate integrator,
bringing together all that Schwab has to offer.
WE’RE POISED FOR CONTINUED GROWTH.
We began this year with some important
changes. I was very pleased to announce Walt
Bettinger’s appointment as President and
Chief Operating Officer of The Charles Schwab
Corporation. Walt and I have worked closely
together at Schwab for more than 10 years.
He shares a deep passion for helping our
clients achieve their goals and a track record
of success, beginning with his early years as
an entrepreneur building the business that
is now Schwab Corporate & Retirement Ser-
vices. Most recently, in his leadership roles
within Schwab Investor Services, Walt led
his team to tremendous improvements in the
client experience and financial performance.
While I am pleased to welcome Walt to his
new role, I would also like to acknowledge
the 20-year career of our Chief Financial
Officer Chris Dodds, who has decided to retire
after the Annual Meeting this May. Chris has
played a pivotal role helping to steer Schwab,
and in particular helping me turn the company
around and put it on its renewed trajectory of
growth and profitability during the last three
years. One of Chris’s great strengths has been
building a team of executives around him, and
we’re confident of a smooth transition for Joe
Martinetto, a nine-year veteran at Schwab and
a strong executive who will be assuming the
CFO role.
In last year’s letter, I closed with the thought
“the best is yet to come.” Even after the
records we set in 2006, I still believe that’s true.
When we put our clients’ needs first and help
them succeed, then our growth will follow.
We have right-sized the company and restored
our growth. We plan to use the proceeds
from the sale of U.S. Trust to reinvest in our
more focused company. In 2007, we plan to
deliver double-digit revenue growth, coupled
with strong financial discipline that will help
us continue to improve net income and earn-
ings per share.
We have reconnected with our clients. When
we put clients first, we not only help them build
their financial future, but we also build their
trust in Schwab. In 2006, we averaged more
than $7 billion in net new assets every month
in Schwab Investor Services and Schwab Insti-
tutional. In 2007, we plan to attract more than
$10 billion per month in net new assets across
the entire firm.
We have broadened our reach to more of
America. Of the more than 112 million U.S.
households, about three million currently
do business with Schwab. In 2007, we plan
to grow that number, both in terms of new
accounts and new households.
Our entire team – more than 12,000 strong
– remains focused on my lifelong mission: to
help more people start investing earlier in life
and stick with it. That’s the path to financial
fitness. Like physical fitness, it’s a lifelong
quest. Fitness starts with a realistic plan.
It grows with the personal discipline to take
action over time. It improves through con-
stant monitoring and occasional adjustment.
Every step in the right direction brings better
outcomes, plus the renewed strength and
confidence that come with those results.
We believe that everyone can be financially
fit, at any age or income level. That’s the
purpose that drives us, and that’s our vision
for the future.
Sincerely,
Charles R. Schwab
Founder, Chairman, and Chief Executive Officer
March 15, 2007