Charles Schwab 2007 Annual Report Download - page 21

We’re building the company that
makes financial fi tness real for a
growing number of people.
In 2007, Schwab continued to forge
a new, client-focused business model.
We restructured our business, found
new ways to make fi nancial services
easier and more affordable, and contin-
ued to build client relationships based
on a high level of trust.
Fulfi lling our purpose – to help every-
one be fi nancially fi t – starts with a
more disciplined and effi cient orga-
nization. That allows us to scale our
products, services, and advice to
serve a wider spectrum of clients, from
the most affluent to those with only
modest resources. Then, by serving
more people in more relevant ways,
we see enormous potential to grow our
business, and to reinvest in our people
and our communities.
Today’s Schwab serves individuals –
both directly and indirectly – through our
three primary business enterprises.
■ SCHWAB INVESTOR SERVICES, our
traditional retail business, works directly
with individuals who manage their own
investments or turn to us for help and
guidance.
■ SCHWAB INSTITUTIONAL, a business-
to-business model, serves approxi-
mately 5,500 Registered Investment
Advisors – independent, fee-based
investment advisors who work with
individuals and families, often with more
complex needs.
■ SCHWAB CORPORATE & RETIREMENT
SERVICES, also a business-to-business
model, works with companies to manage
their retirement and equity compensa-
tion plans and serve the employees
covered by these plans.
Through the combination of these busi-
ness units, at year end 2007, we served
more than 7 million active brokerage
We live in a new fi nancial reality.
Fewer than half of all Americans working today will collect a pension. Retirement
income is more likely to come from a defi ned contribution plan, like a 401(k) or
an individual retirement account (IRA). And it’s not just about retirement. It’s
about everyday life, with more options, fi nancial decisions, and responsibility
resting squarely on each individual.
We believe this new reality demands a new model for fi nancial services.
OPERATIONS OVERVIEW | 19
SCHWAB CORPORATE &
RETIREMENT SERVICES
Annual Revenues: $506 million
Pre-Tax Margin: 27.4 percent
“In almost 25 years of working in the
retirement plan services business,
I’ve seen a sea change in the attitudes
of employers. As they’ve moved
from defi ned benefi t plans to defi ned
contribution plans, they can’t provide
guarantees. But they feel a shared
responsibility to help their employees
make wise decisions, and they are
concerned that many individuals don’t
have access to the investing resources
and tools they need. So when Schwab
talks about our purpose of helping
everyone be fi nancially fi t, it
truly resonates.”
Jim McCool,
Executive Vice President