Charles Schwab 2009 Annual Report Download - page 11

the lowest levels in the mutual fund industry. We also
simplied share classes so that all Schwab equity index
funds offer the same low fund expenses to investors
regardless of how much they invest, starting with a low
$100 minimum.
This is our purpose put into action. Now, anyone can
open a Schwab One® brokerage account and invest
just $100 in a fund like Schwab S&P 500 Index Mutual
Fund*, which has a net expense ratio (after waivers) of
.09 percent. In that case, investors can have access to
all that Schwab has to offer for just 9 cents a year — less
than a single dime.
4. Leveraging Capabilities Across Our Company
Our senior management team recognizes the power
of teamwork and collaboration in driving long-term,
sustainable growth. In 2009, we diligently worked across
business lines and departments to align on certain
core capabilities, including our people, our processes,
and our technology. While each member of our Operating
Council is responsible for running an individual business
unit, our leaders understand that our mindset and our
decisions must be made in the best interest of the entire
Schwab organization.
For example, in 2009 we continued to reinforce
sustainable, company-wide management bench strength.
Over the past several years, executives have been
thoughtfully rotated throughout different parts of the
business, building knowledge, awareness, and skills they
will need to lead Schwab for decades to come.
But the true power of a “One Schwab” philosophy is the
ability to learn something once and apply it multiple
times across internal organizational lines. From a
technology standpoint, we leveraged what we learned
from the redesign of schwab.com to benet other client
Web sites across the rm. We applied our Web expertise
to our new site for 401(k) participants, which quickly
became the top-rated participant site in the industry.
Leading Into the Future
As I continue in my second year as President and Chief
Executive Ofcer of Charles Schwab, I have been thinking
quite a bit about leadership — about what’s expected
of my leadership of this rm, and what’s expected of
Schwab’s leadership within our industry.
It is my deeply held belief that leadership is not a position
you declare, but a right that you earn as others choose
to follow. At Schwab, our entire leadership team is driven
by the desire to serve and benet others. As a result, we
are both pleased and humbled at the number of people
who’ve chosen our rm to serve their nancial needs.
Our faith in the individual investor has been rewarded
with their trust in Schwab. Since 1993, Schwab has
posted positive net new assets and new brokerage
accounts for each and every quarter. That’s a track
record we’re proud of, and one we intend to keep going.
As we look toward 2010 and beyond, we will continue
to focus on what is unchanging about Schwab — our
purpose, our strategy, and our day-to-day behaviors.
• We will continue to focus on the needs of both
individual and institutional clients, delivering superior
service and a great value.
• We will be innovative on behalf of consumers,
introducing targeted new products and services and
nding new ways to be a “game-changer” in a nancial
services industry where many competitors would prefer
the status quo.
• We will be disciplined in the way we operate and
manage our capital so that we have resources to
reinvest in an ever-improving client experience and the
continued growth of our business.
• We will manage the company from a holistic
perspective, putting our investments and scale to
work on behalf of the widest range of clients — even
as we work together to build nancial literacy for
others who may not be our clients. As a result, we will
continue to share our expertise through our Schwab
MoneyWise® program as well as our work with nonprot
organizations like SingleStop and Boys & Girls Clubs of
America.
At Schwab, our advocacy for investors and savers isn’t
just words on paper — it is the way we do business every
day. You can be assured that we will continue to walk the
talk, because when we lead the way to nancial tness,
we want ever more people to follow. After all, our success
is built one client at a time — as we see the world through
clients’ eyes.
Walt Bettinger
March 10, 2010
LETTER FROM THE CHIEF EXECUTIVE OFFICER
18
Total Client Assets
(in billions at year end)
$1,053.5
2005 2006 2007 2008 2009
$1,239.2
$1,445.5
$1,137.0
$1,422.6
Advisor Services
Corporate and Retirement Services
Investor Services
* 2007 includes increases of 398,000 related to the acquisition of The 401(k) Company and 100,000 related to
Schwab Personal Choice Retirement Account® participants at Schwab.
Client Accounts
(in millions)
Banking Accounts
Active Brokerage Accounts
Corporate Retirement Plan Participants
6.7
2006
0.1 0.5
2007*
7.0
0.3
1.2
2008
7.4
0.4
1.4
2009
7.7
0.7
1.5
* “S&P 500®” is a trademark of the McGraw-Hill Companies, Inc. and has been licensed for use by the Schwab S&P 500 Index Fund.