Charles Schwab Net Worth
Charles Schwab Net Worth: Charles Schwab is an American businessman and investor who has a net worth of $8 billion dollars. Charles Schwab is the founder of the Charles Schwab Corporation, a discount brokerage firm with approximately 8 million clients in 300 different offices in the U.S., one in Puerto Rico, and another in London. He retired as CEO in 2008, but remains chairman and is the largest shareholder.
Early Life: He was born Charles Robert Schwab, Jr. on July 29, 1937, in Sacramento, California. He is the son of Terrie and Llyod Schwab. He attended Santa Barbara High School in Santa Barbara, California and was captain of the golf team. He graduated from Stanford University in 1959 when a B.A. in Economics. He was a member of the Sigma Nu fraternity. He attended graduate school at Stanford and got his Master of Business Administration degree.
Career: In 1963, Charles R. Schwab and three other partners launched an investment newsletter called Investment Indicator. At its height, the newsletter had 3,000 subscribers at $84 each per year to subscribe. In April 1971, the firm incorporated in California as First Commander Corporation, a wholly-owned subsidiary of Commander Industries, Inc., to offer traditional brokerage services and publish the Schwab investment newsletter. In November of that year, Schwab and four others purchased all the stock from Commander Industries. In 1972, Schwab bought all the stock from what was once Commander Industries.
In 1973, First Commander changed its name to Charles Schwab & Co., Inc. A huge turning point came in 1975, when the U.S. SEC deregulated the securities industry, freeing companies to charge any fees they wanted. Schwab had long complained that established firms showed no concern for the needs of their customers: in those times securities were not bought by consumers, they were sold by salesmen, who made commissions on the sales of those securities as well as profited more by selling riskier securities regardless of possible disadvantages to the consumers. Schwab developed radically different policies. First, charges to consumers were cut in half. Second, salesmen were paid hourly salaries, rather than commissions on the total sale price. Third, Schwab refused to offer any advice to customers. It also set up a toll-free number to take orders nationwide and later set up a 24/7 telephone line that allowed customers to place orders from anywhere, at any time. Established firms were outraged by these innovations and tried to block Schwab's expansion efforts.
In September 1975, Schwab opened its first branch in Sacramento, California. It expanded across the state and cut its expenses with a very heavy emphasis on automation. In 1981, Bank of America offered Schwab $53 million in stock for his 37 percent ownership. He sold but remained as president of a semi-independent unit of the company that had annual sales of $41 million, 600 employees, and 220,000 customers through 40 branches. By 1986, Schwab's unit had 1.6 million customers and sales of $308 million. While Schwab flourished, Bank of America floundered and in 1987 Schwab made a deal to buy back the brokerage company from Bank of America for $230 million. Schwab took the firm public.
Schwab always stressed cutting edge technology and pioneered computerization to replace paperwork. The emergence of the internet in the 1990s posed a new threat with new startups trying to exploit their software. Schwab responded by becoming the first major financial services firm to sell stocks, mutual funds, and bonds online. Schwab charged $39 per Internet trade, compared to $160 charged by traditional brokerages using the old technology.
Shwab left the CEO position of his firm in 2008. He still serves as the chairman and is the largest individual shareholder, with a roughly 15% stake. Today, his San Francisco-based firm numbers 19,000 employees and manages more than $1 trillion worth of client money worldwide.
Personal Life: Schwab was married to Susan Cotter Schwab and had three children, Charles Jr. "Sandy", Carrie, and Virginia before divorcing. He married Helen O'Neill had had two children, Michael and Helen.
Schwab also serves as the chair on the board of trustees for the San Francisco Museum of Modern Art.
Schwab is a practicing Roman Catholic. He and his wife Helen live in Atherton, California. He is an avid golfer with a 7.4 handicap.
At the age of 40, he found out that he was dyslexic, and later learned that his son suffers from the same learning disorder. This led to the formation of The Charles and Helen Schwab Foundation, which provides grants to dyslexic children.
Charles Schwab was listed in a Washington Post article as one of the largest PAC contributors in the U.S. He gave $12.5 million to general conservative political causes, with $2 million specifically donated to Donald Trump. In July 2017, Schwab donated the maximum legal individual amount of $101,700 to the Republican National Committee's legal defense fund that partially paid for the legal defense of Donald Trump in the Special Counsel investigation into whether or not the Trump campaign colluded with Russia.
Salary Highlights: In 2018, Schwab made $6,054,261 in total compensation as Chairman of Charles Schwab Corp. Of this total $683,333 was received as a salary, $1,906,500 was a bonus, $1,725,000 was received in stock options, $1,725,000 was awarded as stock and $14,428 came from other types of compensation,
Real Estate: In October 2019, Schwab and his wife listed their San Francisco home for sale for $15 million. The home was purchased by the Schwabs for $11 million in 2012. It sold for $14 million in January 2020. The home was designed by noted architect Gardner Dailey in 1941. The property is in San Francisco's Pacific Heights neighborhood on a secluded double lot. The structure is set back about 60 feet from the street. The home is mostly obscured behind a mature elm tree.
Charles R. Schwab
|Net Worth:||$8 Billion|
|Date of Birth:||Jul 29, 1937 (82 years old)|
|Nationality:||United States of America|