Charles R. Schwab

Charles R. Schwab Sr.
Born	Charles Robert Schwab Sr. (1937-07-29) July 29, 1937 Sacramento, California, U.S.
Occupation(s)	Financier, investor, corporate chairman
Years active	1963–present
Known for	Founder and chairman of Charles Schwab Corporation

Charles Robert Schwab Sr. (born July 29, 1937) is a prominent American financier and investor. He established and currently chairs the Charles Schwab Corporation, which revolutionized the brokerage industry by introducing discounted equity securities sales starting in 1975. His company grew to become the leading discount brokerage in the United States. Although Schwab resigned as CEO in 2008, he continues to serve as chairman and remains the principal shareholder.

As of 2025, Forbes values his net worth at $11.2 billion, placing him as the 203rd wealthiest individual worldwide.

Early life and education

Born in Sacramento, California to parents Terrie and Lloyd Schwab, Schwab was raised in Woodland before moving to Santa Barbara, California. Early in life, he held various jobs such as selling ice cream and working as a railroad switchman.

He graduated with a Bachelor of Arts degree in Economics from Stanford University in 1959 and earned an MBA from the Stanford Graduate School of Business in 1961.

Investment career

In 1963, Schwab partnered with three associates to launch Investment Indicator, an investment newsletter with 3,000 paying subscribers at $84 per year. By April 1971, the enterprise was incorporated in California as First Commander Corporation, operating under Commander Industries, Inc., to provide brokerage services alongside publishing the newsletter. Later that year, Schwab and four partners acquired all shares from Commander Industries. By 1972, Schwab had obtained full ownership.

Charles Schwab & Co.

In 1973, First Commander was renamed Charles Schwab & Co., Inc.. A major turning point occurred in 1975 when deregulation by the SEC permitted firms to determine their own commission rates. Schwab transformed the market by halving customer fees and compensating sales staff through hourly wages instead of commissions. The firm introduced a toll-free telephone line followed by a round-the-clock phone system enabling clients nationwide to place orders. These innovations faced resistance from established competitors.

Expansion

The company's first branch opened in Sacramento in September 1975, followed by statewide expansion that leveraged automation to minimize expenses. In 1981, Bank of America purchased a 37% stake for $53 million; Schwab continued as president of this semi-independent division, which at that time reported $41 million in revenue, employed 600 staff, and served 220,000 clients across 40 branches. By 1986, clientele had expanded to 1.6 million with revenues reaching $308 million. Due to Bank of America’s financial difficulties and SEC investigations—which ultimately cleared Schwab—disputes arose leading to Schwab reacquiring the brokerage for $230 million in 1987 and taking it public. In 1988, after funds were misappropriated, the company reimbursed customers $2 million.

Beginning in 1977, Schwab conducted client seminars; account numbers surged from 45,000 in 1978 to 374,000 by 1982 alongside innovations such as launching the first around-the-clock quotation service and extending operations internationally into Hong Kong. By 1995, Charles Schwab had become the top discount broker with revenues of $1.4 billion and assets under management totaling $200 billion; active accounts reached 3.6 million by 1996.

David S. Pottruck served jointly as CEO from 1998 until 2003 before Schwab relinquished his role. In July 2004, Pottruck was replaced by Schwab amid declining profits caused by reduced trading income. Schwab shifted focus toward financial advisory services and reversed previous fee increases, resulting in a financial recovery by 2005.

Emphasizing technological advancement, Schwab led efforts to automate processes previously reliant on paperwork. In 1996, it became the first major brokerage to offer online trading for stocks, mutual funds, and bonds at a flat rate of $39 per trade—substantially below traditional broker fees. The Mutual Funds Marketplace debuted in 1984 featuring 140 no-load funds and expanded to include over 500 funds by 1992. In 2000, Schwab launched mobile trading through PocketBroker on platforms such as BlackBerry, Palm OS, Windows CE devices, and WAP-enabled phones across the US, UK, and Hong Kong markets. Additionally, Charles Schwab Bank, N.A., a federally chartered retail bank headquartered in Reno, Nevada, received approval in February 2003.

Personal life

Schwab holds the title of chair emeritus on the board of trustees at the San Francisco Museum of Modern Art. He resided in San Francisco until 2020, when he sold his property for $14 million, and has since relocated to Florida.

As a devoted Roman Catholic, Schwab actively participates in charitable efforts. He was diagnosed with dyslexia at the age of 40 after recognizing that his son also had the condition. The Charles and Helen Schwab Foundation dedicates its resources to empowering students by funding research and initiatives aimed at addressing learning disabilities, including dyslexia.

Family

Schwab has been married twice and is a father to five children. His first marriage to Susan Cotter produced three children: Charles Jr. ("Sandy"), Carrie, and Virginia. The couple eventually divorced. He later married Helen (O'Neill) Schwab, with whom he has two children, Katie and Michael.

Carrie, his daughter, serves as president of the Charles and Helen Schwab Foundation and previously participated on President Obama's Advisory Council on Financial Capability. She is married to author Gary Pomerantz. Charles Jr., who played quarterback at Northwestern University, is a father to four children.

Samantha Schwab, Schwab’s granddaughter, worked within the White House Office of Legislative Affairs during the initial Trump administration and was appointed in January 2025 as deputy to the Treasury Chief of Staff in Trump's subsequent administration.

Political and economic views

A committed Republican, Schwab has made substantial contributions to the party, including donations to both the National Republican Senatorial Committee and the National Republican Congressional Committee. He stands against implementing a wealth tax.

In 2012, Schwab gave nearly $9 million to Americans for Job Security, an organization opposing Barack Obama’s presidential campaign. In 2017, he contributed the maximum individual amount of $101,700 to the Republican National Committee's legal defense fund in support of President Donald Trump during the Mueller investigation. By 2019, Schwab ranked among the top PAC donors nationwide, providing $12.5 million toward conservative political causes, with $2 million directed to Trump.

After the January 6 Capitol riot in 2021, Schwab’s company halted all political contributions and dissolved its PAC due to the increasingly polarized environment. The remaining PAC funds were donated to Boys & Girls Clubs of America and historically black colleges and universities. Despite this, Schwab has continued making personal political donations, contributing over $366,000 to a pro-Kevin McCarthy PAC and more than $200,000 each to both the NRCC and NRSC in March 2021.

Wealth

As reported by Forbes in March 2025, Schwab’s net worth stands at $11.2 billion. Founded in 1987, the Charles and Helen Schwab Foundation held assets totaling $270 million in 2013 and awarded $13 million in grants that year. Schwab acts as chairman while his wife serves as president.

Awards and honors

• 1989: Golden Plate Award from the American Academy of Achievement
• 1997: Dubbed "King of Online Brokers" by Forbes
• 2016: Recipient of the Financial Innovation Award from The Museum of American Finance

Further reading

• Cronin, Mary J. Internet Banking and Finance (John Wiley & Sons, 1998). online
• Ingham, John N., and Lynne B. Feldman. Biographical Dictionary of Contemporary American Business Leaders (Greenwood, 1990). pp 566–71.
• Kador, John. Charles Schwab: The Company That Transformed Wall Street and the Brokerage Industry (John Wiley & Sons, 2002). excerpt.
• Silver, A. David. Entrepreneurial Megabucks: Top 100 Entrepreneurs of the Past 25 Years (1985).
• Willis, Rod. "Charles Schwab: A High-Tech Horatio Alger?" Management Review (Sept. 1986) 75#9 pp 17–20

External links

• Official biography of Charles Schwab—Charles Schwab Corporation
• Charles and Helen Schwab Foundation