Discount broker Charles Schwab has hired 33-year Citi veteran Mike Verdeschi as managing director and deputy chief financial officer. After a transition period, Schwab, which also offers investment management and banking services, plans to promote Verdeschi to chief financial officer when current President Peter Crawford retires after 23 years with the firm.
Verdeschi spent the last seven years as Citi’s treasurer, in which capacity he managed a $2 trillion balance sheet, centralized treasury activities and revamped management systems. When he succeeds Crawford, his responsibilities will include leadership of treasury and control functions, financial planning and analysis, investor relations, corporate development and strategy, vendor management and corporate real estate.
“Peter’s leadership has played a central role in Schwab’s growth as one of the nation’s largest investment services firms,” Schwab co-chairman and CEO Walt Bettinger said in making the announcement. “We are also fortunate to have added a seasoned executive with Mike Verdeschi’s experience to lead our disciplined approach to financial and balance sheet management as we lay the foundation for Schwab’s continued growth and success.”
The announcement comes as Schwab completes the final stages of its $26 billion acquisition of online broker TD Ameritrade. In May, the company transferred the last of about 1.8 million Ameritrade accounts, representing about $350 billion in assets, to Schwab.
Verdeschi finds himself in a stable environment with his new employer. Despite reporting a growth rate of -7.35% and an asset yield of 0.26% at the end of the first quarter, Schwab again beat the Wall Street consensus forecast, this time by a penny. The firm also achieved a return on equity of 3.85% and a solid net margin of 26.39%, both above the industry average. “The last of Ameritrade’s cost synergies will persist into the second half of 2024, leading to another period of no- or low-cost growth in 2025,” predicts Kenneth Worthington, equity analyst at JP Morgan.