Early Life and Education
Charles Robert Schwab Sr. was born on July 29, 1937, in Sacramento, California. His father, Lloyd Schwab, was a lawyer and district attorney, while his mother was a housewife. He attended Santa Barbara High School and was the captain of the golf team. Schwab graduated from Stanford University in 1959 with a Bachelor of Arts in Economics and earned a Master of Business Administration from Stanford Graduate School of Business in 1961.
Rise to Success
Schwab's career began with Investment Indicator, an investment newsletter, in 1963. He incorporated First Commander Corporation in 1971 to offer traditional brokerage services. The company name changed to Charles Schwab & Co., Inc. in 1973. In 1975, after the SEC allowed negotiated commission rates, Schwab set up a stock brokerage. His company pioneered discount sales of equity securities and opened its first branch in Sacramento, California. This move, offering lower prices and efficient executions, propelled Schwab to the forefront of the discount brokerage industry. By 1995, Charles Schwab was the largest discount broker. He served as CEO until 2008 and remains the chairman.
Key Business Strategies
Schwab's success is built upon several key strategies. He focused on cutting-edge technology and embraced computerization to replace paperwork. He innovated by offering 24/7 service and the Mutual Funds Marketplace, providing customers with various no-load funds. The company also offered custodial services for independent registered investment advisors, online trading, and more, expanding from its roots as a discount brokerage.
Philanthropy
Charles Schwab, along with his wife Helen, co-founded The Charles and Helen Schwab Foundation in 1987. The foundation supports entrepreneurial organizations working in education, poverty prevention, human services, and health. In 2013, the foundation reported assets of $270 million and made grants of $13 million.
