Founder replaces CEO Pottruck

Tuesday, July 20, 2004 | 9:17 a.m.

SAN FRANCISCO -- Discount broker Charles Schwab Corp. dumped CEO David Pottruck today and replaced him with founder Charles Schwab, hoping the man who created the company can rejuvenate a business that has been sputtering for several years.

The San Francisco-based company made its surprise announcement as it released its second-quarter results. Schwab reported a 10 percent drop in its profit for the three months ended June, ending a recent streak of improved earnings.

Shares of Schwab gained nearly 4 percent on the news.

Pottruck's departure comes 14 months after the company appointed him as is sole CEO. He had shared the CEO job the previous five years with Schwab, continuing a longtime partnership between the two men.

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