E*Trade Names Two Board Members, Randall To Retire; Group To Expand To 12
February 10 2012 - 10:07AM
Dow Jones News
E*Trade Financial Corp. (ETFC) appointed Rodger Lawson and
Rebecca Saeger, two former financial services executives, to its
board, expanding the number of members to 12 from 11.
The online brokerage also said Lewis Randall, its longest
serving board member, will retire, effective immediately, after
nearly 30 years on the board.
The moves come less than two weeks after E*Trade named Frank
Petrilli, a former chief executive of TD Waterhouse, its new
chairman, replacing Chief Executive Steven Freiberg, who held the
role on an interim basis since last May.
That appointment was notable given his prior ties to
Toronto-Dominion Bank (TD.T, TD), a 45% owner of TD Ameritrade
Holding Corp. (AMTD), a rival online brokerage that often is cited
by analysts and investors as a potential acquirer of E*Trade.
Commenting on the new additions, which all had previous jobs
with E*Trade's main rivals, Freiberg said. "our recent appointees'
relevant experience in financial services was certainly a factor in
their selection. Their expertise and respective backgrounds should
make them great resources, as the company's management team and
board execute on the strategic vision to grow the franchise."
Before joining E*Trade, Lawson, 65, most recently served as
president and chief executive of Fidelity Investments and is
credited with leading the financial services and mutual fund
company through challenging market conditions.
Saeger, 56, was executive vice president and chief marketing
officer at E*Trade rival Charles Schwab Corp. (SCHW) from 2004
through 2010.
E*Trade's board was a focus of investor attention in late 2011,
after the online brokerage was pushed by its largest shareholder,
Citadel LLC, to explore a potential sale of the company. At one
point in the public back and forth, Citadel Founder and Chief
Executive Kenneth Griffin, had requested the company replace board
members Michael Parks and Donna Weaver with independent
directors.
E*Trade ultimately decided to remain independent, with its board
saying that executing its business plan was the "best alternative
for increasing shareholder value."
E*Trade said the new board members will stand for re-election at
its next annual shareholders meeting in May.
Shares of E*Trade recently traded down 0.9% at $9.11. The stock
has climbed 14% year-to-date.
-By Brett Philbin, Dow Jones Newswires; 212-416-2173;
brett.philbin@dowjones.com
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