Charles Schwab Names New Advisory Services Head

Charles Schwab announced an executive reshuffle Thursday including a new head of advisor services.

Bernie Clark, the head of adviser services who has overseen major growth for the division, will be taking an advisory role after more than 13 years in the job effective June 28, Schwab announced. Meanwhile, the firm “expects to name” Jon Beatty, its chief operating officer of adviser services to the post, while also naming Tom Bradley, currently a managing director for adviser services, as chief client officer for the business, reporting to Beatty.

Clark is stepping aside after more than a decade of growth of the firm’s independent adviser network, which now includes those who remained from the acquisition of TD Ameritrade. RIA custody assets for the firm have grown from $600 billion in 2010, when Clark took over, to over $4.26 trillion as of April 30, according to the firm.

Bernie Clark

The reshuffle comes after Schwab announced the completion of its 2020 acquisition of TD Ameritrade with the full transition of about 1.8 million client accounts to Schwab in what the firm calls the largest integration in its history. It also, however, comes after earnings have been hit in part by higher interest rates, causing Schwab bank customers to leave for higher interest earning options. That also contributed to the company laying off more than 2,000 employees in late 2023 and the leadership forecasting that 2024 would be a “transitional” year.

Timothy Welsh, president, CEO and founder of consulting firm Nexus Strategy LLC, notes that a change in leadership in the adviser services unit will naturally have some advisers concerned with changes in Schwab’s custodial services.

“It will definitely give independent advisers pause,” Welsh says. “Historically, the message from Schwab was ‘we are here to support you, the underdog,’ and now all that has changed.”

Walt Bettinger, co-chairman and chief executive officer of Schwab, said in a statement that Advisor Services head Clark had come to him suggesting the transition.

Jon Beatty

“Recently, Bernie Clark came to me and suggested that with the Ameritrade integration for advisers complete, and the exceptionally sound footing of the Advisor Services business at Schwab, it was time to make a transition in his duties at the firm,” Bettinger said. “His impact on the independent investment adviser industry is arguably unmatched, leading the industry from its infancy to become one of the fastest growing segments of the investment services world.”

He also noted his mentoring of Beatty and Bradley, and his continued role advising the division.

Beatty is being promoted after 20 years at Schwab during which he held various roles working with independent investment advisers. Bradley joined the firm after the acquisition of Ameritrade in early 2020, where he held independent adviser and retail leadership roles.

In addition to those moves, Schwab announced that CFO Peter Crawford would be stepping down after 22 years with the firm, to eventually be replaced by Mike Verdeschi, most recently treasurer of Citigroup, after a transition period. In addition, Joe Martinetto will move from his role as COO to executive chairperson of Schwab Banks—a position he takes after completing the integration of Ameritrade clients to Schwab. His current duties will be “assumed by other leaders,” Schwab wrote.

Nexus’ Welsh says that the Ameritrade deal added to an “oligopolistic situation” for RIA custodial services. Though Schwab’s leadership shift may now give other players such as Apex Fintech Solutions, Axos Advisor Services and Goldman Sachs’ recent push into RIA services a moment of opportunity. An adviser “might not move altogether, but you might entertain other options, and maybe move your next four or five clients to another custodian,” says Welsh, who worked for Schwab in business consulting services more than 18 years ago.

Welsh noted that, under Clark’s leadership, the firm made a pledge not to raise fees on independent advisers—something the industry will likely be watching to see if it remains.