MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Thursday, May 17, 2001 Chuck Schwab Admits Misstep at ICI At the Investment Company Institute's General Membership Meeting, Charles Schwab, co-ceo of the eponymous firm, admitted his own miscalculation that resulted in a 13 percent layoff. Schwab and Morgan Stanley chairman and ceo Philip Purcell fielded a potent audience question during the event's keynote session on Thursday morning. What mistakes had the ceo's made? "I probably should have seen in late 2000 that the exuberance was not sustainable," said Schwab. "We wouldn't have hired the last 3,000 people. We wouldn't have had to lay them off. You'd think someone of my experience would have done that." The admission came from a humble Schwab, who expressed pain at the necessity of cutting his staff. As for Purcell, he primarily looked to a different area. While he also cited the firm's layoffs of 1,500 employees, his also voiced regrets are in the area of technology. "If I could redo this, the day after the merger, I would have switched to one system, regardless of the cost," said Purcell. "We'll get it done by the end of this year, but we probably could have gotten it done two-and-a-half years ago." Printed from: MFWire.com/story.asp?s=24414 Copyright 2001, InvestmentWires, Inc. All Rights Reserved |