UNITED
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E*TRADE
FINANCIAL CORPORATION
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Charter)
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FOR
IMMEDIATE RELEASE
E*TRADE FINANCIAL Media
Relations Contact
Susan
Hickey
646-521-4675
susan.hickey@etrade.com
E*TRADE FINANCIAL Investor
Relations Contact
Brett
Goodman
646-521-4406
brett.goodman@etrade.com
E*TRADE
FINANCIAL APPOINTS STEVEN FREIBERG
CHIEF
EXECUTIVE OFFICER
Robert
Druskin to Remain on Board as Non-Executive Chairman
Board
Authorizes 1-for-10 Reverse Stock Split, Subject to Stockholder
Approval
New York, March 22, 2010 –
E*TRADE FINANCIAL Corporation (NASDAQ: ETFC) today announced that its Board of
Directors has appointed Steven Freiberg Chief Executive Officer, effective April
1, 2010. Mr. Freiberg, an experienced financial services executive, held
multiple senior level positions over a distinguished 30-year career at
Citigroup. Mr. Freiberg, who also will join the Company’s Board of Directors,
succeeds interim CEO Robert Druskin. Mr. Druskin will remain on the Board,
continuing in his role as Chairman.
Mr. Freiberg, 53,
recently served as Co-Chairman and Co-CEO of Citigroup’s Global Consumer Group,
which constituted all consumer business lines in 53 countries, including
investment products, retail/commercial banking, credit cards, mortgages, and
consumer finance – and, under his leadership, represented more than 50 percent
of Citigroup’s earnings. During his tenure at Citigroup, Mr. Freiberg also
served as Chairman and CEO of Citi Cards, where he led the world’s largest
credit card franchise. Prior to that, as Chairman and CEO of Citigroup’s
Investment Products Division N.A., Mr. Freiberg had responsibility for retail
investment products, platforms, sales, and service.
Robert Druskin,
Chairman and interim CEO, E*TRADE, commented, “The Board is delighted to welcome
Steve to lead E*TRADE into its next phase of growth. Steve is an exceptional
senior financial services executive who brings extensive experience in driving
the strategic direction and management of a broad and diverse consumer financial
services franchise. We are fortunate to have Steve as our next CEO and are
confident that he is the best person to help E*TRADE reach its full
potential.”
“E*TRADE is an
extraordinary company with a powerful brand and a compelling customer value
proposition,” said Mr. Freiberg. “Bob Druskin and Don Layton, his predecessor,
did a terrific job leading the Company through very challenging times and
positioning the organization for success. I look forward to the opportunity to
work with the Company’s talented management team to build on that momentum and
help drive E*TRADE’s future growth and profitability.”
Mr. Freiberg has
served as a Board member of MasterCard International since 2006. He also serves
on the Board of the March of Dimes and is Co-Chair of the NYC Council of Habitat
for
Humanity. Mr.
Freiberg holds both a B.B.A. and an M.B.A. from the Zarb School of Business at
Hofstra University.
Reverse
Stock Split
The Company also
announced today that it will seek the approval of its stockholders for a
1-for-10 reverse stock split and a corresponding decrease to the Company’s
authorized shares of common stock to a total of 400,000,000 shares at the
Company’s 2010 Annual Meeting to be held on May 13, 2010. “With 2009’s
successful recapitalization behind us, our permanent CEO in place on April 1,
and a focus on returning to sustained profitability, we believe a reverse stock
split is a logical next step for the Company as we complete our financial and
managerial restructuring,” said Mr. Druskin. “Our Board has authorized these
actions and we look forward to sharing the proposal with
stockholders.”
About
E*TRADE FINANCIAL
The E*TRADE FINANCIAL family of
companies provides financial services including online brokerage and related
banking products and
services to retail investors. Specific business segments include
Trading and Investing, and
Balance Sheet Management. Securities products and services are
offered by E*TRADE Securities LLC (Member FINRA/SIPC).
Bank products and services
are offered by E*TRADE
Bank, a Federal savings bank, Member FDIC, or its subsidiaries. ETFC-G
Important
Notices
Forward-Looking Statements:
The statements contained in this news release that are forward looking
are based on current expectations that are subject to a number of uncertainties
and risks, and actual results may differ materially. Such statements include
those relating to the ability of the Company to achieve future growth and
profitability. The uncertainties and risks include, but are not limited to,
potential changes in market activity, anticipated changes in the rate of new
customer acquisition, macro trends of the economy in general and the residential
real estate market, instability in the consumer credit markets and credit
trends, increased mortgage loan delinquency and default rates, portfolio growth,
portfolio seasoning and resolution through collections, sales or charge-offs and
the potential negative regulatory consequences resulting from actions by the
Office of Thrift Supervision or other regulators. Further information about
these risks and uncertainties can be found in the annual, quarterly and current
reports on Form 10-K, Form 10-Q, and Form 8-K previously filed by E*TRADE
FINANCIAL Corporation with the SEC (including information in these reports under
the caption “Risk Factors”). Any forward-looking statement included in this
release speaks only as of the date of this communication; the Company disclaims
any obligation to update any information.
Proxy Statement. In
connection with the 2010 Annual Meeting of Stockholders, E*TRADE FINANCIAL
Corporation will file a proxy statement with the Securities and Exchange
Commission (the “SEC”). Stockholders are advised to read the definitive proxy
statement carefully and in its entirety when it becomes available because it
will contain important information about the proposals to be presented and voted
upon. Stockholders may obtain a copy of the definitive proxy statement when
available and any other relevant documents filed by E*TRADE FINANCIAL
Corporation for free at the SEC web site at www.sec.gov.
The definitive proxy statement and other documents also may be obtained when
available for free from E*TRADE FINANCIAL Corporation, Attn: Corporate
Secretary, 135 East 57th Street, New York, New York 10022.
E*TRADE FINANCIAL
Corporation and its directors, executive officers and other members of
management and employees may be deemed participants in the solicitation of
proxies and
voting instructions
for the 2010 Annual Meeting of Stockholders. Information concerning the
interests of these persons, if any, in the matters to be voted upon is set forth
in the proxy statement.
# # #
E*TRADE FINANCIAL, E*TRADE and the
E*TRADE logo are trademarks or registered trademarks of E*TRADE FINANCIAL
Corporation.
© 2010 E*TRADE FINANCIAL Corporation. All
rights reserved.
To
All E*TRADE Employees:
I
am pleased to share the news that Steven Freiberg will be joining E*TRADE as
Chief Executive Officer, effective April 1. The Board of Directors
conducted a thorough search – meeting with many highly qualified candidates –
and agreed that Steve was an outstanding fit for many reasons. As a 30-year
financial services executive from Citigroup, he is an exceptional leader with
extensive experience in building profitable businesses. In his position as
Co-Chairman and Co-CEO of Citi’s Global Consumer Group, Steve oversaw the
Company’s consumer business lines – including investment products,
retail/commercial banking, credit cards, mortgages, and consumer finance. He has
also led Citi’s Global Credit Card group as well as its North American
Investment products division. Steve’s broad and deep understanding of consumer
financial services, complex technical environments, and diverse product
offerings will provide for a very smooth transition and allow him to hit the
ground running on day one. We are delighted to have him on board.
Concurrent with
this announcement, we also announced this morning that our Board of Directors
has authorized, subject to stockholder approval, a 1-for-10 reverse stock split.
With 2009’s successful recapitalization behind us and Steve now joining, this is
a logical next step for the Company as we complete our financial and managerial
restructuring. On or about April 1, 2010, we will file the necessary documents
with the SEC and look forward to sharing the proposal with stockholders.
Stockholders will vote on the proposal at our annual meeting, scheduled for May
13, 2010. In advance of that we will also provide E*TRADE employees with
specific information and details on how the proposed plan, if
approved by stockholders, will affect unvested stock grants held by
employees.
Finally, with
Steve’s arrival on April 1, I will step down as interim CEO while continuing in
my role as Chairman, and I look forward to providing ongoing counsel and advice
to support the Company’s future success. I have very much enjoyed
working more closely with the organization over the past several months, and,
more importantly, I was gratified to see everyone’s continued focus on the
success of our business during this interim period. I know you will continue to
build on that momentum under Steve’s leadership.
Please join me in
welcoming Steve to E*TRADE and in wishing him every success in his new
role.
Bob
Druskin
Proxy
Statement
In
connection with the 2010 Annual Meeting of Stockholders, E*TRADE FINANCIAL
Corporation will file a proxy statement with the Securities and Exchange
Commission (the “SEC”). Stockholders are advised to read the definitive proxy
statement carefully and in its entirety when it becomes available because it
will contain important information about the proposals to be presented and voted
upon. Stockholders may obtain a copy of the definitive proxy statement when
available and any other relevant documents filed by E*TRADE FINANCIAL
Corporation for free at the SEC web site at www.sec.gov.
The definitive proxy statement and other documents also may be obtained when
available for free from E*TRADE FINANCIAL Corporation, Attn: Corporate
Secretary, 135 East 57th Street, New York, New York 10022.
E*TRADE FINANCIAL
Corporation and its directors, executive officers and other members of
management and employees may be deemed participants in the solicitation of
proxies and voting instructions for the 2010 Annual Meeting of Stockholders.
Information concerning the interests of these persons, if any, in the matters to
be voted upon is set forth in the proxy statement.