Charles Schwab steps back for new CEO

Walter Bettinger is the new president and CEO at Charles Schwab Corp., replacing the company's founder, who keeps his job as executive chairman.

Bettinger has worked 13 years at the San Francisco company (NASDAQ: SCHW). For nearly a year and a half he's been president and chief operating officer. When he became COO his salary was raised from $600,000 to $700,000. He was also paid $1.4 million in cash in 2007 "to compensate him for a variety of expenses including rental housing and family travel expenses resulting from his promotion," according to the company's proxy card. His total compensation for 2007 was $13.1 million, double that of Schwab himself.

Before he worked at Schwab, Bettinger started retirement plan business the Hamilton Co.

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Chairman Charles Schwab started the business in 1971 as Charles Schwab & Co. He shared the top job at the corporation (created in 1986) with co-CEO David Pottruck from 1998 to 2003. In 2004 he became sole CEO. He turns 71 on July 29.

Last week Schwab reported a profit of $313 million for the quarter ended June, up from a profit of $256 million a year earlier -- excluding the performance of its U.S. Trust unit. Sales rose to $1.3 billion from $1.2 billion a year ago in the second quarter.

Also Tuesday, Schwab raised its dividend 20 percent to six cents per share.