E*TRADE Financial's (ETFC) CEO Gets A Warning From Board
Zacks Investment Research | Jul 02, 2017 09:15PM ET
Karl Roessner, CEO of E*TRADE Financial Corporation (NASDAQ:ETFC) , has been asked by the board to come up with a strategy to uplift the firm by the end of next year or else there might be possibility of a sale. The news was first reported by The Wall Street Journal.
The board has also asked Roessner to boost the company’s mix of derivatives and managed products. Further, he told the Journal that he has to improve E*TRADE Financial’s net new brokerage asset and account growth rates by 2–3% each.
Since his appointment in Sep 2016, Roessner has been taking steps to return the company to its former position as a technologically advanced brokerage firm. Also, he launched an advertising campaign in order to attract investors, per the report.
Previously, the company disclosed its target to increase the derivatives mix to 35% of DARTs. It also set managed account assets under management target of $6 billion to be achieved within the next two years.
Further, last year, the brokerage firm acquired OptionsHouse, an online options broker, with a view to bolster its derivatives platform.
In the first quarter, E*TRADE Financial’s total DARTs had increased 25.5% year over year. The uptrend continued in the first two months of the second quarter. Also, the quarter witnessed 5% year-over-year growth in the derivative mix to 29% of DARTs.
The company’s shares have gained 5.7% over the last six months, outperforming the Zacks categorized Financial – Investment Bank industry’s decline of 4.1%.
Currently, E*TRADE Financial carries a Zacks Rank #2 (Buy). You can see .
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