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TD Ameritrade names COO Fred Tomczyk as next CEO

Thursday, May 15, 2008

By TIMBERLY ROSS, Associated Press Writer

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OMAHA, Neb. — 

TD Ameritrade Holding on Thursday said its chief operating officer, Fred Tomczyk, will become chief executive in October, replacing Joe Moglia.

Moglia will retire as CEO on Oct. 1 and become chairman of the Omaha, Neb.-based online brokerage. He will replace Joe Ricketts, founder and chairman, who announced earlier this year that he would step down at the end of the fiscal year in September

"TD Ameritrade has accomplished so many things since I joined the firm, delivering five consecutive years of record profitability," Moglia said Thursday.

Moglia, who was addressing employees Thursday afternoon, said Tomczyk will be a good successor, and the decision to promote him was in keeping with the company's succession plan.

Tomczyk joined the company last year and has overseen technology, retail sales and investment advisory. He worked at TD Bank Financial Group from 2000 to 2007.

"In the last six months we have demonstrated positive progress, but there are many more opportunities available to us," Tomczyk said Thursday. "I believe we can become the investment firm of choice for the typical American family."

TD Ameritrade said the transition will not alter the company's strategy. TD Ameritrade grew under Moglia from a $700 million company in 2001 to a $12 billion company, in part by buying nine other companies.

Tomczyk said the company's growth strategy will continue to focus on maintaining its leadership position in trades placed per day and will look to continued success with asset gathering.

Moglia said his duties will begin to shift to Tomczyk as the fiscal years draws to a close in September.

As CEO, Moglia receives a $1 million base salary and up to $9 million in performance-based bonuses annually as part of a five-year contract agreed to in 2006. The bonuses would include up to $3 million cash with the rest in stock.

According to documents filed Thursday with the Securities and Exchange Commission, Moglia would receive an annual salary of $1 million, with up to $6 million in bonuses _ up to $2 million cash _ in his first year as board chairman.

Tomczyk will receive a $500,000 base salary and up to $5 million in bonuses, with $1.5 million cash and the rest in stocks, according to SEC filings.

Joe Ricketts will continue to serve on the board after he steps down as chairman.

The Ricketts family chooses three of the board's 12 members because the family owns 22 percent of the company. Two of Ricketts' children, Thomas and Peter Ricketts, serve on Ameritrade's board with their father.

Last fall, Ameritrade was able to draw customers away from rival E-Trade Financial Corp., which struggled after disclosing problems in its investments in home loans.

Through the first half of the fiscal year, Ameritrade reported $427.6 million, or 71 cents a share, on revenue of $1.26 billion. That's up from $286.8 million, or 47 cents a share, on revenue of $1.06 billion a year earlier.

Ameritrade's shares rose 29 cents to close Thursday at $18.21.

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On the Net:

TD Ameritrade Holding Corp.: http://www.amtd.com

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