E-Trade names ex-Barclays exec Idzik as new CEO
E-Trade names former Barclays executive Paul Idzik as CEO, replacing ousted Freiberg
NEW YORK (AP) -- Online brokerage E-Trade Financial Corp. appointed banking industry veteran Paul Idzik as its new CEO as the company seeks to regain its financial footing.
E-Trade, based in New York, said Thursday that Idzik will take over for interim CEO Frank Petrilli on Jan. 22. Petrilli, a long-time financial industry executive, took the helm in August after the abrupt ouster of former CEO Steven Freiberg.
Idzik, 51, "is recognized in the financial services industry for his strong leadership skills and his demonstrated ability to deliver results and create shareholder value," Petrilli said in a statement. Petrilli said Idzik has a track record of building strong teams and working with stakeholders, and will help E-Trade execute its strategic and capital plans.
Idzik most recently served as group chief executive of DTZ Holdings PLC in London, the parent company of a group of real estate consultancies. Before that, he spent 10 years at English megabank Barclays PLC. He was chief operating officer of Barclays Capital, the company's investment bank, and later served as group chief operating officer for the parent company.
In addition to the CEO role, Idzik will serve as president of E-Trade Bank and will serve on the boards of the bank and the parent company.
E-Trade has been struggling to recover from bad housing investments. It also has lost business as individual consumers pulled money out of the stock market. Faced with less trading activity, E-Trade has said it is focused on managing costs and reducing risk.
The company pushed out Freiberg, a Citigroup veteran, in August, just two years into a four-year contract. Petrilli, E-Trade's chairman, became interim CEO while the company searched for a permanent replacement for Freiberg.
Shares closed Thursday at $9.87, up 37 percent from their 52-week closing low of $7.18. That nadir was reached in late July, shortly before Freiberg left.
Rodger Lawson will step down as lead independent director but will stay on E-Trade's board, the company said.
Idzik's appointment was announced after the market closed. After the news, E-Trade rose 5 cents to $9.92 in extended trading.
