Three years after being pushed into the C-suite, E*TRADE Financial Corp. CEO Karl Roessner has stepped down from his role, effective immediately.
On Aug. 14, the New York-based online brokerage company said Roessner informed the company that he intended to leave his position. E*TRADE then named COO Michael Pizzi, who until recently was the company's CFO, as its newest top executive, effective immediately. Pizzi has also been appointed to the company's board. Roessner will serve in an advisory capacity until year-end to help with the transition.
E*TRADE's leadership shake-up comes three years after Roessner was installed by the company's board as CEO after it ousted Paul Idzik. The board immediately tasked Roessner, who worked as the company's general counsel before taking over as CEO, and his management team with a series of growth goals that the company would have to meet, or it would face the possibility of a sale. E*TRADE's board said in October 2018 that it did not plan to immediately sell the company after conducting a two-year review, with Executive Chairman Rodger Lawson expressing confidence in the company's successes.
Pizzi will take over as CEO about 16 years after first joining E*TRADE. Along with his titles as CFO and COO, Pizzi has also worked for the company as its chief risk officer and corporate and bank treasurer.
The CEO change at E*TRADE is the second to hit the online brokerage industry in less than a month. Rival company TD Ameritrade Holding Corp. revealed in late July that President and CEO Tim Hockey would be leaving at the beginning of 2020, a move that took many Wall Street analysts by surprise. The company has not yet named a successor.