CEO’s exit not due to any ‘one thing’

TD AMERITRADE

chief executive officer Tim Hockey said his departure from the online brokerage no later than the end of February 2020 has nothing to do with mergers and acquisitions, “pro or con.”

Hockey, in a phone interview, brushed off a direct question about whether the move was related to a potential deal with “Everything we do,” he said, seems to centre around “M&A activity.”

The exit wasn’t due to any “one thing,” and the decision came after a series of talks with the board, in keeping with “conversations CEOs have with boards.” He said the details of those should remain confidential.

Shares of TD Ameritrade were lower by about 0.5 per cent in late afternoon trading in New York after erasing an earlier 1.3 per cent gain. New York-based E*Trade’s shares gained as much as 2.4 per cent to the highest since May 21.

On Monday, the Omahabased company abruptly announced Hockey’s departure and said the board will begin a search for a successor. The move surprised Wall Street, particularly as the stock has outperformed the S&P 500 during his tenure, and led to speculation the company may be on the hunt for an acquisition.

The exit “puts shares in the penalty box,” Wolfe Research’s Steven Chubak wrote in a note. “The news came as a shock as Hockey was generally well liked by the investment community,” and shares performed well under his leadership, prompting Chubak to wonder why he’s “being asked to leave.” Chubak dismissed hopes the change would increase the likelihood of a combination with E*Trade, as “we find such speculation unhelpful, as hope is not a strategy.”

Hockey said the change is not to take another job immediately and there was no violation of conduct. He called his departure, after more than three decades at TD, a “very significant shift” for the psyche. “You get an opportunity to know who you are as a person,” he said.

On Monday, TD Ameri t rade also reported third-quarter adjusted earnings per share of US$1.04 versus analysts’ estimates of 97 cents. Average client trades per day in the quarter were about 825,000, up 5 per cent compared with the prior year. Trades per day in July so far are 780,000.

(JEFFREY) EPSTEIN BOASTED OF HAVING ADVISED ELON MUSK ... HE HAS

CLAIMED TO WORK CLOSELY WITH LAWRENCE SUMMERS, THE FORMER

TREASURY SECRETARY AND HARVARD PRESIDENT. HE HAS TOLD OTHERS

HE WAS A TAX CONSULTANT TO MICROSOFT CO-FOUNDER BILL GATES.

Tim Hockey