RealTime IT News

E*Trade Names New Top Execs

Online brokerage/bank E*Trade Group has named R. Jarrett Lilien as president and chief operating officer, replacing Mitchell Caplan, who left those positions to take over as CEO in January of 2003.

The Menlo Park, Calif.-based company also named Louis Klobuchar as chief brokerage officer and president of the company's E*TRADE Securities division.

Lilien, 41, is expected to handle management responsibility for all the company's divisions. The company recently mapped out for analysts its operating plans for 2003, amid expectations that revenues would be down about 20 percent this quarter.

Prior to his appointment as president and COO, Lilien was an E*Trade managing director in the company's Asia-Pacific and Latin America divisions. He joined the company in August 1999 after E*TRADE Group's purchase of TIR Holdings, an investment concern that he helped to found. The division later became known as E*TRADE Institutional Securities.

The 45-year-old Klobuchar joined the E*TRADE Group in 2001 after the E*Trade acquired Dempsey & Company, a privately-held market making security firm, where he was CEO. Prior to joining Dempsey, Klobuchar was executive vice president at the Chicago Stock Exchange.

As part of the announcement, company officials said Klobuchar would continue leading the development of a lower and more simplified commission rate for the brokerage side of the house. In addition, he is expected to continue expanding the company's recently-launched "Power of 9" marketing initiative that offers active traders a flat rate of $9.99 per stock trade, and a 9-second trade-execution guarantee on qualified stock trades.

The appointments are part of a shuffle among senior management at the brokerage that followed the abrupt departure of the company's founder and CEO, Christos Cotsakos in January.

After the revelation that the founder took home an $80 million pay package in 2001, at a time when the company's stock price was sliding amid turmoil in financial markets, Cotsakos agreed to give back $21 million the following May.