Form 4: Charles Schwab General Counsel Sells Over 10,000 Shares Under Pre-Arranged Plan

Peter J. Morgan III, General Counsel of Charles Schwab Corp., sold 10,176 shares of common stock for approximately $87.39 per share on May 22, 2025, as part of a Rule 10b5-1 plan.

Summary

• Peter J. Morgan III, the General Counsel of Charles Schwab Corp. (SCHW), reported a transaction involving the company's common stock.
• On May 22, 2025, Mr. Morgan disposed of 10,176 shares of common stock.
• The shares were sold at a weighted average price of $87.3914 per share, with individual trades ranging from $87.24 to $87.57.
• This transaction was executed pursuant to a Rule 10b5-1(c) contract, instruction, or written plan.
• Following this transaction, Mr. Morgan's direct beneficial ownership of common stock is 0 shares.
• Mr. Morgan retains indirect beneficial ownership of 451 shares through an Employee Stock Purchase Plan (ESPP) as of May 1, 2025, and 149.57 shares through an Employee Stock Ownership Plan (ESOP) as of May 15, 2025.

Sentiment

Score: 5

Explanation: The sale of shares by a key executive could be perceived as a slightly negative signal; however, the transaction being executed under a pre-arranged 10b5-1 plan mitigates concerns about opportunistic trading based on new material information, leading to a neutral sentiment.

Positives

• The transaction was executed pursuant to a Rule 10b5-1(c) plan, indicating a pre-arranged sale not based on new material non-public information, which enhances transparency and compliance.

Negatives

• A high-ranking insider (General Counsel) sold a significant number of shares (10,176 shares), reducing their direct beneficial ownership to zero.

Risks

• Insider selling, even under a 10b5-1 plan, can sometimes be interpreted negatively by the market, potentially signaling a lack of confidence, although the pre-arranged nature mitigates this concern.

Future Outlook

N/A

Industry Context

This filing reports an individual insider transaction and does not provide broader industry context or trends.

Corporate Governance

Stakeholder Impact

• Shareholders: May view the insider sale with caution, though the 10b5-1 plan suggests it's for personal financial planning rather than a reflection of company performance.

Key Dates

Recommendation

Keywords

Charles Schwab, SCHW, insider trading, Form 4, Peter J. Morgan III, General Counsel, stock sale, equity, beneficial ownership, 10b5-1 plan