Form 4: Schwab Director Ellis Acquires 357 RSUs

Charles Schwab Director Stephen A. Ellis acquired 357 Restricted Stock Units as part of his deferred compensation plan, bringing his total beneficial ownership to 12,417.76 RSUs.

Summary

• Director Stephen A. Ellis acquired 357 Restricted Stock Units (RSUs) on January 2, 2026.
• These RSUs were received under the Directors' Deferred Compensation Plan II, in lieu of cash director fees.
• The RSUs are held in a rabbi trust for the benefit of the reporting person and will be distributed upon his departure from the Board of Directors.
• His total beneficial ownership of RSUs now stands at 12,417.76, which includes 35.34 RSUs acquired via dividend reinvestment in November 2025.

Sentiment

Score: 6

Explanation: Neutral to slightly positive. This is a routine compensation event, but the director's increased equity stake is a minor positive for shareholder alignment.

Positives

• Director Ellis continues to increase his beneficial ownership in the company, aligning his interests with shareholders.
• The acquisition of RSUs in lieu of cash compensation demonstrates a commitment to long-term equity participation.

Future Outlook

No specific future outlook or guidance is provided in this Form 4 filing, as it primarily reports an insider transaction.

Industry Context

This is a routine insider transaction filing, common for directors receiving equity compensation. It reflects standard corporate governance practices for executive and director compensation in the financial services industry, where equity awards are often used to align leadership incentives with long-term company performance.

Comparison to Industry Standards

• The use of Restricted Stock Units (RSUs) as a component of director compensation is a common practice across the financial services industry, aligning director incentives with long-term shareholder value, similar to practices at firms like Fidelity, Vanguard, or Morgan Stanley.
• Deferred compensation plans, often utilizing rabbi trusts, are standard mechanisms for directors to defer income and manage tax implications, consistent with corporate governance best practices for public companies.

Corporate Governance

Related Party Transactions

• Director Stephen A. Ellis received 357 Restricted Stock Units from The Charles Schwab Corporation as part of his compensation under the Directors' Deferred Compensation Plan II.

Stakeholder Impact

• Shareholders: Potentially positive as the director's interests are further aligned with long-term company performance through increased equity ownership.
• Employees: No direct impact.
• Customers: No direct impact.

Next Steps

• The RSUs will be distributed to the reporting person when he leaves the Board of Directors.

Key Dates

Recommendation

This Form 4 filing details a routine compensation event for a director, where Restricted Stock Units were acquired in lieu of cash fees. While it shows continued alignment of director interests with shareholders, it does not present new information that would fundamentally alter the investment thesis for The Charles Schwab Corporation. Therefore, a 'hold' recommendation is appropriate, maintaining current positions based on broader company fundamentals rather than this specific insider transaction.

Keywords

Charles Schwab, SCHW, Stephen A. Ellis, Form 4, Restricted Stock Units, RSUs, Director Compensation, Beneficial Ownership, Deferred Compensation