Online brokerage E*Trade Financial has named Citi veteran Steven Freiberg chief executive officer and outlined plans for a reverse stock split.
Freiberg's appointment marks the end of lengthy process to replace former CEO and chairman Donald Layton, who decided to quit in September. Robert Druski, who has acted as interim CEO since, will continue as chairman when Freiberg, who also joins the board, arrives on 1 April.
According to Reuters, the new CEO will receive a salary of $1 million, and is eligible for a $3 million cash performance bonus.
Freiberg spent 30 years at Citi, most recently as co-chairman and co-CEO of the global consumer group, which constituted all consumer business lines in 53 countries, including investment products, retail/commercial banking, credit cards, mortgages, and consumer finance.
He also spent time as chairman and CEO of Citi Cards and lead the banks investment products division.
Says Druskin: "Steve is an exceptional senior financial services executive who brings extensive experience in driving the strategic direction and management of a broad and diverse consumer financial services franchise. We are fortunate to have Steve as our next CEO and are confident that he is the best person to help E*Trade reach its full potential."
Meanwhile, the brokerage is also seeking shareholder approval for a 1-for-10 reverse stock split, reducing the number of authorised common shares to 400 million.