E-Trade Financial (NASDAQ:ETFC) announced Thursday that its board of directors has appointed Frank J. Petrilli to serve as interim CEO, effective immediately. Petrilli’s appointment follows the abrupt departure of former CEO Steven J. Freiberg.
“The Company recently implemented a refined business strategy, centered on strengthening the firm’s financial position, while continuing to focus on the core brokerage business — the heart of the company,” Petrilli said in a press release.
“We have realigned the bank organization to exclusively focus on de-risking and de-leveraging while bolstering the company’s enterprise risk management function,” Petrilli continued. “Additionally, we are focused on reducing costs with an enhanced focus on efficiencies.”
Petrilli also said that those changes makes now the right time to find “a new leader to guide the company through the next phase of its evolution.”
In conjunction with the CEO shakeup, the company appointed Rodger Lawson as lead independent director to serve as a representative for the non-management directors. Petrilli, who has served on E-Trade’s board since January of this year, will remain as chairman.
Investors seem encouraged by Freiberg’s dismissal, as shares of ETFC spiked more than 6% during Thursday morning trading.
