How We Compensate Our Investment Professionals

ARCHIVED 2020-07-04, DATE APPROXIMATE · VERSION 20200704_rev01 · COMPARED WITH 20191115_rev01

Full text changes — 20191115_rev01 to 20200704_rev01

COLOUR MARKS THE SEVERITY OF A FLAGGED CLAUSE · + AND − MARK ADDED AND REMOVED

 ## How we compensate our investment professionals
 Since Charles Schwab & Co., Inc. ("Schwab") was founded more than 40 years ago, we've been committed to serving the needs of individual investors. One of our most important beliefs is that you should understand how the financial professionals assisting you are paid, so you can evaluate the recommendations you receive.
+On these pages, we identify the different categories of investment professionals who may serve you at Schwab and describe how they are compensated. This includes both Schwab employees and independent branch franchisees (and their employees) operating Schwab Independent Branches.
+On these pages, we identify the different categories of investment professionals who may serve you at Schwab and describe how they are compensated. This includes both Schwab employees and independent branch franchisees (and their employees) operating Schwab Independent Branches. Compensation for investment professionals who provide recommendations is designed to support the provision of advice in the client's best interest.
+Certain representatives who demonstrate exceptional performance during the year may also be eligible to earn an annual trip through Schwab's Chairman's Club, or other awards. Schwab may develop additional recognition events or programs from time to time.
+Certain representatives who demonstrate exceptional performance during the year may also be eligible to earn an award through Schwab's Chairman's Club, or other recognition programs. Schwab may develop additional recognition events or programs from time to time, none of which measures or ranks representatives based on the recommendation of specific products, offers, or services.
 Please note that the information below describes how Schwab pays employee professionals and shares revenue with Independent Branch professionals, not how you pay Schwab for the services you receive. Information about what you pay Schwab for the services we provide can be found at [schwab.com/pricing](https://www.schwab.com/public/schwab/investing/pricing_services/fees_minimums).
 ## Recent changes
+These pages summarize our compensation plans and incorporate all recent changes in effect as of July 1, 2019, including changes to how we pay Schwab Financial Consultants.
+These pages summarize our compensation plans and incorporate all recent changes in effect as of July 1, 2020, including changes to how we pay Schwab Financial Consultants.
+This brochure is accurate as of the date indicated above.
 We invite you to read this information carefully and to contact us at **800-435-4000** if you have any questions. (For multilingual services, call **800-662-6068**. For services outside the U.S., call **+1-415-667-8400**.)
 ## Types of investment professionals
 | [U.S. Branch Representatives](https://www.schwab.com/node/4806) |
 - VP-Financial Consultants
 - Client Relationship Specialists
 - Financial Consultant Partners
 - VP-Branch Managers
+ |
 | --- | --- |
+| [Specialty Representatives (Phone-Based)](https://www.schwab.com/legal/compensation-advice/specialty-representatives-compensation) |
+| [Specialty Representatives](https://www.schwab.com/legal/compensation-advice/specialty-representatives-compensation) |
 - Investor Development Specialists
 - Financial Consultants (Participant Investor Concierge)
 - VP-Financial Consultants (Executive Services)
 - VP-Financial Consultants (Regional Branch)
+- VP-Senior Wealth Advisors
+- VP-Financial Consultants, Member Relationship Advisors
+- VP-Corporate Financial Consultants
 - Advice Consultants
 - Trading Solutions Representatives
 - Fixed Income Specialists
+- Insurance Services Annuity Specialists
+- Insurance Services Regional Annuity Specialists (Annuity Specialists)
+- Regional Banking Managers
 - Portfolio Solutions Group Investment Consultants
+ |
 | [International Branch Representatives](https://www.schwab.com/node/4826) |
 - International VP-Financial Consultants
 - Independent Branch Leaders
 - IB Representatives
+ |
+## Certain Charles Schwab Affiliates
 If you have questions about information contained in this section, please call **800-435-4000**. For media inquiries, please call the Schwab Corporate Public Relations hotline at **415-667-9500**.
 Third-party trademarks are the property of their respective owners.
 Please note that the information in this section does not apply to Schwab accounts managed by an independent investment advisor. Independent investment advisors are not owned by, affiliated with, or supervised by Charles Schwab & Co., Inc. ("Schwab").