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Colorado woos Charles Schwab for 500 new jobs

By Joanne Kelley, Rocky Mountain News (Contact)

Published January 15, 2009 at 2:28 p.m.

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Gov. Bill Ritter laughs with state Sen. Nancy Spence, R-Centennial, before announcing Thursday that Charles Schwab Corp. will add 500 new jobs in Colorado. "Even if the economy wasn't in dire straits, this would be a major economic development deal," he said.

Photo by Chris Schneider / The Rocky

Gov. Bill Ritter laughs with state Sen. Nancy Spence, R-Centennial, before announcing Thursday that Charles Schwab Corp. will add 500 new jobs in Colorado. "Even if the economy wasn't in dire straits, this would be a major economic development deal," he said.

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Here's some news that you didn't expect from the battered financial services industry.

Charles Schwab Corp. announced plans Thursday to add more than 500 new jobs in Colorado over a three-year period starting in mid-2009.

The average salary for the primarily information technology jobs: $75,000.

"Even if the economy wasn't in dire straits, this would be a major economic development deal," Gov. Bill Ritter said at a news conference at the state Capitol.

The San Francisco-based financial services company will base the positions in Douglas County's Inverness Business Park.

The news comes on the heels of a record number of jobless claims for the state. Colorado's unemployment rate climbed to 5.8 percent in November and is expected to continue rising in coming months.

Schwab's expanded presence will bring roughly $157 million in annual economic benefit to the state. It plans to invest about $2.7 million on technology equipment and refurbishing and furnishing the facility it will lease to house the new employees.

"This is big deal," said John Brackney, president of the South Metro Denver Chamber of Commerce. "This is a good sign for Colorado."

The company already has 1,300 employees in Colorado, although company officials said it has been scaling back in some areas here and in other states to cut expenses. The plan to add tech jobs here is part of a "long-term geographic strategy," said Sherri Kroonenberg, senior vice president of Schwab Investor Services.

She said most of the jobs will be filled with new hires, while a small percentage will be taken by employees who relocate to Colorado.

Schwab will receive a yet-to-be- determined cash payment from the state, which competed with others to woo the company, once it creates the jobs and keeps them here. The economic development incentive comes from money raised through the state's gaming sector.

"The exact amount (Schwab will get) will depend," said Don Elliman, head of the state's economic development office. "It could hit seven figures . . . the first number of those seven figures is likely to be a low one."

kelleyj@RockyMountainNews.com or 303-954-5068

WHAT THE FINANCIAL SERVICES GIANT PLANS TO DO

* Who: Charles Schwab Corp., the San Francisco-based financial services giant

* What: Plans to create 500 new jobs in Colorado, mainly information technology positions that will bring about $157 million in economic benefit to the state

* Why: The firm already has a presence in the Denver area and its long-term strategy is to spread jobs throughout its various locations

* When: Over three years starting in mid-2009

* Where: Inverness Business Park in Douglas County

* How: Interested parties can get started online at: aboutschwab.com/careers

Comments

  • January 15, 2009

    2:43 p.m.

    Suggest removal

    Who_Me writes:

    Didn't they just lay off a bunch of people in December?

    http://www.rockymountainnews.com/news...

  • January 15, 2009

    2:47 p.m.

    Suggest removal

    COLibertarian writes:

    Who_Me

    They say that they "scaled" back in some areas......

    "The company already has 1,300 employees in Colorado although company officials said it has been scaling back in some areas here and in other states to cut expenses. The plan to add tech jobs here is part of a "long-term geographic strategy,""

    Nice tho that they are ramping up more tech jobs here in Denver!

  • January 15, 2009

    2:58 p.m.

    Suggest removal

    Scott writes:

    YAHOO!

  • January 15, 2009

    3:01 p.m.

    Suggest removal

    leavemealone writes:

    Nice....

    Colorado is looking super!

  • January 15, 2009

    3:01 p.m.

    Suggest removal

    Willy writes:

    They are moving their tech jobs out of California due to the regulatory climate and the extra costs involved in doing business in California. This is part of a plan that has been in place for some time.

  • January 15, 2009

    3:42 p.m.

    Suggest removal

    MrYeahBut writes:

    Can I have one?

  • January 15, 2009

    3:46 p.m.

    Suggest removal

    Scott writes:

    "...the first number of those seven figures is likely to be a low one"

    This engineering and math major would like a definition for a "low one" versus a "high one". Oh, that's right a state employee made that comment, now I understand. ;-)

    So some real journalism would have included answer to:
    Is Schwab moving the people here or are the 500 jobs for locals or is it a mix?
    Precisely what are the "cash incentives"?
    What constitutes, "...and proves that it plans to keep them [jobs] here."?
    What is bad about CA's regulatory climate? (Thanks Willy)

    Scott

  • January 15, 2009

    3:59 p.m.

    Suggest removal

    Willy writes:

    Scott - I don't remember the details of what regulations are driving them from California. I was involved in a conversation about six months ago where these moves were discussed. Since the regulatory part did not directly impact me, I was concentrating on how I could profit from the move. I could problably dig up the details.

  • January 15, 2009

    4:11 p.m.

    Suggest removal

    Scott writes:

    Willy,

    No problem and thanks for the offer. I was just curious since you brought it up. Am I to a$$/u/me that you were involved with getting Schwab to move these jobs here?

    Scott

  • January 15, 2009

    4:19 p.m.

    Suggest removal

    Willy writes:

    No - I was trying to sell them some business related to the work they are doing here.

  • January 15, 2009

    10:28 p.m.

    Suggest removal

    BacklashSchitzka writes:

    Lucky for Douglas County...until THIS financier falls flat and pulls the proverbial rugs out from under their trusting employees, and the Douglas County tax base.

  • January 15, 2009

    10:59 p.m.

    Suggest removal

    stumanchu writes:

    Does anybody know where to send your resume?

  • January 16, 2009

    8:38 a.m.

    Suggest removal

    taylor777 writes:

    Their campus is off of Dry Creek in Inverness and is actually in Arapahoe County. I am sure they could move to Douglas County but it would be hard to move the Inverness campus with them.

  • January 16, 2009

    12:35 p.m.

    Suggest removal

    MavrickG writes:

    BacklashSchitzka you are a negative person. If you bothered to find out about companies before you comment you would have seen that Schwab was one of the most stable out there. Unlike otheres they didn't get involved in giving mortgages to people without jobs. They have been hiring good brokers and other employees away from the firms that are having problems. $75K a year jobs are a nice addition to our area.

  • January 16, 2009

    1:48 p.m.

    Suggest removal

    Diff writes:

    stumanchu - Where to send a resume? ARE you for real?

    If you are not able to find that out for yourself - my guess is they're not going to hire you!

  • January 16, 2009

    1:51 p.m.

    Suggest removal

    Diff writes:

    My other thought tho - is if they just laid off workers and then make a decision to open this new facility with "new" jobs - how is it they are getting a million dollar package from the state?

    Seems there might be something a bit not quite right in that!

  • January 16, 2009

    3:02 p.m.

    Suggest removal

    arvada_mark writes:

    Am I the only one who can't figure the $157mil per year thing? 500 jobs, times $75k/yr equals $37.5mil. Now the refurbishing & whatnot they were talking about...is not an annual revenue driver. It is a single event that will end. What will their utilites & such cost? $2mil a year, tops. Hell, call it $5mil. Call it $10mil, we're still not even close. Why do they have to take something that is genuinely good & make it bad by filling the gaps with lies or half truths? I blame the Gov. I realize there's more revenue than just what I mentioned, but another $100mil? Where is the other $100+ million going to come from...annually? This isn't the Mini Page, no need to dumb it down. We can take it.

    "She said most of the jobs will be filled with new hires, while a small percentage will be taken by employees who relocate to Colorado."
    So what you are saying is that it's not really 500 jobs? Alrighty then.

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