Schwab Sells 2.6 Million of His Brokerage Shares

Charles Schwab, who resigned three months ago as co-chief executive of the discount brokerage firm he founded in 1971, sold 2.6 million shares in the company for $26.2 million in the last week.

Schwab, who turned 66 on July 29, sold 1 million shares of San Francisco-based Charles Schwab & Co. at $9.88 each on Aug. 4 and another million -- half at $10.10 a share and half at $10.04 -- on Aug. 1, the company said in a filing with the Securities and Exchange Commission. On July 30, Schwab sold 600,000 shares at $10.40 each.

Schwab shares fell 15 cents to $10.15 in New York Stock Exchange trading Tuesday.

The sales, at the upper end of the stock’s 52-week price range of between $12.38 and $6.56, are the biggest in 2 1/2 years by the discount broker pioneer.

Schwab handed the company reins to former co-Chief Executive David Pottruck, 55, on May 9. Schwab remains the chairman, marketing figurehead and biggest shareholder of the company. Through personal and family holdings, Schwab owns about 241 million shares, or 17.5% of the firm.

Schwab’s sales are “a periodic diversification that is part of his overall wealth management, estate planning and cash management strategy,” spokesman Greg Gable said. On July 31, Schwab also donated 1 million of shares he holds in his trust to Stanford University, his alma mater, Gable said.