Schwab the latest CA company seeking greener pastures

Schwab the latest CA company seeking greener pastures

 

Big Tex wikimediaCharles Schwab is shorting California. The online brokerage, a Fortune 500 corporation, announced recently it is relocating 1,000 jobs from its San Francisco headquarters to out-of-state locations.

“The decision to reduce our concentration in San Francisco is based on many factors,” said Schwab spokesman Greg Gable, “including making optimal use of other locales and the opportunities there.”

Among the locales he mentioned are Texas, Colorado, Ohio, Florida and Arizona. Indeed, following Schwab’s announcement, Texas Gov. Rick Perry tweeted, “Looks like more California jobs coming to Texas.”

Schwab is reducing its concentration in San Francisco, said Gable, to address “the high cost of doing business and cost of living in the Bay Area, as well as our ability to recruit talent in this highly competitive labor market.”

The brokerage will maintain its presence in San Francisco, “for corporate functions,” according to Gable, “but it may be only a matter of time before the company moves its headquarters to a more business-friendly state.”

Just last May, in fact, Charles Schwab was in Denver for a ceremony opening up the company’s new $230 million, 40 acre campus, during which he said he may one day relocate the company’s headquarters from California to Colorado.

And it’s certainly not unforeseeable that Schwab could decide to move its corporate headquarters to Texas.

Opportunities

Not only does the Lone Star State boast both a low cost of doing business – which is very important to corporations like Charles Schwab – and low cost of living – which is very important to employees of corporations like Schwab – the state government provides the “opportunities” to which Gable alluded in the form of business incentives.

That includes the Texas Enterprise Fund and Emerging Technology Fund, which Perry has been able to draw upon the past 10 years  to “close the deal” with out-of-state companies – like Schwab – considering either relocation or expansion to Texas.

TEF, the biggest state fund of its kind in the country, has provided nearly $500 million in incentives since it was created by the Texas legislature in 2003, at Gov. Perry’s behest. It has generated $17.4 billion in capital investment over that span, according to the fund’s 2013 Legislative Report, while also added more than 66,000 jobs to the Texas economy.

ETF was established in 2005 to assist tech start-ups in collaboration with Texas universities. It has awarded roughly $425 million to 190 projects, according to ETF’s 2013 Legislative Report. And that seed money has led to $2.2 billion in follow on funding.

California doesn’t have similar state funds with which to compete with a motivated rival like Texas. And that’s why Charles Schwab may eventually move its corporate headquarters from the Golden State to the Lone Star State.

11 comments

Write a comment
  1. californianative
    californianative 21 February, 2014, 17:33

    California will always be attractive to the CEO’s and high value employees. Not so much to the rank and file people who really worry about buying a home in a decent neighborhood, sending the kids to decent schools, paying the monthly bills and having a bit left over at the end of the month so they can save for the kid’s college fund or maybe take a decent vacation. I love my home state, but really, for most educated rank and file people it is becoming just too burdensome to put up with the low quality of life in California in spite of the most beautiful climate and scenery on the planet. Charles Schwab can keep the mansion in San Francisco and his executive colleagues and high end financial people will still be able to send their kids to private school in the Bay Area. Everyone else, not so much, but the ” regular Joes” will ultimately be happier in Denver, Austin, Salt Lake, Raleigh, wherever.

    Reply this comment
    • Rex the Wonder Dog!
      Rex the Wonder Dog! 22 February, 2014, 07:57

      California will always be attractive to the CEO’s and high value employees.
      Back in 1990, CA was home to 65 Fortune 500 companies, only NY had more at 75, today CA only has 45, a drop of 20%….so I think you’re wrong.

      Reply this comment
  2. californianative
    californianative 21 February, 2014, 17:46

    A young doctor I know, with three young children, just relocated to Raleigh, NC with his wife and children from the Bay Area. One of his main reasons for leaving was the quality of education. He said, ” The public schools where I live are marginal at best, it was going to cost me $85,000 per year to send the kids to private school, we just had to get out”. Sure some families can handle it but many families, even those with highly educated parents, come to the realization that there is more to life than beautiful scenery and climate.

    Reply this comment
  3. Queeg
    Queeg 22 February, 2014, 09:14

    There is no guilt or nothing wrong about better everything for your family.

    Every waking moment is a family battle against globalists, ivy league MBA’s, big box stores, chain processed foods restaurants.

    Anyone moving from the Bay Area is a liberation from filth, over priced dilapidated housing and crappy educational opportunities.

    So happy for the Doc and his family. North Carolina is very nice and affordable.

    Reply this comment
  4. Bill Gore
    Bill Gore 22 February, 2014, 20:14

    Hey everyone-I’ll bet Ulysses UHaul is rubbing his hands together in glee at all the ‘doomer’ Schwab executives that will soon be vacating the formerly Golden State….

    Seriously, some high level state player should pull Chuck Schwab aside at the next Bohemian Grove and patiently explain to him that California still absolutely reeks of fabulous, and any price isn’t too high in terms of taxes, regulation and cost of living, just for the rare privilege of simply being here.

    After all, he didn’t really build it (the business that is) did he?

    Reply this comment
  5. Ulysses Uhaul
    Ulysses Uhaul 22 February, 2014, 23:54

    Goreyest

    If you some of these departing chaps, put in a good word for us…..

    Reply this comment
  6. SeeSaw
    SeeSaw 23 February, 2014, 09:17

    Tee-hee! You go on, Californianative. Enjoy that smothering humidity, closed-minded constituents, and made-up textbooks. We who remain will have CA all to ourselves!

    Reply this comment
  7. Ulysses Uhaul
    Ulysses Uhaul 23 February, 2014, 09:27

    Saw.

    Those hilly bob reality show stars are the welcoming committe..

    Will might give ya a $100.00 gift card to Whole Foods or Sprouts for a multi-doomer moving referral..

    Reply this comment
  8. AreaMan
    AreaMan 25 February, 2014, 14:11

    Ahhh…SeeSaw thank you for correctly identifying the South so accurately. All of those things are true. The South is a horrible, horrible place. Please stay away.

    Anything you can do to keep Californians from relocating to the south would be greatly appreciated.

    Reply this comment
  9. billybs
    billybs 2 March, 2014, 18:22

    Unbridled ignorance by a cal state retiree, a strong case for euthanasia.

    Reply this comment
  10. Queeg
    Queeg 9 March, 2014, 11:29

    Yep. The South is foreboding!

    All my buds in Skunk Hollow, West Virginia tell me how miserable it is not working cubicle jobs and forcing them into hunting and fishing and shooting and going to Church twice a week followed by Cornish-style pot lucks or Sally Mae’s homemade donuts.

    And…AND….they somehow accidentally protect the environment by preserving clean water sources for making “Shine” too instead of getting credit card blisters on their fingers from big box store shopping, Macchiato thingee purchasing or ravenously chawing on plasticized foot longer’s.

    Reply this comment

Write a Comment

Leave a Reply


Tags assigned to this article:
Joseph PerkinsRick PerryTexasCharles Schwab

Related Articles

On energy resources, will CA ignore lessons of North Dakota?

It was just less than two years ago that City Journal had the first high-profile story laying out the enormous

LAUSD spends $30K per student

AUGUST 20, 2010 By JOHN SEILER The research by Adam Schaeffer of the Cato Institute’s Center for Education Freedom seemed

Homeschools Get Out of Detention

Mar. 19, 2010 By JOHN SEILER In California, 2010 is the year homeschools got out of detention, to use education