IT 100 Special Report 2006 >



E*Trade Financial



E*Trade may have missed out on its biggest deal, but the ones it did close worked out just fine. Rebuffed in a bid to acquire TD Ameritrade, New York-based E*Trade turned its purchases of smaller online brokers Brownco and HarrisDirect into gold. International trading and options markets generated fat commission growth, and interest income rose 50% in the first quarter as E*Trade kept cross-selling banking and trading services. Add in cost savings from the mergers, and management is promising operating margins this year in excess of 40%. Those memories of the dot-com crash and outrage over ex-CEO Christos Cotsakos' huge compensation recede further every year.

Company Info

2005 Rank

Not Ranked

($ Millions)


Sales Growth
(over prev. year)

36 %

($ Millions)


Return on Equity

13.5 %

Total Return on Sales (12-mo.)


Share Price
As of 5/31/06




No. of Employees


Industry Internet Companies
*Trailing 12 months
Stock price data as of 5/31/06
DATA: Standard & Poor's Compustat

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Company Snapshot

E*TRADE Financial Corp. provides financial solutions to retail and institutional customers globally. It offers retail investing and trading products and services, including automated order placement and execution of market and limit equity, futures, options, exchange-traded funds, and bond orders; real-time streaming quotes, commentary, and news; advanced trading platforms for traders; personalized portfolio tracking; and access to approximately 7,000 non-proprietary and proprietary mutual funds. The company's products and services also include Federal Deposit Insurance Corporation-insured sweep deposit account; mortgage, home equity lines of credit and second mortgage loans secured by real estate; vehicle, marine, automobile, and credit card loans; and online bill payment services. In addition, it provides advisory and asset management services to retail clients; and token-based security solution, which offers security at the point of access to the Internet to safeguard the personal financial information. The company serves retail, institutional, and corporate customers through the Internet and other electronic media. E*TRADE Financial was incorporated in 1982 and is based in New York City.

Data provided by Capital IQ
Mitchell H. Caplan

Mitchell H. Caplan, 47

Chief Executive Officer and Director

Total Compensation


Value of Options


Emory University - JD, Emory University - MBA, Brandeis University - BA

Mitchell Caplan has been chief executive officer of E*Trade Financial since January, 2003. Caplan previously served as vice-chairman and president of TeleBanc Financial from January, 1994, and as its CEO from April, 1998. Prior to that, he was an associate of the law firm Shearman & Sterling from 1984 to 1990. Caplan has been a director of E*Trade Financial since January, 2003. He served as a director of E*Trade Global Asset Management and as a trustee of the E*Trade Funds. He served as a director of TeleBanc Financial. Caplan received a bachelor's degree from Brandeis University and law and MBA degrees from Emory University.

Executive Data provided by Capital IQ