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SCHWAB'S HIGHEST RANKING FEMALE EXECUTIVE SUES FOR WRONGFUL TERMINATION; ARBITRATION MOVED TO NYSE DUE TO CONFLICT

 SAN FRANCISCO, June 2 /PRNewswire/ -- Citing a "reasonable impression of partiality," in an order filed May 27, 1993, San Francisco Superior Court Judge Lucy McCabe disqualified the NASD from arbitrating claims for wrongful termination, sex and age discrimination brought against Charles R. Schwab and others by former Schwab Executive Vice President and Chief Administrative Officer Barbara Wolfe. While this claim was pending before the NASD, Schwab accepted a three-year position on the NASD board of governors. Mrs. Wolfe is seeking damages in excess of $8 million.
 Schwab's Highest Ranking Female Executive
 At the time of her termination last year, Wolfe was Schwab's senior female executive and had been an employee for 16-1/2 years. She has been described by Charles R. Schwab as a company founder. In October of 1992, Schwab secured a court order compelling Mrs. Wolfe's suit out of court and into arbitration before the NASD. At that time it had not been disclosed -- either to Mrs. Wolfe or to the court -- that Charles R. Schwab had either just been, or was about to be, elected to the NASD's board of governors. On May 21, 1993, prompted by what she termed a "reasonable impression of partiality," on part of the NASD, Judge McCabe rescinded her earlier order and ordered the arbitration to proceed instead before the NYSE.
 EEOC Complaint also filed
 Mrs. Wolfe's suit names former employers Charles Schwab & Co., Inc., The Charles Schwab Corporation, and five senior male executives of the companies, including David Pottruck, Schwab's president and chief executive officer. Mrs. Wolfe has also filed a complaint regarding her termination with the Equal Employment Opportunity Commission (EEOC).
 Retaliatory Discharge
 In her complaint, Mrs. Wolfe alleges that she was wrongfully terminated for discharging her responsibilities under Schwab's internal policies governing business conduct, including Schwab's Manager's Guide To Business Conduct, and Employee's Guide to Business Conduct.
 Mrs. Wolfe claims she was terminated to silence her opposition to the behavior of David Pottruck, who as Schwab's new president and chief executive officer, has assumed Mrs. Wolfe's former responsibilities over Schwab's Human Resources and Compliance departments. As alleged in Mrs. Wolfe's complaint, Mr. Pottruck's unethical behavior included:
 -- Attempt to induce Schwab management to hire females with whom Mr. Pottruck had a relationship and his brother;
 -- Use of a limousine company that Mr. Pottruck owned himself, for which Schwab was billed at market rates even though the chauffeur was already being compensated by Schwab; and
 -- Mr. Pottruck's habit of dealing with female employees in a manner which had caused several complaints to be raised with Schwab's Human Resources department.
 Earlier this year another former Schwab female executive sued the firm for sex and age discrimination, and for reporting "irregularities" in a Schwab subsidiary.
 -0- 6/2/93
 /CONTACT: Deborah Ballati for Schwab, 415-954-4426/


CO: Charles R. Schwab ST: California IN: SU:

SH-LR -- NY017 -- 4334 06/02/93 09:25 EDT
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Date:Jun 2, 1993
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