TD Ameritrade’s founder is predicting that Omaha may well come out ahead on jobs after the firm’s planned merger with Schwab.
“I’m going to give you a guess: that there are going to be more people working at Ameritrade here in Omaha five years from now than there are now,” Joe Ricketts said recently.
Ricketts said he was basing his prediction on the quality of TD Ameritrade’s workforce and the low cost of operating in Omaha, two things he believes Schwab’s leaders will recognize, too.
Ricketts’ first public comments since the November announcement that Schwab is acquiring the Omaha-based brokerage came in an unusual place — a podcast hosted by his son, Nebraska Gov. Pete Ricketts.
The governor releases an occasional podcast called “The Nebraska Way” where he sits down to interview Nebraskans.
In the latest podcast, released Monday, Pete Ricketts asked his father to talk about growing up in Nebraska City, the founding of his discount brokerage in Omaha in 1975, how it grew into the nation’s largest online stock trader, and the planned merger with Schwab.
The announcement of the mega-brokerage merger spurred fears of job loss among the 2,300 people who work at TD Ameritrade’s green-tinted headquarters tower and surrounding operational facilities, highly visible in Omaha just off Interstate 680 and West Dodge Road.
Joe Ricketts long ago gave up the CEO job at Ameritrade, and he has no direct say in how Schwab will restructure the two firms’ workforces as it establishes a new headquarters for the combined company in the Dallas metro area.
But the man who remains TD Ameritrade’s largest individual shareholder called it “foolishness” to think “everybody at TD Ameritrade is going to lose their jobs and they’re all going to Texas.”
He said the success of Ameritrade was largely built on the “cream of the crop” workforce it has in Omaha, workers he described as well-educated, hard-working and “very, very valuable.”
“The secret sauce of the success of Ameritrade is the great people we have,” he said.
Ricketts also lauded Omaha as a place to do business, much more cost-effective than Schwab’s current headquarters city of San Francisco, New York or most other places.
“This is a gem of a place for a company to have an office,” Ricketts said. “I don’t think that Schwab is going to lose that.”
Ricketts did acknowledge that the merger will mean change, with some people losing jobs or seeing their job functions change. But he thinks the potential is “quite high” that TD Ameritrade’s current Omaha operations will get through the merger, adjust and continue to grow.
“People here really underestimate themselves when they think things are going to another part of the country,” he said. “Trust me, they are better off here than anywhere else.”
The merger of TD Ameritrade and Schwab is not expected to close until later this year, with total integration of the companies then to proceed over as many as 36 months.
Joe Ricketts didn’t address it in the podcast, but The World-Herald reported last month that TD Ameritrade’s founder got Schwab to include language in the merger agreement intended to help preserve jobs in Omaha.
On its face, the wording gives Schwab much leeway to reduce the acquired firm’s workforce in Omaha, and the agreement sunsets after two years. But a person close to Ricketts has said it accomplished his goal of requiring Schwab to be deliberate as it considers how to integrate TD Ameritrade’s Omaha operations into its own.
The planned merger has left Pete Ricketts, himself a former TD Ameritrade executive and board member, in the position of seeking to persuade Schwab executives to preserve jobs at his former firm. He has said he’s already spoken to Schwab’s founder and chairman, Charles “Chuck” Schwab, and the firm’s current CEO.
At the end of the podcast, Pete Ricketts gave his father the opportunity to pitch his just-released autobiography, titled “The Harder You Work, the Luckier You Get,” and to promote his personal website, joericketts.com.
Joe Ricketts has at times been a controversial figure. The billionaire is a major donor to Republican candidates and one of the nation’s largest funders of conservative causes and libertarian thought. A year ago, he issued an apology after a website published a series of emails he’d sent containing racist jokes and anti-Muslim conspiracy theories.
“There’s no secrets about me,” Joe Ricketts said in asking people to go to his website. “My opponents like to spread rumors I have horns and a tail. I really don’t.”
How Omaha and Nebraska’s Fortune 1000 list has changed since 2015
Berkshire Hathaway

2015 Fortune rank: 4
2019 rank: 4
Employee trend: Grew by 73,000
Warren Buffett's Berkshire Hathaway continues to grow, with 389,000 employees in all its various subsidiaries. The austere Berkshire headquarters in Omaha is growing, too, adding a second floor for its 26 office employees as the company extends its office lease at 36th and Farnam Streets.
Union Pacific

2015 Fortune rank: 123
2019 rank: 134
Employee trend: Down by 5,234
Union Pacific continues to be a corporate jewel for Omaha. Its place on the Fortune list has dropped slightly since 2015, as has the company's total number of employees as U.P. goes through a major drive to improve its operating efficiency. Even as it cuts employees, Union Pacific's annual profits have grown from nearly $5.2 billion in 2015 to just short of $6 billion in 2019, according to Fortune.
ConAgra Foods

2015 Fortune rank: 173
2019 rank: 386
Employee trend: Down 20,400
ConAgra got its start in Nebraska and, in 1987, extracted tax incentives from the State of Nebraska and a historic warehouse district from Omaha to stay in the state. In 2015, ConAgra announced it would relocate its headquarters to Chicago. Today, Omaha retains some 1,300 employees with what’s now called Conagra Brands, but the city lost the prestige as a headquarters location.
Peter Kiewit Sons' Inc.

2015 Fortune rank: 286
2019 rank: 340
Employee trend: Down by 5,700
The national and international construction and engineering company continues to have a significant corporate presence in Omaha, and its leaders are civic and philanthropic leaders in the city. Kiewit is building a new headquarters in Omaha's North Downtown, next to the company's existing training center.
Cabela's

2015 Fortune rank: 663
2019 rank: None
Employee trend: 19,300 employees consolidated into Bass Pro Shops, or laid off
After going public, the Sidney-based outdoors retailer entered a tumultuous period when a New York hedge fund bought into the company. In 2017, Bass Pro bought Cabela's and consolidated corporate operations at the Bass Pro headquarters in Missouri, dealing a significant economic blow to Sidney.
Green Plains

2015 Fortune rank: 712
2019 rank: 644
Employee trend: Grew by 354
Green Plains Inc. is a leading ethanol producer that formed in 2004 and is now headquartered in Omaha's Aksarben Village. Most recently, it announced a quarterly loss compared to the third quarter of 2018. But the company has had eyes on reaching the Fortune 500.
TD Ameritrade

2015 Fortune rank: 727
2019 rank: 509
Employee trend: Grew by 3,412, before the coming job losses and sale to Schwab
Surprise! The locally grown TD Ameritrade is being sold to the Charles Schwab Corp. TD Ameritrade has had a growing presence in Omaha, with its new Old Mill-area headquarters and corporate sponsorship of TD Ameritrade Park. But jobs will be cut, along with another Omaha headquarters.
Valmont Industries

2015 Fortune rank: 729
2019 rank: 806
Employee trend: Down by 993
Valmont started in Valley, Nebraska, in 1946, as a farm irrigation equipment manufacturer. As the company has grown and diversified, it established its headquarters in Omaha. It is recommitting to Omaha with a new headquarters in the Heartwood Preserve development at 150th Street and West Dodge Road.
West

2015 Fortune rank: 794
2019 rank: None
Employee trend: Job cuts — from 35,000 in 2015 to 10,720 two years later
In 1986, West started in Omaha as a telemarketer and diversified into a telecommunications service company over the years. In 2017, the private equity firm Apollo Global Management bought the company, and West was renamed Intrado Corporation in summer 2019.
Werner Enterprises

2015 Fortune rank: 971
2019 rank: 867
Employee trend: Grew by 674
Founded in 1956, the trucking and logistics firm is based in Sarpy County. In addition to 13,000 employees, it cites a fleet of 7,800 trucks and 24,000 trailers. But the trucking industry has seen a slowdown this year. In 2017, analysts wondered if Werner could be part of consolidation in the industry.
cordes@owh.com, 402-444-1130