The CEO of U.S. discount broker Charles Schwab Corp., David Pottruck, was pushed out by the company’s board Tuesday, effective immediately, as the brokerage firm reported a 10% drop in earnings in the second quarter, blaming customer reluctance to trade stocks.

Charles R. Schwab, currently board chairman, was appointed to succeed Pottruck as CEO. Schwab will continue to serve in the board position.

Pottruck’s resignation comes after nearly 30 years at the company. “The last few years have been difficult in the securities markets, and I accept the board’s decision that it’s time for me to step aside,” Pottruck said in a prepared statement.

The San Francisco-based discount brokerage firm reported second quarter net income of US$113 million, or US8¢ a share, compared with US$126 million, or US9¢ a share, a year earlier.

Revenue was US$1.11 billion, up 9.2% from US$1.02 billion last year.

Schwab had warned in May that its second-quarter earnings would fall shy of expectations as trading in its customers’ accounts slowed down.