Oct 1 (Reuters) - Charles Schwab ( SCHW ) said on

Tuesday that President Rick Wurster will succeed long-time CEO

Walt Bettinger as its next chief executive, paving the way for a

change of guard at the brokerage firm after 16 years.

Bettinger, who became CEO in late 2008, will retire from his

role at the end of the year but continue as the executive

co-chair of the board, the company said.

The CEO transition comes at a time when elevated interest

rates have made deposits and debt costly, pressuring the

brokerage firm's earnings in its most recent quarter.

Schwab's shares have fallen nearly 6% this year even amid a

rally in equities.

Under Bettinger, Schwab grew its market capitalization to

$119 billion from $18 billion at the end of 2008. Client assets

also grew more than eight times over the same period.

He oversaw the company's $26-billion acquisition of TD

Ameritrade and eliminated commissions on trading, a move that

helped it win more retail clients.

In an interview with CNBC, Bettinger said he had targeted

2025 as the time to retire.

"We wrapped up the integration of Ameritrade this past

summer. It was really important for me to be here through that

integration and to see it through," Bettinger told CNBC.

Wurster, who will take over on Jan. 1, joined Schwab in

early 2016. Prior to that, he held leadership roles at asset

manager Wellington Management and management consulting firm

McKinsey.