THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

Charles Schwab Corporation (The) (SCHW)

3/30/2006 Proxy Information

The directors identified below had the following relationships with the company in 2005:

Š Stephen T. McLin, a director, has a son, Stephen D. McLin, who was employed in a non-officer position of Specialist, Technical Product Development during 2005 (and presently). Mr. McLin’s son earned aggregate compensation of approximately $80,000 during 2005. Mr. McLin’s son has been employed by the company for 12 years.

Š Charles R. Schwab, the company’s Chairman and Chief Executive Officer, has a daughter, Carolyn (“Carrie”) Schwab Pomerantz, who was employed as President of the Charles Schwab Foundation during 2005 (and presently). Mr. Schwab’s daughter earned aggregate compensation of approximately $266,000 during 2005. She also received a grant of 12,310 shares of restricted stock and an award of long-term incentive plan units with a target value of $125,000 during the year. Ms. Schwab Pomerantz has been employed by the company for 23 years.

Some directors, executive officers and entities with which they are affiliated have credit transactions with the company’s banking and brokerage subsidiaries, such as mortgage loans, revolving lines of credit, or other extensions of credit. These transactions with directors, executive officers and their affiliates are made in the ordinary course of business and to the extent permitted by the Sarbanes-Oxley Act of 2002. Such transactions are on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other persons and do not involve more than the normal risk of collectibility or present other unfavorable features.

3/30/2005 Proxy Information

The directors identified below had the following relationships with the company in 2004:

Š Stephen T. McLin, a director, has a son, Stephen D. McLin, who was employed in a non-officer position of Specialist, Technical Product Development during 2004 (and presently). Mr. McLin’s son earned aggregate compensation of approximately $68,000 during 2004.

Š Charles R. Schwab, the company’s Chairman, has a daughter, Carolyn (“Carrie”) Schwab Pomerantz, who was employed as President of the Charles Schwab Foundation during 2004 (and presently). Mr. Schwab’s daughter earned aggregate compensation of approximately $250,000 during 2004. She also received a grant of 18,249 stock options and an award of long-term incentive plan units with a target value of $50,000 during the year.

Some directors, executive officers and entities with which they are affiliated have credit transactions with the company’s banking and brokerage subsidiaries, such as mortgage loans, revolving lines of credit, or other extensions of credit. These transactions with directors, executive officers and their affiliates are made in the ordinary course of business and to the extent permitted by the Sarbanes-Oxley Act of 2002 (and by our independence guidelines for directors determined to be independent). Such transactions are on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other persons and do not involve more than the normal risk of collectibility or present other unfavorable features.

3/29/2004 Proxy Information

The directors identified below had the following relationships with the company in 2003:

Š Stephen T. McLin, a director, has a son, Stephen D. McLin, who was employed in a non-officer position of Specialist, Technical Product Development during 2003 (and presently). Mr. McLin’s son earned aggregate cash compensation of approximately $63,000 during 2003.

Š Charles R. Schwab, the company’s Chairman, has a daughter, Carolyn (“Carrie”) Schwab Pomerantz, who was employed as President of the Charles Schwab Foundation during 2003 (and presently). Mr. Schwab’s daughter earned aggregate cash compensation of approximately $160,000 during 2003. She also received a grant of 6,601 restricted shares and an award of long-term incentive plan units with a target value of $50,000 during the year.

Š In 2003, prior to his service as a director, David B. Yoffie received $66,000 in consulting fees.

3/28/2003 Proxy Information

Stephen T. McLin is the Chairman and one of the five members of the Company's Audit Committee. During 2002 (and presently), Mr. McLin's son, Stephen D. McLin, was employed within the Company in the non-officer position of Product Developer, Web Publishing, earning aggregate cash compensation of approximately $65,000 and receiving options to purchase 250 shares of Company common stock at a per share exercise price of $11.75. Mr. McLin's daughter-in-law, Ashley McLin, was also employed within the Company during 2002 as a Branch Client Specialist, earning aggregate cash compensation of approximately $32,000. She did not receive any stock options in 2002. Ms. McLin left the Company in October 2002.

Roger O. Walther is the Chairman and one of the five members of the Company's Compensation Committee. During 2002, Mr. Walther's daughter, Wendy Walther Miller, was employed within the Company as a Vice President of Business Development, earning aggregate cash compensation of approximately $125,000 and receiving options to purchase 3,000 shares of Company common stock at a per share exercise price of $8.57. Ms. Walther Miller left the Company in September 2002.

Charles R. Schwab is the Company's Chairman of the Board and Co-Chief Executive Officer and is not a member of the Audit Committee, Nominating and Corporate Governance Committee or Compensation Committee. During 2002 (and presently), Mr. Schwab's daughter, Carolyn Schwab Pomerantz, was employed within the Company as a Vice President of Consumer Education, earning aggregate cash compensation of approximately $160,000, and receiving options to purchase 5,000 shares of Company common stock at a per share exercise price of $9.71. In addition, Mr. Schwab and Ms. Schwab-Pomerantz co-authored a book entitled IT PAYS TO TALK, which was published in 2002. The copyright for the book is registered in the name of the Company, and the company receives royalties for the book, some of which cover costs related to the book, and some of which will be donated to charity. Neither Mr. Schwab nor Ms. Schwab-Pomerantz receives any royalties or other compensation in connection with the book.