E*Trade has ousted CEO Steven Freiberg about halfway through is 4-year contract, as customer trading has not been where the company needs it to be.

The company announced that its Board of Directors has appointed Chairman Frank Petrilli (pictured) interim CEO as the Board conducts its search for a permanent replacement for Freiberg.

“E*TRADE is a fantastic company with an enduring and iconic brand, a top-notch product and service offering, and a dedicated senior management team,” said Petrilli. “The Company recently implemented a refined business strategy, centered on strengthening the firm’s financial position, while continuing to focus on the core brokerage business – the heart of the Company.”

“We have realigned the Bank organization to exclusively focus on de-risking and de-leveraging while bolstering the Company’s enterprise risk management function,” he added. “Additionally, we are focused on reducing costs with an enhanced focus on efficiencies. Accordingly, the Board believes it is an appropriate time to transition the role of CEO to a new leader to guide the Company through the next phase of its evolution.”

E*Trade’s Board has formed a committee to oversee the process of searching for a new CEO. The company says the committee will focus on candidates who have “strong understanding of the brokerage industry, a foundation in enterprise risk management, and a depth of experience that will allow them to immediately lead” the company’s strategy and management team. The committee consists of Petrilli, Rodger Lawson, Kenneth Griffin, Donna Weaver and Stephen Willard.

In its Q2 earnings report, released last month, E*Trade reported that total revenue was $452 million for the quarter, compared with $489 million the prior quarter, and $518 million for the second quarter of last year.