By Niket Nishant

(Reuters) -Charles Schwab said on Tuesday that President Rick Wurster will succeed long-time CEO Walt Bettinger, 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.

"We are not surprised by the retirement following a series of recent senior leadership changes, and the transition to Wurster was also likely well anticipated," TD Cowen analysts said in a note.

Schwab has reshuffled its ranks in recent months, including naming a new CFO. In June, its Chief Operating Officer Joe Martinetto also moved to a different role within the company.

(Reporting by Niket Nishant in Bengaluru; Editing by Shounak Dasgupta)