EXHIBIT 11.1


                           THE CHARLES SCHWAB CORPORATION
                          
                Computation of Earnings per Common Equivalent Share
                     (In thousands, except per share amounts)
                                  (Unaudited)
                                    
                                                                       


                                                            Three Months Ended                  Nine Months Ended
                                                                September 30,                      September 30,
                                                           1994              1993              1994              1993
                                                           ----              ----              ----              ----
                                                                                                                      
                                                                                                   
Income before extraordinary charge                       $31,195           $28,859          $101,544           $95,854
Extraordinary charge - early retirement of debt                              6,700                               6,700
- ----------------------------------------------------------------------------------------------------------------------
Net Income                                               $31,195           $22,159          $101,544           $89,154
======================================================================================================================
                                                                                                                      
                                                                                                                      
Shares                                                                                                                
    Weighted average number of common                                                                                 
        shares outstanding                                56,408            57,622            56,659            57,473
    Common stock equivalent shares                                                                                    
        related to option plans                            1,664             2,041             1,748             1,845
- ----------------------------------------------------------------------------------------------------------------------
    Weighted average number of common and                                                                             
        common equivalent shares outstanding              58,072            59,663            58,407            59,318
======================================================================================================================
                                                                                                                      
Earnings per Common Equivalent Share:                                                                                 
    Income before extraordinary charge                   $   .54           $   .48           $  1.74           $  1.61
    Extraordinary charge - early retirement of debt                            .11                                 .11
- ----------------------------------------------------------------------------------------------------------------------
    Net Income                                           $   .54           $   .37           $  1.74           $  1.50
======================================================================================================================