Posted on: Wednesday, July 25, 2001

Merrill Lynch names new president

Bloomberg News Service

NEW YORK — Merrill Lynch & Co., the country's biggest securities firm, named E. Stanley O'Neal president and chief operating officer, making him the likely successor to Chief Executive David Komansky.

The 49-year-old O'Neal would be the first black CEO of a Wall Street securities firm and the first head of Merrill Lynch who never worked as a broker. O'Neal has been an investment banker and the chief financial officer during 15 years at the firm.

His brokerage division accounts for about half of Merrill's revenue and he oversees $1.6 trillion in assets.

O'Neal has changed the face of the brokerage in the past 18 months. O'Neal shifted Merrill's emphasis from serving Main Street to focusing on the wealthiest investors. In the process, he cut 2,000 jobs and improved profits at the brokerage unit he headed since February 2000.

"In my opinion, he was the best CFO that Merrill Lynch ever had," said Komansky, who will likely retire in three years. "I saw him function under difficult, pressure-filled times and do it admirably."

"He's very wise, responsible, he knows the ropes and has an ability to lead," said Donald T. Regan, former Merrill Lynch CEO and Treasury secretary under President Reagan. "He's deferential but not subservient in his treatment of his elders, like me and the other former chairmen. He speaks his mind."

In 2000, O'Neal earned $21.6 million, including a cash bonus of $9.7 million. Born in Roanoke, Ala., the Harvard Business School graduate, joined Merrill as a vice president in 1986 and was named a managing director several years later. He became CFO in 1998.