Merrill Lynch (NYSE:MER) has finally announced a part of the inevitable. Stan O’Neal is retiring effective immediately, which we all know is a mutual resignation and firing after the worst brokerage quarter out there. The company said the board of directors has elected Alberto Cribiore as interim non-executive chairman, and he also will chair a search committee that will identify and evaluate chief executive candidates from within and outside of the company.
The company said Mr. O’Neal and the board of directors both agreed that a change in leadership would best enable Merrill Lynch to move forward and focus on maintaining the strong operating performance of its businesses, which the company last week reported were performing well, apart from sub-prime mortgages and CDOs. We won’t even bother noting the "thank you for your services" comments.
Ahmass Fakahany and Gregory Fleming will continue as Merrill Lynch co-presidents and chief operating officers.
This "retiring" rather than an outright firing will likely allow for quite a large retirement or severance package to remain in place. Without an immediate succession plan being put in place, this is going to disappoint many skeptics. The net result here really just boils down to whether you view change as a glass half-full or a glass half-empty.
Shares are down roughly 2% at $66.16 pre-market, and the 52-week trading range is $59.14 to $98.68.
Jon C. Ogg
October 30, 2007
Top Gaining Stocks
Top Losing Stocks