Stan O’Neal, chairman and chief executive officer of Merrill Lynch & Co., Inc., decided to retire from the company effective immediately, following much criticism on third-quarter losses, announced today. The board of directors elected Alberto Cribiore as interim non-executive chairman.
Merrill Lynch reported third-quarter losses of $2.3 billion and an $8.4 billion charge for failed credit and mortgage-related investments. Earlier this month, the company let go two executives in its fixed-income division.
O’Neal has been chief executive officer of the company since December 2002 and joined the company 21 years ago. Cribiore, who has been a member of the Merrill Lynch board since 2003, also will chair a search committee that will identify and evaluate chief executive candidates from within and outside of the company. Cribiore is managing partner and founder of Brera Capital, a global private equity firm, and former president of private equity firm Clayton Dubilier & Rice.
Merrill Lynch says O’Neal and its 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 would like to thank Stan for the contribution he has made leading a major transformation of Merrill Lynch into a global and diversified company with enormous potential ahead of it,” says Cribiore. “His commitment to the company, its clients, shareholders and employees has never wavered and the company will reap tremendous benefits in the future from his work.”
Cribiore says that Ahmass Fakahany and Gregory Fleming will continue as Merrill Lynch co-presidents and chief operating officers. Fakahany will lead the company’s global support, finance and human resources functions and Fleming will lead the integrated businesses of Merrill Lynch & Co., including risk management.
“I have been very fortunate to spend the past 21 years at Merrill Lynch,” says O’Neal. “The company has provided me with opportunities that I never could have imagined growing up, culminating with my leadership of the company over the past five years. I’ve especially enjoyed working with a group of people whose collective efforts have enabled us to make Merrill Lynch a much more competitive and international company capable of realizing the full potential of a brand that is synonymous with excellence and client service. I’d like to thank all of my colleagues for their contributions and support of our mission and wish them the successful future they deserve.”