Stanley O'Neal

Wall Street can't knock Grasso out

Jim Kim — Tue, 03 Jun 2008 07:17:11 -0400

This seems like it happened a long time ago: Former NYSE chief Dick Grasso was locked in a do-or-die struggle with then state Attorney General Eliot Spitzer over his eye-catching take of $185 million. The New York Times points out that Grasso may have put some kind of curse on his adversaries. Just look at what has happened to Spitzer--a humiliating story to say the least. And then there's Jimmy Cayne and Stanley O'Neal, both whom were on the board that approved much of Grasso's pay and witnessed his fall from grace. The Times says Grasso, who faces a court date this week, has a "a growing chance that he may keep the vast portion of his payout."

For more:
- here's the article

Will CEO turmoil continue?

Fri, 18 Apr 2008 06:59:56 -0400

We've seen a lot of high profile CEO lose their jobs. Stanley O'Neal. Chuck Prince. Jimmy Cayne. But at least one MarketWatch commentator thinks at least two other fairly big name CEOs ought to be similarly shown the door. He says that Ken Thompson, of Wachovia, and Kerry Killinger, of Washington Mutual, "were exposed as overhyped pedestrian CEOs this week." Ouch! PR folks, do something. Killinger was rapped for the $1.1 billion loss and the required dilutive $7 billion capital infusion from private equity investors. Thomson was pilloried for the disastrous Golden West purchase. The jury remains out on several CEOs, including Ken Lewis of Bank of America, who's betting big on Countrywide.

For more:
- here's the commentary

8. Stanley O'Neal - Top 10 Executive Shake ups 2007

Sara Blatchly — Tue, 11 Dec 2007 15:21:28 -0500

Name: Stanley O'Neal

Previous Position: CEO

Bank: Merrill Lynch

Downfall: Besides a poor 3Q, Stanley O'Neal was forced out of Merrill Lynch after an illustrious career. His once-praised push into the subprime market proved to be his undoing. Report

Weekend drama leads to Prince's resignation

Mon, 05 Nov 2007 06:59:58 -0500

In the end, there was no way Charles Prince could survive as Citigroup CEO. Many wonder how he lasted so long. The fate of Stanley O'Neal, in an odd way, focused attention on why the Citigroup board kept giving his passes. But the prospect of more writedowns made him untenable as a top executive. All this sets the stage for a really interesting situation. Two top financial firms now are in need of CEOs. There are many reasons why top candidates would want to sit out the 4Q before making a decision. Why not let all the fallout occur before entering the suite. Vikram Pandit and Gary Crittenden are perhaps too new to be considered front-runners, but some insiders are pulling for Pandit. Others generating mentions include Stephen Volk, formerly of Credit Suisse First Boston, John Thain, of the NYSE, and Richard Parsons. Robert Rubin will act as interim chairman. He is also seen as a candidate.

For more:
- here's the New York Times wrap up
- here's an article on Pandit from the New York Post
- here's the official press release

Related articles:
- Pandit ready for Citigroup challenge
- Executive shake-up at Citigroup
- Questions about Citigroup's Prince linger long

Open season on Cayne? A pot smoker?

Fri, 02 Nov 2007 07:59:57 -0400

You can say this about the "retirement" of Stanley O'Neal: it is making life very uncomfortable for Jimmy Cayne and Charles Prince. In fact, it seems like open season on Cayne anyway. The CEO of Bear Stearns has just been given Page 1 treatment by the Wall Street Journal. The much-discussed, 3,000-word article, generally about his bridge and golf playing during the recent crises, noted that "attendees say Mr. Cayne has sometimes smoked marijuana at the end of the day during bridge tournaments. He also has used pot in more private settings, according to people who say they witnessed him doing so or participated with him." Cayne says these reports are not true. These are not flattering representations. Shareholders have a lot to ponder already, as does the board. This adds to the list. One more rotten quarter may be too tough to swallow.

For more:
- here's a Financial Times bit

Related articles:
- Man on the hot seat: James Cayne
- Bear Stearns reshuffles executives

Could O'Neal have saved himself?

Mon, 29 Oct 2007 07:59:58 -0400

This is turning into a classic tale of the fall of a CEO. A close read of the press up until it was leaked that Stanley O'Neal will quit as CEO of Merrill Lynch (what a weekend!) reveals a subtle thread that portrays him as having lost favor with Merrill executives in part to his bull-headed style. A quote in a New York Post article (anonymous of course): "Four good people walked the plank..." The New York Times notes that the board had heard "expressions of discontent" from other executives. There's obviously something of a spin job going on. You have to wonder if O'Neal will spin back. At this point, it seems he has decided to go quietly. He is expected to resign as early as today. The only issue is who will replace him. The odds still favor Laurence Fink.

For more:
- here's the New York Post article
- here's the New York Times article

Related articles:
- Why the Merrill board is angry with O'Neal
- O'Neal takes the blame

Hard to feel sorry for Stanley O'Neal

Mon, 29 Oct 2007 07:59:57 -0400

I wouldn't spill any tears for Stanley O'Neal. No matter what happens, he'll make a lot of money. The New York Times asked a compensation consultant to examine possible severence outcomes, and the minimum he will receive is in the $160 million range. If the stock price were to rise, which is a distinct possibility given the deal talk, he will make even more. If O'Neal leaves because of a deal, he stands to make even more--somewhere in the $275 million range. In that context, the overture to Wachovia makes sense beyond the strategic fit. These sums are not out of line with other high-profile CEO departures.

For more:
- here's the New York Times article

Related articles:
- Assessing O'Neal's track record
- Merrill shuffles execs after mortgage snafus
- What to expect from Merrill's earnings

Why the Merrill board is angry with O'Neal

Fri, 26 Oct 2007 06:59:58 -0400

We've all been speculating about how long Stanley O'Neal will last as CEO of Merrill Lynch. I've suggested that his track record ought to give him some time. Turns out the board may boot him for reasons beyond the 3Q earnings bomb: He reportedly made a merger overture to Wachovia's CEO G. Kennedy Thompson, without board approval. This was a major breach of protocol that prompted the fuming board to discuss CEO alternatives, notably Laurence Fink and John Thain. The fact that the board is making all this known to the media indicates a desire to severely punish O'Neal. So the odds of him resigning soon have gone way up.

For more:
- here's the New York Times article

Related article:
- O'Neal takes the blame

O'Neal takes the blame

Thu, 25 Oct 2007 06:59:57 -0400

Stanley O'Neal is at least a stand up guy. He personally led the earnings conference call to discuss Merrill Lynch's dismal 3Q losses. He used the word "I" enough to make clear where the buck stops.

According to Business Week Online, Michael Mayo of Deutsche Bank, took a fairly tough line during the call, noting that none of the bank's peers took an $8 billion writedown. Despite his tough questions, Mayo is bullish on the stock. He did cut his price target by 25 percent. But neither O'Neal or Jeff Edwards could say that there will be no future writedowns. And you have to wonder how exposed the bank remains to CDOs and mortgage-backed issues. You have to assume that more ratings agencies will pare ratings on these issues. While the worst may be over, there may be more pain to come.

For more:
- here's the Business Week Online article

Related articles:
- Merrill shuffles execs after mortgage snafus
- What to expect from Merrill's earnings
- Merrill and CFO rumors

Questions about Citigroup's Prince linger long

Mon, 08 Oct 2007 06:59:57 -0400

Merrill Lynch announced a massive write down, but no one is suggesting Stanley O'Neal ought to step down. But when Citigroup announced a massive 3Q writedown, it reignited the rumor mill all over again about Charles Prince. He never seems to get off the hot seat. For the fifth time since taking over as CEO from Sandy Weill, Prince was forced to disclose a huge problem to his board, the New York Times notes. And shareholders are again wondering about Prince's tenure. The bank has never reached its potential, long a sour note with top shareholders. The board still seems to believe in him however, as does Prince Alwaleed bin Talal of Saudi Arabia. But at some point, the stock price may finally force the board to seek a change.

For more:
- here's the New York Times article

Related articles:
- Will heads roll at Citigroup?
- For Citigoup, yet another speed bump