New CEO for Merrill Lynch
(25 September 2009 – Australia) Merrill Lynch has ordered a dramatic restructure of its Australian management, including the appointment of a new CEO as it plans to become one of the top five in the domestic financial market.
Chief executive Paul Masi will leave the firm and be replaced by former Goldman Sachs JBWere (GSJBW) Chief, Craig Drummond.
The move is reportedly part of an internal target to become one of the top-five investment banks within the next three years, with the ultimate aim of being one of the three largest and most active investment banks in Australia.
Mr Drummond, 48, unexpectedly left Goldman Sachs in February after he was reportedly unhappy to have a co-chief executive appointed alongside him.
Merrill was reportedly courting Mr Drummond for a number of months to join the domestic operations and it was expected he would re-emerge in investment banking after making his intentions clear that he was not ready to quit the industry.
He was placed on a six-month ‘non compete clause’ (not allowing him to join any other investment firms) and sold the 5 per cent stake he held in the GSJBW business.
In an email sent to staff, Merrill's Asia-Pacific president, Brian Brille, said that Mr Drummond would be responsible for driving the performance of the Australian business.
Mr Drummond will be responsible for building a market-leading operation in Australia, overseeing the strategy and direction, and working across all the businesses, Mr Brille added.
He highlighted that Mr Drummond worked on a large number of equity capital market transactions in a senior oversight role and has advised many of Australia's leading corporations.
The move to dump Mr Masi was unexpected given he told The Australian newspaper just one month ago of his plans to rebuild the investment bank's reputation and presence in the local market.
Mr Masi, the chief executive of Merrill Lynch for the last three years, will stay with the investment bank for a short time while a ‘handover’ takes place.
The move is reportedly part of an internal target to become one of the top-five investment banks within the next three years, with the ultimate aim of being one of the three largest and most active investment banks in Australia.
Mr Drummond, 48, unexpectedly left Goldman Sachs in February after he was reportedly unhappy to have a co-chief executive appointed alongside him.
Merrill was reportedly courting Mr Drummond for a number of months to join the domestic operations and it was expected he would re-emerge in investment banking after making his intentions clear that he was not ready to quit the industry.
He was placed on a six-month ‘non compete clause’ (not allowing him to join any other investment firms) and sold the 5 per cent stake he held in the GSJBW business.
In an email sent to staff, Merrill's Asia-Pacific president, Brian Brille, said that Mr Drummond would be responsible for driving the performance of the Australian business.
Mr Drummond will be responsible for building a market-leading operation in Australia, overseeing the strategy and direction, and working across all the businesses, Mr Brille added.
He highlighted that Mr Drummond worked on a large number of equity capital market transactions in a senior oversight role and has advised many of Australia's leading corporations.
The move to dump Mr Masi was unexpected given he told The Australian newspaper just one month ago of his plans to rebuild the investment bank's reputation and presence in the local market.
Mr Masi, the chief executive of Merrill Lynch for the last three years, will stay with the investment bank for a short time while a ‘handover’ takes place.
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