Thain Appointed As Merrill Executive

by Stewart Douglas

Story link: Thain Appointed As Merrill Executive

Investment bank Merrill Lynch has today surprised markets by announcing the appointment of NYSE Euronext chief executive John Thain as successor to outgoing Stan O’Neal, despite previous rumours that he may be destined for the same position at Citi.

The appointment will see Thain accede to the top job at Merrill Lynch after former chief executive Stan O’Neal was forced to resign in the wake of the company’s losses deriving from the sub-prime crash.  Thain had previously been widely tipped for the job at Citi, despite the fact that he was omitted from the initial candidate draft announced yesterday.

Market reaction to the appointment was particularly positive in early trade following the announcement, with John Thain’s particular competence in his previous roles a strong factor in inspiring investor confidence.  Shares in the investment firm were up by 7% on the day in light of the decision.

Mr Thain was drafted as the first external appointment to the top job at Merrill in over 90 years, brought in for his experience and expertise in managing investment firms and generating strong returns on capital.

Merrill Lynch started the search for a new chief executive after Stan O’Neal was driven from post for his role in the company’s sub-prime bad debt write downs over the third quarter.

Speaking today on the move, Merrill Lynch said that they were glad to have finally made an appointment of Mr Thain’s calibre, particularly given his strong track record in management at a senior level in investment and asset management.

Meanwhile Mr Thain said that he was relishing the prospect of working at the top job at Merrill, after a particularly strong year at the helm of the NYSE Euronext exchange earned him the respect of his peers.