MutualFundWire.com: Merrill Prez Opts for Retirement

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Friday, October 5, 2001

Merrill Prez Opts for Retirement

Merrill Lynch International Chairman Winthrop H. Smith, Jr is retiring as a round of musical chairs is being played by the most senior executives at the nation's largest brokerage firm. Smith's made his move after Merrill decision makers promoted another executive into his position a day previously.

The personal changes also reflect a decision by the firm to join its money management business with its wealth management group to take advantage synergies its sees in the European market.

Merrill said Tuesday that G. Kelly Martin, head of Global Debt Markets, would be taking over Smith's duties as president of the group. A statement from the firm said it hoped Smith would stay on in a different capacity. Smith said today that he had turned down a significant position in favor of retirement. That did not happen and it was announced today that he will retire at year-end.

Merrill's International Private Client Group (IPCG), is the firm's wealth management arm. Smith's departure comes a week after Jeffrey Peek, president of its asset management unit, resigned and a little more than two months after Stan O'Neal took the helm as president and heir apparent to David Komansky.

Peek was replaced by Michael Marks, executive chairman of Merrill Lynch's Europe, Middle East and Africa region and now head of its Merrill Lynch Investment Managers (MLIM). Martin will report to Marks and join the firm's Executive Management Committee.

"By giving Michael Marks executive responsibility for IPCG as well as MLIM, we aim to capitalize on the synergies that exist between the two businesses -- particularly in the European markets where the growth potential is substantial," Komansky and O'Neal said. "Win Smith has done an excellent job leading and building this business, which is a core component of our global franchise. Kelly Martin is the ideal person to now take the business forward. He is a creative and strategic thinker who has worked across our businesses in the U.S., U.K. and Japan. His deep knowledge of our clients and the financial markets uniquely qualifies him to lead our international private client business."

These strategic moves appear to have left Win Smith without a seat at Merrill's senior management table.

"There has been a changing of the guard at Merrill Lynch, and after 27 years I have decided to leave the company," said Smith in a statement. "I had been offered a significant position in the new management structure, and gave serious consideration to it. However, I concluded that it was not right for me at this stage in my life."

"It is with a heavy heart and regret that I have announced today my intention to retire from Merrill Lynch. My decision was made especially difficult by the many hundreds of e-mails and phone calls I have received in the past day," he added.

"The outpouring of affection, friendship and respect has been overwhelming, and I thank everyone for the wonderful thoughts, sentiments and encouragement. I leave with gratitude for the 75 years of association my family has had with Merrill Lynch. I have full confidence that it will continue to be a pre-eminent firm in global financial services. I wish all of my friends and colleagues the very best for the future."

David H. Komansky, chairman and chief executive officer, and Stan O'Neal, president and chief operating officer, said in a statement that they regret Smith's decision.

"Win Smith has made many important contributions to Merrill Lynch over his almost three decades with the firm," Komansky and O'Neal said. "While we regret his decision to leave the firm, we respect his reasons for doing so. We thank him for all that he has contributed, and wish him and his family every success in the future," they added.

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