O'Neal, E. Stanley 1951–

International Directory of Business Biographies, (2005) by Tim Halpern

E. Stanley O'Neal 1951–

Chairman, chief executive officer, and president of Merrill Lynch

Nationality: American.

Born: October 7, 1951, in Roanoke, Alabama.

Education: Kettering University, BS, 1974; Harvard University, MBA, Finance, 1978.

Family: Married Nancy A. Garvey (economist and former controller of Allied-Signal); children: two.

Career: General Motors Corp., pre-1978, assembly-line employee; 1978–1986, entry-level analyst, assistant treasurer, treasurer of GM's Spanish division in Madrid; Merrill Lynch, 1986, director in investment banking; 1986, managing director of investment banking; 1997, head of Global Capital Markets; 1998, executive vice president and co-head of the Corporate and Institutional Client group; 1998–2000, executive vice president and CFO; 2000–2001, president of U.S. Private Client Group; 2001–2002, chief operating officer; 2001–, president; 2002–, CEO; 2003–, chairman.

Address: Merrill Lynch, 4 World Financial Center, North Tower, New York, New York 10080; http://www.ml.com.

■ O'Neal was named CEO February 12, 2002, succeeding David Komansky. He was one of the first nonbrokers to run Merrill Lynch in the company's 80-year history, the first African-American to head a major Wall Street firm, and one of only four black CEOs of Fortune 500 companies. While O'Neal had faced a lifetime of adversity due partly to race, he quickly adapted and never let social barriers dull his ruthless, competitive edge. O'Neal faced enormous challenges, particularly in terms of repairing the firm's damaged reputation. He unapologetically revamped the firm, cutting costs and boosting profits, while leaving behind a trail of enemies and critics.

With $27.7 billion in revenues for 2003, Merrill Lynch was one of the world's leading financial management and advisory companies. As an investment bank, it was the top global underwriter and market maker of debt and equity securities and

E. Stanley O'Neal. AP/Wide World Photos .

a leading strategic advisor to corporations, governments, institutions, and individuals worldwide. The firm has three divisions: the Private Client Group, which offers brokerage, mutual funds, and life insurance and annuities to individuals; the Corporate and Institutional Client Group that provides investment banking and capital market services to corporations, institutions, and governments; and the global Asset Management Group.

GM SHAPES A LIFE

ON THE FAST TRACK FOR SUCCESS

His first job after graduating from Harvard Business School was with GM, where he began his career in 1978 as an entry-level analyst. In just three years he moved to director level in the treasurer's office. According to John D. Finnegan, chairman of General Motors Acceptance Corp. and a former colleague: "That's about as fast as you can do it." He next worked for GM in Madrid, Spain, as treasurer of GM's Spanish division. Sandy Robertson, founder of the investment bank Robertson Stephens, who dealt with O'Neal during his time at GM, stated: "He was proud of the fact that he had started at the bottom" (both BusinessWeek , November 12, 2001).

ARRIVING ON WALL STREET

O'Neal resigned from GM in 1987 and changed over to a career in finance, joining Merrill Lynch's investment banking division. His move showed foresight. GM's finance division was losing its influence and O'Neal had his doubts about the future of the entire company, worrying that its success would lead to complacency. "I was concerned I would wake up 10 years hence and be very successful in a context I was not entirely happy with" ( BusinessWeek , November 12, 2001)

Just three years after arriving at Merrill Lynch he was appointed head of its lucrative junk-bond unit, where he coached a team of young vice presidents in an effort to win new clients. Under his watch, Merrill Lynch rose to number one and remained first or second in junk bonds until O'Neal was promoted to head of global capital markets in 1995. After he left, the company fell to number eight. Bennett Rosenthal, who worked with O'Neal at the time, stated: "I never took Stan on a pitch where we didn't win the business. He was obsessed with being No. 1" ( BusinessWeek , November 12, 2001).

RESTORING CALM FOLLOWING A CRISIS

In 1997 O'Neal was appointed co-head of Merrill Lynch's corporate and institutional client group, while also working in other areas such as real estate and private placements. In 1998 he was appointed CFO, but within his first few months Merrill Lynch suffered a $164 million loss when the hedge fund Long Term Capital collapsed. Losses for the hedge fund totaled more than $4 billion—rocking the financial markets. O'Neal was instrumental in putting measures in place that would ensure Merrill Lynch was not financially crippled by the LTC Management debacle. The firm contributed $300 million to a fed-brokered bailout fund.