Merrill CEO departs with $160 million

A Merrill spokeswoman declined to comment.

Holding on to restricted stock can be lucrative, said James Reda, founder of James F. Reda & Associates, a New York-based compensation consulting firm.

Michael Eisner made more than $100 million in restricted-stock gains when shares of Walt Disney Co. rose after his departure as CEO in 2005, Reda said. "If the new guy comes in and tightens things up and turns things around and the stock price goes up $20, Stan O'Neal benefits from that," Reda said.

O'Neal's 21-year career at Merrill ended with a six-paragraph news release announcing that board member Alberto Cribiore would become interim chairman until a permanent successor could be found. Merrill co-Presidents Greg Fleming and Ahmass Fakahany will handle day-to-day management of the firm, the company said.

"Mr. O'Neal and the board of directors both agreed that a change in leadership would best enable Merrill Lynch to move forward and focus on maintaining the strong operating performance of its businesses, which the company last week reported were performing well, apart from sub-prime mortgages" and related home-loan securities, the company said in the release.

Several candidates are in the running to replace O'Neal, led by Laurence Fink, chief executive of BlackRock Inc., a fund manager partly owned by Merrill.

Also said to be under consideration are Fleming; Robert McCann, the head of Merrill's brokerage division; and John Thain, the CEO of NYSE Euronext Inc., parent firm of the New York Stock Exchange.

Merrill's shares fell $1.86, or 2.8%, to $65.56. The shares are down 30% this year.

walter.hamilton@latimes.com

kathy.kristof@latimes.com

Hamilton reported from New York and Kristof from Los Angeles.