Major Management Changes Seen at Merrill Lynch
A management shakeup is expected at Merrill Lynchin the coming days, people close to the firm told CNBC, with changes including the departure of Peter Kraus, head of strategy at the investment bank.
Kraus received a pay package worth around $90 million to join Merrill, replacing the pay package that he left at Goldman Sachsearlier this year. He is expected to receive a golden parachute payment worth possibly tens of millions of dollars as part of his departure from Merrill.
The move comes as Bank of America begins to form a new management structure.
That new structure will also the include the appointments of Tom Montag as new head of capital markets, and Greg Fleming as head of Merrill's corporate and investment bank, and Robert McCann as head of wealth management.
Sources added that specifics about the management changes at could still change.
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John Thain will remain the CEO of Merrill Lynch , sources said, but it's unclear if that's a temporary assignment or if he will remain on a long term basis.
In addition, sources close to Merrill Lynch told CNBC that McCann may no longer report to Thain directly, but may instead report to some interim executive.
The restructuring is designed to set in place the long-term management structure at Merrill Lynch, which will have to cut 5,000 or more jobs in order to make Bank of America's recent purchase of the investment bank feasible at $29 a share.