However, the analogy between O'Neal and Torre makes some sense. After all,
both are victims of their own early success. Upon taking the reigns at Merrill
in 2002, O'Neal shook up the bank by laying off staff, resulting in doubling
the firm's profit level to an average topping $5 billion annually from 2003 to
2006. Similarly, Torre in his early days turned around a troubled baseball
franchise and returned the Yankees to championship status.
Ultimately, O'Neal ran into trouble as the rest of the industry fell on hard
times too. The closest analogy for Torre is the loss of the American League
East title for the first time since 1998. However, there is a change afoot in
baseball too that has left the Yankees handicapped. The Yankees have relied
heavily, until perhaps this season, on expensive talent from other ball clubs
rather than homegrown players. Meanwhile, the rest of baseball is focusing on
developing talent internally as exemplified by the rosters of the two World
Series teams, the Colorado Rockies and Boston Red Sox.
Arguably it was the expedient thing for Merrill's board to pressure O'Neal to
step down much as it was for the Steinbrenners to push Torre aside.
Alternatively, one could argue Merrill needs fresh leadership to weather the
tough times much as the Yankees need a new skipper to oversee its transition
as it fosters young talent rather than relying on expensive free agent talent.
— Matthew Wurtzel
See
story from Dealbook
See
Dealscape: Merrill's O'Neal is out, Cribiore to head search
See
Dealscape: Wachovia reachout is last call
See
Dealscape: Hunting for a new head, Merrill in peril
See
Dealscape: O'Neal's real deal of the day
See
Dealscape: Merrill Lynch-Wachovia tie-up talk
See
Dealscape: Is wounded bull Merrill a target?
