Merrill Bosses Fight It Out

Komansky played a key role in brokering the $100m settlement with New York state attorney general Eliot Spitzer, but he is thought to be becoming increasingly frustrated as he feels that he is being marginalised within the company. It is thought that he has now fallen out with O'Neal, his one-time protege, about plans to restructure the business.

O'Neal was appointed chief operating officer by Komansky last year and it was planned that he will take over from Komansky when he retires in 2004. It now looks as if Komansky is being pressured to stand down early as he is effectively a lame duck.

It is believed that Komansky and O'Neal have fallen out over style. O'Neal has a no nonsense approach to business and has aggresively set about the task of restructuring the firm. A number of Merrill executives have now left the firm, including Winthrop Smith, a descendant of one of Merrill's founders.

Komansky, a Wall Street veteran of more than 40 years standing, is increasingly being regarded as 'old school'. The smart money is now of his early departure.