But such, in sum, is what happened last month when longtime chairman and legendary Wall Street character Ace Greenberg stepped down as chairman, passing the mantle to CEO Jimmy Cayne, his partner at the top for nearly a decade.
Cayne, in turn, named investment banking chief Alan Schwartz and bond whiz Warren Spector as co-presidents and co-chief operating officers, setting them up as the leading contenders to one day run the firm. The succession race, however, could go on for some time. Bear Stearns doesn’t believe in mandatory retirement ages. (A 92-year-old trader still works for the firm.)
Cayne is already two years older than the 73-year-old Greenberg was when he relinquished the CEO title eight years ago. Greenberg will continue to take his seat on the trading floor every day and will remain chairman of the executive committee. And Cayne, a 32-year Bear Stearns veteran, says he’s not going anywhere soon. “I feel energized and ready to conquer the world,” he told Institutional Investor. Obviously, someday I will step down, but I’m not thinking about that right now.”
Four months after he intensified long-running takeover talk by saying publicly that Bear Stearns was ready to sell to the right buyer at the right price - rivals DLJ and PaineWebber had been acquired for big premiums, while his firm had been passed over - Cayne is decidedly more cautious. “We’re not looking to sell the company,” he says.
But he concedes that being acquired remains an option. “Everything’s for sale. If the right partner came along that strategically enhances shareholder value here, I’d have to be arrested not to look at it. To say, ‘We’re independent, and we’re going to remain independent’ would be a slap in the face to shareholders.”
He should know, of course - he’s Bear Stearns’ single biggest shareholder.
