Stanley O'Neal facts for kids
Quick facts for kids
Stan O'Neal
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| Born |
Earnest Stanley O'Neal Jr.
October 7, 1951 Roanoke, Alabama, United States
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| Education | General Motors Institute (B.S.) Harvard Business School (M.B.A) |
| Known for | CEO of Merrill Lynch, 2002–2007 |
| Spouse(s) | Nancy Garvey |
| Children | 2 |
| Relatives | Rodney O'Neal (cousin) |
Earnest Stanley O'Neal (born October 7, 1951) is a retired American business leader. He was the CEO of a big financial company called Merrill Lynch from 2002 to 2007. He was also the chairman of the company from 2003 to 2007. He was the first African-American CEO of a major company on Wall Street, which is a famous financial area in New York City.
O'Neal left his job in October 2007 during a time called the subprime mortgage crisis. This was when many people couldn't pay their home loans, which caused big problems for banks. Merrill Lynch lost a lot of money because of risky investments related to these loans. The company was later sold to Bank of America.
After leaving Merrill Lynch, O'Neal served on the boards of directors for other large companies like Alcoa and General Motors.
Contents
Early Life and Education
Growing Up in Alabama and Georgia
E. Stanley "Stan" O'Neal was born in Roanoke, Alabama, on October 7, 1951. He grew up in Wedowee, Alabama. He was the oldest of four children. His father, Earnest O'Neal Sr., was a farmer, and his mother, Ann Scales, worked in people's homes.
Stan lived in a wooden house on his grandfather's farm. The farm had many pine trees. As a child, he helped pick cotton and corn. He also delivered newspapers.
When Stan was 12, his family moved to Atlanta, Georgia. His father found a better job working on the assembly line at a General Motors (GM) factory. Stan went to West Fulton High School in Atlanta.
College and Business School
For college, Stan went to the General Motors Institute (GMI). This school is now called Kettering University. He was part of a special program where he worked at the GM factory and also took engineering and business classes. In 1974, he earned a bachelor's degree in industrial administration. He was the first person in his family to graduate from college.
After college, GM hired him as a supervisor at the factory. While working there, O'Neal applied to Harvard Business School (HBS). He was accepted and received a scholarship from GM. At HBS, he was one of only a few Black students. He was chosen as the vice president of the Afro-American Student Union. In 1978, he graduated with honors, earning a master's degree in finance.
Career at General Motors and Merrill Lynch
Early Career at GM
O'Neal started his career at General Motors. He received several promotions there. In 1981, he became the director of GM's office in Madrid, Spain. He managed a team of 30 employees.
Leading Merrill Lynch
In 1986, O'Neal joined Merrill Lynch, a big investment company. He started as a director in their investment banking division. By the early 1990s, he was in charge of a division that helped companies borrow money.
Rising Through the Ranks
O'Neal continued to move up at Merrill Lynch. In 1997, he became an executive vice president. In 1998, he was named the company's chief financial officer (CFO). This meant he was in charge of all the company's money.
In 2000, he became president of the U.S. Private Client Group. This group worked with individual customers. He managed 16,000 brokers in 800 offices. He made big changes in this division, including reducing the number of employees. In 2001, he became president of Merrill Lynch at the request of the CEO, David Komansky.
Becoming CEO and Chairman
On July 23, 2002, Stan O'Neal was chosen as the new CEO of Merrill Lynch. He was the first African-American CEO of a Wall Street firm. In April 2003, he also became the chairman of Merrill Lynch.
O'Neal wanted to make Merrill Lynch a top trading company. He aimed for it to be even better than other big firms like Goldman Sachs. He tried to change the company's culture, encouraging people to work harder and be rewarded for their skills.
Challenges and Resignation
In 2006, Merrill Lynch took on many risky investments, especially in something called CDOs. These were complex investments linked to home loans. A trader named Jeff Kronthal warned against taking too much risk, but he was later fired. Merrill Lynch became one of the biggest companies dealing with CDOs.
As the market changed, O'Neal was seen as not fully aware of the growing problems. He was described as being disconnected from the daily operations of the company. In August and September 2007, Merrill Lynch announced huge losses of $8 billion. O'Neal realized the company was in serious trouble because of its risky investments.
He then tried to find a buyer for Merrill Lynch, talking to companies like Bank of America. On October 30, 2007, O'Neal resigned as CEO. He left with a large payment that included company stock and options.
After Merrill Lynch
After his resignation, some people criticized O'Neal for his role in Merrill Lynch's problems. In 2009, CNBC included him on their list of "Worst American CEOs of All Time." A book review in The New York Times also suggested he was partly responsible for the 2008 financial crisis.
In January 2008, O'Neal joined the board of directors for Alcoa, a large aluminum company. In 2011, a group called the Financial Crisis Inquiry Commission (FCIC) investigated the financial crisis. They suggested that O'Neal's actions as CEO of Merrill Lynch should be looked into further. However, no individual charges resulted from these recommendations.
Personal Life
O'Neal's first marriage ended in 1984. He later met his second wife, Nancy Garvey, who is an economist. They married in 1988 and have two children, twins born in 1991. They have homes in Park Avenue in New York City and on Martha's Vineyard. O'Neal enjoys playing golf.
Honors and Awards
- 1998: Kenneth A. Powell Alumni Award for Professional Achievement, from Harvard Business School
- 2000: Corporate Executive of the Year, Black Enterprise magazine
- 2002: Achievement Award, Executive Leadership Council
- 2002: “Most Powerful Black Executive in America”, Fortune magazine
- 2003: “25 Most Powerful People in Business”, Fortune magazine
- 2005: Bank Street Celebration Honoree with Nancy Garvey, Bank Street College of Education
- 2007: Keynote address, Wharton Economic Summit, Wharton School
Board Memberships
O'Neal has been a member of the boards of directors or trustees for several organizations, including:
- ALCOA
- American Cancer Society (advisory board)
- Arconic
- Bronx Preparatory Charter School (advisory board)
- Buckley School, New York
- Catalyst
- Center for Strategic and International Studies
- Element Solutions
- General Motors Corporation
- Harvard Business School (visiting committee)
- Lower Manhattan Development Corporation
- NASDAQ Stock Exchange
- National Urban League
- Platform Specialty Products Corporation
- Ronald McDonald House
- W. E. B. Du Bois Institute for African and African American Research, Harvard
