Up Front: STREET NEWS
SALOMON MAY HAVE ROOM AT THE TOP
EXECUTIVES AT SALOMON Brothers say it looks as if CEO Deryck Maughan may soon be history. "I just don't think he can survive," says a senior Salomon exec. Signaling discontent at the firm is a talent exodus, which hasn't been stemmed by ditching a controversial pay plan.
And another bad sign for Maughan is that Robert Denham, head of parent Salomon Inc., for the first time is getting more involved in Salomon Brothers matters, such as attending meetings with traders. This "certainly undercuts Deryck," says one executive. The rumor mill picked up steam recently when staffers spotted Mark Winkelman, a limited partner at Goldman Sachs, in the building. Winkelman is a well-regarded trader and manager who stepped down as partner last year after not getting the top job. Goldman says he merely had lunch at Salomon with an old friend to talk about a charity, not Maughan's job.
Other rumored Maughan replacements are Denham and Dennis Keegan, Salomon's crackerjack proprietary trader. Says Denham: "Deryck Maughan is running Salomon Brothers. Anything else is imagination."EDITED BY LARRY LIGHT, WITH OLUWABUNMI SHABI Leah Nathans Spiro