Mayo A. Shattuck III, chairman of Deutsche Banc Alex. Brown and the executive who guided Baltimore's oldest investment firm through two corporate mergers in the past five years, has resigned.
Shattuck, 46, confirmed his resignation yesterday, saying he informed officials with parent company Deutsche Bank AG last week. He said the resignation took effect immediately.
While describing his departure as "very cordial," Shattuck also confirmed that another significant change could soon take place at the 201-year-old Baltimore investment house.
Deutsche Bank is considering scrapping the Alex. Brown name, perhaps by the end of the year, he said.
Shattuck will continue as a senior adviser and a director of Deutsche Bank's U.S. bank holding company. But, he said, after 16 years with Alex. Brown - negotiating two mega-mergers and traveling frequently to the corporation's headquarters in Frankfurt, Germany - he was ready to leave.
"I have 3-in-the-morning meetings all the time," said Shattuck, who was nearing the end of a three-year contract with the company worth about $40 million. "I'm over there [in Germany] all the time. I've been there almost every other week.
"It just feels like the right time," he said. "I love the place. I'm going to help it any way I can as a senior adviser."
His resignation is unrelated to the possible name change, he said.
Deutsche Bank officials have yet to decide whether to drop Alex. Brown from the local firm's name, Shattuck said, but bank officials are "beginning to feel we would have more impact if we are all operating under the same global brand name."
Shattuck joined Alex. Brown in 1985 as co-head of its corporate finance division. Working from the company's office in San Francisco, he ran its Technology Group during a time when it arranged public offerings for such companies as Microsoft, AOL, Sun Microsystems and Oracle.
Shattuck became president and chief operating officer of Alex. Brown & Sons in 1991, when the Baltimore investment firm was worth about $150 million. Six years later he helped negotiate the company's sale to Bankers Trust Corp. for $1.7 billion.
Two years after that, Bankers Trust was sold to Deutsche Bank AG for $10.6 billion.
Besides being chairman of Deutsche Banc Alex. Brown - and thus head of the company's American brokerage and investment operations - Shattuck recently became head of Deutsche Bank's private banking division and a member of its Private Clients and Asset Management Group's board. Those positions required frequent travel to Germany.
"I just think the toll of the two mergers hasn't afforded me enough time to think about anything else," said Shattuck, who is married and has two young children. "Taking a break from the business now is a healthy thing for me to do."
Alex. Brown was founded in 1800 as a linen-trading firm on Gay Street, and took root in the city's history as it grew into an investment and brokerage house. The company helped finance such monumental undertakings as the Baltimore & Ohio Railroad, the city's first municipal water system and early electricity companies.
Trading floor return
Today it employs roughly 1,200 people in Baltimore, a number that could grow temporarily as corporate officials scramble to relocate workers displaced by the terrorist attacks in New York.
The company's stock-trading floor might return to Baltimore temporarily, Shattuck said - two years after it left the city for Manhattan.
Alex. Brown's recent fortunes have stumbled some, along with the nation's financial markets.
The firm's brokerage business posted a loss for the first half of 2001, its first in a decade, prompting Deutsche Bank's chairman to hint that it might be sold, a claim he later softened.
But Deutsche Bank officials had only praise for Shattuck upon word of his resignation.
"Mayo is a veteran banker whose management skills and corporate finance expertise was extremely important for the success of our investment banking franchise," said Josef Ackermann, a Deutsche Bank board member.
Said Deutsche Bank Chairman Rolf-E. Breuer, in a statement: "He has been instrumental in advancing the legacy values and relationships of that historic firm."
Shattuck said that besides his work as an adviser and director, he hopes to explore new opportunities, perhaps in public service.
"I'm pretty wide open to ideas. Both private and public sector stuff would be possibilities," he said. "Hey, I'm 46 years old. I can do something else that is important."