BEAR
STEARNS
FOR IMMEDIATE RELEASE
CONTACT: Elizabeth Ventura (212) 272-9251
BEAR STEARNS CEO JAMES E. CAYNE NAMED CHAIRMAN OF THE BOARD,
SUCCEEDING ALAN C. GREENBERG
GREENBERG REMAINS CHAIRMAN OF THE COMPANY'S EXECUTIVE COMMITTEE
ALAN D. SCHWARTZ AND WARREN J. SPECTOR NAMED PRESIDENTS
NEW YORK, New York (June 26, 2001) --The Bear Stearns Companies Inc. (NYSE: BSC)
today announced that James E. ("Jimmy") Cayne, CEO, has been named to the
additional post of Chairman of the Board of Directors. Mr. Cayne, 67, who has
been President since 1985 and Chief Executive Officer since 1993, succeeds Alan
C. ("Ace") Greenberg, 73, who has chosen to step down as Chairman of the Board
of Directors but will remain with the Company in his capacity as Chairman of the
Company's Executive Committee.
Mr. Greenberg said, "We have been very fortunate over the years to have
great continuity in the leadership of our firm but I recently felt that it was
time for a natural progression to take place and accordingly, several months ago
I suggested this step to Jimmy and left the timing up to him. This change
continues our tradition of stable leadership. I am very confident and pleased to
have Jimmy Cayne succeed me as Chairman. We have accomplished extraordinary
things together - not just over the past eight years while Jimmy has been CEO,
but also over our long joint tenure at the firm. I have no doubt that this move
will lead the firm to even greater heights in the coming years. For the many
clients I have had the privilege to work with, I am happy to say they should not
see any change in my work habits. I will still be here for them."
Mr. Cayne said, "Alan Greenberg has been a valued friend, mentor, and
business colleague for decades. He fully deserves the reputation and the many
honors he has been accorded on Wall Street and around the world. He has embodied
the Bear Stearns culture and has enabled the firm to build a great foundation
for its future success."
Mr. Greenberg joined Bear Stearns in 1949 and over the years rose to the
top of the prestigious Wall Street firm. He served as CEO from 1978 to 1993, and
has been Chairman of the Board of Directors since Bear Stearns became a public
company in 1985. He is celebrating his 52nd year with the firm and will remain
active with the firm.
For Mr. Cayne, today's announcement crowns an extraordinary 32-year career
at Bear Stearns, one of the world's leading financial services firms. He joined
the firm in 1969 as a retail salesman and has made an indelible mark over the
years in increasingly responsible positions. Mr. Cayne was appointed President
at the time that Bear Stearns became a public company in 1985. In 1993 he
assumed the additional position of Chief Executive Officer. During his tenure as
President and CEO, Bear Stearns has grown dramatically, and is currently the
sixth largest securities firm in the United States.
Bear Stearns also announced today that Alan D. Schwartz, 51, and Warren
J. Spector, 43, have both been named President and Co-Chief Operating Officer.
In addition to their operating responsibilities, Mr. Schwartz remains the
Company's senior investment banker, while Mr. Spector continues to head the
firm's fixed income division and other units.
Mr. Cayne commented, "Bear Stearns has always prided itself on the quality
of its people. Alan Schwartz and Warren Spector are fine examples of the
excellence and longevity of our senior executives. Looking forward, I anticipate
great contributions and help from their partnership as Presidents and Co-Chief
Operating Officers."
He added, "This is an exciting time in the history of Bear Stearns and we
look to the future with great enthusiasm. A number of important growth
initiatives are underway - from our expansion in Europe, to the acquisitions we
have made to grow our specialist business. Our continued focus on superior
customer service and the deepening of our existing client relationships will
provide us with tremendous opportunities. The Schwartz/Spector team will play an
instrumental role in developing these initiatives and leading the firm through
its next stage of growth and development."
Mr. Schwartz joined Bear Stearns in 1976 as an institutional sales
manager. Between 1979 and 1985 Mr. Schwartz was the director of research, a
general partner and a portfolio strategist. Starting in 1985 he assumed the
responsibility of running the Investment Banking Department. He became a member
of the Board of Directors in 1987 and was named an Executive Vice President in
1989.
Mr. Spector joined the Bear Stearns Government Bond Department in
1983. He became a member of the Board of Directors in 1990 and an Executive
Vice President in 1992. In addition to heading the Fixed Income Division, he
oversees Asset Management.
Founded in 1923, The Bear Stearns Companies Inc. is the parent company of
Bear, Stearns & Co. Inc., a leading worldwide investment banking and securities
trading and brokerage firm serving corporations, governments, institutions and
individuals worldwide. With approximately $27.6 billion in total capital, the
Company's business includes corporate finance and mergers and acquisitions,
public finance, institutional equities and fixed income sales and trading,
private client services, foreign exchange and futures sales and trading, equity
and fixed income research, derivatives, asset management and custody services.
Through Bear, Stearns Securities Corp., it offers prime broker and broker dealer
services, including securities lending. Headquartered in New York City, the
Company had approximately 11,000 employees as of May 25, 2001, located in
domestic offices in Atlanta, Boston, Chicago, Dallas, Denver, Los Angeles, San
Francisco and San Juan; and an international presence in Beijing, Buenos Aires,
Dublin, Hong Kong, London, Lugano, Sao Paulo, Seoul, Shanghai, Singapore and
Tokyo. For additional information about Bear Stearns, please visit our Web site
at http://www.bearstearns.com.