Jobs roundup: Focus on mergers and acquisitions

It was all change at the top in investment banking last week. Amid signs of growing optimism, banks variously boosted European advisory boards, appointed new presidents and chief executives, and bulked up in German M&A.

News that Merrill Lynch had lifted a freeze on salary increases first imposed two years ago suggested better times are ahead. A day after announcing a 50% increase in third quarter profits compared to last year, Stan O'Neal, chairman and chief executive, gave the go-ahead for Merrill executives earning under $100,000 to receive 'merit-based' salary rises in the months to come.

Morgan Stanley appointed Stephan Newhouse as president from December, apparently with an eye to strengthening its position in global mergers and acquisitions.

Newhouse, current co-head of Morgan Stanley's institutional securities division, will replace Robert Scott who is retiring after 33 years with the firm. According to Thomson Financial, Morgan Stanley ranked 7th in European M&A in the first nine months of the year. Newhouse is expected to work on managing client relationships.

There were signs that an upturn is widely expected in Germany. Despite a 30% reduction in the value of announced M&A deals during the first nine months of the year, headhunters say banks have been hiring more staff.

Christian Meissner resigned as co-head of European equity capital markets at Goldman Sachs and was understood to be joining Lehman Brothers in a senior German investment banking role. JP Morgan and Citigroup are also understood to be planning to make investment banking appointments in Germany.

WestLB appointed a new chief executive, Thomas Fisher, to replace Jürgen Sengera. Sengera stepped down following a report criticising a deal done by the bank's principal finance unit. Fisher was formerly on Deutsche Bank's management board.

Big names were in demand for corporate advisory boards, which provide high level client advice. Eddie George, former governor of the bank of England, was made chairman of Rothschild's new European advisory board. PriceWaterhousecoopers hired Sir Malcom Rifkind, former UK defence secretary, to its own corporate advisory board earlier in the week.

Martin Falkner's arrival at Gleacher Shacklock, the UK arm of the US firm Gleacher, underscored the appeal of mergers and acquisitions boutiques to senior bankers. Falkner was co-head of energy and power at Merrill Lynch until May.

Axa Investment Managers strengthened its fixed income team with the appointment of Paul Griffiths, as chief investment officer. Griffiths was formerly head of fixed income at Investec Asset Management.