Buffett: Salomon Should Look Outside
Annual reports don't usually make news, except perhaps when Warren Buffett writes them. In the new report for Salomon Inc., he hints that when he departs Wall Street, he'll recommend that his job as chairman and CEO of the scandal-shaken firm should go to an outsider. That may come as a blow to Deryck Maughan, operating head of Salomon's broker-dealer, Salomon Brothers.
Buffett's succession plan is in line with the new holding company structure he outlines for Salomon. From now on, Salomon has two self-funding subsidiaries--Salomon Brothers and Phibro Energy. The new structure would ease the spin-off of Phibro, but Salomon denies that a spin-off of either unit is in the cards.