Lehman Brothers Holdings Inc. has made two key personnel changes in the executive suite.
The beleaguered New York-based company appointed Herbert “Bart” H. McDade III to succeed Joseph Gregory as president and chief operating officer. Mr. McDade has been the global head of the firm's equities division since June 2005.
"This has been one of the most difficult decisions either of us has ever had to make," said Richard S. Fuld Jr., Lehman Brothers' chairman and chief executive, in a statement.
Erin Callan, formerly the chief financial officer, will join the executive committee.
Ian Lowitt will succeed her as CFO.
Mr. Lowitt had been the firm's co-chief accounting officer since October 2006. His responsibilities included the global oversight of corporate real estate, finance, operations, risk management and technology.
Ms. Callan, who has served as chief financial officer since December 2007, will rejoin the investment banking division in a senior role.
The changes are effective immediately.
On Monday, the company announced an anticipated net loss in the second quarter of $2.8 billion, or $5.14 per common share, and announced plans to raise $6 billion through a stock sale in an effort to rebound from the credit crisis.
Lehman will report its second-quarter earnings on June 16.
Shares of Lehman are up 5 cents, or 0.2%, to $23.80 in morning trading, but are down 64% year-to-date.
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