Alex. Brown picks chief executive Alvin B. Krongard takes helm of investment firm

July 24, 1991|By Peter H. Frank

Alvin B. "Buzzy" Krongard's first day as the new chief executive at Alex. Brown Inc. is going to be hard to beat.

One day after Mr. Krongard was elected to his post by the company's board, Alex. Brown coupled the announcement of his promotion with a report that it had recorded the largest quarterly and half-year income in the company's 191-year history.

"The six months were a pretty good year," Mr. Krongard, 54, said.

The Baltimore-based parent of the investment banking firm Alex. Brown & Sons Inc. said that it earned $14.2 million, or 87 cents a share fully diluted, compared with earnings of $4.5 million, or 28 cents a share, during the same period last year. Revenue increased to $105.1 million from $77.2 million a year ago.

The company also said yesterday that Mayo A. Shattuck III, 36, formerly in charge of Alex. Brown's corporate finance operations in San Francisco, had been named president and chief operating officer, filling the post left vacant by Mr. Krongard's promotion.

The promotions ended a six-month search by a special committee of the board. During that period, Mr. Krongard had assumed temporarily the duties of chief executive, replacing Donald B. Hebb, who resigned.

Mr. Krongard's election as CEO also put an end to a debate within the company and by industry analysts over whether one of Alex. Brown's executives or someone from outside the firm should head the formerly privately held partnership. The company reversed a long-standing approach this year by electing a majority of directors who were not Alex. Brown officers or managing directors.

A native of Baltimore, Mr. Krongard has been at Alex. Brown for 20 years. Described by acquaintances and business colleagues as tough-minded and demanding, the former Marine captain said his goals were to maintain the long tradition of teamwork and internal cooperation that built Alex. Brown into a leading investment banking firm and to pursue aggressively niche areas on which the company can capitalize.

"You don't want our people to be using quill pens when everyone else is using IBM computers," said Mr. Krongard, an expert in the martial arts who enjoys shark-diving and is a member of the Lacrosse Hall of Fame for his play at City College and Princeton University. "We can't be bound by the past."

Mr. Shattuck joined the firm five years ago after holding positions as an investment analyst and later chief financial officer for Aquanautics Corp. in San Francisco. He is a graduate of Williams College and Stanford Graduate School of Business.

Both men take their new positions after the best six months the company has ever enjoyed. Commission revenues increased 45 percent during the second quarter, reaching record levels. Investment banking revenues, fueled in large part by an active list of stock offerings, rose 48 percent.

Three months ended 6/28/91

.... ....Revenue.... .... .... Net.... .... .... Share

'91.... ....105,142,000.... .... 14,202,000. .... 0.87

'90.... ....77,244,000..... .... 4,538,000.. .... 0.28

% change......... +36.1..... .......... +213.. .... +210.7

Six months ended 6/28/91

.... ....Revenue.... .... .... Net.... .... .... Share

'91.... ....198,739,000.... .... 24,827,000. .... 1.53

'90.... ....145,709,000.... .... 7,047,000.. .... 0.43

% change.......... +36.4.... ........ +252.3.. .... +255.8

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