In a bid to broaden its appeal to clients, Alex. Brown & Sons has created a new marketing and client services division and named William L. Paternotte, the current director of research, to head the unit.
Mr. Paternotte will be replaced in research by Denis Callaghan, a securities analyst who specialized in the insurance industry. Mr. Paternotte's appointment is effective immediately, and Mr. Callaghan will assume his new job at the end of the year.
The 192-year-old Baltimore-based securities company is a leader initial public offerings of stock and is the oldest investment banking firm in the country.
One of the aims of the new division will be to interest current clients in other services offered by Alex. Brown, Mr. Paternotte said. "We're going to be trying to develop multiple relationships," he said.
The new division will initially have 10 employees who now work in the marketing department and seminar management group. A company spokeswoman declined to comment on whether new people will be hired.
The creation of the division is part of an initiative promoted by A. B. "Buzzy" Krongard, chief executive officer and vice-chairman of Alex. Brown, and Mayo A. Shattuck III, president and chief operating officer, Mr. Paternotte said. Both executives were appointed in July 1991.
Mr. Shattuck said in a statement that it was unusual for a securities firm to have a high-level division devoted to client service. "We are determined that the service we provide will continue to be a hallmark of the firm," he said. "It is a priority that must pervade the firm without regard to organizational boundaries."
"On the face, it would seem like a positive move," said Richard L. Hanley, president of Richard Hanley Associates, a New York-based independent research firm. But he added that he has not had a chance to study the matter.
Mr. Paternotte, 47, has led Alex. Brown's research department since 1979 after serving as a securities analyst specializing in the restaurant and lodging business for 10 years.
With 40 analysts and 30 associate analysts, the company's research arm is one of the 10 largest in the country, Mr. Paternotte said. Mr. Callaghan, 50, joined Alex. Brown in 1988. He had been a securities analyst with PaineWebber Inc. for 10 years and with Dean Witter Reynolds for three years.