Shattuck is Brown's 'senior statesman' Visibility: BT Alex. Brown's Mayo A. Shattuck III says he will apply some lessons he learned from A. B. Krongard, who is off to the CIA.

January 22, 1998|By Kevin L. McQuaid | Kevin L. McQuaid,SUN STAFF

Mayo A. Shattuck III has learned a lot from closely watching and working with A. B. "Buzzy" Krongard over the past eight years -- but don't expect him to start answering his own phone.

Unlike Krongard, the fiery, almost legendary Alex. Brown Inc. chairman known for picking up calls with a gruff "Yeah?" Shattuck prefers the more traditional executive approach of allowing his many callers to pass through an executive assistant.

But if Shattuck's telephone manner isn't likely to change now that Krongard has decided to leave the investment firm to be counselor to the director of the U.S. Central Intelligence Agency, his exposure certainly will.

With the departure of Krongard -- whose take-no-prisoners business style carried Alex. Brown to new heights -- Shattuck becomes the firm's most visible executive, even if his title and responsibilities will remain the same.

"I guess I become the senior statesman in Baltimore, without any ambiguity," Shattuck, 43, said yesterday. "But I don't think I can [fill Krongard's shoes], and it's not necessary functionally, because we have some great people in key positions."

Much more has, and will, change, of course.

Alex. Brown Inc., the nation's first investment firm, is no more, replaced five months ago by BT Alex. Brown Inc., thanks to a $2.5 billion deal with Bankers Trust New York Corp.

And Shattuck, who had been president, chief operating officer and heir apparent to Krongard when the company was independent, now is co-chairman and chief executive of a Bankers Trust subsidiary.

Not that running BT Alex. Brown is any easier, nor will be.

Consider, for instance, that when Shattuck was in charge of Alex. Brown's capital markets and other divisions, he supervised 2,700 employees and about $1 billion. Today, with the "BT" in front of Alex. Brown, Shattuck oversees $3 billion in revenue a year and more than 5,000 employees worldwide.

Shattuck's mission -- to use a Krongard phrase -- will also be to keep BT Alex. Brown at the forefront of important investment banking activities such as raising equity, mergers and acquisitions and leveraged lending. Already, BT Alex. Brown is involved in 12.5 percent of all the equity dollars raised in the United States annually.

To meet the challenge, Shattuck intends to fall back on the lessons he has learned from Krongard: specifically, directness and efficiency.

"I certainly wouldn't have been able to deal with confrontation as well without his guidance," Shattuck said, staring into a framed red-and-white Brown flag that covers an entire wall of his 30th-story office. "I learned a lot. I learned the ability to say no."

Shattuck has learned to navigate the often-turbulent waters of managing a successful investment house as well as the outside duties that go with it, serving on the boards of the United Way of Central Maryland, Bryn Mawr School, and the president's board of visitors at the University of Maryland Baltimore County and the University of Maryland at Baltimore.

"The best description I can give of Mayo is that I don't think there's anything that he can't accomplish," said Bruce M. Ambler, president and chief executive of Constellation Holdings Inc., Baltimore Gas and Electric Co.'s unregulated subsidiary, where Shattuck serves on the board. "Whatever he does, he does well, and he's done a lot with not a lot of years on the odometer."

Shattuck also is likely to be charged with integrating NatWest Securities Corp. into Bankers Trust, a tough task given Nat-West's European culture and ever-increasing competition, and the thorny job of boosting BT Alex. Brown's derivatives business.

To that end, Shattuck will have to draw on the competitive spirit that catapulted him to captain of the Williams College tennis team and the top job at BT Alex. Brown.

"He's enthusiastic, very encouraging, and he understands the challenges leaders face, the challenges in building excellence," said Freeman A. Hrabowski, UMBC's president.

Put another way, Shattuck said: "I really, really want to win."

That spirit -- together with Krongard's teachings and example -- may someday also promote Shattuck to the top of Bankers Trust, though he says he feels a more pressing obligation to Brown.

"Running the whole bank some day will be a function of a lot of things, like most importantly, do they want me?" Shattuck said. "But right now, I think I'll find great reward in just seeing BT Alex. Brown become one of the top names in the business, part of the upper echelon.

Pub Date: 1/22/98

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