Nomura’s Chief Stepping Down After Seven-Year Tenure
NEW YORK (AP) _ Max Chapman, one of Wall Street’s best-known executives, is stepping down as co-chief executive of Nomura Securities International Inc. after a seven-year tenure that strengthened the foreign-owned brokerage firm into an important niche player in the U.S.
Chapman leaves as co-chief after making $20 million last year, Wall Street executives said Thursday. The pay was lifted by the Japan parent’s rebound in profit to a net $462 million in the fiscal year ended March 31 from a $172 million loss in the previous year.
Chapman, 52, will retain the largely ceremonial post of chairman of Nomura’s U.S. holding company, which is owned by Japan’s Nomura Securities Co. Ltd., the world’s biggest brokerage. He also becomes managing director of the parent, where he will be involved in merchant banking, global product development and other activities.
Chapman will be replaced by Michael Berman, who moves up from chief operating officer of the U.S. unit. Junichi Ujiie, who served as co-chief executive, returns to Tokyo to head up the parent’s newly created risk management division.
Foreign brokerage firms have had little success developing U.S. units to compete against the likes of Merrill Lynch, Goldman Sachs and other U.S. investment banking and brokerage giants.
Chapman said in a statement he was leaving because he had finished turning ``a Japanese securities firm operating in the United States into an American investment bank.″
Chapman, former president of now-defunct Kidder, Peabody & Co., helped invigorate Nomura by stressing mortgage-backed bonds, high-yield or ``junk″ bonds and other variations of traditional fixed-income securities. The strengths have made the firm a strong narrowly focused player on Wall Street.
Chapman’s tenure was not without controversy. He presided over several run-ins with regulators that included the third-biggest fine ever levied against a Wall Street brokerage firm.
The New York Stock Exchange last November slapped Nomura with a $1 million for inaccurate financial reports and other violations and censured Nomura, its biggest penalty against a foreign brokerage firm.
Some close to Chapman said he waited until the exchange’s case, which lasted 2 1/2 years, was wrapped up to leave the firm.