Investment banking firm

Lehman Brothers Holdings


announced an executive and management reorganization Monday in which John L. Cecil, the company's chief financial officer and chief administrative officer, will step down.

Cecil will continue to serve as an adviser to Lehman Brothers chairman and chief executive officer Richard S. Fuld.

David Goldfarb, Lehman's controller and CFO of the company's broker-dealer unit, will replace Cecil as CFO.

Joseph M. Gregory, a 27-year veteran of the company and a member of Lehman's executive committee, will fill Cecil's role as chief administrative officer.

New York-based Lehman also took a broad step in realizing opportunities in the e-commerce arena. James A. Rosenthal will join Lehman as a member of the company's operating committee, concentrating on business development for e-commerce. He will report directly to Fuld.

"These changes will create the next generation of leadership at the firm," said Fuld in a statement. "The changes not only emphasize the importance of Lehman's global businesses and its e-commerce initiatives, but also significantly broaden the senior leadership of the firm."

Lehman also said it will restructure its trading and sales businesses into fixed income, equity and private client services divisions. Capital markets will be co-headed by current fixed income boss Jeffrey Venderbeek and fixed-income research boss Stephen M. Lessing. Bradley H. Jack will continue in his role as global head of investment banking, and Michael F. McKeever will continue in his role as the head of the private equity division.

Lehman said the changes are effective immediately. Lehman finished up 2 3/4, or 3.6%, at 78 3/8.