French plan Rothschild revolution

BARON David de Rothschild, who takes over as chairman of NM Rothschild on Thursday, is believed to be planning a shake-up of the 200-year-old merchant bank.

He replaces distant cousin Sir Evelyn de Rothschild, 72, who retires after 27 years at the top and five years later than the bank's official retirement age.

Insiders complain that he had been at the bank too long and had become increasingly autocratic. One said: 'They may be cousins, but the two are chalk and cheese.'

David, 60, is head of the French branch of the dynasty, which owns Chateau Mouton Rothschild. He is expected to unveil a major focus on client relationships, an area he sees as crucial to bringing in new business.

He has been described as a man who does not mind getting his hands dirty and understands the importance of relationships at all levels.

One insider said: 'David wants to unlock some of the potential of the name. He is extremely focused on getting-business. There has been a huge sigh of relief within the bank at his appointment. Everybody believes that David will bring a sense of direction.'

Investment bankers at Rothschild had complained that, while they generated most of the firm's profits, Evelyn was not in tune with them.

Profits slipped 10.3% to £19.1m in the year to March 2003, the last accounts available, though the bank was the number one-rated adviser in British mergers.

David is also expected to tackle the size of the board, which has more than 40 members, including Sir Eddie George, former Governor of the Bank of England.

'He plans to shake it up,' said one banker. 'The board is just too big, and it will be cut back.'

It is not clear, however, if redundancies are on the cards elsewhere in the bank.