executives Tuesday to take senior positions after their merger, and Chemical people outnumbered their counterparts by 26 to 18. Though the pattern followed that of earlier moves, with executives from the larger bank being selected for majority of influential jobs, Chase got more than many observers expected in this third round of announcements. "Chemical still comes out ahead," said an observer close to the bank. "There are a lot of Chase names in here, but don't be fooled." The announcement covered management positions in global wholesale banking, capital markets, trading, client management, information and transaction services, and the legal department. More key appointments are expected in private banking, investment management, and information and transaction services. Meanwhile, some observers said they saw evidence that the two companies were having some difficulty melding their executive teams. Of the 18 Chase employees named Tuesday, seven would either share management in their areas or would act as deputies. For instance, Daniel Canel of Chemical and Jorge Jasson from Chase would share responsibilities in the emerging markets area of the combined company. To some, this indicates the merged company might repeat a mistake made by Chemical after it merged with Manufacturers Hanover Corp. in 1991. One analyst said the number of deputies and co-heads indicates the company is having difficulty narrowing its choices. For example, in the merged bank's derivatives unit, which is expected to be the largest bank dealer of derivatives in the United States, Chemical's Jeffrey B. Larsen would have the top position while his Chase counterpart, Frederick Chapey, would be his deputy. Mr. Larsen, Chemical's global head of derivatives operations and deputy managing director of its capital markets group, was named head of non-U.S. securities and structured and specialty derivatives. Mr. Chapey would also serve as manager of derivatives globally. Don Wilson 3d, another Chemical banker, would be in charge of generic derivatives as well as foreign exchange and selected government securities. Chase's David Adamson was named to run foreign exchange options and coordinate foreign exchange sales. He would report to Mr. Wilson. Raphael Soifer, a bank analyst with Brown Brothers Harriman & Co. in New York, said the derivatives appointments are reasonable, considering the size of Chemical's operation. At $3.6 trillion in notional amount, Chemical is more than twice as large as Chase's $1.5 trillion. But Chemical's reputation is in plain-vanilla contracts. "Neither is considered a leader in exotic derivatives," said Mr. Soifer. "Chase has had more of a reputation in exotics than Chemical." In the only other capital markets appointment, Chase's Paul Brandow was named to the new company's U.S. investing team. His superior has yet to be appointed. In global wholesale banking, two former Chemical people would report to William Harrison, previously appointed vice chairman and head of this area. Jeffrey Walker would head equity investing, while Francis Burnes would be in charge of finance and administration. Garry Nelson, from Chemical, would lead the human resources area in capital markets and investment banking. Chase's Stanley Schrager would run human resources for global client management, global asset management, and private banking. Chase would have a greater presence in global client management, an area headed by Chase's Arjun Mathrani. Thomas Reifenheiser was named to lead the new bank's media and telecommunications area, while Thompson Swayne would be in charge of relationships with U.S. and European multinationals. Both also come from Chase. Joining the client management group from Chemical are Morten Arntzen, head of aerospace and shipping, Dod Fraser, head of oil and gas, and Waldo Abbot, who would be Mr. Swayne's deputy. International regional managers also were named. Charles Bauccio would be in charge in Eastern Europe, the Middle East, and Africa. Robert Fallon would be head of the bank's East Asian and Australian operations, and Dennis Goggin would run operations in continental Asia. Finally, Brian O'Neill was named head of Latin America operations. Of the international appointments, only Mr. Fallon comes from Chemical. Kathylynn O'Donnell said last week she will resign as executive vice president and co-head of global markets at Chase after the merger closes early next year.

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