Merrill Lynch has named James Gorman as its new head of retail operations in the United States.

Gorman becomes president of the U.S. Private Client Group, replacing Stan O’Neal who was recently elevated to president and COO, and is believed to be in line for the CEO role. Also, Merrill has named Terry Kassel as senior vice president of human resources.

The appointments, which have been in progress for the past several weeks, were announced by David Komansky, chairman and CEO and O’Neal, are effective immediately.

“Strong management talent and orderly succession have always been hallmarks of Merrill Lynch,” said Komansky and O’Neal. “With the events of the past week, what was always a benefit has become a bulwark. James Gorman has been the number two executive in the U.S. private client business, leading our nationwide advisory force. He will continue to provide energetic and visionary leadership in his expanded role.”

In his new role, Gorman will continue to be an executive vice president of Merrill Lynch and a member of the executive management committee. Since May 2000 he has headed the USPC Client Relationship Group, where he managed the firm’s 15,000-member advisory force as well as the Wealth Management Services Division and the Direct Division.

Gorman has been instrumental in leading a market segmentation and client-focused strategy which strategically tailors the firm’s services to clients through multiple delivery channels.

He joined Merrill in July 1999 as executive vice president and chief marketing officer, with responsibility for the company’s strategic marketing and brand management activities. Prior to that he was a senior partner with McKinsey & Company. From 1982 to 1985, he practiced law in Melbourne, Australia, where he was born.

Kassel, 51, who will join the firm’s executive management committee, succeeds Thomas “Tam” Milton, who will return to USPC management, where he has spent the majority of his 23-year Merrill Lynch career. “Tam has done an outstanding job heading our human resources organization, most recently in response to the attack on the World Trade Center complex,” said Komansky and O’Neal. We are fortunate to have had his steady hand at the helm.”