In a March presentation, Chief Operating Officer David Steyn said AllianceBernstein hoped to build its business in 401(k)-style retirement plans from $30 billion in assets to $100 billion, though he didn't give a specific timeframe. He also said the firm wants to add more alternative assets, a category that includes hedge funds and private equity. Alliance oversees $12 billion in such funds, he said.

Support From Gabelli

"Peter Kraus is turning the franchise around," Macrae Sykes, an analyst at Rye, N.Y.-based Gabelli & Co., said in a telephone interview. Gamco Asset Management, Gabelli's money- management arm, and Gabelli Funds LLC own a combined 831,000 AllianceBernstein shares, according to data compiled by Bloomberg.

Kraus succeeded Lewis Sanders, a well-known value investor, who sold Sanford C. Bernstein to Alliance Capital. Sanders ran the combined company from 2003 until he retired in 2008. He is now chief executive officer of Sanders Capital LLC, a New York-based asset manager.

Kraus spent 22 years at Goldman Sachs, working both in investment banking and money management. When he left in 2008, he was co-head of the New York-based company's investment- management division.

Restricted Stock

In September 2008, Kraus joined Merrill Lynch & Co. as an executive vice president with a compensation package originally valued at as much as $95 million, people with knowledge of the matter said at the time. Merrill Lynch, based in New York, announced his departure a month later, after its takeover by Bank of America Corp. of Charlotte, North Carolina.

Kraus left Merrill Lynch with as much as $25 million, the Wall Street Journal reported at the time. With the change in control, Merrill Lynch was "obligated to fulfill the terms of its contract with Peter," John Meyers, an AllianceBernstein spokesman, wrote in an e-mail,

When he was hired by AllianceBernstein, Kraus got 2.7 million shares of restricted stock that vest over five years. The grant was valued at the time at $52 million, according to a regulatory filing.

Kraus has put his stamp on the firm's lineup of money managers. Last year he promoted Sharon Fay, a 20-year company veteran, to chief investment officer of equities, hired Laurent Saltiel from Janus to manage international large-cap stocks and brought in Ashish Shah from Barclays Capital to be co-head of global credit investment.

Personnel Turnover

Departing last year were Lisa Shalett, head of growth equities, and brothers James and Michael Reilly, who managed large-cap growth stocks. Chief Financial Officer John Howard left in February after less than a year on the job.