James Gorman, the CEO and chairman of Morgan Stanley, has announced his intention to step down from his role and transition to executive chairman within the next 12 months. Gorman has been at the helm of the bank since 2010 and has overseen a major strategic overhaul that has transformed Morgan Stanley into a wealth management giant. During his tenure, the bank acquired E*Trade and Eaton Vance and has relied on a dual engine of the investment bank and its wealth management business for growth, making it one of the best-performing stocks among its peers in the past decade.[0]
Gorman’s announcement has sparked speculation about who will succeed him as CEO.[1] He has said that the board has identified three strong senior internal candidates for consideration as the next CEO.[2] Ted Pick and Andy Saperstein, who serve as co-presidents, are among the three executives vying for the position, along with Dan Simkowitz, who leads the investment management division at Morgan Stanley.[3] The frontrunners for the bank’s trading and wealth management businesses are believed to be Pick and Saperstein, who manage these areas respectively.[4]
Gorman’s departure as CEO marks the end of an era for Morgan Stanley, as he has been one of Wall Street’s longest-serving CEOs. His tenure has been marked by a major strategic overhaul that has transformed the firm, and he has been widely credited with putting wealth management at the forefront of the bank’s operations.[5]
Gorman will serve as executive chairman for a period of time after leaving the CEO post, and Morgan Stanley’s board has not yet determined the specific timing of the CEO transition.[6] However, it is expected to occur at some point in the next 12 months, in the absence of a major change in the external environment.[5]
Overall, Gorman’s departure from the CEO role is a significant event for Morgan Stanley and the wider financial industry. His successor will need to maintain the bank’s momentum and build on the strategic transformation that Gorman has overseen, while also navigating the challenges and opportunities presented by the rapidly evolving financial landscape.
0. “Morgan Stanley CEO James Gorman to step down within 12 months” Crain’s New York Business, 19 May. 2023, https://www.crainsnewyork.com/finance/morgan-stanley-ceo-james-gorman-step-down-within-12-months
1. “Breaking: Morgan Stanley CEO To Step Down Amid Crypto-Fuelled Bank Failures” CoinGape, 19 May. 2023, https://coingape.com/banking-crisis-morgan-stanley-ceo-to-step-down-amid-crypto-fuelled-bank-failures/
2. “Potential candidates for the next CEO position at Morgan Stanley.” CEOWORLD magazine, 21 May. 2023, https://ceoworld.biz/2023/05/21/potential-candidates-for-the-next-ceo-position-at-morgan-stanley
3. “James Gorman’s exit unleashes battle to be new CEO of Morgan Stanley” eFinancialCareers, 19 May. 2023, https://www.efinancialcareers.com/news/2023/05/james-gorman-morgan-stanley
4. “Meet the 2 Very Different Execs in the Running to Be Morgan Stanley’s CEO” Business Insider, 19 May. 2023, https://www.businessinsider.com/morgan-stanley-james-gorman-ceo-successors-pick-saperstein-simkowitz-2023-5
5. “Morgan Stanley CEO Gorman to Step Down Within 12 Months” Mergers & Acquisitions, 19 May. 2023, https://www.themiddlemarket.com/news-analysis/morgan-stanley-ceo-gorman-to-step-down-within-12-months
6. “Morgan Stanley CEO James Gorman Announces Resignation” The Jewish Press – JewishPress.com, 20 May. 2023, https://www.jewishpress.com/news/us-news/ny/morgan-stanley-ceo-james-gorman-announces-resignation/2023/05/20