Morgan Stanley CEO shakes leadership with eyes on successor
Morgan Stanley CEO James Gorman has unveiled his biggest leadership reshuffle in more than a decade, positioning a small group of lieutenants – and two in particular – as his most likely successors.
Ted Pick, the architect of Morgan Stanley’s business renaissance, and Andy Saperstein, who turned the company into a wealth management powerhouse, were named co-chairs and given expanded roles at the top of the bank. Wall Street which is gaining ground on its rivals.
Among a list of other changes: Chief Investment Officer Dan Simkowitz will gain influence as Co-Chief Strategy Officer alongside Pick, and Chief Financial Officer Jon Pruzan will become Chief Operating Officer.
The reshuffle propels the quartet into a public bake-off to succeed Gorman, whose 11-year tenure makes him one of the longest-serving executives of any major U.S. bank. Behind the scenes, the boss told council he plans to stay at least three more years, according to a person familiar with the matter.
“I have no doubts that one of them will be the CEO in the future,” Gorman, 62, said of his management team in an interview. “
The reshuffle comes just two days after Jamie Dimon of JPMorgan Chase & Co. – the only head of a giant U.S. bank with a tenure longer than Gorman’s – reconfigured his own management team, promoting two women who could day assume its mandate. Publish.
Morgan Stanley’s role as CFO will pass to Sharon Yeshaya, head of investor relations, giving her a stronger voice among investors and analysts.
Gorman’s first deputy post had been vacant for two years since the departure of the company’s colorful chairman, Colm Kelleher, who was older than the CEO. This departure sparked a race for the next generation of executives, and Gorman gave them time to prove themselves.
He ultimately landed on two who were key in Morgan Stanley’s return from the 2008 financial crisis, helping to strengthen its operations on Wall Street and build a franchise that looked after clients’ money. Morgan Stanley has had the best stock market performance among its major rivals in the past five years, giving executives hope that the pejorative that has long persecuted the company – the smallest big bank – is forever buried.
At one point early last year, senior executives rejoiced over impressions of the bank’s stock surge relative to archivist Goldman Sachs Group Inc. More recently, Morgan Stanley even surpassed market value. from Citigroup Inc., which twice orders the assets.
With Pick, 52, Gorman promotes a turnaround artist. He is credited with rebuilding the company’s stock business after the financial crisis, making it the dominant player on Wall Street. He then proceeded to overhaul a weakened fixed income division. This earned him oversight of Morgan Stanley’s investment banking – including both trading and dealing.
While Pick will continue to manage the institutional securities business, he will also be in charge of international operations.
Saperstein, 54, has led the bank in wealth management, creating a reliable income generator that is the envy of many rivals. Gorman himself had made a name for himself in that business at Merrill Lynch, where he worked with Saperstein, and together the couple made him the centerpiece of Morgan Stanley’s backbone after the financial crisis.
Along the way, Morgan Stanley took over Smith Barney from Citigroup and last year picked up E * Trade Financial Corp. – assembling a franchise which contributes almost as much to the turnover as the investment bank.
The serene transfer that Gorman is putting in place is quite a departure from when he took the lead in 2010. At the time, the company was moving away from an era of struggles. vicious bowels in its senior ranks and the global financial crisis. Shortly after the Melbourne-born banker took office, he was faced with the grim possibility of a catastrophic downgrade in one of the major rating companies.
“At the time, we were reeling from the financial crisis, we had a number of issues that we needed to resolve,” Gorman said. “It’s different. You make these changes when you can and from a position of strength.”
This story was posted from an agency feed with no text editing.
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