Global Morgan Stanley chief waves white flag
(14 June 2005 – USA) Morgan Stanley chief executive Philip Purcell has fallen on his sword and announced he will resign following several months of criticism of his leadership by a group of shareholders and former senior executives of the US bank.
Purcell has been under the hammer for some time due to the bank’s disappointing financial performance compared to its Wall Street rivals Merrill Lynch and Lehman Brothers over a five year period.
Already intense pressure on Purcell’s leadership was exacerbated this week when Morgan Stanley announced its second quarter earnings would be 15 to 20 percent lower than the same period last year.
Although Purcell resisted resignation for some time, he said the campaign against his leadership led by a "group of eight" shareholders and former senior management, meant he would face a grudge match for his survival at an annual shareholders meeting next year.
He said the air of "acrimony and criticism" caused by the attacks on him had led him to conclude that "the best thing for me to do is retire".
Purcell presided over a highly unpopular management reshuffle earlier this year when he promoted Stephen Crawford and Zoe Cruz to co-presidents. These appointments led to a raft of senior management leaving the bank.
Already intense pressure on Purcell’s leadership was exacerbated this week when Morgan Stanley announced its second quarter earnings would be 15 to 20 percent lower than the same period last year.
Although Purcell resisted resignation for some time, he said the campaign against his leadership led by a "group of eight" shareholders and former senior management, meant he would face a grudge match for his survival at an annual shareholders meeting next year.
He said the air of "acrimony and criticism" caused by the attacks on him had led him to conclude that "the best thing for me to do is retire".
Purcell presided over a highly unpopular management reshuffle earlier this year when he promoted Stephen Crawford and Zoe Cruz to co-presidents. These appointments led to a raft of senior management leaving the bank.
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