Morgan Stanley CEO Stepping Down After 13 Years at the Helm
(22 May 2023 – United States) Morgan Stanley CEO James Gorman announced his plan to step down as Chief Executive Officer (CEO) within a year but remain as Executive Chairman.
Australian born Mr Gorman held the role for 13 years within which time he expanded the Wall Street group into a wealth management giant aiming for US$10 trillion in assets under management (AUM).
Gorman successfully diversified the company that is less reliant on what have been its traditional strengths, trading and investment banking, since being appointed CEO during the final period of the global financial crisis in 2010. The less volatile business of wealth management accounted for 45 percent of the firm's revenue in Q1 2023.
The bank's board has identified three strong candidates to succeed him without naming them. Head of Investment Management Dan Simkowitz and Co-Presidents Andy Saperstein and Ted Pick are popularly viewed as leading proponents for the position.
Gorman's decision places a spotlight on other long-serving Bank CEOs including JPMorgan’s Jamie Dimon and Bank of America’s Brian Moynihan.
"An issue of paramount importance to shareholders, employees and clients is, of course, succession and no, I'm not just talking about the TV series. I definitely have no plans to go out like Logan Roy" referring to a character in an HBO television series Succession in which the CEO dies without having chosen a successor.
"The failure to announce a successor will tear the company apart if it is not done quickly" Odeon Bank Analyst, Dick Bove stated.