Gorman had already said in January that younger candidates were ready as possible successors.
(Photo: Reuters)
new York The CEO of the US investment bank Morgan Stanley, James Gorman, wants to step down as CEO. “It’s likely to happen sometime in the next 12 months,” Gorman said at the bank’s shareholder meeting in New York on Friday. At least that is the current expectation of the board of directors, provided that no important developments intervene.
The news took the industry by surprise. Gorman took over the top job in 2010 and said in January that younger candidates were ready to replace him. After his resignation, however, the 64-year-old initially wants to remain in the company as Chairman of the Administrative Board, which is senior to the Management Board.
Since taking office, Gorman has steered the institute through one of the most successful transformations on Wall Street. Following the turbulence of the 2008 financial crisis, Morgan Stanley developed into a wealth management giant through a series of clever acquisitions.
The bank’s transformation began in 2009 when Morgan Stanley Smith bought Barney from Citigroup, integrating thousands of financial advisors. Three years ago, Gorman acquired brokers E-Trade and investment manager Eaton Vance for a total of $20 billion.
According to Gorman, the bank could add about $1 trillion in assets every three years, eventually reaching the $10 trillion mark.
“Gorman is among the top CEOs in the financial industry, having acquired the company after the 2008 financial crisis and significantly improved returns,” said KBW analyst David Konrad. The more stable income from wealth management is also well received by shareholders.
Under Gorman’s tenure, the stock price has tripled. Other institutes such as arch-rival Goldman Sachs also want to follow Gorman’s vision and make the business less dependent on the more volatile fees from the trading and consulting business.
According to Gorman, there are three candidates to succeed him. He didn’t name any names. But the most likely candidates are Ted Pick and Andy Saperstein, the firm’s co-presidents, and its chief investment officer, Dan Simkowitz.
With agency material.
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