- After 14 years in the position
- Praise and thanks for Gorman
- Ted Pick taking over
- Gorman will remain as Executive Chairman at Morgan Stanley
- Gorman spoke at length and said 156 words
(exechange) — New York, October 25, 2023 — James Gorman, chief executive of Morgan Stanley, leaves his position. As announced by Morgan Stanley in a news release on Wednesday, October 25, 2023, James P. Gorman leaves his post as chief executive officer at the financial services firm, after 14 years in the role, effective December 31, 2023.
Gorman announced at the Firm’s 2023 annual general meeting of shareholders his intention to step down as Chief Executive Officer before the 2024 annual general meeting.
James Gorman’s duties as CEO will be taken over by Edward N. (Ted) Pick, currently Co-President at Morgan Stanley.
James Gorman’s move coincides with a management shake-up also involving the positions of Head of Wealth and Investment Management; and Head of Institutional Securities.
“Rigorous and well-managed succession process”
The management change is explained as follows. Tom Glocer, Lead Director of the Board, stated: “We believe that the Board’s rigorous and well-managed succession process, under the leadership of Dennis Nally, the Chair of our Compensation, Management Development and Succession Committee, has resulted in the appointment of an outstanding CEO while also demonstrating the strength and depth of Morgan Stanley’s leadership talent.”
Gorman will remain as Executive Chairman at Morgan Stanley
Morgan Stanley stated: “James Gorman will become Executive Chairman.”
Share price increase since October 2018
The announcement follows an increase in Morgan Stanley’s share price of 53% since October 2018.
In the position of CEO since 2010
James Gorman became CEO of the Company in 2010.
His bio reads as follows:
- Chairman of the Board and CEO of Morgan Stanley since January 2012. President and CEO from January 2010 through December 2011.
- Co-President of Morgan Stanley from December 2007 to December 2009, Co-Head of Strategic Planning from October 2007 to December 2009 and President and Chief Operating Officer of Wealth Management from February 2006 to April 2008.
- Joined Merrill Lynch & Co., Inc. (Merrill Lynch) in 1999 and served in various positions, including Chief Marketing Officer, Head of Corporate Acquisitions Strategy and Research in 2005 and President of the Global Private Client business from 2002 to 2005.
- Prior to joining Merrill Lynch, was a senior partner at McKinsey & Co., serving in the firm’s financial services practice. Earlier in his career, was an attorney in Australia.
156 words by James Gorman
In the release announcing his departure as CEO of Morgan Stanley, James Gorman received praise and thanks.
In announcing his departure, James Gorman spoke at length and said 156 words.
“I feel strongly that now is the time to step aside”
James Gorman stated: “For several years I have worked with the Board to ensure an orderly succession, and I feel strongly that now is the time to step aside. The Board’s selection of Ted Pick is an outstanding one. I have worked side by side with Ted since the financial crisis and have experienced first-hand his values, intellect, passion and commitment to our people and our clients. He is battle-tested, understands complex risk, and works very effectively not just in the U.S., but around the globe. In short, he is an outstanding executive and leader. I am also delighted that Andy and Dan will take on expanded leadership roles. Both are world-class executives, with outstanding values and intellect. As Co-Presidents of Morgan Stanley, Andy and Dan will be invaluable leaders in helping Ted manage the Firm. Through the transition period and my time as Executive Chairman, I will do everything I can to support Ted as our new CEO.”
Push-out Score for James Gorman’s move determined
The Push-out Score indicates on a scale of 0 to 10 how likely it is that James Gorman was pushed out or felt pressure to leave his position.
exechange reached out to Morgan Stanley and offered the company the opportunity to comment on the score.
Read the full story in the exechange report 44.2023 ($).