Morgan Stanley CEO James Gorman to Step Down Within a Year
James Gorman, the CEO of Morgan Stanley, has announced that he plans to resign from his position within the next year. This announcement has set off a succession race for one of Wall Street’s dominant firms. The bank’s board has narrowed its CEO search to three « very strong » internal candidates, according to Gorman. After stepping down as CEO, Gorman, who is 64 years old, will take on the executive chairman role « for a period of time. »
Since taking over in 2010, Gorman has successfully transformed Morgan Stanley through a series of savvy acquisitions. The firm went from nearly being capsized during the 2008 financial crisis to a widely-respected wealth management juggernaut. Morgan Stanley’s investors have rewarded it with one of the top valuations among big bank peers. Shareholders favor the steadier revenue streams from wealth and asset management over more volatile trading and advisory operations.
Gorman has publicly stated for the past few years that he didn’t plan on staying much longer as CEO. He joked with investors on Friday that he wouldn’t die while holding the title. The announcement makes official Gorman’s desire to hand over the reins to another executive. The specific timing of the CEO transition has not been determined, but it is the board’s and Gorman’s expectation that it will occur at some point in the next 12 months.
Morgan Stanley’s Successful Transformation Under Gorman’s Leadership
Under James Gorman’s leadership, Morgan Stanley has undergone a successful transformation. Through a series of savvy acquisitions, the firm went from nearly being capsized during the 2008 financial crisis to a widely-respected wealth management juggernaut. Morgan Stanley’s investors have rewarded it with one of the top valuations among big bank peers.
Gorman’s strategy of focusing on wealth and asset management has paid off for the firm. Shareholders favor the steadier revenue streams from these areas over more volatile trading and advisory operations. Gorman’s announcement that he plans to resign as CEO within the year has set off a succession race for one of Wall Street’s dominant firms. The bank’s board has narrowed its CEO search to three « very strong » internal candidates.
Gorman’s Legacy at Morgan Stanley
James Gorman’s legacy at Morgan Stanley will be one of successful transformation. Since taking over in 2010, Gorman has pulled off one of the more successful transformations on Wall Street. Through a series of savvy acquisitions, Morgan Stanley went from nearly being capsized during the 2008 financial crisis to a widely-respected wealth management juggernaut.
Gorman’s focus on wealth and asset management has paid off for the firm, as shareholders favor the steadier revenue streams from these areas over more volatile trading and advisory operations. Gorman’s announcement that he plans to resign as CEO within the year has set off a succession race for one of Wall Street’s dominant firms. The bank’s board has narrowed its CEO search to three « very strong » internal candidates.
Keywords: Morgan Stanley, James Gorman, CEO, resignation, succession race, Wall Street, wealth management, asset management, acquisitions, shareholders, revenue streams, trading, advisory operations.