Morgan Stanley chief executive James Gorman will step down within the next twelve months. The CEO made the announcement at the investment bank’s annual general meeting on Friday.
Bank of America is already looking for its successor. “Three experienced candidates” have already been identified by the board of directors, James Gorman said.
If not named, the New York-based firm’s co-chairs, Ted Bigg and Andy Saperstein, will work alongside Dan Simkowitz, chief investment management officer. “James Corman has worked hard to strengthen leadership teams and train and motivate potential successors,” said John Guernera, senior analyst at RBC BlueBay Asset Management, who did not expect “a major change in strategic direction.”
James Corman, 64, became CEO of Morgan Stanley in early 2010. He is now one of Wall Street’s oldest executives. His tenure as CEO was notably marked by a major strategic shift for the company.
In 13 years, James Corman transformed the Wall Street firm into a highly diversified firm that no longer relied on its traditional strengths, namely trading and investment banking.
Two major transactions were also completed while he was chairman of the bank: In 2020, it bought broker E*Trade Financial Corp. and manager Eden Vance Corp. Because these two moves were made days apart, James Corman became one of the best “deal makers” on Wall Street.
Australian-born James Gorman will take over as executive chairman after stepping down as CEO. “We believe this structure will provide stability for Morgan Stanley while sustaining a decade of exciting growth,” he said.
However, signs of the banking sector’s difficulties continue to mount in the current environment of bleak economic prospects. After the first wave of layoffs last December, Morgan Stanley announced in early May that it would cut 3,000 additional positions. About 5% of US investment banking workers will be affected.
In the first quarter, Bank of New York’s results fell. Profits fell to $14.5 billion this year from $14.8 billion a year earlier.
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