Morgan Stanley has announced that co-president James Gorman will become the firm’s CEO, effective January 1, 2010, while chairman and CEO John Mack will continue to serve as chairman.
Reportedly, Mr. Gorman also will join Morgan Stanley’s board of directors at year end. The firm has also announced that co-president Walid Chammah will become chairman of Morgan Stanley International at year end and will continue to be based in London.
Robert Kidder, lead director of the board, said: “Mr. Gorman has a long track record of developing aggressive strategies backed by strong operating skills and relentless execution. He led dramatic turnarounds of major businesses at both Merrill Lynch and Morgan Stanley, and this year forged the world’s largest wealth management business with the Smith Barney joint venture. We are confident that with James Gorman as CEO and John Mack as chairman, Morgan Stanley will continue building our premier franchises in investment banking as well as sales and trading, grow market share across all key businesses and deliver tremendous value for our clients, colleagues and shareholders.”
Mr. Mack said: “In James Gorman, we have an outstanding leader for Morgan Stanley. He has a proven record of building outstanding teams, executing winning strategies and growing profitable businesses. Succession has been a top priority for me since my return to Morgan Stanley, and I am confident that James is the right person to lead the Firm forward. James nearly tripled the operating profit in our wealth management business in just three years’ time, and then helped drive the Smith Barney joint venture – a game-changing transaction that will play a key role in the Firm’s future growth and profitability. James is widely respected not just here at Morgan Stanley, but across the industry, and as Co-President, he has helped the Firm build relationships with key institutional and corporate clients. I look forward to continuing to work with James and all of our colleagues as we take Morgan Stanley to a new level of success. Together, we have accomplished a tremendous amount over the past four years, thanks to the hard work and dedication of everyone at Morgan Stanley. It truly has been a privilege to work at this great Firm – my home for more than thirty years.”
Mr. Gorman said: “I look forward to continuing to work closely with John Mack, Walid Chammah, the rest of the senior management team and our colleagues around the world to leverage the power of Morgan Stanley’s franchise for our clients, our employees and most of all, our shareholders.”
