News
Morgan Stanley’s Gorman will step down as executive. role of president
Morgan Stanley (IN) executive chairman James Gorman will step down at the end of the year. Speaking at the company’s annual shareholder meeting, Gorman, who previously served as the bank’s CEO, cited the “successful” transition to new CEO Ted Pick as his reason for stepping down from the role.
Yahoo Finance Madison Mills It is Sean Smith explain why the news should not come as a surprise to shareholders.
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This post was written by Stephanie Mikulich.
Video transcript
Now, Morgan Stanley Executive Chairman James Gorman will step down at the end of the year.
Former CEO signing off on his successor Ted’s successful transition continues.
It’s important to note that this isn’t the latest news.
He teased this in May 2023.
He said he would stay for the succession plan and then give up the role of president.
But to put things into context here, he joined the company in 2006.
So after the global financial crisis, Morgan Stanley was obviously in a lot of trouble and they were able to push the company through that period where it was really a turning point for them and then bring it to the top as this type of money management heritage, herculean company in space.
One thing that interests me is who will take on this role of president, because we see many other large banks in the market.
The CEO and the president are the same person. Will this be the case?
Yes, it was really remarkable what he did in terms of better positioning on the bench over the last four years.
It’s been 14 years at the helm and it’s really transitioned into a wealth management powerhouse, as you just said, and he’s done that at the same time as positioning Ted chosen to be the successor, naming him as his successor.
Continuing this story of transition.
But I bring this up because he also managed to retain the other two top CEO candidates when it comes to Andy Saperstein and also when it comes to Dan Simit, and that’s something you don’t necessarily see on Wall Street.
So again, it seems like he said, actually putting it into his words, a successful transition to his successor, Ted pick and I think a lot of people are wondering what exactly the bench will look like with Ted’s pick going forward.
But once again, Morgan Saline’s first quarter earnings here, earnings exceeded expectations and we certainly saw a resurgence and an increase here of their investment banking, unique growth in their wealth management business.
So upward momentum here, you’re looking at a one-year chart of Morgan Stanley, these stocks are only up about 20%.