Morgan Stanley gets serious about a new CEO
Morgan Stanley’s board is set to prioritize the selection of CEO James Gorman’s replacement during its upcoming meetings, according to a Reuters anonymous source. As Gorman looks to resolve major regulatory issues, the board will evaluate three internal candidates in July and subsequent meetings in September and October. Co-presidents Ted Pick (head of the International Securities Group) and Andy Saperstein (head of the Wealth Management Unit) are considered the front runners, with Pick slightly ahead. Another contender is Dan Simkowitz, the head of investment management, although no final decision has been made. The process remains confidential, and neither Morgan Stanley nor the individuals involved commented on the matter.
Under Saperstein’s leadership, Morgan Stanley’s wealth management division has emerged as a formidable force, managing a staggering $4.5 trillion in assets. This accomplishment has propelled the bank’s market value above that of its long-standing rival, Goldman Sachs. Saperstein’s remarkable success can be attributed to his role in spearheading a transformation in Wall Street’s culture alongside his mentor, James Gorman. Following the 2008 financial crisis, they steered the company away from the high-risk, speculative practices prevalent at firms like Salomon Brothers.
Morgan Stanley shifted its focus toward the stable and lucrative business of wealth management, distancing itself from the wild gambles taken by risk-seeking traders. This strategic shift has not only garnered immense favor from investors but has also instilled envy among competing firms. Morgan Stanley’s ability to generate consistent fees and prioritize long-term client relationships has earned the company a reputation as an
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