Morgan Stanley has tapped brokerage chief James Gorman as its next chief executive, to succeed current CEO, John Mack. The appointment of Australian Gorman, 51, signals that the board remains cautious after the crisis the firm experienced last fall, according to the Wall Street Journal. His background is in selling stocks and bonds to retail investors — less profitable than the bond business in which Mack specialized, but also less risky. Mack, 64, plans to stay as chairman. Gorman, who is currently a co-president, will effectively take over in January. The firm’s other co-president, Walid Chammah, will become chairman of Morgan Stanley International. The WSJ said this would be a huge test of leadership for Gorman, who is a former McKinsey & Co consultant and lawyer , pointing out Morgan Stanley’s $39 billion market capitalization is less than half that of chief rival Goldman Sachs. Since the start of Mack’s tenure in mid-2005, Morgan Stanley’s stock is down about 34 percent while Goldman’s is up 70 percent.
Morgan Stanley Picks Gorman as Mack’s Successor
The appointment of Australian Gorman, 51, signals that the board remains cautious after the crisis the firm experienced last fall.
September 11, 2009