Morgan Stanley CEO Mack stepping down
Morgan Stanley Chief Executive John Mack is stepping down and will be replaced by James Gorman, one of the investment bank’s co-presidents.
Mack, 64, will remain as chairman of Morgan Stanley (MS, Fortune 500), whose management has drawn criticism from some quarters lately after a string of recent losses.
Mack had told the bank’s board that he planned to step down from the CEO post when he turned 65 in November, the bank said in a statement Thursday.
Gorman, 51, who runs Morgan Stanley’s brokerage and has been overseeing its expansion through a joint venture with Citigroup’s Smith Barney (C, Fortune 500) unit, has long been seen as a front runner for the top job at Morgan Stanley.
"Gorman has really earned his stripes," said Anton Schutz, president of Mendon Capital Advisors in Rochester, New York, which owns Morgan Stanley shares. "He did a great job at Merrill, he’s doing a good job at Morgan Stanley, and the timing for a change seems to be good, because we’ve made it through the worst of the crisis."
Prior to joining Morgan Stanley in 2006, Gorman had held a series of positions at Merrill Lynch & Co (MSPX), including leading its global private client business from 2001 to 2005.
Walid Chammah, another Morgan Stanley co-president who had also for a time been a candidate for the top job, was named chairman of Morgan Stanley International.