Morgan Stanley Announces CEO Successor as James Gorman Steps Down

Morgan Stanley announced it will appoint Ted Pick as its next chief executive officer as James Gorman is stepping down in January. The investment banking company said the new CEO vowed to keep the company focused on investment banking and wealth management business.

Pick will succeed Gorman, who is a veteran in the banking industry. As per Reuters, the latter held the CEO role since 2010 and he is being credited as the leader who steered the bank and kept it afloat amid the company’s financial crisis in 2008.

Gorman will stay in the company for one more year to assist with the transition. He will also become the executive chairman after leaving his chief role.

Who is Ted Pick

The new CEO of Morgan Stanley is a 54-year-old who has been with the company for about three decades. Prior to his new assignment, he was the global head of sales and trading at the bank. CNBC reported that Pick was also co-president of the company for the last two years.

He graduated from Middlebury College and secured his MBA degree at Harvard MBA Business School. He first joined the company in 1990.

Unanimous Vote for the New CEO

Gorman announced his intention to vacate his office during Morgan Stanley’s 2023 annual general meeting of shareholders. He said he would like to step down before the next annual meeting, which is taking place in 2024. With his announcement, the board convened to pick his replacement, and the voting resulted in a unanimous choice.

“The Board has unanimously determined that Ted Pick is the right person to lead Morgan Stanley and build on the success the Firm has achieved under James Gorman’s exceptional leadership,” lead director of the board, Tom Glocer, said in a press release. “Ted is a strategic leader with a strong track record of building and growing our client franchise, developing and retaining talent, allocating capital with sound risk management, and carrying forward our culture and values.”

Glocer added that the succession was a rigorous process but the board managed it well under the leadership of Dennis Nally, who is the chairman of compensation, management development and succession committee. He said the great efforts resulted in the appointment of Ted Pick, who they can already see will be an outstanding CEO.

In sending off the outgoing chief, the board’s lead director further said, “Over James’ 14 years as CEO, Morgan Stanley has been transformed into a strong and balanced financial institution with a long-term sustainable business model. We are grateful for the tremendous impact he has had on our Firm and are thankful that as Executive Chairman we will continue to benefit from his experience and critical insight.”

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