Please ensure Javascript is enabled for purposes of website accessibility

Two Candidates Emerge at Morgan Stanley as Potential Successor to CEO Gorman

By Bram Berkowitz - May 20, 2021 at 10:23AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The bank is shaking up senior leadership, with two current executives seen as the favorites to replace its longtime CEO.

Two candidates have emerged as the front-runners to take over for CEO James Gorman when he eventually retires from Morgan Stanley (MS -1.88%).

The investment bank and asset and wealth manager announced today that Ted Pick and Andy Saperstein will become co-presidents of Morgan Stanley.

Pick currently leads the bank's institutional securities business and will now also take over Morgan Stanley's international operations and become co-head of the bank's strategy and execution. Saperstein leads Morgan Stanley's wealth management business and will take over firmwide markets.

Citing an anonymous source, Bloomberg reported that Gorman, who has been CEO since 2010, has told the board of directors he plans to stay in the top role for another three years. Despite other changes to senior leadership, Bloomberg also reported that Pick and Saperstein are seen as the top candidates to replace Gorman.

"I am highly confident one of them will be the CEO in the future," said Gorman, referring to his leadership team in an interview with Bloomberg. "It feels like the right time to more formally set up a transition over the next few years."

James Gorman, CEO at Morgan Stanley

James Gorman, Morgan Stanley CEO. Image source: Morgan Stanley.

In other moves, Morgan Stanley announced that Dan Simkowitz, head of investment management, will become co-head of firm strategy and execution alongside Pick. Jonathan Pruzan, currently CFO at the bank, will become chief operating officer, while Sharon Yeshaya, currently the head of investor relations, will replace Pruzan as CFO. The new appointments will be effective June 1.

The news comes just days after JPMorgan Chase installed the two front-runners to replace CEO Jamie Dimon at the top of the company's large consumer bank.

Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Morgan Stanley Stock Quote
Morgan Stanley
MS
$90.01 (-1.88%) $-1.72

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
397%
 
S&P 500 Returns
128%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/20/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.