June 7, 2023

James Gorman, who has held the highest cease at Morgan Stanley for the previous 13 years, is about to name it quits.

Gorman introduced he’ll depart the corporate inside the subsequent 12 months Friday on the firm’s annual shareholder assembly. Whereas no successor has been named, Gorman mentioned the corporate has recognized three “very robust senior inner candidates” for the position.

“The precise timing of the CEO transition has not been decided, however it’s the board’s and my expectation that it’ll happen sooner or later within the subsequent 12 months,” he mentioned. “That’s the present expectation within the absence of a significant change within the exterior atmosphere.”

After he departs the CEO workplace, Gorman will stay as government chairman “for a time period”.

“We consider this construction will make sure the continued stability of Morgan Stanley whereas on the identical time positioning it for a decade of thrilling development underneath new management,” he mentioned. “Within the meantime, I’m honored to proceed to function Chairman and CEO of Morgan Stanley, as I’ve been doing for what’s now my 14th yr.”

Gorman turned CEO of Morgan Stanley in 2010 and is likely one of the longest-serving CEOs within the business, alongside JPMorgan Chase’s James Dimon and Financial institution of America’s Brian Moynihan. He took over the financial institution in a tremendously weakened state after the 2008 mortgage disaster and helped it develop right into a wealth administration powerhouse.

Gorman, 64, hinted that his time is perhaps drawing close to earlier this yr.

In an interview with Bloomberg TV this January, he mentioned: “You intend a technology of people that can take over.”

Ted Choose and Andy Saperstein, the New York-based agency’s co-presidents, and investment-management chief Dan Simkowitz are broadly thought-about to be the candidates for the highest job.

Below Gorman’s watch, Morgan Stanley was a giant a part of Elon Musk’s buy of Twitter. Roughly $3.4 billion of the financial institution’s steadiness sheet is tied up with loans it made to Twitter Inc. as a part of Musk’s acquisition of the social-media firm.

He has been a proponent of employees returning to the workplace and his feedback have rubbed some employees the unsuitable approach.

“They don’t get to decide on their compensation, they don’t get to decide on their promotion, they don’t get to decide on to remain dwelling 5 days per week,” mentioned James Gorman, CEO of Morgan Stanley, in an interview with Bloomberg. “I would like them with different workers at the least three or 4 days.”

Morgan Stanley shares have greater than tripled in worth underneath Gorman’s watch.