James P. Gorman, CEO of Morgan Stanley from January 1, 2010, has kept himself surrounded with experienced members of the investment banks executive team, with only one high-profile casualty. Michael J. Petrick, head of sales and trading, has been demoted after the division suffered over the past year. A new position has not been stated, although Morgan Stanley said it was in negotiations with Petrick.
Colm Kelleher, previously chief financial officer and head of capital markets, will oversee the sales and trading business. Kelleher, along with Paul Taubman, has been made co-president of institutional securities. Taubman, previously global head of investment banking, will continue overseeing the investment banking business. Both will oversee capital markets.
Ruth Porat, who previously served as Global Head of the Financial Institutions Group, will serve as Chief Financial Officer.
Thomas R. Nides, chief administrative officer, has been promoted to the new post of chief operating officer and will take on additional responsibilities as the Firm’s Chief Operating Officer, including overseeing Firmwide Operations and Technology.
Jim Rosenthal, who currently serves as Head of Firmwide Technology and Operations, will serve as Chief Operating Officer of Morgan Stanley Smith Barney and Head of Corporate Strategy for Morgan Stanley.
Charles Johnston, Ken deRegt and Gary Lynch will continue in their current roles as President of Morgan Stanley Smith Barney, Morgan Stanley Chief Risk Officer and Morgan Stanley Chief Legal Officer, respectively.
Mr. Gorman said, “Morgan Stanley has an incredible depth of talent and strong momentum across our businesses. Looking ahead, we must accelerate our business momentum by continuing to revitalize our sales and trading franchise, bringing together the full range of the Firm’s products and ideas to meet the needs of our clients, and further bolstering our risk management capabilities, which will benefit from the highly complementary skills that Colm, Ruth, Ken deRegt and Paul Taubman bring to their respective roles. These appointments will ensure that we are leveraging our most experienced leaders in the best way possible to achieve these important goals. I have worked closely with each and every one of the talented individuals being named today, and I am confident that they are the right team – with the right skills – to help us lead Morgan Stanley forward.”