Jack Mack, Morgan Stanley Chief Executive Officer will step down from his role as CEO in January 2010. Mack will continue as Chairman, while James Gorman will become CEO.
These changes will be effective from January 1, 2010. Mr. Gorman also will join Morgan Stanley’s Board of Directors at the end of the year. The Firm also announced that Co-President Walid A. Chammah will become Chairman of Morgan Stanley International.
Robert Kidder, Lead Director of the Board, said, “Four years ago, we were extremely fortunate to be able to bring John Mack back to Morgan Stanley, given everything he had done to build the Firm and its global franchise. After returning to Morgan Stanley in 2005, John effectively stabilized the Firm and reenergized our culture and client franchise. More recently, he helped to strengthen our capital position and repay TARP; oversaw our conversion to a bank holding company; and forged strategic ventures with Smith Barney and Mitsubishi UFJ that will play a key role in growing Morgan Stanley’s business for years to come.
Kidder continued, “Since John told the Board eighteen months ago that he would like to step back from the CEO role after turning 65 this November, John and the Board have been working closely together to ensure a smooth and successful CEO succession process. We believe now is the right time for that transition, and all of us on the Board – and across the Firm – are grateful that we will continue to benefit from John’s insights and experience in his critical role as Chairman.”
“James has a long track record of developing aggressive strategies backed by strong operating skills and relentless execution. As Co-President of the Firm since 2007, he has been central to our success in the most challenging period in history and served as a key architect of Morgan Stanley’s strategy. We are confident that with James Gorman as CEO and John Mack as Chairman, Morgan Stanley will continue building our premier franchises in investment banking,” Kidder concluded.
Mack said, “In James Gorman, we have an outstanding leader for Morgan Stanley. Succession has been a top priority for me since my return to Morgan Stanley, and I am confident that James is the right person to lead the Firm forward. Walid Chammah has made enormous contributions in a variety of roles at Morgan Stanley, and we are very pleased that he will continue to play a key part in the management of the Firm as Chairman of Morgan Stanley International, he continued. Throughout the succession process, Walid has made clear his desire to remain in London, where his family is located. His role as Chairman of Morgan Stanley International will allow him to do just that, while leveraging his strong client relationships around the globe and continuing to help lead Morgan Stanley forward.”
“John Mack has spent thirty years helping to protect and enhance that legacy – most dramatically during last fall’s financial crisis, James Gorman commented. Thanks to John’s strong leadership, we have enormous opportunities to continue growing Morgan Stanley’s premier institutional business in the transformed market environment we now face. I look forward to continuing to work closely with John, Walid, the rest of the senior management team and our colleagues around the world.”
Since June 30 2005 when Mack was appointed CEO, Morgan and Stanley stock has fallen 34% and shares risen only by 22%, while in the same time, Goldman Sachs shares have risen by 71%.