Shareholders and Former Senior Executives of Morgan Stanley have outlined a plan to address the firm’s leadership, strategy, and governance. Among their recommendations is the proposal that Robert G. Scott should replace current CEO and President Philip J. Purcell.
“We propose that the Board of Directors immediately replace Philip J. Purcell with Robert G. Scott as President and CEO,” said a press release from the group. “Second, we propose that the Board of Directors name a new non-executive Chairman of the Board with substantial financial experience. Third, we propose the establishment of an Office of the President to include senior Morgan Stanley executives.”
Robert Scott said, “My first priority will be to contact the extraordinarily talented individuals who have left the firm in recent times, including Stephan Newhouse, Vikram Pandit, John Havens, and others and ask them to rejoin the firm’s senior management team. Second, I would invest in and implement changes to improve the profitability of the Firm’s retail business and to increase the rate of growth and profitability of the Firm’s asset management business.”
The group believes that these changes, if acted upon immediately, should rapidly restore the confidence of the firm’s shareholders, employees and clients, according to the press release. The group also reiterated its request, so far ignored, to meet with the Board of Directors to discuss the magnitude of the crisis which the Board’s actions precipitated.
Scott, age 59, had a distinguished 33-year career at Morgan Stanley, which included roles as head of investment banking, chief financial officer and most recently as president and chief operating officer. Up until April 2004, Scott also served on the Board of Directors of Morgan Stanley. He has worked with a broad spectrum of clients, employees and shareholders of the firm.