Morgan Stanley has made its decision on who should succeed the man who helped the firm recover from the turmoil of the financial crisis and grow into wealth management titan.
Current CEO James Gorman announced his decision to step down after 13 years in charge back in May, telling the shareholders’ annual meeting that the new chief executive should be in place within 12 months.
Just five months later and Edward (Ted) Pick has been named as the new CEO from Jan. 1, elevating him from his current role as co-president, co-head of firm strategy, and head of the Institutional Securities Group, where he oversees investment banking, equities, fixed income, capital markets and research.
“The Board has unanimously determined that Ted Pick is the right person to lead Morgan Stanley and build on the success the Firm has achieved under James Gorman’s exceptional leadership,” said Tom Glocer, lead director of the Morgan Stanley board of directors. “Ted is a strategic leader with a strong track record of building and growing our client franchise, developing and retaining talent, allocating capital with sound risk management, and carrying forward our culture and values.”
Pick joined the firm in 1990 and became a managing director in 2002, with several leadership roles ahead including global head of sales and trading, head of institutional equities, and head of equity capital markets.
“Morgan Stanley is a storied institution, and I am deeply honored to have been chosen to lead it,” said Pick. “We have a global diversified business with a leading client franchise. Thanks to James’ excellent leadership, our firm is now well-positioned to succeed across market cycles, and I am excited about the opportunities for future growth. Morgan Stanley has exceptionally talented people and is home to a deep culture and abiding values. I also want to thank the Board for the confidence they have expressed in me.”
James Gorman will remain with the firm as executive chairman and said that Pick was an outstanding choice to lead the firm’s next chapter.
“I have worked side by side with Ted since the financial crisis and have experienced first-hand his values, intellect, passion and commitment to our people and our clients,” he said. “He is battle-tested, understands complex risk, and works very effectively not just in the U.S., but around the globe. In short, he is an outstanding executive and leader.”
LEADERSHIP PROMOTIONS
The changes at the top facilitate some expanded roles for two more of the firm’s leaders.
Co-president Andy Saperstein will become head of Wealth and Investment Management and Dan Simkowitz will become co-president of the firm and head of Institutional Securities. Along with Pick, the leaders were among those tipped to succeed Gorman when his decision to step down was first reported.
“I am also delighted that Andy and Dan will take on expanded leadership roles,” added Gorman. “Both are world-class executives, with outstanding values and intellect. As co-presidents of Morgan Stanley, Andy and Dan will be invaluable leaders in helping Ted manage the Firm.