Morgan Stanley (NYSE:MS) CEO James Gorman announced to shareholders on Friday that the company is likely to appoint its next CEO within the next 12 months. Gorman, 64, said the board has identified three strong candidates to succeed him and that he will become executive chairman once a new CEO is chosen.
Analysts have praised Gorman for his successful tenure at Morgan Stanley, which included the purchase of E*Trade Financial (NASDAQ:ETFC) Corp and Eaton Vance Corp (NYSE:ETN). Under Gorman’s leadership, Morgan Stanley’s stock has been one of the best performing financials.
Stuart Cole, Head Macro Economist at Equiti Capital, London, said, “Gorman has been at MS for a long time now, and was very much behind the purchase by MS of E*Trade Financial Corp and Eaton Vance Corp, both of which have been very successful for MS. Under his leadership MS stock has been one of the best performing financials, so I expect investors will be disappointed he is leaving and will see him as a hard act to follow.”
John Guarnera, Senior Corporate Analyst at RBC Blueray Asset Management, said, “James Gorman has taken a lot of effort to bolster the leadership ranks and to train and promote potential successors there. He’s been pretty clear in terms of establishing a bench that would be there to be able to support him when and if he chose to leave. So, I don’t anticipate any major change in strategic direction, and I would think that the transition would be relatively orderly.”
Phil Blancato, Chief Executive Officer at Ladenburg Thalmann Asset Management, New York, said, “I would applaud James Gorman here for taking the right time to step down. The guy has done an excellent job navigating the bank. It’s a company that has done quite well for itself in the midst of a time when other banks have not.”
Art Hogan, Chief Market Strategist at B Riley Wealth, Boston, said, “James Gorman has done a masterful job of transforming Morgan Stanley into the model that most major banks want to be, with a focus on asset management, financial advisors, and a road map to get to $10 trillion in assets under management.”
Morgan Stanley’s stock slipped 1.02% to $84 premarket on Friday. With Gorman’s announcement, the company is now on the lookout for its next CEO, who will have big shoes to fill.