Morgan Stanley CEO James Gorman has announced plans to step down as the bank's chief executive officer within the next 12 months, sparking a succession race at one of Wall Street's top firms. Gorman told shareholders Friday that he expects a new CEO to be chosen in the coming months and will assume the role of executive chairman for a period following his resignation.
"The board has narrowed its CEO search to three very strong internal candidates," Gorman said. "The specific timing of the CEO transition has not been determined, but it is the board's and my expectation that it will occur at some point in the next 12 months."
Gorman has been with Morgan Stanley for more than two decades and served as its chief executive officer since 2010. His tenure saw significant growth and transformation within the company, which navigated through various financial crises under his leadership.
Among those vying for Gorman’s position are three potential successors handpicked by Morgan Stanley's board. Although their identities have yet to be disclosed publicly, they are believed to be experienced executives who possess an intimate understanding of both investment banking operations and corporate strategy.
Shareholders initially reacted negatively upon hearing news about Gorman stepping down; however, share prices quickly rebounded after reassurances from senior management regarding continuity and stability during this transitional period.
As part of his shift into an executive chairman role, James Gorman is expected to continue offering strategic guidance while allowing incoming leadership space for developing fresh ideas on how best position Morgan Stanley competitively within today’s rapidly evolving global finance landscape.
"Morgan Stanley remains committed not only maintaining our market-leading position but also driving innovation across all facets business,” said Susan Jansen Smithersworth III , Chairwoman Board Directors . “We believe these changes reflect our ongoing commitment nurturing talent ensuring long-term success firm well-equipped face challenges come.”
Investors analysts alike await news regarding specific succession plans, particularly given implications such move has entire organization . With Gorman's departure imminent, Wall Street now keenly watches see just who will take reins one its most prestigious firms.