Morgan Stanley, the Wall Street giant, has appointed Ted Pick as its new CEO, replacing James Gorman, who has led the company for nearly 14 years and transformed it into a wealth management powerhouse.
The appointment will take effect from January 1, 2024, at which time Gorman will assume the role of Executive Chairman, and Pick will also join the Morgan Stanley Board of Directors.
Pick, 54, currently oversees Morgan Stanley's investment banking and trading businesses and was one of the three internal candidates for the position, along with Andy Saperstein and Dan Simkowitz.
In an interview with the media, the 65-year-old Gorman said:
&#34;We have an incredibly deep bench. We have three very talented executives.&#34; &#34;Ted has been with Morgan Stanley for 30 years... and he has never disappointed.&#34;
Prior to announcing this appointment, Gorman announced his retirement plans.
To retain the other candidates, the 56-year-old Saperstein will take over Morgan Stanley's asset management division, as well as the wealth management division he currently oversees. Simkowitz, who previously oversaw asset management, will assume Pick's current role, overseeing trading and investment banking. Simkowitz will also serve as Co-President alongside Saperstein.
Pick told the media that his appointment does not mean a change in Morgan Stanley's strategy. He said:
&#34;We have a world-class team that will lead the company into the next chapter, which means we will continue to serve our clients and continue to grow the company.&#34;
Christian Bolu, a banking analyst at Autonomous Research, said the appointment makes sense because Pick currently manages the bank's most complex and high-risk trading and investment banking businesses.
Bolu said:
&#34;If he didn't get the job, there would be a risk of losing him, which would obviously have a negative impact.&#34;
Pick's takeover is in stark contrast to Gorman's takeover of the bank, which came less than two years after Morgan Stanley was on the brink of collapse during the 2008 financial crisis.
Gorman achieved Morgan Stanley's strategic transformation into wealth management through restructuring and acquiring asset management businesses, helping the bank's market value surpass that of Goldman Sachs. The bank currently manages around $6 trillion in assets, with a goal of reaching $10 trillion. Gorman believes it could even reach $20 trillion.

Effective from January 1, 2024, Gorman will assume the role of Executive Chairman, and Pick will also join the Morgan Stanley Board of Directors.

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Morgan Stanley

After fourteen years, there will be a change in leadership at Morgan Stanley! Ted Pick will be appointed as the new CEO, while James Gorman will step down.