Morgan Stanley recently announced that Ted Pick will assume the position of CEO come the start of 2024. Pick, who has been co-president for the past two years, was in charge of the bank's institutional securities group, which encompasses investment banking and trading operations. Since his ability to revitalize the equities and fixed income divisions, insiders have considered him the top contender for CEO.
On Wednesday, Morgan Stanley declared that Ted Pick will be succeeding James Gorman as CEO starting in 2024. Pick, who worked his way up in the bank and is now responsible for its Wall Street operations, will also become a part of the New York-based bank's board, as per the announcement. Gorman will remain in position as executive chairman however for an unspecified timespan. This conclusion marks the end of the highest succession race on Wall Street. Back in May, Morgan Stanley had mentioned that Gorman was aiming to vacate the position within a year, and would appoint his successor from amongst the three divisional heads. Pick was co-leader of the bank's institutional securities group, inclusive of investment banking and trading activities, and had been co-president of Morgan Stanley for two years.
Pick has long had a reputation among insiders as the frontrunner for the CEO job. His qualifications for taking on the complexities and risks of leading a Wall Street titan include a degree from Middlebury College and an MBA from Harvard. He joined Morgan Stanley in 1990 and earned acclaim for streamlining several businesses during a turbulent period. In the wake of the 2008 global financial crisis, which necessitated a $9 billion bailout from Mitsubishi, Pick successfully steered Morgan Stanley's equities division to become the worldwide leader in terms of revenue. This was accomplished partly through tech investments for quantitative investors and giving more consideration to becoming a preeminent prime broker to hedge funds. He was then appointed to rehabilitate the bank's struggling fixed income wing, and his success there led to him being assigned to oversee all of Morgan Stanley's Wall Street operations and ultimately his elevation to CEO.
Gorman commented that the Board's selection of Ted Pick was a wise move. He highlighted Pick's merits, noting that he had worked closely with him since the financial crisis and had seen his "values, intellect, passion, and commitment to both the personnel and clientele". Gorman further noted that Ted is "battle-tested" and can tackle intricate risk issues on an international scale.
Morgan Stanley's stock price has risen due to Andy Saperstein's global head of Wealth Management position, he has now been given further responsibilities. He now takes charge of the investment management division, Daniel Simkowitz is now co-president and head of institutional securities.
The aim of this arrangement seems to be to keep the two men who didn't win the CEO role at the firm, a common problem on Wall Street where those not chosen for this role often depart the company, which Morgan Stanley wanted to avoid.
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