*Just out-John Mack to step down at Morgan Stanley
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Fox just announced Mack is stepping down at Morgan Stanley…
Let the pontificating begin… what does this mean for MSSB or does it mean anything???
Financial holding company Morgan Stanley (MS: News ) said Thursday that its chairman and CEO, John Mack, will step down from his position as CEO, though will continue to serve as chairman of the company. Mack will be succeeded by co-president, James Gorman, who will become the CEO effective January 1, 2010.
John Mack is indicated to have informed the board eighteen months ago of his intention to step down from the CEO role after turning 65 this November. Since then, John and the board have been working closely together to ensure a smooth and successful CEO succession process.
Robert Kidder, lead director of the board, praised Mack’s key role in strengthening the company’s capital position and repay TARP, the company’s conversion to a bank holding company, and strategic ventures with Smith Barney and Mitsubishi UFJ that will play a key role in growing Morgan Stanley’s business for years to come.
Mack was elected chairman of the board and chief executive officer of Morgan Stanley in June 2005. He had spent nearly 30 years at the firm in various positions, most recently as president, chief operating officer.
In the past, Mack served as chairman of a hedge fund, Pequot Capital Management,. He had also served as co-chief executive officer of Credit Suisse Group and chief executive officer of Credit Suisse First Boston.
Morgan Stanley said that its board has appointed James Gorman as CEO of the firm, in place of Mack and will assume responsibilities on January 1, 2010.
Heads of brokerage are a dime a dozen. Kraw, Gorman, Ludeman, Hoekstra…They get paid too much to either take credit for up business in up markets or to leave to take jobs at other firms in down markets with the assumption that they will improve business at said firm.
And they come up with things like "global banking model" and "cross selling".Heads of brokerage are a dime a dozen. Kraw, Gorman, Ludeman, Hoekstra…They get paid too much to either take credit for up business in up markets or to leave to take jobs at other firms in down markets with the assumption that they will improve business at said firm.
Why would they eliminate branch managers based on a new CEO?i heard the branch managers find out who of them is left standing tomorrow.
[quote=Floorlord]i heard the branch managers find out who of them is left standing tomorrow.
Why would they eliminate branch managers based on a new CEO?[/quote]
That is a coincidence. Reduction in number of managers–or at a minimum, their overall comp–is just due to the MSSB merger cost savings push.