Morgan Stanley's James Gorman stepping down as executive chair by year-end

By Steve Gelsi

Gorman was chief executive of the bank for 14 years before retiring on Jan. 1

Former Morgan Stanley Chief Executive James Gorman on Thursday said he plans to leave his role as the Wall Street investment bank's executive chair by the end of this year.

Gorman, 65, retired as Morgan Stanley's (MS) CEO on Jan. 1 but maintained his current position on the company's board after leading the marquee bank for 14 years, including through the aftermath of the global financial crisis.

He is three years younger than JPMorgan Chase & Co. (JPM) Chief Executive Jamie Dimon, who has held that job since 2006 and is the longest-serving CEO among the major U.S. banks. Last week, Dimon told investors that he may retire sooner than planned, though he did not provide a specific time frame. In 2021, JPMorgan's board set plans to award Dimon a $50 million bonus if he stayed on the job until 2026.

After Dimon, Bank of America Corp. (BAC) Chief Executive Brian Moynihan, 64, is the longest-serving head of a U.S. megabank, with about 14 years on the job.

Before informing investors at Morgan Stanley's annual meeting Thursday that he would step down as executive chair, Gorman had previously indicated that he would stay in the role for about a year after relinquishing the CEO job. He had also said in the bank's shareholder letter that he expected this year's annual meeting to be his last.

Gorman is also currently on the board of directors of Walt Disney Co. (DIS) after being appointed to the role late last year.

In December, Gorman told CNBC that he decided to retire as CEO because he'd had his fill of the job's challenges. "It's healthy for an organization to innovate and move on," he said.

Ted Pick succeeded Gorman as Morgan Stanley's chief executive at the beginning of the year, while two other internal contenders for the job, Andy Saperstein and Dan Simkowitz, have remained at the firm as co-presidents.

Also read: JPMorgan's stock underperforms and grows more attractive, one analyst says

-Steve Gelsi

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05-23-24 1510ET

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