Morgan Stanley has announced the appointment of Ted Pick as its new Chief Executive , succeeding James Gorman, who led the Wall Street bank for nearly 14 years, reshaping it into a major player in wealth management. Ted Pick, aged 54, had been widely regarded as the frontrunner for the position and will officially assume the role on January 1. This transition follows Gorman’s announcement earlier this year of his intention to step down.
Ted Pick is currently responsible for overseeing investment banking and trading at Morgan Stanley and was one of the three primary internal candidates considered for the CEO position, alongside Andy Saperstein and Dan Simkowitz.
James Gorman praised all three candidates, saying, “We had an embarrassment of riches. We had three incredibly talented executives. Ted’s had 30 years at Morgan Stanley… and he never disappointed.”
To accommodate the other candidates and make the most of their talents, Andy Saperstein, aged 56, will expand his role to include leadership of Morgan Stanley’s asset management division in addition to his current responsibilities in wealth management. Meanwhile, Dan Simkowitz, aged 58, who was overseeing asset management, will take on Ted Pick’s previous role, overseeing trading and the investment bank. Simkowitz will also become co-president with Saperstein, according to the bank’s announcement. Meanwhile, Gorman will transition into the role of executive chair of the board of directors.
The decision to appoint Ted Pick as the CEO was unanimous among Morgan Stanley’s board of directors, as stated by Tom Glocer, the bank’s lead director.
Ted Pick emphasized that his appointment does not represent a change in the bank’s overall strategy. He expressed confidence in the existing team’s capabilities to continue serving clients and growing the company.
Christian Bolu, a banking analyst at Autonomous Research, commented on the choice, stating that it makes sense given Pick’s oversight of the bank’s trading and investment banking, which are its most complex and riskiest activities. new Chief Executive
James Gorman’s tenure as CEO has seen significant changes at Morgan Stanley, with a focus on wealth and asset management. This shift was underscored by acquisitions of ETrade and Eaton Vance. The bank currently manages around $6 trillion in assets, with aspirations to reach $10 trillion and even $20 trillion, according to Gorman. While this transformation has boosted the bank’s market capitalization and diversified its business, its traditional investment banking segment has lagged behind competitors like JPMorgan Chase and Goldman Sachs in league tables. Additionally, it has been involved in a prominent legal investigation by the Securities and Exchange Commission and the US attorney’s office in Manhattan concerning block trades. Morgan Stanley announced in May that it was in discussions about settling the case.