James Gorman announced he will step down as Morgan Stanley chief executive officer after a 13-year stint in which he transformed the bank into a Wall Street powerhouse.
Gorman — who took over the bank in 2010 following the financial crisis — will switch to his new role as executive chair within the year, he added.
“The specific timing of the CEO transition has not been determined, but it is the board’s and my expectation that it will occur at some point in the next 12 months,” Gorman told shareholders at the firm’s annual meeting on Friday.
But unlike many CEOs who name their replacement immediately, Gorman is leaving three possible successors vying for the top role.
The longtime CEO, 64, said the board is considering three “very strong” candidates to replace him.
The likely contenders include co-president and head of wealth management Andy Saperstein, co-president and head of institutional securities and co-head of corporate strategy Ted Pick, and head of investment management and co-head of corporate strategy Dan Simkowitz.
Under Gorman, Morgan Stanley made a number of strategic wealth management acquisitions that revamped the bank from an investment banking and trading shop that struggled to stay afloat during the 2008 crisis into a firm that can weather economic storms.
Morgan Stanley’s purchase of E*Trade and Eaton Vance have expanded and solidified Morgan Stanley’s revenues.
At times, the bank’s wealth management arm has accounted for close to 50% of the firm’s revenue.
Gorman has previously signaled his plans to leave — but didn’t state when he would make the jump.
Last year, he said on an earnings call, “I’m not leaving now and I’m not going to be here in five years … We’re developing successors. I’ll be here a few years and I want to see these integrations done.”
Morgan Stanley shares fell 2.7% to close at $82.24.
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