Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Morgan Stanley boss acknowledges slow progress on diversity

Published 05/25/2021, 06:02 PM
Updated 05/26/2021, 05:41 AM
© Reuters. FILE PHOTO: James Gorman, chairman & CEO of Morgan Stanley, testifies before a House Financial Services Committee hearing on "Holding Megabanks Accountable: A Review of Global Systemically Important Banks 10 Years After the Financial Crisis" on Capitol Hi

By Matt Scuffham

NEW YORK (Reuters) - Morgan Stanley (NYSE:MS)'s efforts to improve the diversity of its workforce and senior management have not proceeded as quickly as Chief Executive James Gorman would have liked, he said in prepared testimony posted on Tuesday.

Wall Street bank chiefs are expected to face tough questions in U.S. Congress on hot-button social and economic issues when they appear before House and Senate committees on Wednesday.

Ahead of the hearing, Morgan Stanley was asked to assess its successes and failures recruiting a diverse workforce generally and at the senior executive level specifically.

"I acknowledge that progress in this area has been slow for us and we can and should do better," Gorman said. "The events of 2020 focused all of us in a way we had not been before and this was the ultimate call to action to make meaningful change."

Morgan Stanley faced criticism from some advocacy groups last week following a reshuffle of senior management which positioned four white men as potential successors to Gorman, who has run the bank since 2010.

Achieving greater diversity remains a key priority for Morgan Stanley, Gorman said.

"Every senior manager is required to have a succession plan for his or her senior team members, and part of that plan must include developing a diverse candidate pipeline," he said.

Other Wall Street banks also used their prepared testimony to detail efforts to increase the diversity of their workforce and provide more services to minority communities.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

The banking industry cannot ignore the role it played in the past in contributing to "systemic inequities," said Citigroup Inc (NYSE:C) chief Jane Fraser.

The Senate Banking and House Financial Services committees will hear from the chief executives of JPMorgan Chase & Co (NYSE:JPM), Bank of America Corp (NYSE:BAC), Citigroup, Wells Fargo (NYSE:WFC) & Co, Goldman Sachs Group (NYSE:GS) and Morgan Stanley on Wednesday and Thursday.

Latest comments

They will keep on beautify their gardens with colors while Chinese/Russians focus on meritocracy.
Doomed. This is why China will win!
Who wants someone named Ty Rone managing their money? Or Shameka
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.