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Morgan Stanley succession race heats up as CEO retirement nears

EditorVenkatesh Jartarkar
Published 10/20/2023, 10:21 AM
© Reuters.

The race to succeed James Gorman as CEO of Morgan Stanley is intensifying, with Ted Pick, Andy Saperstein, and Dan Simkowitz emerging as leading contenders. Gorman's planned retirement in May 2024 has sparked speculation over the next leader of one of Wall Street's most influential financial institutions. Morgan Stanley, a prominent player in the Capital Markets industry, has a market capitalization of 119.09B USD, according to InvestingPro data.

Ted Pick, known for his transformative work on the bank's equities and fixed-income businesses, is currently dealing with a federal probe into the bank's block-trading business. This investigation follows the collapse of Archegos Capital Management in 2021, which had significant repercussions for Morgan Stanley. InvestingPro data shows that the bank's stock has fared poorly over the last month, with a 1-month price total return of -16.32%.

Meanwhile, Andy Saperstein has been successfully steering the bank's $4.8 trillion wealth management division. A Staten Island native known for his casual demeanor, Saperstein has proven his leadership skills during a dealmaking slowdown and has executed successful acquisitions such as Solium Capital and ETrade.

Dan Simkowitz, who has grown the smallest business line - asset management - to a $1.4 trillion asset base over eight years, is also in the running. Simkowitz has played key roles in high-profile deals like the IPO of oil refiner Conoco, Verizon (NYSE:VZ)'s $49 billion bond offering, and advising on Fannie Mae and Freddie Mac restructuring.

As the succession race continues, the eventual decision will shape the future direction of Morgan Stanley. The bank's next leader will face challenges including navigating regulatory scrutiny, managing vast wealth and asset management divisions, and continuing to grow the business amidst an ever-evolving financial landscape.

According to InvestingPro Tips, the bank has maintained dividend payments for 31 consecutive years, demonstrating a strong commitment to its shareholders. Yet, it's important to note that the bank's management has been aggressively buying back shares, possibly signaling confidence in the company's future prospects.

For more insights like these, consider subscribing to InvestingPro. They offer a wealth of real-time metrics and tips, such as the fact that Morgan Stanley's P/E ratio stands at 13.04, and that it has a dividend yield of 4.66%. For more information, visit InvestingPro Pricing.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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