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Gasparino: John Mack Stepping Down As CEO Of Morgan Stanley

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James Gorman to take over early next year. (J-Mack staying on as chairman.)
Update: Guest brings up a good question-- will the new regime unblock this here website?

NEW YORK -- September 10, 2009
The Board of Directors of Morgan Stanley (NYSE: MS) today announced that
Co-President James P. Gorman will become the Firm's Chief Executive
Officer, effective January 1, 2010, while Chairman and CEO John J. Mack
will continue to serve as Chairman. Mr. Gorman also will join Morgan
Stanley's Board of Directors at year end. The Firm also announced that
Co-President Walid A. Chammah will become Chairman of Morgan Stanley
International at year end and will continue to be based in London.
Robert Kidder, lead director of the Board, said, "Four years ago, we were
extremely fortunate to be able to bring John Mack back to Morgan Stanley,
given everything he had done to build the Firm and its global franchise.
Since then, John has provided invaluable leadership to the Firm -
including, most importantly, successfully guiding Morgan Stanley through
last fall's unprecedented financial crisis and positioning the Firm to
succeed in today's reshaped market environment. After returning to Morgan
Stanley in 2005, John effectively stabilized the Firm and reenergized our
culture and client franchise. More recently, he helped to strengthen our
capital position and repay TARP; oversaw our conversion to a bank holding
company; and forged strategic ventures with Smith Barney and Mitsubishi
UFJ that will play a key role in growing Morgan Stanley's business for
years to come.
Mr. Kidder continued, "Since John told the Board eighteen months ago
that he would like to step back from the CEO role after turning 65 this
November, John and the Board have been working closely together to ensure
a smooth and successful CEO succession process. Given our tremendous
progress, we believe now is the right time for that transition, and all of
us on the Board - and across the Firm - are grateful that we will continue
to benefit from John's insights and experience in his critical role as
"John and the Board believe James Gorman is ideally suited to lead Morgan
Stanley forward. James has a long track record of developing aggressive
strategies backed by strong operating skills and relentless execution. He
is a proven leader who has shown the ability to attract and retain top
talent throughout his career. During the past two decades, James has
worked in virtually every aspect of the financial services industry. As
Co-President of the Firm since 2007, he has been central to our success in
the most challenging period in history and served as a key architect of
Morgan Stanley's strategy. He led dramatic turnarounds of major businesses
at both Merrill Lynch and Morgan Stanley, and this year forged the world's
largest wealth management business with the Smith Barney joint venture. We
are confident that with James Gorman as CEO and John Mack as Chairman,
Morgan Stanley will continue building our premier franchises in investment
banking as well as sales and trading, grow market share across all key
businesses and deliver tremendous value for our clients, colleagues and
shareholders," Mr. Kidder concluded.
Mr. Mack said, "In James Gorman, we have an outstanding leader for Morgan
Stanley. He has a proven record of building outstanding teams, executing
winning strategies and growing profitable businesses. Succession has been
a top priority for me since my return to Morgan Stanley, and I am
confident that James is the right person to lead the Firm forward. James
nearly tripled the operating profit in our wealth management business in
just three years' time, and then helped drive the Smith Barney joint
venture - a game-changing transaction that will play a key role in the
Firm's future growth and profitability. James is widely respected not just
here at Morgan Stanley, but across the industry, and as Co-President, he
has helped the Firm build relationships with key institutional and
corporate clients. I look forward to continuing to work with James and all
of our colleagues as we take Morgan Stanley to a new level of success.
Together, we have accomplished a tremendous amount over the past four
years, thanks to the hard work and dedication of everyone at Morgan
Stanley. It truly has been a privilege to work at this great Firm - my
home for more than thirty years."
Mr. Mack continued, "Walid Chammah has made enormous contributions in a
variety of roles at Morgan Stanley, and we are very pleased that he will
continue to play a key part in the management of the Firm as Chairman of
Morgan Stanley International. During his 16 years here, Walid helped to
found and grow our Global Capital Markets business, reinvigorated our
world-class Investment Banking franchise, and strategically led our
Institutional Securities businesses through a period of unprecedented
turmoil and change. Walid also has been one of the true carriers of Morgan
Stanley's one-Firm culture - as evidenced by his tireless travels between
New York and London during the past few years and his strong leadership
during last fall's market crisis. Throughout the succession process, Walid
has made clear his desire to remain in London, where his family is
located. His role as Chairman of Morgan Stanley International will allow
him to do just that, while leveraging his strong client relationships
around the globe and continuing to help lead Morgan Stanley forward."
Mr. Gorman said, "Morgan Stanley is home to incredibly talented people and
a superb culture that are the foundation of its global platform and
premier client franchise. John Mack has spent thirty years helping to
protect and enhance that legacy - most dramatically during last fall's
financial crisis. Thanks to John's strong leadership, we have enormous
opportunities to continue growing Morgan Stanley's premier institutional
business in the transformed market environment we now face. It is a great
honor to be a part of this extraordinary organization and culture. I look
forward to continuing to work closely with John, Walid, the rest of the
senior management team and our colleagues around the world to leverage the
power of Morgan Stanley's franchise for our clients, our employees and
most of all, our shareholders."


Bonus Watch '13: Morgan Stanley CEOs

The bad news: James Gorman's pay fell 30 percent this year. The good news: he's now in a position to show employees how to take these setbacks like a man, rather than grumbling like someone who puts their compensation in a one-year context to define their overall level of happiness.