Morgan Stanley Sees Goldman’s Succession Plan, Raises It A Woke Promotion

James Gorman is feeling it.
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For seven long years, as he slogged through wreckage that was Morgan Stanley, James Gorman fixed his flinty stare at the brand-new form of 200 West Street, cursing those bank CEOs—well, that one bank CEO—that had it easy. For seven long years, all Gorman could do was ape the great Goldman Sachs’ moves, and thensome, with all the firings punctuated by the occasional humiliation of an annual meeting or roasting by a journalist or getting called “Jim” by Charlie Gasparino or a patronizing smile from Lloyd Blankfein.

But then, last year, it all paid off: Not only had James Gorman fixed Morgan Stanley, he’d made at least part of it better than Goldman for the first time since John Mack was calling the shots. Even he couldn’t believe his luck. And now that they’re proper peers, he’ll be damned if he’s gonna let Lloyd Blankfein steal a march on him, even if that’s a march to dirt farming in the outback or joining the hordes of obnoxious Aussies ruining international travel or having lewd thoughts about marsupials or petty crime or whatever the hell it is James Gorman’s people do when they retire. So baldy-beardy’s unsubtlelynot planning for a post-him future? James Gorman is, too. And while he’s at it, he’s gonna make a little promotion that might just force Goldman to kick David Solomon to the curb and just jump straight to Marty Chavez.

Ted Pick, Morgan Stanley’s trading chief and widely considered the front-runner to succeed Mr. Gorman, will add oversight of investment banking, putting him in charge of half of the firm’s revenue. Franck Petitgas, a longtime banker, will run Morgan Stanley’s international business….

Meanwhile, Susie Huang will fill Mr. Petitgas’ seat as co-head of investment banking. A Morgan Stanley lifer who currently heads its U.S. merger business, she will be one of the first women to run a Wall Street investment-banking business, which covers M&A and securities underwriting.

Morgan Stanley Elevates Two CEO Contenders [WSJ]


Layoffs/Bonus Watch '12/13: Morgan Stanley

Back in January, Morgan Stanley CEO James Gorman sent a simple messages to his employees, who had been grumbling about their pay: STFU or GTFO. "You're naive, read the newspaper, No.1," Gorman told Bloomberg he would say to any members of his staff that wanted to give him lip about their compensation to his face. "No. 2, if you put your compensation in a one-year context to define your over all level of happiness, you have a problem which is much bigger than this job. And No. 3, if you're really unhappy, just leave." Today, in an interview with the FT, Gorman reiterated his stance and added that in addition to reducing compensation for current employees, the bank will likely be drastically cutting pay for future analysts. If anyone has a problem with that, consider applying for a gig at Bank of Mythical Pre-Crisis Era Bonuses. Alternatively, Gorman is happy to discuss a compensation plan in which you'll be awarded shares of his foot in your ass, which vest immediately. In the latest sign of the pressure Wall Street is under to cut costs and address high pay levels, James Gorman, chief executive, said that staff and remuneration would have to be sacrificed as banks cope with lower profits. “There’s way too much capacity and compensation is way too high,” Mr Gorman said in an interview with the Financial Times. “As a shareholder I’m sort of sympathetic to the shareholder view that the industry is still overpaid.” Morgan Stanley itself is already axing 4,000 jobs, 7 per cent of its workforce, by the end of this year. In the new year, Mr Gorman said, the bank will consider its next round of cost-cutting, including lower pay and bonuses. News of further pay cuts, including potentially for new entrants at the investment bank, comes just weeks after Goldman Sachs confirmed it was overhauling its well-known entry-level programme for analysts. Goldman was said to have tired of the number of analysts in the programme who left the bank for hedge funds. Mr Gorman said that Morgan Stanley will probably keep its own analyst programme, but pay could be reduced significantly. Morgan Stanley Chief Warns On Wall Street Pay [FT] Earlier: James Gorman To Employees: STFU Or GTFO