Having signalled his intention to step down as CEO, James Gorman has welcomed a successor, after an approval process from the board was completed. Gorman has been in the role for 14 years, leading the business since the immediate aftermath of the 2008 financial crisis.

Morgan Stanley’s co-president, Edward Pick is to be its new CEO from the start of 2024, taking over from James Gorman (pictured), who is standing down after 14 years in the job. He will become executive chairman at the US firm.

Also starting from 1 January, Pick will be joining Morgan Stanley’s board of directors. 

The announcement came a week after the Wall Street firm, which has a large wealth management business, reported third-quarter financial results.

In other moves, co-president Andy Saperstein will become the head of wealth and investment management, and Dan Simkowitz will become co-president of Morgan Stanley and the head of institutional securities. These are expanded roles, the firm said.

Gorman announced at Morgan Stanley’s annual meeting that he intended to step down as CEO before its AGM next year.

“Ted is a strategic leader with a strong track record of building and growing our client franchise, developing and retaining talent, allocating capital with sound risk management, and carrying forward our culture and values,” Tom Glocer, lead director of the board, said.

The search for a new CEO took several years to execute, Dennis Nally, chair of the compensation, management development and succession committee of the board, said.

“For several years I have worked with the board to ensure an orderly succession, and I feel strongly that now is the time to step aside. The board’s selection of Ted Pick is an outstanding one,” Gorman said.

“He is battle-tested, understands complex risk, and works very effectively not just in the US, but around the globe.”

Pick has served as co-president of Morgan Stanley for the past two years. He has been head of the institutional securities group, overseeing investment banking, equities, fixed income, capital markets and research. Pick is also co-head of firm strategy. Before that role, he was global head of sales and trading. Pick joined Morgan Stanley in 1990 and became a managing director in 2002.