Gorman is largely credited with leading a sweeping transformation of Morgan Stanley that saw the bank bulk up its wealth management business and diversify away from risk.

Shares of Morgan Stanley were down 2.1% by midday Friday.Īustralian-born Gorman succeeded John Mack at the company’s helm after the 2008 financial crisis that saw the company suffer billions of dollars in losses and take hits to its key businesses, including its investment banking and asset management divisions.

“I remain extraordinarily optimistic about the future Morgan Stanley and our broader economy.” “In my now long career, I’ve seen a lot of environments. Gorman also said that he believes Morgan Stanley is well insulated from turmoil in the banking sector after the collapses of three regional lenders. The board of directors has three senior internal candidates in the pipeline to potentially take over as the next chief executive. He will assume the role of executive chairman for “a period of time” to help Morgan Stanley transition to its next era of leadership, Gorman, 64, said. Gorman, who is one of the longest-serving heads of a US bank, became CEO in January 2010. That is the current expectation in the absence of a major change in the external environment,” Gorman said Friday. “The specific timing of the CEO transition has not been determined, but it is the Board’s and my expectation that it will occur at some point in the next 12 months.

Morgan Stanley chief executive James Gorman will step down as the company’s head within the next 12 months, he said Friday at the bank’s annual shareholder meeting.

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