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While the road to CEO succession often leads to senior-level upheavals in many institutions, Gorman is determined to change that narrative. The most recent example of such turbulence can be seen at Goldman Sachs (NYSE:GS) where the appointment of David Solomon sparked waves of discontent. Other major banks, like JPMorgan Chase (NYSE:JPM) and Bank of America (NYSE:BAC) have been non-committal about succession plans, avoiding clear indications of future leaders.
The three main contenders for the CEO mantle at Morgan Stanley are Ted Pick, Andy Saperstein, and Dan Simkowitz. Each brings a unique strength to the table: Pick oversees trading and deal-making, Saperstein manages Morgan Stanley’s massive $4.9 trillion wealth management sector, and Simkowitz, with experience on both sides of the firm, looks after asset management. Though Pick was long seen as the likely successor, recent federal investigations into a section of his division handling block trades have cast doubt over his prospects.
Gorman’s approach to this transition differs significantly from traditional tactics, aiming for transparency rather than secrecy. He has been engaging in discussions with colleagues and peers, openly discussing the merits of each candidate, ensuring that all are given due consideration. Gorman’s intent is to emphasize the value of each contender, even if they aren’t selected. His history indicates a knack for navigating power dynamics, having strategically joined Morgan Stanley post its internal battles, and subsequently reshaping the firm’s culture and trajectory.
This article was originally published on Quiver Quantitative
