The head of Morgan Stanley, James Gorman, will step down within a year

James Gorman plans to step down as CEO of Morgan Stanley within the next year after more than a decade at the helm of the Wall Street bank as a wealth management juggernaut.

Gorman, 64, told the bank’s annual shareholder meeting on Friday that “there is no set date for the CEO change, but it is the board’s and my expectation that it will happen sometime in the next 12 months.”

He added that after handing over to his successor, he is expected to be in the leadership seat “for a while”.

Gorman said Morgan Stanley’s board had “nominated three very strong senior internal candidates for the next CEO position.”

According to those familiar with the matter, the leading candidates are Ted Pick and Andy Saperstein, the co-presidents overseeing Morgan Stanley’s institutional securities and asset management division, and Dan Simkowitz, the head of the investment management division.

Chief operating officer Jonathan Pruzan was another top contender to take over for Gorman, but he left earlier this year.

See also  'Primate AI algorithm' predicts genetic health risks

Shares of Morgan Stanley fell 0.6 percent in Friday morning trading on Wall Street.

Australian-born Gorman replaced John Mack as CEO in early 2010, who was previously Morgan Stanley’s co-chairman of global wealth management, investment management and operations. He became the president in 2012.

His appointment 13 years ago underscored Morgan Stanley’s desire to expand into wealth management and diversify away from its legacy investment banking and trading businesses.

Gorman doubled down on wealth and asset management with the acquisitions of ETrade and Eaton Vance in recent years. Under his leadership, the bank’s market capitalization tripled to around $140 billion.

However, his mandate was not flawless. The bank is under investigation by US authorities over its block trading business and announced this month that it was in talks to settle the case.

Gorman told shareholders at last year’s investor event that he has no plans to exit the bank anytime soon.

See also  Scottish Mortgage non-exec removed after courtroom clash

Along with JPMorgan Chase’s Jamie Dimon and Bank of America’s Brian Moynihan, Gorman is among the Wall Street banking executives who have sparked a broader trend toward shorter executive tenure at corporate America.