By Sonali Basak
(Bloomberg) -- Morgan Stanley Chief Govt Officer James Gorman shook up management of the agency’s large wealth-management division, assigning one in all its co-heads to deal with financial institution models providing loans and deposit accounts.
The transfer impacts two executives who’ve been extensively seen as contenders to exchange Gorman within the years forward: Shelley O’Connor, who co-led wealth administration with Andy Saperstein, will run two regulated financial institution entities, which the corporate is trying to broaden, the CEO wrote Tuesday in a memo to workers.
“Given the criticality of the banks to the long run development of our enterprise, I've requested Shelley to dedicate her full-time efforts to main them,” Gorman wrote. She helped create them, and “her intensive wealth-management expertise and management make her uniquely fitted to this vital function.”
Shelley O'Connor
The shakeup follows final month’s announcement that President Colm Kelleher, as soon as seen as a doable successor to Gorman, will depart on the finish of June. The departure of the 61-year-old firm veteran opened up the competitors among the many senior ranks to sometime ascend to the highest of firm. Different contenders embrace Ted Choose, who final 12 months rose to go the investment-banking and buying and selling division, bolstering his place as a possible CEO candidate. Choose, O’Connor and Saperstein are all of their 50s.
The corporate created Morgan Stanley Personal Financial institution after the monetary disaster to extend deposits and lend extra to prospects. Collectively, that unit and the opposite -- referred to as Morgan Stanley Financial institution -- supply a variety of companies, corresponding to facilitating funds and offering residence loans and different credit score strains. Shoppers embrace firms, institutional buyers and rich shoppers.
Rooney’s Position
O’Connor has spent greater than three a long time at Morgan Stanley and is one in all solely three girls on its 17-member working committee.
Gorman recruited Saperstein from Merrill Lynch in 2006. As sole head of wealth administration, he'll “focus particularly on digital capabilities, enhancing shopper and adviser experiences, discovering areas of development and partnering with institutional securities and funding administration,” Gorman wrote.
The memo additionally introduced Rob Rooney will oversee a broader assortment of groups which are supposed to maintain the financial institution’s techniques protected and working, naming him head of expertise, operations and agency resiliency.
“Aggregating these features underneath a single chief will allow elevated effectivity and accountability,” Gorman mentioned, pointing to quite a lot of dangers related to cybersecurity, information administration and dealings with distributors. Phil Davies, the agency’s head of operations, will achieve accountability for enterprise continuity and report back to Rooney, in line with the memo.
The Wall Avenue Journal reported the memo earlier Tuesday.
Post a Comment