By Sonali Basak and Michael J. Moore
(Bloomberg) — Morgan Stanley President Colm Kelleher, who helped navigate the agency by the monetary disaster and was as soon as seen as a possible successor to Chief Government Officer James Gorman, plans to depart on the finish of June.
Kelleher, 61, will proceed as a senior adviser after his official retirement, based on an inner memo Gorman despatched staff on Thursday.
“I’m extraordinarily grateful to have been in a position to name him my accomplice,” Gorman stated within the memo. “His sharp thoughts, depraved humor and Irish appeal units him aside on the planet of all-too-often boring enterprise leaders.”
Kelleher, who joined the New York-based firm in fixed-income gross sales in 1989, has overseen Morgan Stanley’s funding financial institution and buying and selling operation since 2010. By taking up the retail brokerage in 2016, he had duty for the agency’s two largest companies.
Kelleher’s departure marks a generational shift on the agency and opens up the competitors to exchange Gorman, who’s stated he plans to stay round a number of extra years. Gorman didn’t identify a brand new president, and stated within the memo that executives who beforehand reported to Kelleher will report back to the CEO after the departure.
Morgan Stanley in July named Ted Decide, 50, to move the investment-banking and buying and selling division, bolstering his place as a doable successor to Gorman. Franck Petitgas, 58, who’s additionally thought-about a CEO candidate, was appointed head of the financial institution’s worldwide operations as a part of the identical administration shuffle.
Andy Saperstein and Shelley O’Connor, co-heads of the retail brokerage, are additionally thought-about within the succession combine, together with asset-management head Dan Simkowitz, Chief Monetary Officer Jon Pruzan and tech chief Rob Rooney.
Kelleher rose by the buying and selling and capital-markets ranks. Considered one of 9 kids who grew up in Eire’s County Cork and an Oxford College graduate, he served as chief monetary officer throughout the monetary disaster, even conducting enterprise mendacity down on his workplace flooring after struggling a again harm in a automobile accident.
He helped the funding financial institution rebuild shopper confidence after hedge funds pulled cash throughout the crash. He in the reduction of on cumbersome fixed-income buying and selling positions as Morgan Stanley tried to imitate its success in electronically buying and selling shares.
Shares of the corporate, which fell to as little as $9.20 throughout the depths of the crash in 2008, had been at $42.25 in early buying and selling Friday.
After successful an influence wrestle together with his co-head of the funding financial institution, Paul Taubman, Kelleher made a push to achieve extra buying and selling enterprise on the again of underwriting offers and advising on mergers. The financial institution is now the world’s prime equities-trading agency, and has gained share in fixed-income buying and selling in every of the previous three years.
Kelleher’s aggressive spirit typically manifested within the agency’s battles with rival Goldman Sachs Group Inc. In his remarks at Goldman’s annual financials convention in 2013, Kelleher spoke of the “pleasure” he took in passing the host agency in stock-trading income, and final 12 months stated Morgan Stanley was catching as much as Goldman in advisory charges as a result of “we’re nicer guys.”
To contact the reporters on this story: Sonali Basak in New York at [email protected] ;Michael J. Moore in New York at [email protected] To contact the editors answerable for this story: Michael J. Moore at [email protected] Steve Dickson, Daniel Taub