James Gorman’s plan to step down as Morgan Stanley’s CEO within the subsequent 12 months units up a battle amongst three of the Wall Road big’s high executives for his or her boss’s job.
Duking it out are Andy Saperstein, whose operation manages cash for the wealthy — the identical enterprise Gorman reworked right into a $4.5 trillion Wall Road juggernaut, in addition to Ted Decide, who runs the riskier institutional-securities group concerned in buying and selling and dealmaking.
Dan Simkowitz, who oversees asset administration, is the one candidate with intensive expertise on each side of the agency, although analysts say he’s the least possible winner.
Gorman took over at a time when the financial institution’s enterprise mannequin was underneath hearth and Morgan Stanley was struggling to recuperate from the monetary disaster, however his successor will face a special problem: Easy methods to construct on the CEO’s success in turning the agency round and posting the very best share efficiency amongst main US banks over the previous decade.
Andy Saperstein
The duty dealing with Saperstein, 56, is to show he can emerge from underneath the shadow of Gorman — who has been his boss throughout three totally different corporations — and win help from an organization that also depends on Decide’s bankers and merchants to generate multibillion-dollar windfalls. One other impediment is likely to be his lack of expertise abroad.
Saperstein’s enterprise has been “the engine” behind Morgan Stanley’s development in recent times, in response to Mike Mayo, an analyst at Wells Fargo & Co., who stated wealth administration represents two-thirds of the corporate’s market valuation.
The Disney World-loving government grew up within the working-class New York Metropolis borough of Staten Island. His first stint on Wall Road was at Salomon Brothers on the finish of the Nineteen Eighties, after acquiring levels in finance and economics from the Wharton Faculty of the College of Pennsylvania.
He left for Harvard Legislation Faculty, however deserted the thought of a authorized profession after an internship at McKinsey & Co.
It was at McKinsey that Gorman grew to become his mentor, and the pair have been tied collectively ever since — leaping to Merrill Lynch from the consulting big after which to the New York-based Morgan Stanley.
Ted Decide
Arguing in favor of Decide, 54, is his success in taking over Goldman Sachs Group Inc. within the battle for Wall Road riches — and serving to revive the buying and selling enterprise.
“Decide could also be a barely extra possible selection, operating the institutional group, together with its top-tier world investment-banking and equities companies,” KBW analyst David Konrad wrote in a observe. “Importantly, Ted was instrumental in turning round Morgan’s FICC enterprise.”
