The Wall Street rumour mill is working overtime.
A mysterious 'special' bonus given to a senior executive at Morgan Stanley has officials at the Wall Street investment bank wondering whether CEO James Gorman has chosen a new favorite to be his successor.
Fox Business reports that the thinking inside the firm has been wealth management chief Greg Fleming was the odds-on favorite to be named president of the bank and Gorman’s successor because of the outsized importance of the firm’s brokerage unit to Gorman’s growth strategy.
Morgan’s wealth management unit has flourished under Fleming, exceeding revenue and profitability benchmarks, while the firm’s institutional business that involves trading and banking has largely lagged in recent years.
But Morgan recently announced that institutional chief Colm Kelleher received what firm officials are calling a 'special bonus' of $2m for his work in 2014. The bonus makes him the second highest paid senior executive at the firm other than CEO Gorman.
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