'The younger generation is blocked from moving up'.
Morgan Stanley is demonstrating how rising to the top of a big U.S. bank is getting even harder, as chief executive officers stay on after guiding their firms through the aftermath of the financial crisis.
Bloomberg News reports that Greg Fleming, one of Morgan Stanley’s most senior leaders, announced Wednesday he’s stepping down. That came after CEO James Gorman indicated he plans to stay on at least five more years and installed an older deputy in the firm’s No. 2 position, according to people with knowledge of the matter.
The situation is likely to feed the growing unease on Wall Street described by recruiters in recent months: Managers see a logjam ahead of them, blocking promotions they think they deserve. And it reaches to the top. CEOs at five of the six biggest U.S. banks already have held their posts at least six years and haven’t publicly signaled any intent to leave soon.
'These guys are very control-oriented and they want to work as long as they can', Michael Karp, head of recruitment firm Options Group, said after the changes at Morgan Stanley became public. 'Stability is great, but the younger generation is blocked from moving up and running these institutions. It’s a huge hindrance'.
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