Reuters reports that at the Wall Street bank's annual meeting, CLSA analyst Mike Mayo asked Gorman how confident he is that Morgan Stanley can get its return-on-equity up to a range of 9 to 11% by the end of 2017.
That metric is important to shareholders because it measures how well a bank is using its capital to produce profit. However, tougher capital requirements and weak revenue has left Morgan Stanley far from Gorman's goal, reporting just a 6.2% return-on-equity in the first quarter.
Mayo, who seemed sceptical, said his investor clients are upset. One recently hung up the phone on him out of anger about Morgan Stanley's performance, he said.
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