James Gorman, after deciding to stay atop Morgan Stanley for at least another five years, elevated one of his two main deputies and prompted the younger to leave rather than wait for a chance to take the helm.
Bloomberg News reports that Colm Kelleher, 58, rose to president of the firm, gaining responsibility for the brokerage in addition to his role overseeing investment banking and trading, Morgan Stanley announced Wednesday. Greg Fleming, 52, who led the retail brokerage (and was highly tipped by many to be Morgan Stanley's next CEO), is leaving after six years at the company.
Gorman, 57, has spent more than half a decade turning the firm around in the wake of the financial crisis and intends to stay as chairman and chief executive officer for five to seven more years, according to two people familiar with the matter who asked not to be identified discussing his plans.
Morgan Stanley has struggled to reach Gorman’s goal of a 10% return on equity and last month cut 1,200 jobs in its fixed-income trading division in an attempt to boost profitability.
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