Morgan Stanley Executive Chairman James Gorman to Step Down at Year-End

At Morgan Stanley’s annual shareholder meeting on Thursday, Executive Chairman James Gorman announced he will step down on December 31. Gorman, the former CEO, cited the “successful transition” of his successor Ted Pick, who took over at the beginning of the year.

The bank’s stock fell nearly 1% in morning trading. Gorman, who spent 14 years leading Morgan Stanley, is credited with transforming it into a wealth management powerhouse. He also devised a succession plan, allowing Ted Pick to become CEO while retaining the other two candidates, Andy Saperstein and Dan Simkowitz, a rare move on Wall Street.

Shareholders approved all management proposals, including electing directors and approving executive pay, while rejecting all shareholder proposals. Influential proxy adviser Glass Lewis had recommended voting against the bank’s executive pay proposal. The board awarded Gorman $37 million, and gave Pick and the other two CEO candidates $20 million one-time awards.

Morgan Stanley’s first-quarter profit exceeded estimates, driven by a resurgence in investment banking and growth in wealth management.

In an annual meeting lasting just under half an hour, Gorman noted it was the fastest in 15 years, attributing it to the “stellar start” of his successors.