Morgan Stanley announced on Thursday that CEO Ted Pick will take over as chair of the board, succeeding James Gorman, who is set to become chairman of Walt Disney’s board after stepping down from his role as executive chair at Morgan Stanley at the end of this year. Gorman will retire from his position at Morgan Stanley but will continue as chairman emeritus and serve as a non-employee advisor to the bank from January 2025 until the end of 2026.
In a statement, Gorman expressed confidence in Pick’s leadership, stating, “I am confident that with Ted’s tremendous leadership, Morgan Stanley will continue its strong trajectory to even greater heights and new successes in the years ahead.”
This move reflects a longstanding Wall Street tradition of consolidating the roles of CEO and chair, a practice that has faced criticism for potentially centralizing too much power in one individual. Proponents argue, however, that this consolidation can facilitate faster decision-making, with the lead independent director providing adequate oversight to ensure accountability.
Although relatively new to the CEO role, Pick has been with Morgan Stanley since 1990, bringing extensive experience to the position. He previously managed equity capital markets during the financial crisis and was appointed head of sales and trading in 2015. Financial services analyst Stephen Biggar from Argus Research noted that significant vetting was involved in selecting Pick as CEO and that he has successfully continued Gorman’s legacy thus far.
Earlier this week, Disney confirmed that Gorman would begin his tenure as chairman of its board on January 2.
