Mack to quit as Morgan Stanley CEO
MORGAN Stanley’s chief executive John Mack plans to step down in January, marking the end of a rollercoaster era of both record profits and losses.
Mack, who is 64 years old, will stay on as chairman while the firm’s co-president James Gorman steps up to the role of chief executive.
The company’s other co-president Walid Chammah will become chairman of Morgan Stanley International.
The move marks a major shift for Morgan Stanley, which has found it difficult to make a profit after the financial crisis, even though it has scaled back risky businesses such as proprietary trading.
Mack was elected chairman of the board and chief executive of Morgan Stanley in June 2005. He has spent nearly 30 years at the firm in various positions. He has also served as chairman of hedge fund Pequot Capital Management, co-chief executive of Credit Suisse and chief executive of Credit Suisse First Boston.
During Mack’s tenure Morgan Stanley stock has fallen about 34 per cent while that of rival Goldman Sachs has risen 70 per cent.