Ted Pick Named New CEO of Morgan Stanley... Strengthening IB?

Current CEO James Gorman to Become Chairman of the Board

Ted Pick, co-CEO and head of the capital markets division, has been appointed as the new Chief Executive Officer (CEO) of the American investment bank (IB) Morgan Stanley. Pick, who leads the IB and trading businesses, is expected to strengthen the IB division's capabilities, which have lagged behind competitors, after assuming the CEO role.

Morgan Stanley announced on the 25th (local time) that co-CEO Ted Pick will lead Morgan Stanley as CEO starting January next year. Pick's appointment follows the resignation announcement by current CEO James Gorman in May. Since then, Morgan Stanley has been considering Andy Saperstein, who leads asset management, Dan Simkowitz, head of investment management, and Pick as candidates for the next CEO. Gorman praised Pick, saying, "We have three capable executives," and added, "Pick has worked at Morgan Stanley for 30 years and has never disappointed us."

Pick graduated from Middlebury College and completed an MBA at Harvard Business School. He joined Morgan Stanley in 1990 and served as the global head of the Sales & Trading (S&T) division, leading the revival of the trading business sector that had stagnated after the financial crisis. Currently, as head of the capital markets division, he oversees IB, equities, fixed income, global markets, and research, contributing to Morgan Stanley's leadership in these business areas, according to the company.

Pick is expected to focus on strengthening Morgan Stanley's IB division. Morgan Stanley is considered to be trailing its competitor Goldman Sachs in the IB sector. The IB division accounts for 45% of total revenue, significantly less than Goldman Sachs' 68.6%.

However, after his appointment as CEO, Pick stated, "There is no change in strategy," and added, "Morgan Stanley has the best team to open the next chapter for continued company growth."

James Gorman, the current CEO who has been driving business diversification including strengthening Morgan Stanley's asset management division, will move to the position of chairman of the board. Gorman, who took office in 2010 shortly after the global financial crisis and led Morgan Stanley for 14 years, is credited with diversifying Morgan Stanley's business, which had been focused on trading and IB, into asset management and other areas. As a result, Morgan Stanley's asset management division's revenue share far exceeds that of competitor Goldman Sachs. The asset management division accounts for 55% of Morgan Stanley's revenue, much higher than Goldman Sachs' 28.2%. The current assets under management total $6 trillion, and Morgan Stanley plans to expand this to $10 trillion.

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