In a recent CNBC interview, Morgan Stanley CEO James Gorman took a rare moment to express his admiration for Jamie Dimon, the CEO of rival bank JPMorgan Chase & Co. Gorman referred to Dimon as a "phenomenal bank executive" and even claimed that he is the best in the world.
Gorman did not elaborate on his reasons for praising Dimon, but he did mention him briefly when asked about his decision to retire from Morgan Stanley in 2024 after serving as CEO for 14 years. According to Gorman, retiring is a healthy move for an organization to innovate and progress.
Gorman also expressed confidence in the future leadership of Morgan Stanley. He stated that the bank made a wise decision in appointing Ted Pick as the chief executive for 2024 onward. Additionally, Andy Saperstein will take on the role of head of wealth and investment management, while Dan Simkowitz will become co-president and the head of institutional securities. Both Saperstein and Simkowitz were also considered for the CEO position but ultimately chose to stay with the bank under their new titles.
When asked about potential acquisitions to further expand Morgan Stanley, Gorman hinted at the possibility of more deals in the future. However, he suggested that these acquisitions would likely take place overseas. Notably, Morgan Stanley has already made significant acquisitions, including Smith Barney in 2009, E*Trade in 2020, and Eaton Vance in 2021.
Overall, Gorman's acknowledgment of Dimon's achievements and his plans for the future demonstrate his confidence in both his successor and the growth potential of Morgan Stanley.
The Changing World of Asset Management
Opportunities for Growth in a Shifting Landscape
As the global economy undergoes dynamic shifts, opportunities arise for those who are proactive and adaptable. According to renowned industry expert, Gorman, the outgoing executive at Morgan Stanley, there is a myriad of possibilities on the horizon. While consolidation remains a prevalent trend in the asset-management business, Gorman predicts that non-U.S. ventures will take center stage.
An Intriguing Resurgence: The Japanese Economy
Gorman finds the recent revitalization of the Japanese economy particularly fascinating. After a four-decade-long slump, it serves as a reminder that the world is constantly evolving, presenting new prospects for growth and development.
The Inevitable Wave of Consolidation
In discussing the future direction of the asset-management industry, Gorman asserts that consolidation is an inevitable force that will shape the landscape for the next decade. With its tremendous potential for creating economies of scale, this transformation is set to impact one of the few remaining non-consolidated corners of the financial-services sector.
Gorman's Next Chapter
While Gorman will assume the role of executive chairman at Morgan Stanley for a limited time, his ambitions stretch beyond that horizon. He has been appointed a board member at Walt Disney Co., slated to begin in 2024, and intends to share his expertise as a professor at Columbia University. Despite these new endeavors, Gorman emphasizes his enthusiasm for working directly with clients, which he plans to continue fulfilling in his role as executive chairman.
Embracing Bold Decisions
To commemorate his illustrious career, Gorman recalls the satisfaction he derived from making bold decisions. Among them was his pivotal move to acquire E*Trade, demonstrating his willingness to act decisively and his foresight in identifying opportunities for success.
Originally published in October 2023: Morgan Stanley's new CEO Ted Pick has 'big shoes to fill' as he faces challenging markets, analyst says