James Gorman to Step Down as Morgan Stanley Executive Chairman

Morgan Stanley’s executive chairman, James Gorman, told the bank’s annual shareholder meeting on Thursday that he would step down on Dec. 31.

Reason for Departure:

The former CEO cited the “successful transition” of his successor, Ted Pick, into the top job at the start of this year.

The bank’s stock fell nearly 1% in morning trading.

Legacy and Achievements:

Gorman spent 14 years at the helm and is credited with transforming the bank into a wealth management powerhouse. He also orchestrated a succession plan in which Ted Pick took the reins while retaining the 2 other CEO candidates, executives Andy Saperstein and Dan Simkowitz, a rarity on Wall Street.

Shareholder Meeting Highlights:

On Thursday, the shareholders approved all of management’s proposals, including the election of directors and the approval of executives’ pay. Meanwhile, all shareholder proposals were rejected.

Influential proxy adviser Glass Lewis had urged shareholders to vote against the bank’s proposal for executive pay.

Compensation Details:

The company’s board awarded Gorman $37 million, while Pick and two other CEO candidates received $20 million one-time awards.

Morgan Stanley’s first-quarter profit beat.