Morgan Stanley’s new CEO has ousted its head of sales and trading and brought on the company’s first female chief financial officer in a major reshuffle of senior management.
James Gorman, who will succeed John Mack as CEO on the 1st of the year, has also picked new co-presidents for institutional securities, including Colm Kelleher, the company’s former CFO, and Paul Taubman, the company’s previous head of investment banking.
Ruth Porat, who was previously head of the financial institutions group, will replace Kelleher as the company’s chief financial officer. Porat will be joining a small group of women that have ever overseen the books of a wall-street bank, including Erin Callan, who was previously the face of Lehman Brothers before the onset of the financial crisis and Salie Krawcheck, who was previously considered a front-runner to head Citigroup.
Taubman earned his promotion by driving the company’s investment banking unit to $2.9 billion in revenue during the first three quarters of the year as Morgan Stanley had substantial activity in global mergers and acquisitions.
Taubman’s counterpart in institutional securities, Mitch Petrick, has been pushed out of his job. The company said in a statement that Petrick, who was previously head of sales and trading, would step down at the end of the year. Petrick’s unit has lagged behind Goldman Sachs during the first half of the year, leading to accusations that the company was failing to take advantage of the resurgence in the stock market.
JP Morgan Chase and CO ramped up its risk-taking taking during the third quarter, but it still lagged behind Goldman Sachs’ revenues by more than a $20 billion difference. The bank recently added more than 400 new staff members to the division in hopes of regaining lost ground.
As co-presidents, Kelleher will oversee the sales and trading unit while Taubman will maintain responsibility for the company’s investment banking unit.
Thomas Nides, the company’s current chief administrative officer will take on additional responsibilities as the company’s chief operating officer.
