Morgan Stanley names Kelleher president; Fleming departs
By Olivia Oran and Dan Freed
(Reuters) - Morgan Stanley (MS.N: Quote) on Wednesday promoted its investment banking chief, Colm Kelleher, to president, making him the heir apparent to current Chief Executive James Gorman, and prompting Greg Fleming, the head of wealth management, to depart.
Fleming, who was once seen as a likely successor to Gorman, before losing out in a management reshuffle in October, emailed the bank's 15,800 brokers to tell them the new year would bring challenges "on the horizon beyond Morgan Stanley."
Speaking at a Reuters event last June, Fleming said he hoped to reshape the bank's wealth management's workforce in the coming years to include more women and millennial advisers, and was investing more in the firm's technology in order to attract them.
Fleming, who is seen by Wall Street power brokers as CEO material and ambitious to lead a major company, declined Morgan Stanley's offer to stay on and told the firm this week he was leaving, a source said.
In addition to becoming president, Kelleher, 58, will take on Fleming's responsibilities overseeing wealth management. His elevation to president makes him the second most powerful executive at Morgan Stanley and the obvious successor to Gorman, who is nearly six years into a turnaround plan.
But Gorman, 57, is in no hurry to leave, and because they are close in age, there is no guarantee that Kelleher will eventually replace him.
Other potential successors include Chief Financial Officer Jon Pruzan, head of trading Ted Pick and Shelley O’Connor, a veteran of the wealth management business who was promoted as co-head of the division on Wednesday along with Andy Saperstein.
"James Gorman's going to be there a long time. I'm not really thinking about who's going to succeed him when he leaves," Sandler O’Neill analyst Jeff Harte said. Continued...