Morgan Stanley Smith Barney has announced that John J. Mack, Chairman, will step down at the end of the year. James Gorman will replace Mr. Mack.
Mr. Mack, 66, is a well known Wall Street leader. He has worked for Morgan Stanley for many years, starting as a bond salesman and eventually became the firm’s president. John Mack left the firm in 2001 after a dispute with Philip Purcell.
Mr. Mack became chief executive at Credit Suisse First Boston, and then later became CEO of the parent company, Credit Suisse Group.
In 2005, the Morgan Stanley board asked Mr. Mack to return as chief executive.
According to an article in On Wall Street magazine, Mack said, “Helping to lead this great firm, most recently as Chairman, was the greatest honor of my career. However, I made clear back in 2009 that I would serve in the Chairman role for two years and then move on. Now that time has come.”
Presently, James Gorman is the chief executive officer and president. Morgan Stanley’s board of directors has elected him to Chairman effective January 1, 2012 in addition to his present titles. This was an expected change.