With Pick, 52, Gorman is promoting a turnaround artist. He’s credited with rebuilding the firm’s equities business after the financial crisis, honing it into Wall Street’s dominant player. He then followed up by overhauling a fixed-income division that had been flagging. That won him oversight over Morgan Stanley’s investment bank -- including both trading and dealmaking.

While Pick will continue to run the institutional securities business, he will also be in charge of international operations.

Saperstein, 54, led the bank’s charge in wealth management, building a reliable revenue generator that’s become the envy of many rivals. Gorman himself had made his name in that business at Merrill Lynch, where he worked with Saperstein, and together the pair made it the centerpiece of Morgan Stanley’s pivot after the financial crisis.

Along the way, Morgan Stanley took over Smith Barney from Citigroup and last year scooped up E*Trade Financial Corp. -- assembling a franchise that contributes almost as much to the top-line as the investment bank.

The sedate handoff Gorman is setting up is quite a change from when he assumed the top perch in 2010. At the time, the firm was staggering away from an era of vicious infighting in its senior ranks and the global financial crisis. Soon after the Melbourne-born banker took over, he confronted the grim possibility of a catastrophic downgrade by one of the premier credit-rating firms.

“Back then, we were reeling from the financial crisis, we had a number of problems we needed to resolve,” Gorman said. “This is different. You make these changes when you can and from a position of strength.”

This article was provided by Bloomberg News.

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