Morgan Stanley Chief Executive Officer James Gorman shook up leadership of the firm’s massive wealth-management division, reassigning one of its top executives to run units offering consumers loans and deposit accounts.
The move repositions two executives widely seen as contenders for further advancement, potentially succeeding Gorman as CEO in coming years. Shelley O’Connor, who co-leads wealth management with Andy Saperstein, will instead oversee the company’s two regulated bank entities, Gorman wrote Tuesday in a memo to staff.
“Shelley was instrumental in creating the banks, and her extensive wealth management experience and leadership make her uniquely suited for this important role,” Gorman wrote.
The shakeup follows last month’s announcement that President Colm Kelleher, once viewed as a potential successor to Gorman, will leave at the end of June. Kelleher’s exit marked a generational shift at the firm, setting the stage for a competition within its highest ranks to fill his role, the second-highest post at the New York-based firm.
The Wall Street Journal reported the memo earlier Tuesday.
This article was provided by Bloomberg News.