Morgan Stanley, one of Wall Street’s leading investment banks, is currently considering potential successors to CEO James Gorman. Among the contenders is Ted Pick, a veteran of the company who has emerged as the frontrunner for the coveted role. Pick, known for his impeccable style and unwavering dedication to the bank, has earned a reputation as a hard-working and transformative figure during his tenure at Morgan Stanley.
Having spent his entire career at the bank, Pick is seen as the epitome of a Wall Street professional. Colleagues describe him as being right out of central casting for a typical financial executive. His preference for suits and Hermès ties, along with his lucky red tie embellished with monkeys and tigers, further accentuate his fitting image. Additionally, an anecdote shared by former Blackstone president Tony James underscores Pick’s sartorial audacity when he sported Gucci loafers on a fly-fishing trip in the Brazilian rainforest.
Pick’s reputation within Morgan Stanley is cemented by his role in transforming the bank’s key equities and fixed-income businesses. His colleagues credit him with revitalizing these divisions, positioning them for success in challenging markets. However, challenges persist for Pick and his division. The market slowdown has impacted their performance, with revenue remaining stagnant compared to last year and declining by 13% from the previous quarter. On the other hand, Morgan Stanley’s growing wealth-management arm has contributed significantly to the bank’s overall profitability. Andy Saperstein, a contender for the CEO role, currently leads this division.
In addition to the market challenges, Pick’s division faces other obstacles. A federal investigation into their block-trading business looms, further complicating matters. Moreover, the unit suffered significant losses in the wake of the 2021 collapse of investment firm Archegos Capital Management, losing nearly a billion dollars. Gorman has expressed the need to resolve these issues before his planned retirement in May 2024.
As an executive with a background in equities, Pick represents the bank’s traditional legacy businesses, as well as the Wall Street of yesteryears, showcasing his adherence to Morgan Stanley’s rich traditions. However, some question his suitability as the public face of a major bank, raising concerns about his hard-charging and blunt nature. These traits may be advantageous for dealmaking but might not align well with the role of a prominent bank CEO. Colleagues draw comparisons to John Mack, Gorman’s predecessor, highlighting a potential stylistic difference between the two executives.
Despite the overall positive sentiments expressed by Pick’s former colleagues, all sources remained anonymous, underscoring the cautiousness surrounding the potential CEO appointment. This reticence to speak openly about the matter is referred to by some as the Ted factor, possibly alluding to the sensitive nature of executive transitions within the banking industry.
In conclusion, Ted Pick’s formidable experience and contributions to Morgan Stanley make him a leading candidate for the CEO role. However, challenges loom for his division, and questions persist around his suitability as the public face of the bank. As the succession race unfolds, Morgan Stanley remains committed to resolving ongoing issues while considering the strengths and weaknesses of each potential CEO contender.
