Morgan Stanley names Ted Pick as investment bank's next CEO, succeeding James Gorman

NEW YORK (AP) — Banking veteran Ted Pick will become the next CEO of Morgan Stanley.

Pick will succeed long-time CEO James Gorman effective Jan. 1. And Gorman, who announced his

plans to step down

in May, will remain at the bank as executive chairman of the board.

Pick has served as co-president of Morgan Stanley for the past two years. He first joined the investment bank back in 1990, and held several titles throughout his tenure — including managing director, head of equity capital markets and global head of sales and trading.

In a prepared statement, Pick said Wednesday that he was deeply honored to head the storied institution and was excited for future growth. He also credited Gorman's leadership for making Morgan Stanley “well-positioned to succeed across market cycles.”

Gorman, who first joined the New York bank as chief operating officer of its Global Wealth Management Group in 2006, became CEO in 2010 — in the wake of the financial crisis, when the investment bank came dangerously close to collapsing.

He made it his mission to stabilize Morgan Stanley’s business for the long term. The firm built out its wealth management business substantially, a business that brings in regular fee income instead of when deals close. Morgan Stanley also bought E(asterisk)Trade and Eaton Vance to further build out its wealth management business.

Gorman said in a prepared statement Wednesday that he had worked with the board for several years to ensure an orderly succession. He applauded the selection of Pick — calling his successor “battle-tested” and an outstanding executive and leader.