James P. Gorman

Last updated

James Gorman

AO
JamesPGorman2016.jpg
Born
James Patrick Gorman

(1958-07-14) July 14, 1958 (age 65)
Melbourne, Australia
Education University of Melbourne (BA, LLB)
Columbia University (MBA)
TitleExecutive Chairman of Morgan Stanley
Children2
Relatives Katharine Williams (sister)

James Patrick Gorman [1] AO (born July 14, 1958) [2] is an Australian-American businessman and financier. He has been executive chairman of Morgan Stanley since 2012, and was CEO of the firm from 2010 through 2023. Before becoming CEO, he was the co-president and co-head of strategic planning at the firm. [3] [4]

Contents

Early life and education

Gorman was born in Melbourne, Australia. His family had an Irish background. [5] His father R. Kevin Gorman worked as an engineer and headed an engineering consulting company in Melbourne. [5]

He was the sixth of 10 children; [6] [5] his siblings include former Supreme Court of Victoria judge Katharine Williams. [7]

Gorman was educated at Xavier College, a Catholic boarding school for boys in Melbourne. [8] He then studied law at the University of Melbourne, where he earned his Bachelor of Arts and Bachelor of Laws and was a residential member and president of Newman College. [8]

He moved to the United States to obtain a Master of Business Administration from Columbia Business School, [9] which he completed in 1987. [10]

Career

Early career

In 1982 he joined the law firm Phillips Fox and Masel (now DLA Piper). [11]

After graduating from Columbia Business School in New York City in 1987, [10] he joined McKinsey & Company and eventually became a senior partner in the firm's financial services practice. [12] At McKinsey he worked on the Merrill Lynch account for ten years, and helped develop Merrill's online internet strategy. [10]

In 1999, he joined Merrill Lynch in the newly created role of chief marketing officer. [13] He also joined the 19-member executive management committee. [13] Within two years, he was in charge of Merrill's brokerage business. [6]

Morgan Stanley

Gorman left Merrill Lynch in February 2006 to join Morgan Stanley as the president and chief operating officer of the Global Wealth Management Group (GWMG). [14] In October 2007, Gorman took on the additional role of co-head of strategic planning with CFO Colm Kelleher. [14] In December 2007, he was named co-president of Morgan Stanley, along with Walid Chammah, [14] with Gorman overseeing wealth management and asset management and Chammah overseeing institutional securities. [14]

In 2009, he helped create the largest wealth management platform globally when he led the merger and integration of Morgan Stanley's wealth management business with Citi's Smith Barney business. [15] Structured as a staggered acquisition, Morgan Stanley purchased the remaining 35% of the Smith Barney business in June 2013, and became a global leader in wealth management with over 16,000 financial advisors and $1.8 trillion in client assets. [15]

In September 2009, it was announced that Gorman would become CEO of Morgan Stanley in January 2010. [16] He assumed the additional title of chairman in January 2012 following the retirement of John J. Mack. [17] Press reports indicated his compensation as chairman and CEO was $9.75 million for 2012, [18] with the New York Times reporting an increase to $18 million in 2013. [19]

In 2014 he was included in the 50 Most Influential ranking of Bloomberg Markets Magazine. [20]

In the wake of the 2016 United Kingdom European Union membership referendum, which led to a popular vote to leave the European Union, Gorman said there was "nothing good about Brexit". [21] He added that some jobs would be moved not only out of England, but out of Europe entirely, possibly to New York City or Tokyo. [21]

In January 2020, he was appointed an Officer of the Order of Australia (AO) [22] that recognizes Australians who have demonstrated outstanding service or exceptional achievement. Gorman said he was "honoured to receive this award and extremely proud to represent Australia abroad", adding, "While most of my working life has been in the US my heart remains firmly Australian." [23]

As a result of his work in 2020, Gorman was paid a 22% raise ($6 million) from 2019 pay of $27 million by Morgan Stanley, [24] making him the highest-paid bank executive in America. [25] The firm generated record revenue that year and announced two multibillion-dollar acquisitions of E*trade Financial Corp. and Eaton Vance Corp. and avoided much of the economic recession caused by the pandemic. [26]

Gorman spoke at the November 2022 inaugural Global Financial Leaders' Investment Summit. [27] The Hong Kong Democracy Council claimed that his presence, along with other financial executives, legitimized the Hong Kong government's whitewashing of the erosion of freedoms in the city. [28] Several members of Congress also warned that US financial executives should not attend the Summit, saying "Their presence only serves to legitimise the swift dismantling of Hong Kong's autonomy, free press and the rule of law by Hong Kong authorities acting along with the Chinese Communist Party." [29]

In May 2023, Gorman announced his forthcoming retirement as CEO of Morgan Stanley. [30] He was succeeded as CEO by Ted Pick on January 1, 2024, while remaining executive chairman of the firm's board. [31]

Board memberships

Gorman serves as a director of the Council on Foreign Relations, and chair of the board of overseers of the Columbia Business School, and is a member of the Financial Services Forum, [32] Business Council, and the Business Roundtable. [33]

He formerly served as a director of the Federal Reserve Bank of New York, president of the Federal Advisory Council to the U.S. Federal Reserve Board, [34] co-chairman of the Partnership for New York City, [35] co-chairman the business committee of the Metropolitan Museum of Art [6] and served on the board and as chairman (2006) of the Securities Industry and Financial Markets Association in Washington, D.C. [36]

Gorman was elected into the Walt Disney Company's board of directors, and was appointed on February 5, 2024. [37]

Personal life

Gorman passed the US citizenship test in 2004, [38] and is a dual citizen of Australia and the United States. [39] He has two adult children. [5]

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References

  1. ↑ "James Patrick Gorman: Executive Profile & Biography". Bloomberg.
  2. ↑ "James Gorman | ADVANCE FINANCIAL SERVICES AWARD WINNER 2015". advance.org. Retrieved March 17, 2024.
  3. ↑ Archived 2014-09-14 at the Wayback Machine , November 29, 2007; accessed December 1, 2007. "Press Release: Walid Chammah and James Gorman Named Co-Presidents of Morgan Stanley".
  4. ↑ "The David Rubenstein Show: James Gorman". Bloomberg. April 12, 2017. Retrieved July 15, 2017.
  5. 1 2 3 4 "New master of the universe: a straight-talking 'native of Australia' | The Australian". September 14, 2009. Archived from the original on September 14, 2009. Retrieved November 17, 2023.
  6. 1 2 3 Schwartz, Nelson D. (June 28, 2014). "James Gorman of Morgan Stanley, Going Against Type". The New York Times.
  7. ↑ "Morgan Stanley CEO James Gorman is the Australian fixing Wall St culture". September 13, 2018.
  8. 1 2 Parker, Garrett (September 3, 2018). "10 Things You Didn't Know About Morgan Stanley CEO James Gorman". Money Inc. Retrieved January 23, 2021.
  9. ↑ "New master of the universe: a straight-talking 'native of Australia'". The Australian. September 12, 2009. Archived from the original on September 14, 2009. Retrieved September 14, 2009.
  10. 1 2 3 Jones, Rachyl (May 19, 2023). "Morgan Stanley CEO James Gorman Stepping Down". The New York Observer . Retrieved March 17, 2024.
  11. ↑ "New master of the universe: a straight-talking 'native of Australia'". The Australian. September 12, 2009. Archived from the original on September 14, 2009. Retrieved September 14, 2009.
  12. ↑ "James Gorman AO appointed University of Melbourne Enterprise Professor in Business & Economics". University of Melbourne . Retrieved March 17, 2024.
  13. 1 2 Randall, Smith (July 7, 1999). "Merrill Names McKinsey Partner To New Post of Marketing Chief". The Wall Street Journal.
  14. 1 2 3 4 "Walid Chammah and James Gorman Named Co-Presidents of Morgan Stanley". Morgan Stanley. Archived from the original on September 14, 2014. Retrieved December 1, 2007.
  15. 1 2 "Morgan Stanley Completes Purchase of Smith Barney Venture". Bloomberg.
  16. ↑ "Morgan Stanley Announces CEO Succession Plan". Morganstanley.com. September 10, 2009. Archived from the original on March 28, 2014. Retrieved July 15, 2017.
  17. ↑ "Morgan Stanley Announces Leadership Transition". Morganstanley.com. September 15, 2011. Archived from the original on March 28, 2014. Retrieved July 15, 2017.
  18. ↑ "Gorman Gets $3.75 Million Incentive as CEO's Pay Falls 7% - Businessw…". November 7, 2013. Archived from the original on November 7, 2013.
  19. ↑ "Morgan Stanley Nearly Doubles C.E.O. Pay to $18 Million". The New York Times. March 28, 2014. Retrieved November 28, 2014.
  20. ↑ "Most Influential 50 Are the Bankers, Investors Who Move Markets". Bloomberg. Archived from the original on November 1, 2014. Retrieved October 31, 2014.
  21. 1 2 Crowe, Portia; Turner, Matt (October 25, 2016). "MORGAN STANLEY CEO: 'There's nothing good about Brexit'". Business Insider. Retrieved October 30, 2016.
  22. ↑ "Mr James Gorman". It's An Honour. Retrieved May 19, 2021.
  23. ↑ "Top bankers among Australia Day honourees". January 25, 2020.
  24. ↑ Scuffham, Matt (January 22, 2021). "Morgan Stanley CEO Gorman's annual pay rises by $6 million". Reuters.
  25. ↑ "Morgan Stanley CEO James Gorman is now the highest-paid bank executive in America following a 22% raise amid a record year for the company". Business Insider .
  26. ↑ Rudegeair, Peter (January 22, 2021). "Morgan Stanley CEO James Gorman Got a Big Raise for 2020". Wall Street Journal. ISSN   0099-9660 . Retrieved January 23, 2021.
  27. ↑ Soo, Zen (November 2, 2022). "In Hong Kong, world bankers urged not to 'bet against' China". Associated Press. Retrieved March 19, 2024.
  28. ↑ "Business Not As Usual | HKDC". HKDC. Retrieved October 26, 2022.
  29. ↑ "Hong Kong's finance chief, hit by Covid, aims to attend banking summit in person". South China Morning Post. October 28, 2022. Retrieved October 28, 2022.
  30. ↑ Copeland, Rob (May 19, 2023). "James Gorman, Morgan Stanley's Long-Serving C.E.O., Will Step Down Within a Year". The New York Times. Retrieved March 8, 2024.
  31. ↑ "Morgan Stanley names Ted Pick as investment bank's next CEO, succeeding James Gorman". Associated Press. October 26, 2023. Retrieved March 8, 2024.
  32. ↑ "Occupy: GLOBAL POWER PROJECT, PART 9: BANKING ON INFLUENCE WITH MORGAN STANLEY". August 7, 2013.
  33. ↑ "Morgan Stanley Board of Directors".
  34. ↑ "Federal Reserve: Meeting of the Board of Governors and the Federal Advisory Council February 6,2015" (PDF).
  35. ↑ "Jacpan Society: MORGAN STANLEY CEO JAMES P. GORMAN KEYNOTES JAPAN SOCIETY'S 2011 ANNUAL DINNER". Archived from the original on June 25, 2021. Retrieved December 15, 2018.
  36. ↑ "American Banker: Morgan Stanley CEO: We'll Buy Rest of Smith Barney's Assets". November 8, 2010.
  37. ↑ Bruce (November 29, 2023). "The Walt Disney Company Board Appoints Morgan Stanley's James P. Gorman And Veteran Media Executive Sir Jeremy Darroch As New Directors". The Walt Disney Company. Retrieved December 4, 2023.
  38. ↑ Braithwaite, Tom (May 22, 2015). "Morgan Stanley chief James Gorman". Financial Times . Retrieved March 19, 2024.
  39. ↑ Shapiro, Jonathan (March 8, 2022). "Gorman tips orderly rate rises to avoid recession". Australian Financial Review . Retrieved March 19, 2024.
Business positions
Preceded by Chairman and CEO of Morgan Stanley
2010–present		Succeeded by
Incumbent
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