Morgan Stanley’s executive chairman James Gorman told the bank’s annual shareholder meeting on Thursday that he would step down on Dec. 31.
The former CEO cited the “successful transition” of his successor Ted Pick into the top job at the start of this year.
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The bank’s stock fell nearly 1% in morning trading.
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The former CEO spent 14 years at the helm and is credited with transforming the bank into a wealth management powerhouse. He also orchestrated a succession plan in which Ted Pick took the reins at the same time as retaining the two other CEO candidates, executives Andy Saperstein and Dan Simkowitz, a rarity on Wall Street.
The shareholders approved all of management’s proposals on Thursday including election of directors and approving executives pay. Meanwhile, all shareholder proposals were rejected.
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Influential proxy adviser Glass Lewis had urged shareholders to vote against the bank’s proposal for executive pay.
Gorman was awarded $37 million by the company’s board, while Pick and two other CEO candidates were given $20 million one-time awards.
Morgan Stanley’s first-quarter profit beat estimates, fueled by a resurgence in investment banking and growth in wealth management.
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In an annual meeting that ran just under a half hour, Gorman concluded by saying that this was the fastest shareholder meeting in 15 years which is proof of the “stellar start” his successors have made.
