Morgan Stanley’s chief executive officer, 64-year-old James Gorman, has announced his resignation from his post.
Gorman, who took over management of the New York-based financial institution in 2010, said at the shareholders’ annual meeting he is leaving to become the bank’s executive chair.
“The specific timing of the CEO transition has not been determined, but it is the board’s and my expectation that it will occur at some point in the next 12 months,” he said.
Gorman did not name his successor but added that the board is mulling three “very strong” candidates for the post.
Following the announcement on Friday, Morgan Stanley shares dropped by 2.7 percent, closing at $82.24.
Over the past decade, Morgan Stanley purchased the lucrative E*Trade and Eaton Vance firms, which both expanded under Gorman’s stewardship.
The bank has offices in 41 countries and more than 75,000 employees around the world, with clients who include corporations, governments and institutions in addition to private individuals.