By Tomi Kilgore
Morgan Stanley's stock has more than tripled in value since Gorman took over in January 2010, while the S&P 500 has nearly quadrupled
Shares of Morgan Stanley took a hit Friday, but perhaps shareholders shouldn't be too concerned over news of the planned departure of the investment bank's longtime chief executive, James Gorman.
At Morgan Stanley's annual general shareholder meeting on Friday, Gorman said he planned to step down sometime in the next 12 months, in the absence of a major change in the macroeconomic environment. That sent the stock (MS) down 0.6% in morning trading to buck a rally in the financial sector and the broader stock market.
Gorman became CEO of Morgan Stanley in January 2010, at the end of the 2008-09 financial crisis.
The stock has run up 215.5% since the end of January 2010, when it closed at $26.78, through Thursday's closing price of $84.49.
That outperformed the 184.5% gain for the Financial Select Sector SPDR exchange-traded fund (XLF) over the same time but underperformed the S&P 500's rally of 290.9%.
The stock also underperformed shares of JPMorgan Chase & Co. (JPM), which have climbed 258.2% during that time. Jaime Dimon has been CEO of JPMorgan Chase since Jan. 1, 2006. Since the end of 2005, JPMorgan's stock has gone up 251.5% with Dimon as CEO, while Morgan Stanley's stock has advanced 79.4% and the S&P 500 has climbed 236.3%.
And since the end of October 2018, when current Goldman CEO David Solomon took the reins, Morgan Stanley's stock has run up 85%, while Goldman shares have gained 46.2%.
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
May 19, 2023 10:42 ET (14:42 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.