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Jeanmarie McFadden

Suzanne Charnas

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For Immediate Release

Morgan Stanley Announces CEO Succession Plan
James Gorman to Become Chief Executive Officer in 2010
John Mack to Continue Serving as Chairman
Announcement Follows Thorough Succession Planning Process and Achievement of Key
Company Milestones
NEW YORK, September 10, 2009 – The Board of Directors of Morgan Stanley (NYSE: MS)
today announced that Co-President James P. Gorman will become the Firm’s Chief Executive
Officer, effective January 1, 2010, while Chairman and CEO John J. Mack will continue to serve
as Chairman. Mr. Gorman also will join Morgan Stanley’s Board of Directors at year end. TheFirm also announced that Co-President Walid A. Chammah will become Chairman of Morgan
Stanley International at year end and will continue to be based in London.
Robert Kidder, lead director of the Board, said, “Four years ago, we were extremely fortunate tobe able to bring John Mack back to Morgan Stanley, given everything he had done to build theFirm and its global franchise. Since then, John has provided invaluable leadership to the Firm –including, most importantly, successfully guiding Morgan Stanley through last fall’s
unprecedented financial crisis and positioning the Firm to succeed in today’s reshaped market
environment. After returning to Morgan Stanley in 2005, John effectively stabilized the Firm andreenergized our culture and client franchise. More recently, he helped to strengthen our capital
position and repay TARP; oversaw our conversion to a bank holding company; and forgedstrategic ventures with Smith Barney and Mitsubishi UFJ that will play a key role in growing
Morgan Stanley’s business for years to come.
Mr. Kidder continued, “Since John told the Board eighteen months ago that he would like to stepback from the CEO role after turning 65 this November, John and the Board have been working
closely together to ensure a smooth and successful CEO succession process. Given ourtremendous progress, we believe now is the right time for that transition, and all of us on theBoard – and across the Firm – are grateful that we will continue to benefit from John’s insights
and experience in his critical role as Chairman.”“John and the Board believe James Gorman is ideally suited to lead Morgan Stanley forward.
James has a long track record of developing aggressive strategies backed by strong operatingskills and relentless execution. He is a proven leader who has shown the ability to attract andretain top talent throughout his career. During the past two decades, James has worked in
virtually every aspect of the financial services industry. As Co-President of the Firm since 2007,
he has been central to our success in the most challenging period in history and served as a key
architect of Morgan Stanley’s strategy. He led dramatic turnarounds of major businesses at bothMerrill Lynch and Morgan Stanley, and this year forged the world’s largest wealth managementbusiness with the Smith Barney joint venture. We are confident that with James Gorman as CEOand John Mack as Chairman, Morgan Stanley will continue building our premier franchises ininvestment banking as well as sales and trading, grow market share across all key businesses anddeliver tremendous value for our clients, colleagues and shareholders,” Mr. Kidder concluded.
Mr. Mack said, “In James Gorman, we have an outstanding leader for Morgan Stanley. He has aproven record of building outstanding teams, executing winning strategies and growing profitablebusinesses. Succession has been a top priority for me since my return to Morgan Stanley, and I
am confident that James is the right person to lead the Firm forward. James nearly tripled theoperating profit in our wealth management business in just three years’ time, and then helped
drive the Smith Barney joint venture - a game-changing transaction that will play a key role in theFirm’s future growth and profitability. James is widely respected not just here at Morgan Stanley,
but across the industry, and as Co-President, he has helped the Firm build relationships with key
institutional and corporate clients. I look forward to continuing to work with James and all of ourcolleagues as we take Morgan Stanley to a new level of success. Together, we have accomplisheda tremendous amount over the past four years, thanks to the hard work and dedication of everyone
at Morgan Stanley. It truly has been a privilege to work at this great Firm – my home for morethan thirty years.”
Mr. Mack continued, “Walid Chammah has made enormous contributions in a variety of roles atMorgan Stanley, and we are very pleased that he will continue to play a key part in themanagement of the Firm as Chairman of Morgan Stanley International. During his 16 years here,
Walid helped to found and grow our Global Capital Markets business, reinvigorated our worldclass Investment Banking franchise, and strategically led our Institutional Securities businesses
through a period of unprecedented turmoil and change. Walid also has been one of the true
carriers of Morgan Stanley’s one-Firm culture – as evidenced by his tireless travels between New
York and London during the past few years and his strong leadership during last fall’s market
crisis. Throughout the succession process, Walid has made clear his desire to remain in London,
where his family is located. His role as Chairman of Morgan Stanley International will allow him
to do just that, while leveraging his strong client relationships around the globe and continuing tohelp lead Morgan Stanley forward.”
Mr. Gorman said, “Morgan Stanley is home to incredibly talented people and a superb culture thatare the foundation of its global platform and premier client franchise. John Mack has spent thirty2years helping to protect and enhance that legacy – most dramatically during last fall’s financial
crisis. Thanks to John’s strong leadership, we have enormous opportunities to continue growing
Morgan Stanley’s premier institutional business in the transformed market environment we now
face. It is a great honor to be a part of this extraordinary organization and culture. I look forward
to continuing to work closely with John, Walid, the rest of the senior management team and ourcolleagues around the world to leverage the power of Morgan Stanley’s franchise for our clients,our employees and most of all, our shareholders.”
Morgan Stanley is a leading global financial services firm providing a wide range of investmentbanking, securities, investment management and wealth management services. The Firm'semployees serve clients worldwide including corporations, governments, institutions andindividuals from more than 1,200 offices in 37 countries. For further information about Morgan
Stanley, please visit www.morganstanley.com.
###Background on James P. Gorman
James P. Gorman, 51, has served as Co-President of Morgan Stanley for the past two years –overseeing the Firm’s Global Wealth Management business; Investment Management business,including the Merchant Bank; and Operations and Technology group, among others. Mr. Gormanjoined Morgan Stanley in February 2006 as the President and Chief Operating Officer of theGlobal Wealth Management Group. In October 2007, Mr. Gorman took on the additional role ofCo-Head of Strategic Planning with Chief Financial Officer Colm Kelleher, and assumed the CoPresident role in November 2007. In January 2009, Mr. Gorman was named Chairman of theMorgan Stanley Smith Barney joint venture, which closed in June.
Prior to joining Morgan Stanley, Mr. Gorman held a succession of executive positions at Merrill
Lynch including leading, from 2001 to 2005, the company’s U.S. and, subsequently, global
private client businesses. Before joining Merrill Lynch, Mr. Gorman served as a senior partner of
McKinsey & Company, where he was a member of the financial services practice and advisedclients in the securities, banking and asset management industries. Earlier, Mr. Gorman also
served as an attorney in Melbourne, Australia.
Mr. Gorman is a member of the Board of Directors of MSCI Inc., where he serves as LeadDirector. He also is a trustee of the Columbia Business School and the Spence School in New
York City. Mr. Gorman previously served on the Boards of Visa USA and the Securities Industry
and Financial Markets Association in Washington, D.C., where he served as Chairman in 2006. A
native of Australia, Mr. Gorman earned a B.A. and law degree from the University of Melbourne
and an M.B.A. from Columbia University.

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