After much criticism from shareholders, Morgan Stanley CEO Philip Purcell has announced that he plans to retire in a letter sent to employees of the company.
“It has become clear that in light of the contiuing personal attacks on me, and the unprecedented level of negative attention our firm – and each of you – has had to endure, that this is the best thing I can do for you, our clients and our sharholders,” said Purcell in the letter.
The group that has been calling for Purcell’s termination feels that he has ruined the company’s reputation. According to Financial Times,
The board has hired headhunters Spencer Stuart to find a successor, but Charles Knight, head of the board’s compensation committee, said it had ruled out as possible candidates any of the group of eight dissident former directors that have been campaigning for Mr Purcell’s removal…
He also ruled out any of the five members of the management committee who quit following a management reshuffle in March and John Mack, a former president of Morgan Stanley.
A month ago, the group of eight wrote Morgan Stanley’s board a letter calling for the spin off of its institutional securities business. “The proposed spin off is motivated by a belief that the board of Morgan Stanley faces an immediate crisis and that the firm has been badly served by its present management and leadership,” it said.
Purcell did agree in April to spin off the the company’s Discover credit card business, which he founded. Today he said that the strategy of combining institutional and retail securities was the way to go.
“The whole is greater than the sum of the parts and clearly more important than any one part. Even in the midst of the distractions of recent months, the firm’s integrated securities strategy is coming together and will certainly bring great success in the future.”
Chris is a staff writer for Murdok. Visit Murdok for the latest ebusiness news.
