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16th September 2011

John Mack retires at year end from Morgan Stanley

John Mack is to retire as Chairman of Morgan Stanley at year end. James Gorman CEO will become chairman and CEO after that time.


John Mack worked at Morgan Stanley Dean Witter (as was) in roles including COO, CEO and President until 2001. He was known as deal maker though could, and did turn his hand to ruthless cost cutting when needed (AKA Mack the knife). He fell out with chairman Philip Purcell and moved to Credit Suisse First Boston in 2001 at a time Credit Suisse needed a restructure and refocus following the Tech and internet bubble. In July 2005 he was invited back to Morgan Stanley to replace Purcell. He reinvigorated the bank increasing business and profit. He was charismatic and especially loved by the dealmakers in the bank. His choice of business turned out with hindsight not always to have been right and the bank suffered, but survived, the banking crisis. In September 2009 Gorman was promoted from co-president to CEO, as a result of a request by Mack, who at 65 decided he wanted to relinquish that role whilst remaining chairman. Mack had also stated at that time that he would remain for two years only as chairman before retiring.