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Executive summary about Morgan Stanley
Hello! Thank you for your request to provide you with an executive summary of Morgan Stanley. I have researched the company's current financials, background, services, executive structure, segments, recent news, and future goals. I have also provided you with short biographies of each C-suite member and director listed on the Morgan Stanley website. The details of my research are below.
ANNUAL REVENUE
BACKGROUND
Founded in 1935, Morgan Stanley has always followed its guiding principle of commitment to community. The company's core values are putting clients first, doing the right thing, leading with exceptional ideas, and giving back. According to the description on the company's "What We Do" webpage, "At Morgan Stanley, "we advise, originate, trade, manage, and distribute capital for governments, institutions, and individuals."
BUSINESS SEGMENTS AND SERVICES
Morgan Stanley offers services in five different business segments.
Services: Morgan Stanley helps customers achieve their financial goals, find a financial adviser, manage everyday finances, build & protect wealth, plan for their family, plan & finance their business, plan for retirement, and invest in a socially responsible manner.
Services: Morgan Stanley advises companies in mergers & acquisitions and on raising capital for various projects.
Services: Morgan Stanley has extensive experience in cash equities, equity derivatives, prime brokerage, electronic trading, commodities, macro products, global credit products, and distribution.
Services: Morgan Stanley will provide in-depth analysis of industries, markets, companies, and world economies.
Services: Morgan Stanley provides investment management solutions for real assets, multi-asset, active fundamental equity, global fixed income, global liquidity, and private credit & equity.
EXECUTIVE STRUCTURE
Mr. Gorman joined Morgan Stanley in 2006 and became CEO in 2010. Two years later, he was also named Chairman. He began his career in Melbourne, Australia as an attorney and later became a senior partner of McKinsey & Company. Prior to joining Morgan Stanley, he held several executive positions with Merrill Lynch. He is currently a Director of the Federal Reserve Bank of New York and is a member of several other civic organizations.
Mr. Bowles became a director in 2006 and was named Lead Director in 2014. He is also a Senior Adviser of BDT Capital Partners, LLC and President Emeritus of The University of North Carolina. Prior to joining the board of directors for Morgan Stanley, he was Co-Chair of the National Commission of Fiscal Responsibility and Reform, Senior Adviser to Carousel Capital, a General Partner of Forstmann Little and Company, head of the Small Business Administration during the Clinton Administration, and White House Chief of Staff.
Mr. Darling was named a director in 2016. He is also currently a member of the House of Lords in the British Parliament and was a member of the House of Commons until 2015. He has also served as a member of Parliament for both Edinburgh South West and Edinburgh Central. Prior to becoming a director, he held several government positions, including Chancellor of the Exchequer, Secretary of State for Trade and Industry, Secretary of State for Scotland, Secretary of State for Transport, Secretary of State for Social Security/Work and Pensions, and Chief Secretary to the Treasury.
Mr. Glocer became a director in 2013. Prior to joining Morgan Stanley, he was Chief Executive Officer of Thomson Reuters Corporation. For Reuters, he also served as a news and information provider for businesses and professionals. From 2008-2011, Mr. Glocer was the Chief Executive Officer of Reuters PLC. He began his career as a mergers & acquisitions attorney at Davis Polk & Wardwell, and was the founder and managing partner of Angelic Ventures, LP. He is currently on the board of directors for Merck & Company, Inc., K2 Intelligence, and the Council on Foreign Relations.
Mr. Hertz was named a director in 2012, after serving as Chairman of the Financial Accounting Standards Board until 2010. In addition to his duties as director, he is the President of Robert H. Hertz, LLC, a company that provides consulting services on financial reporting matters. He is a director of Paxos Trust Company, the Federal National Mortgage Association, Workiva, Inc., and the Sustainability Accounting Standards Board. He is also a board member for the Independent Investment Committee of the United Nations Office for Project Services. Prior to becoming a director for Morgan Stanley, Mr. Hertz was a partner with PricewaterhouseCoopers, LLP.
Mr. Hirano became a director in 2015. Currently, he is also President and CEO of Mitsubishi UFJ Financial Group (MUFJ) and Chairman of The Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU). He has also held the President, CEO and Deputy President positions for BTMU and the Managing Officer and Senior Managing Director positions with MUFJ.
Ms. Miscik, the Co-CEO and Vice Chair of Kissinger Associates, Inc., became a director for Morgan Stanley in 2014. She is a former President and Vice Chair of Kissinger Associates, Inc. and was the global head of sovereign risk at Lehman Brothers. She has worked for the Central Intelligence Agency as Deputy Director of Intelligence and was the Senior Adviser for Geopolitical Risk at Barclays Capital. She is also currently a Co-Chair of the President's Intelligence Advisory Board.
The former Chairman of PricewaterhouseCoopers International, Ltd. became a Morgan Stanley board member in 2016. Mr. Nally has also served as Chairman and Senior Partner of PricewaterhouseCoopers LLP. Prior to that, he held several leadership positions with PricewaterhouseCoopers LLP, including Managing Partner, Audit and Business Advisory Services Leader, and National Director of Strategic Planning.
Ms. Olayan became a director in 2006, but she is also a senior executive and director of The Olayan Group. She is President and CEO of Olayan America Corporation. She also serves on the board of several organizations including the Peter G. Peterson Institute for International Economics, the MasterCard Foundation, the American University of Beirut, the Memorial Sloan-Kettering Cancer Center, General Atlantic, the Belfer Center for Science and International Affairs of Harvard University, Carnegie Middle East Center, and the Council on Foreign Relations. She is a co-founder of the Arab Bankers Association of North America and served as a trustee the Conference Board, as well as director of the Thermo Electron Corporation.
Following his service as Chairman and CEO of Caterpillar, Inc., Mr. Owens became a director at Morgan Stanley in 2011. He has also been the Vice Chairman of Caterpillar, Inc., as well as the Group President and CFO at various times. He is a director of International Business Machines Corporation and Alcoa Corporation, and the Chairman of both the Executive Committee of the Peterson Institute for International Economics and the Board of Trustees of North Carolina State University.
Mr. Tamakoshi was named a director in 2011 following his appointment in 2010 as Senior Adviser of The Bank of Tokyo-Mitsubishi UFJ, Ltd. He has also served as Chairman Mitsubishi UFJ Financial Group, Inc. and Deputy Chairman of The Bank of Tokyo-Mitsubishi UFJ, Ltd. Prior to the merger of the two groups, he was President and CEO of UFJ Holdings, Inc.. and Chairman of UFJ Bank, Ltd. He started his career at the Sanwa Bank in Tokyo.
The former Chairman, CEO, and Managing Partner of Wellington Management Company, LLP became a director at Morgan Stanley in 2015. He has also served as Partner, Senior Vice President, and Director of Global Research at Wellington. In addition to his duties as director at Morgan Stanley, he is also a director at eBay, Inc. and The Allstate Corporation, Chairman of the Board of Trustees of Brandeis University, and trustee of the Windsor School.
Mr. Wilkins was named director in 2013. Prior to his appointment at Morgan Stanley, he was the CEO of Diversified Business at AT&T. He held several leadership positions at AT&T and its predecessor companies, including Group President of Marketing and Sales at SBC Communications, and President and CEO of both SBC Pacific Bell and Southwestern Corporation. He also serves on the board of Caterpillar, Inc., Valero Energy Corporation, and the Advisory Council of the McCombs School of Business at the University of Texas at Austin.
Mr. Kelleher has been President of Morgan Stanley since 2016. Prior to this position, he was the President of International Securities at Morgan Stanley. During his tenure with Morgan Stanley, Mr. Kelleher has also held the positions of CEO of Morgan Stanley International, Executive Vice President, Co-President of Institutional Securities, Chief Financial Officer, Co-Head of Strategic Planning, Head of EMEA and Asia Pacific, Head of Global Capital Markets, Co-Head of Fixed Income Europe, and Head of Fixed Income Sales Europe. Before coming to Morgan Stanley he was a qualified Chartered Accountant for Arthur Anderson.
Mr. Pruzan became the CFO of Morgan Stanley in 2015. For Morgan Stanley, he has also served as Co-Head of Financial Institutions, Co-Head of Mergers & Acquisitions, Head of U.S. Bank Clients, Vice President, and Principal. Before working at Morgan Stanley, Mr. Pruzan was an Associate/Analyst with Paine Webber Group, Inc. He is also on the boards of the Peter G. Peterson Institute for International Economics, Yeshiva University Museum, and Summer Search NYC.
Mr. Grossman was named Chief Legal Officer for Morgan Stanley in 2012. His other positions with the company include Global Head of Legal, Global Head of Litigation, General Council of the Americas, General Council of Global Wealth Management Group, and General Council. Before working for Morgan Stanley, Mr. Grossman was Partner at Davis Polk and Wardwell LLP law firm.
Mr. Hotsuki has been the Chief Risk Officer at Morgan Stanley since 2011. Other positions he has held with Morgan Stanley include Executive Vice President, Head of the Market Risk Department, and Interim Chief Risk Officer. Prior to coming to Morgan Stanley, Mr. Hotsuki was the Global Head of Market Risk Management at Merrill Lynch and an Outside Director of Mitsubishi UFJ.
In addition to her role as COO of Institutional Securities, Ms. Woodman is also the Co-Global COO of Institutional Securities. She began her career with Morgan Stanley as an attorney specializing in Banking and Derivatives for Global Capital Markets and Investment Banking in EMEA. Prior to this, she was an attorney with Clifford Chance in London and New York. She is also currently a Director of Morgan Stanley & Co. International plc. She is Co-Chair of the European Franchise Committee, a member of the Banking Standards Board, and Non-Executive Director of TheCityUK and the Association for Financial Markets in Europe.
Ms. Hassan was named the Chief Digital Officer for Wealth Management in 2016. Prior to working for Morgan Stanley, she was the Executive Vice President of Investor Services Strategy, Segments, and Platforms at Charles Schwab Corporation. She also served as Chief Operating Officer of Charles Schwab Bank, Head of Client Experience for Schwab Adviser Services, and Head of Schwab Intelligent Portfolios.
Mr. Rooney has served as the CEO of Morgan Stanley International and Head of Europe, the Middle East, and Africa since 2010. Until that point, he also held the positions of Global Co-Head of Fixed Income, Global Co-Head of Fixed Income Sales and Trading, Global Head of Interest Rate Credit and Currency Distribution, Head of IRCC EMEA, Deputy Head of Clients and Services, and Head of Sales and Trading in Europe.
Mr. Brodsky was named Chief Human Resources Officer at Morgan Stanley in 2016. He was previously the Global Head of Human Resources.
Mr. Laroia has had a 20-year career at Morgan Stanley, during which he has held several leadership positions including Head of Mergers & Acquisitions, Head of Capital Markets, and Head of Investment Banking. Before joining Morgan Stanley, Mr. Laroia worked for Citigroup.
Mike Wilson - Chief Investment Officer of Institutional Securities & Wealth Management and Chief U.S. Equity Strategist
Mr. Wilson began his career with Morgan Stanley as an investment banker in 1989. Since that time, he has held several positions with the firm, including Head of Content Distribution for North American Equities.
In addition to her role as CEO of the Institute of Sustainable Investing, Ms. Choi is also the Managing Director and Head of the Global Sustainable Finance Group. Ms. Choi held positions in the Clinton Administration, the Commerce Department, and the Federal Communications Commission. Her positions at the White House include Chief of Staff of the Council of Economic Advisers and Domestic Policy Adviser to the Vice President.
Mr. Kindred began working for Morgan Stanley in 1983 as an analyst. He then worked as a trader in the London-based Fixed Income Division. In Japan, he has held several senior positions including Head of Structured Transactions Asia and Head of Fixed Income Asia
Ms. Christianson joined Morgan Stanley in 1998 in the Investment Banking Division. She is now based in Beijing and has broadened the firm's presence in China to include commercial banking, trust services, asset management, domestic securities and bonds underwriting, and private equity investing.
Prior to becoming the COO of Emerging Markets Equity, Ms. Oldenburg was an emerging markets equity and foreign exchange trader. She worked for Arc Worldwide before joining Morgan Stanley in 2001.
OTHER SENIOR EXECUTIVES
Note: These are all of the senior executives listed on the Morgan Stanley website. The list may not be comprehensive of all senior executives working for the company.
RECENT NEWS
In a June 13, 2017 presentation to investors, Chief Digital Officer for Wealth Management, Naureen Hassan explained how new digital offerings will attract business outside the C-suite that is the focus of their current wealth management platform. Hassan believes this could bring the bank's revenues to approximately $500 billion.
Merrill Lynch hired a $300 million group away from Morgan Stanley. Greg Jones and Will Sahlman had worked for Morgan Stanley since 2008 and have been business partners for 15 years. They specialize in serving high-net-worth families, trusts, and foundations.
Morgan Stanley is now allowing its 16,000 advisers to communicate with clients by texting them. This will enable advisers to have more convenient access to clients who use this tool almost exclusively. Morgan Stanley is partnering with tech firm Twilio to archive texts.
CEO James Gorman was fooled by an email prankster who pretended to be Director Alistair Darling. The prank involved a fake story on Darling for a non-existent magazine feature. Gorman apparently read the lengthy story and gave the prankster positive feedback. Other CEOs who have been duped by this unknown person, who goes by the Twitter handle @sinon_reborn, include Barclays CEO Jes Staley and Goldman Sachs CEO Lloyd Blankfein.
Two NFL players, New York Jets linebacker Antwan Barnes and Arizona Cardinals safety Antoine Bethea, are suing Morgan Stanley and Wells Fargo for not supervising former broker Aaron Parthemer properly as he allegedly mismanaged the players' finances. Bethea says Parthemer advised him to allocate funds to unsuitable investments. Barnes claims Parthemer solicited him for investments that were not approved by Morgan Stanley. Parthemer was barred from the investment industry by FINRA for allegedly seeking investments from clients for a nightclub in Miami.
FUTURE GOALS
The digital component of Morgan Stanley's Wealth Management segment wants to use a machine-learning engine to suggest text messages to financial advisers, which would allow them to adjust, approve, or reject the suggested communication. Social media and video chat enhancements are in the works as well.
Morgan Stanley is not known for mortgage lending, but the company wants to use a digital mortgage application process to draw in more mortgage business to improve on the 2% of customers who currently have a mortgage with Morgan Stanley.
Expansion into Saudi Arabia represents "a major opportunity" for Morgan Stanley, according to CEO James Gorman. The company already has a presence in the country and intends to take advantage of Saudi Aramco's IPO worth $100 million.
Morgan Stanley is planning to "significantly reduce experienced adviser recruiting." The company will no longer offer new recruits or prospects upfront bonuses to join the firm. The move mirrors the ones taken by Merrill Lynch and Bank of America earlier in May 2017.
In an effort to boost business between its wealth management and investment bank units, Morgan Stanley is moving some advisers to its headquarters in Times Square. The move is in line with Morgan Stanley's goals of increasing interaction and sharing more customers between the banking and wealth units.
CONCLUSION
To prepare you for your meeting with Morgan Stanley, I have given you an overview of the company's annual revenue, divisions, and services; provided you with a list of executives and biographies of the C-suite and board members; supplied you with several current news stories related to Morgan Stanley; and described some of the goals Morgan Stanley has for the organization in the near future.
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