James Gorman, born on July 14, 1958 (age 65) in Melbourne, Australia, is a businessman and the current CEO of Morgan Stanley, a global financial services firm headquartered in New York that operates in investment banking. The company ranks among the most influential in the United States. A few months ago, Gorman announced he would step down as CEO by the end of the year. The Australian executive comes from a large family with ten siblings. His move from his homeland to the United States marked a positive turning point in his enduring business career.
Where was Gorman educated?
Gorman’s childhood and adolescence were strongly tied to Catholicism. He attended a Catholic high school, and his first university degrees were a Bachelor of Laws and a Bachelor of Arts from the University of Melbourne.
Newman College, a co-educational Catholic residential college affiliated with the University of Melbourne, played a key role in his formative years. Gorman ultimately served as its president. After completing his education in Australia, he moved to the United States.
In the U.S., he enrolled at Columbia University. With growing interest in business, he completed a Master of Business Administration in 1987 at the age of 29. During this time, he began gaining experience as a lawyer in American firms, but his main challenge came after completing his MBA.
McKinsey and Merrill Lynch
McKinsey & Company is a U.S.-based multinational that provides management consulting services. After joining McKinsey, Gorman became a senior partner, specializing in finance. He spent ten years working on Merrill Lynch projects, which eventually led to his joining Merrill in 1999.
Merrill, a financial division focused on asset management and banking services, hired Gorman as head of marketing. Over time, he climbed the ranks within the company.
His most notable work at Merrill took place between 2001 and 2005, when he led private client business operations both domestically and internationally. Gorman’s extensive advisory work with Merrill while at McKinsey gave him deep knowledge of the firm.
Among his key contributions was the restructuring of Merrill’s operations. He reviewed the role of brokers—intermediaries between clients and markets—resulting in the departure of many and a renewed focus on high-value clients.
Morgan Stanley
In February 2006, following a long trajectory in New York and extensive experience at McKinsey and Merrill, Gorman joined Morgan Stanley. For context, the firm employs over 60,000 people and operates in 30 countries.
Gorman initially served as president and COO of GWMG, a financial advisory subsidiary. He later joined the strategic planning group as co-head and was also appointed co-president of the firm.
The year 2007 marked a major leap in Gorman’s career with senior-level promotions. After two years overseeing financial operations and assets, he became CEO of Morgan Stanley.
To complete the list of positions, in the 2010s he was also appointed chairman of the company.
Key actions as CEO of Morgan Stanley
As mentioned, Morgan Stanley is a multinational firm with branches and operations around the world. One of James Gorman’s most notable decisions was the merger of the firm’s wealth management division with Citigroup, specifically the Smith Barney unit.
Smith Barney had been affiliated with the firm for years, and the merger led to the creation of Morgan Stanley Wealth Management. This solidified the company’s position as a global leader in wealth management and significantly increased its ownership.
Morgan Stanley acquired 35% of Smith Barney, doubling the number of financial advisors and significantly boosting the client base. In 2012, The New York Times reported a substantial increase in Gorman’s compensation in recognition of his performance as CEO.
Gorman has spent 18 years at the company, and 2024 marks the end of that journey. He has held the roles of COO, co-president, CEO, and chairman, and will step down from his executive position at the end of the year.
What stands out about Gorman? He restructured the multinational firm with strategic moves that boosted performance during a period of crisis. In 2015, he received a major Australian finance award. He guided the company through financial turmoil to renewed success through effective asset management and key partnerships.
Gorman has been part of financial forums, sits on the board of Columbia Business School—his alma mater—is co-chair of an art museum, and serves on the Federal Reserve Bank of New York’s advisory committee.