Morgan Stanley CEO contender Pruzan to depart Wall Street bank

Morgan Stanley chief operating officer Jonathan Pruzan, a leading contender to become the bank’s next chief executive, has decided to leave at the end of this month.

Pruzan, 54, was one of four candidates in the running to replace James Gorman when he decides to retire from Morgan Stanley, one of the most powerful institutions on Wall Street. Internally the all-male list of candidates is referred to as the “four horsemen”. 

Pruzan is departing after 28 years, during which time his roles at Morgan Stanley ranged from chief financial officer and head of its global financial institutions group to his most recent assignment as COO.

In a memo to staff on Monday, Gorman said Pruzan was leaving “in order to pursue other opportunities”. 

“He has been a trusted adviser to me for many years, and has had a seat at the table and a voice in the decision-making process for many of the key decisions that the Firm has made over the past decade,” Gorman wrote.

According to a person briefed on the matter, recent conversations Pruzan held with senior Morgan Stanley figures about the likelihood and timeline of him succeeding Gorman factored into his decision to depart.

Gorman, 64, has led the bank since 2010 and last year said he had no plans to step down soon. The Australian CEO has looked to grow Morgan Stanley’s wealth and asset management businesses to buttress its legacy trading and investment banking divisions, a pivot which helped it leapfrog the market capitalisation of longtime rival Goldman Sachs.

Other leading candidates to take over from Gorman include co-presidents Ted Pick and Andy Saperstein as well as investment chief Dan Simkowitz.