Morgan Stanley Chairman and CEO Philip J. Purcell
Announces Plans to Retire
Jun 13 2005 | New York
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Morgan Stanley (NYSE: MWD) Chairman and Chief
Executive Officer Philip J. Purcell today announced his intention to retire as soon as his
successor is named, but no later than by the Firms next annual meeting in March 2006.
The following letter from Mr. Purcell was sent to all Morgan Stanley employees this
morning:
A LETTER TO MY COLLEAGUES
This morning I am announcing my intention to retire by the time of our next
annual shareholder meeting in March, 2006.
It has become clear that in light of the continuing 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
shareholders.
You have all done an extraordinary job serving our clients despite the almost
daily distractions. Your dedication and commitment to clients have been clear
for all to see. I feel strongly that the attacks are unjustified, but unfortunately,
they show no signs of abating. A simple reality check tells us that people are
spending more time reading about the acrimony and not enough time reading
about the outstanding work that is being accomplished by our firm.
What matters is not one person, but the over 50,000 people of Morgan Stanley,
and our many clients and shareholders. The whole is greater than the sum of the
2
parts and clearly more important than any one part. Even in the midst of the
distractions of recent months, the firms integrated securities strategy is coming
together and will certainly bring great success in the future. My main regret is
that I will not be here as the firm realizes the full potential of the execution of this
strategy.
I will retire when my successor is appointed. The Board has begun a search for a
new Chairman and CEO, led by Chuck Knight, who is head of the Boards
Compensation, Management Development and Succession Committee. I, of
course, will do everything I can to assist the Board in this transition. I will make
sure that the firm stays on course until my successor is chosen and that we
continue to be relentless in pursuing our business goals.
Let me say that it will not be easy for me to leave. I take enormous pride in what
the people of this firm have accomplished. Since the merger in 1997, we have
gained share in almost every market category, and in my view, we are without
peer in the global financial marketplace. Since the merger, our stock price has
outperformed the S&P 500 nearly three-fold and the S&P Financial
Index by 50%. There is no finer firm on Wall Street. And when the dust settles
that will remain the one unqualified truth of this debate.
Its been said that the true test of a leader is the performance of the institution he
leaves behind. On that score, I feel my legacy is in good hands. Morgan Stanley
has a great depth of talent and an outstanding management team led by Zoe Cruz
and Steve Crawford. We have a strong independent Board which has recently
named Miles Marsh lead director. The management team and the Board are
unanimously supportive of our integrated securities strategy. The Board has
asked me to assure you of their full support as we go through the transition and in
the future.
To each of you, I offer my heartfelt thanks for the extraordinary opportunity I
have had to work with and lead you. I have enormous faith that the best of
Morgan Stanley will be lived in the days and years ahead.
I have one last thing to say . . . lets get back to work.
Philip J. Purcell
# # #
The company will hold an analyst conference call today at 10:30 am (ET). Live audio of
the conference call will be available on the Morgan Stanley website at
www.morganstanley.com or by dialing 1-888-481-3045 (passcode 20488181) in the
United States. International callers dial 1-617-786-1988 (passcode 20488181). A
playback of the call will be available today at the same website address. To listen to the
playback dial 1-888-286-8010 (passcode 94052075) within the United States or 1-617-
801-6888 (passcode 94052075) internationally.
This release may contain forward-looking statements. These statements reflect
managements beliefs and expectations and are subject to risks and uncertainties that may
cause actual results to differ materially. For a discussion of the risks and uncertainties
that may affect the Companys future results, please see Forward-Looking Statements
immediately preceding Part I, Item 1, Competition and Regulation in Part I, Item 1,
and Certain Factors Affecting Results of Operations under Managements Discussion
and Analysis of Financial Condition and Results of Operations in Part II, Item 7 of the
Companys Annual Report on Form 10-K for the fiscal year ended November 30, 2004
and Managements Discussion and Analysis of Financial Condition and Results of
Operations in the Companys Quarterly Report on Form 10-Q for the quarterly period
ended February 28, 2005.
Morgan Stanley is a global financial services Firm and a market leader in securities,
investment management, and credit services. With more than 600 offices in 28 countries,
Morgan Stanley connects people, ideas and capital to help clients achieve their financial
aspirations.
To access the webcast, please click here.
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