Morgan Stanley Chair and CEO: Succession, culture, stress, and leadership
Nov 29, 2023
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James Gorman, a prominent figure in banking, shares his journey from a family of 12 to leading Morgan Stanley. He delves into the importance of cultural alignment when integrating companies and discusses the qualities of effective leadership amidst high stress. Gorman also emphasizes coping strategies for stress, including fitness and mindfulness. He touches on geopolitical tensions affecting business and the competitive landscape of AI, advocating for nurturing young talent while balancing personal life and career.
Growing up in a large family taught James Gorman the importance of collaboration and creating a warm and inclusive environment.
Focusing on wealth management provides a more sustainable and rewarding business model in the financial sector.
Deep dives
Growing up in a large family teaches humility and collaboration
James Gorman discusses his upbringing in a large family with nine siblings. He highlights how growing up in a crowded household normalized differences and taught him the importance of collaboration. He believes that having siblings with various strengths and weaknesses humbles an individual and fosters a warm and inclusive environment.
Choosing a different career path and embracing leadership
Gorman reflects on the defining moments in his career, starting with the decision to study in the United States instead of the UK. He admits that he deviated from a clear path to becoming a lawyer and instead pursued business. Gorman also emphasizes his transition from consulting at McKinsey to actually making decisions as a senior partner at Morgan Stanley. He explains his preference for being actively involved in decision-making and bearing the consequences, rather than advising others.
Developing a successful strategy and the importance of wealth management
Gorman shares his approach to creating a successful strategy, which involves having a clear vision of success and understanding the end-state one aims to achieve. He emphasizes the importance of wealth management in the financial sector, highlighting its stability and the diversified investment profiles of clients. Gorman also notes the challenges faced by traditional trading and banking businesses, which have suffered significant failures. He believes that focusing on wealth management provides a more sustainable and rewarding business model.
Building a strong corporate culture and authentic leadership
Gorman discusses the importance of authenticity in hiring and building a talented team. He values individuals who are true to themselves and displays a sense of self-awareness during interviews. Gorman explains the measures taken to develop employees, including comprehensive reviews and training programs. He also emphasizes the significance of the company's core values, such as doing the right thing and prioritizing clients. Gorman believes that successful CEOs should be comfortable with decision-making, clear in their communication, and able to handle stress effectively.
James Gorman, one of the most successful CEOs in the world of banking, is stepping down as CEO and shares unique insights into the world of banking, investing, and leadership. He also shares how he reviews talent, and the immense stress and pressure that come with a job like his.
The production team on this episode were PLAN-B's Nikolai Ovenberg and Niklas Figenschau Johansen. Background research was done by Sigurd Brekke with input from portfolio manager Frederik Thomasen and Philip Pearce.