Since James Gorman Became Ceo In 2010, Morgan Stanley's Stock Has Underperformed The Market

Despite the news of James Gorman's planned departure as CEO of Morgan Stanley, shareholders may not need to be overly concerned, as indicated by the stock's performance. During the annual general shareholder meeting on Friday, Gorman stated his intention to step down within the next 12 months, barring any significant changes in the macroeconomic landscape. This announcement caused the stock to decline by 0.6% in morning trading, deviating from the broader rally in the financial sector and the overall stock market.

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Gorman assumed the position of CEO at Morgan Stanley in January 2010, following the conclusion of the 2008-09 financial crisis. Since then, the stock has shown substantial growth, increasing by 215.5% from its closing price of $26.78 at the end of January 2010 to $84.49 at the close of Thursday's trading session.

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While the stock's performance outpaced the Financial Select Sector SPDR exchange-traded fund (ETF), which recorded a gain of 184.5% during the same period, it underperformed the broader market represented by the S&P 500, which rallied by 290.9%.

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Furthermore, when comparing Morgan Stanley's stock performance to that of JPMorgan Chase & Co., it fell short, with JPMorgan's shares climbing 258.2% since Gorman's appointment as CEO. Since the end of 2005, when Jamie Dimon assumed the role of CEO at JPMorgan Chase, their stock has risen by 251.5%, while Morgan Stanley's stock has advanced by 79.4%, and the S&P 500 has shown a growth of 236.3%.

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Throughout Gorman's tenure, Morgan Stanley has outperformed Goldman Sachs Group Inc., with Goldman's stock gaining 121.6% since the end of January 2010. Additionally, since David Solomon became CEO of Goldman Sachs in late October 2018, Morgan Stanley's stock has surged by 85%, while Goldman shares have increased by 46.2%.

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