Morgan Stanley, one of Wall Street’s leading financial firms, has announced a significant leadership transition, with longtime insider Ted Pick set to take over as CEO on January 1, succeeding James Gorman, marking the conclusion of a closely watched succession race within the organization.

Ted Pick, a 33-year veteran of Morgan Stanley, has played a pivotal role in the company’s success, particularly in the institutional securities division, overseeing investment banking and trading.

He has also spearheaded a significant turnaround in the fixed-income trading division during his tenure. His deep understanding of the company’s operations and track record make him well-suited for the CEO position.

Andy Saperstein and Dan Simkowitz, two other prominent Morgan Stanley executives in contention for the top job, have been given new titles and responsibilities within the organization.

Saperstein, previously co-president alongside Pick, will continue in his co-president role while taking on the additional responsibility of heading wealth and investment management.

Simkowitz will also become a co-president and will lead the institutional securities division.

James Gorman, the outgoing CEO, will transition into the role of executive chairman, marking the conclusion of his remarkable tenure at the company’s helm.

Gorman took on the CEO role in 2010 when Morgan Stanley was grappling with its survival in the aftermath of the 2008 financial crisis.

Under his leadership, the company aggressively expanded into wealth management, which helped stabilize the firm and reduce the volatility of trading and investment banking.

Remarkable achievements have marked Gorman’s tenure, and the company’s stock has grown substantially, climbing 141% since he assumed the role, outperforming most of its industry peers, except JPMorgan Chase.

His decision to step down as CEO and transition into executive chairman is part of a planned leadership change to ensure an orderly succession.

The board’s choice of Ted Pick as the new CEO has been met with unanimous approval. Pick is highly regarded for his strategic leadership, strong track record in building and growing the client franchise, talent development and retention, prudent capital allocation with sound risk management, and carrying forward the company’s culture and values.

Gorman’s announcement in May that he intended to step down as CEO within the next year paved the way for this leadership transition, marking the conclusion of one of the lengthiest CEO tenures in the financial sector.

Only Jamie Dimon of JPMorgan Chase, who took the reins in 2005, has a longer tenure as CEO in a leading financial institution.

The announcement of Ted Pick’s appointment follows Morgan Stanley’s recent report of a 9% drop in third-quarter profits compared to the previous year, reflecting a decrease in revenue from investment banking and trading activities.

With Ted Pick assuming the CEO role, the company aims to continue its commitment to excellence, strategic growth, and the delivery of financial services that meet the evolving needs of its clients and shareholders.