During an interview in New York, US, Ted Pick, co-president of Morgan Stanley, spoke about his confidence in reaching the bank’s financial targets of $10 trillion in client assets and a 20% return. Even though he only took on the position of CEO this month, Pick is ready to tackle these ambitious goals head-on.
“I’m super bullish,” he said during a CNBC interview at the World Economic Forum in Davos, Switzerland. “Ten trillion in wealth and asset management dollars, that’s going to be coming. We’re going to get there and hit 20% returns. That’s it: 10 and 20. It will take some time, but I’m super bullish.”
Pick also emphasized his three main priorities as the new CEO: sticking to the strategy set by his predecessor, maintaining the bank’s culture, and achieving their ambitious targets. He expressed his determination to continue the momentum and success that James Gorman, previous CEO, helped establish.
Gorman’s leadership during the aftermath of the 2008 financial crisis was essential to guiding Morgan Stanley through difficult times. His forward-thinking strategies and savvy acquisitions transformed the bank into a wealth management powerhouse, improving its valuation and positioning it significantly ahead of competitors.
Even though Morgan Stanley’s pivot towards wealth management resulted in an increase in valuation, concerns about the growth of this business have affected the bank’s stock value in the last year. Despite this, Pick remains confident in the bank’s “secret sauce,” which is the combination of a leading investment bank and wealth management operations. He believes that this unique ecosystem is the key to its success.
“Part of the reason the boss had so much success is he kind of guided the place to a durable narrative instead of the herky-jerky, unpredictable Morgan Stanley,” Pick said.
The balance between realistic expectations and building credibility is crucial for Pick. He aims to communicate to both internal and external stakeholders that he is highly confident in the bank’s ability to grow in both wealth management and investment banking. He believes that Morgan Stanley’s approach of being a leading wealth manager, banking individuals not institutions, and then also covering them as an investment bank or hedging the risk as a trading house, is what makes it unique.
As the story develops, there may be more updates, so be sure to stay tuned for the latest information. Overall, Pick’s optimistic outlook, combined with a commitment to maintaining the bank’s success, suggests that Morgan Stanley is well-positioned for future growth and profitability.
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