Morgan Stanley managers depart amid reorg

Some high-level executives depart as firm restructures its managed-account unit, and streamlines products and services staff.
SEP 04, 2014
A number of Morgan Stanley Wealth Management directors have left the firm amid a reorganization of the managed-accounts unit and streamlining of operations, according to sources familiar with the moves. Several of the higher-profile departures, which occurred last month, affected the firm's consulting group. The unit, which is led by Jim Tracy, is responsible for the firm's fast-growing managed-accounts programs. Fee-based assets accounted for 38% of the total $2 trillion in client assets as of June 30, up 21% from the same time last year. Many of the departures were tenured managers who had ties to Smith Barney. Nicholas Angilletta, a managing director and director of the consulting group and capital markets sales strategy at Morgan Stanley, and former head of Smith Barney Equity Capital Markets, left as part of the restructuring, sources said. Patrick Schussman, a divisional director for the consulting group on the West Coast, also left the firm. Both declined to comment. Glenn Regan, another managing director who lists himself on LinkedIn as director of discretionary investment solutions, also left, sources said. Some management roles were consolidated as the firm “decentralized” leadership in the consulting group, according to spokesman Jim Wiggins. Mr. Wiggins said that the firm also was adding 24 regional roles for internal wholesalers and analysts who help advisers select money managers, so the reorganization would result in a “net addition of personnel” in the consulting group. He added that some of the managers were offered other positions within the firm but chose not to take them. “There is no cost cutting in consulting,” Mr. Wiggins said. “It's putting support people close to the financial advisers and clients.” Departures also affected other divisions in the wealth management unit, including field leadership positions for the firm's adviser force of 16,300, sources said. Kevin Riley, a legacy Smith Barney Inc. manager who sources said ran the technology platform at Smith Barney and helped oversee a challenging technology conversion at Morgan Stanley, also left the firm. Mr. Wiggins confirmed that Mr. Riley had left the firm, but declined to comment on that move specifically. “We're constantly evaluating staffing levels across all support areas,” Mr. Wiggins said. “There's nothing here in the way of significant across-the-board layoffs.” The shifts come as executives say the firm has moved from stages of “fragility” and “healing,” following acquisition of Smith Barney, into a new phase called “performance and growth,” which aims to boost earnings by focusing on efficiencies. Morgan Stanley's chief executive, James Gorman, outlined the stage in a presentation earlier this summer. He has said the firm is aiming for a 22% to 25% pretax profit margin by the end of next year, up from around 21% in the second quarter.

Latest News

Social Security trustees see one less year in insolvency countdown, project shortfall to start 2034
Social Security trustees see one less year in insolvency countdown, project shortfall to start 2034

New report shows dimmed outlook for benefits to retirees and disabled Americans, creating further pressure for federal tax hikes or more borrowing.

NY Republican Stefanik presses SEC to probe Harvard bond sale
NY Republican Stefanik presses SEC to probe Harvard bond sale

Open letter to SEC Chair Paul Atkins questions whether the Ivy League university withheld material information prior to its $750 million taxable bond offering.

Ex-LPL leader re-emerges at The Wealth Consulting Group
Ex-LPL leader re-emerges at The Wealth Consulting Group

The Las Vegas-based hybrid RIA overseeing $8.8 billion in assets has named Andy Kalbaugh president to help scale its advisor platform.

Envestnet extends investment offerings with new alts model portfolios
Envestnet extends investment offerings with new alts model portfolios

The wealth tech giant – in collaboration with Fidelity, BlackRock, State Street, and Franklin Templeton – is offering its advisor and wealth firm users more ways to diversify.

Just as wealth industry M&A was picking up, economic uncertainty could kill it again
Just as wealth industry M&A was picking up, economic uncertainty could kill it again

Deal volume increased post-election but now caution has taken over.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave