Morgan Stanley selects executive chair role for outgoing CEO

The executive chair role for a former CEO has become more popular over the past decade to manage transition strategies.

Driving the news: Morgan Stanley has picked out “three very strong senior internal candidates” to become its next CEO.

Current CEO James Gorman today announced he will step down within a year and transition to executive chair.

What to watch: Gorman will be in good company with Elon Musk and Reed Hastings, both of whom are, or will become, executive chairs.

• "To build an effective CEO and executive chair relationship, it is imperative that the executive chair’s only interest is seeing his or her successor succeed. It cannot be about defending legacy or protecting the status quo," SpencerStuart advisers note.

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