By Peter Rudegeair

Morgan Stanley on Thursday set up a four-way race to one day succeed Chief Executive James Gorman, elevating a number of senior executives into new roles as part of a broader management reshuffle.

Ted Pick, 52, who leads the firm's investment-banking and trading businesses, and Andy Saperstein, 54, the head of wealth management, were named co-presidents of the bank.

Chief Financial Officer Jonathan Pruzan, 52, is moving into the role of operations chief, and Dan Simkowitz, 56, was given responsibility to help set Morgan Stanley's strategy and execution alongside his job as head of investment management.

All appointments are effective as of June 1.

Mr. Gorman, 62 years old, is one of the longest-serving CEOs on Wall Stree t, getting the top job at Morgan Stanley in 2010. He recently told Morgan Stanley's board that he planned to stay in his post for at least three more years, according to a person familiar with the matter.

Over his eleven-year tenure as CEO, Mr. Gorman oversaw Morgan Stanley's recovery from a near-death experience during the 2008 financial crisis. He spent much of the past decade raising capital levels, slashing pay, exiting risky businesses and shrinking the trading operation.

Mr. Gorman also refashioned the bank into a steadier institution through a number of strategic deals. Morgan Stanley completed its acquisition of Smith Barney from Citigroup Inc. under Mr. Gorman, turning it into a powerhouse in wealth management. Last year, Mr. Gorman struck deals to acquire E*Trade Financial Corp. and Eaton Vance Corp., expanding Morgan Stanley's footprint in retail investing and fund management, respectively.

Many of those new businesses, combined with strong activity in its Wall Street arms, helped Morgan Stanley generate record revenue of $48.2 billion last year. For his performance, Morgan Stanley's board of directors made Mr. Gorman the highest-paid big-bank boss earlier this year when it awarded him a $33 million pay package for 2020, up 22% from what he received for 2019.

At the start of 2021, Morgan Stanley was at an inflection point, Mr. Gorman told analysts at the time. After years of retrenchment and stabilization, it would now get more aggressive about gaining market share, expanding its client base and returning excess capital. Three months later, Morgan Stanley reported record revenue and profit but also revealed $911 million in trading losses tied to the implosion of Archegos Capital Management.

Morgan Stanley also said on Thursday that Sharon Yeshaya, its head of investor relations, will replace Mr. Pruzan as finance chief.

At the bank's annual shareholder meeting Thursday, Mr. Gorman said the management changes "reflect the next generation of leadership at Morgan Stanley." But he also signaled that he isn't ready to leave yet. He said he looked forward to working with each of them "in the coming years."

Write to Peter Rudegeair at Peter.Rudegeair@wsj.com

(END) Dow Jones Newswires

05-20-21 1123ET