American banking major Morgan Stanley has promoted Eli Gross and Simon Smith to jointly lead its investment banking division.

The move is a part of a top leadership reshuffle undertaken by the bank.

Gross recently served as the global head of transportation and infrastructure banking, while Smith was the head of Europe, Middle East and Africa (Emea).

Both have been working with Morgan Stanley for around 24 years.

Following the reorganisation, present heads of the division, Mark Eichorn and Susie Huang, will become executive chairs, reported Financial Times citing a memo sent by the bank to employees.

In the memo, Morgan Stanley co-president Ted Pick said that the reshuffle is expected to “marry the partnership culture of the last decade with a pivot to long-term growth.”

Pick further added: “This organisational structure enables us to maintain the stability and strategic excellence of Mark and Susie, while the succession of Eli and Simon delivers on the global mission of our integrated investment bank.”

With around 30 years of association with Morgan Stanley, both Eichorn and Huang are expected to head a new group of senior investment bankers in their new positions.

The proposed group’s remit is set to expand the bank’s existing dealmaking capabilities.

The latest management change comes in the wake of a decline in dealmaking as well as growing inflation and interest rates, and geopolitical uncertainty.

Meanwhile, Morgan Stanley, along with other investment firms, is set to report around 40% year-on-year fall in funding banking charges in second-quarter earnings, in line with estimates provided by Bloomberg.