Morgan Stanley Wealth Management has decided shrink the number of divisions at the firm to two from three, and consolidate the firm’s 12 regions into eight.
Post restructuring, which will become effective at the end of May, the firm will have two division directors. Bill McMahon will be director of western division and Rick Skae will be eastern division director.
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Division directors will report directly to Shelley O’Connor, who was appointed head of field management in February.
O’Connor in a memo to employees said a tour of the branches at the world’s biggest brokerage convinced her that local managers need more power, resources and the ability to work more efficiently.
The positions of four regional directors – Jeff Adams, John Campbell, Kevin Forman and Matthew Maloney – have been eliminated. They will be reassigned to other roles within Morgan Stanley Wealth Management, though the firm didn’t specify what they will be doing.
As part of the integration, the firm has also eliminated dozens of overlapping branches along with branch management positions.
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By GlobalDataIn her memo, O’Connor said her spending priorities will be on support for brokers who are banding into teams and on naming more assistant "complex" managers to coordinate sales and supervision of branches located near each other.
Also, Barry Goldstein has been named COO of the wealth division. Lisa Golia will continue as chief administrative officer with responsibility for branch services and client communications.
The moves are the latest effort to streamline management since the firm reduced the number of divisions to 12, from 16, in 2012.
Morgan Stanley chairman and chief executive James Gorman has said that he is hoping to push the firm’s profit margins in wealth management as high as 25% by 2015 after reaching the goal of near-20% margins sooner than expected.
