Cruz leaves Morgan Stanley, as Chammah and Gorman rise up the ranks

Morgan Stanley announced a management overhaul yesterday, naming Walid Chammah and James Gorman co-presidents of the firm. They will replace Zoe Cruz, who spent 25 years at the firm and was the highest paid woman on Wall Street, and Robert Scully, who will take on a newly created role in the office of the chairman, focusing on global sovereign investors.

Chammah, who was previously chairman and chief executive of the firm’s international business, will now oversee the institutional securities division. He will remain based in London. New York-based Gorman, previously chief operating officer of the global wealth management group and co-head of strategic planning, will oversee the global wealth management and asset management divisions. Both will report to the firm’s chairman and chief executive, John Mack.

“Walid and James are the right team with the right skills to lead Morgan Stanley now, and to drive the firm forward to a new level of success,” said Mack.

Meanwhile, Michael Petrick will replace Neal Shear as head of trading, and will co-head institutional securities sales and trading with Jerker Johansson. Neal Shear will leave trading and become chairman of the firm’s commodities business.

All changes become effective on December 1.