Morgan Stanley CEO James Gorman announced today that he expects the bank to appoint his successor within the next 12 months. This statement signals an impending leadership transition at one of the world’s largest investment banks.

Gorman, who has been at the helm of Morgan Stanley since 2010, played a crucial role in steering the bank through the aftermath of the financial crisis and successfully reshaping it into a more stable institution focused on wealth management alongside its traditional investment banking operations.

During an interview, Gorman stated, “I expect that within the next 12 months, there will be clarity on my successor. The board and I are comfortable with the succession planning process that we have been engaged in.”

While Gorman did not name any potential successors, speculation has surrounded several key figures within the bank, including Co-Presidents Franck Petitgas and Ted Pick. Both have had long tenures at Morgan Stanley and have played significant roles in the bank’s recent successes.

Gorman’s anticipated departure comes at a time when several Wall Street banks are also experiencing leadership changes, reflecting a broader changing of the guard in the industry. His successor will inherit a bank that, under Gorman’s leadership, has grown in stability and profitability but also faces the challenges of navigating a rapidly evolving financial landscape marked by technological innovation and regulatory change.

Investors will be closely watching the succession process, as the leadership transition at a banking powerhouse like Morgan Stanley could have far-reaching implications for the sector.

In conclusion, CEO James Gorman’s anticipated departure marks an end of an era at Morgan Stanley. The bank’s succession plan, set to unfold over the next 12 months, will pave the way for the next leader tasked with steering Morgan Stanley through the complex challenges and opportunities that lie ahead in the global financial industry.