James Gorman - An Empire Builder At Shareholders' Expense
By Ranjan Hulugalle: Being a shareholder of Morgan Stanley (MS), I was bewildered while watching James Gorman's recent interview live on Bloomberg Television. Here was the CEO of Wall Street's second most prestigious investment bank, dodging some very relevant questions with regard to shareholder value. The interviewer asked Gorman some great questions, but he failed to follow up when Gorman dodged key issues regarding the valuation of MS.After the interview, Christine Harper, the author of one of Bloomberg's most read articles that day, put forward the concept of empire building. In her article, she quotes Ken Fisher: "The inherent nature of a lot of CEOs is to love empire building….The ones that love empire-building will do whatever he or she can to dissuade the board of directors from breaking their companies up." Is James Gorman building an empire at shareholders' expense?
Morgan Stanley Today
MS is an immensly valueable franchise. They haveComplete Story »