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James Gorman officially tapped to replace John Mack atop Morgan Stanley (UPDATE)

After months of speculation, Morgan Stanley & Co. Inc. revealed today that James Gorman, the New York-based firm's co-president, will become its chief executive on Jan. 1, replacing its current chief John Mack.

After months of speculation, Morgan Stanley & Co. Inc. revealed today that James Gorman, the New York-based firm’s co-president, will become its chief executive on Jan. 1, replacing its current chief John Mack.
Mr. Gorman will also join Morgan Stanley’s board of directors at the end of the year, the company said in a statement this afternoon.
Morgan Stanley added that chief executive and chairman Mr. Mack will retain his role as chairman after Mr. Gorman takes over.
London-based co-president Walid Chammah will become chairman of Morgan Stanley International at year end.
“Mr. Gorman tripled the operating profit in our wealth management business in just three years’ time, and then helped drive the Smith Barney joint venture — a game-changing transaction that will play a key role in the firm’s future growth,” Mr. Mack said in a statement.
Formerly the head of retail at Merrill Lynch & Co. Inc., Mr. Gorman jumped to Morgan Stanley in February 2006 to run the firm’s retail unit.
He was named co-president in November 2007 and last January was named chairman of the Morgan Stanley Smith Barney joint venture.
The current retail management structure remains, said Jim Wiggins, a Morgan Stanley spokesman.
Mr. Gorman is still chairman of the Morgan Stanley Smith Barney joint venture, and Charles Johnston stays as president of the unit.