Morgan Stanley said on Monday that Paul J. Taubman, one of the co-heads of its core securities arm and a top deal-maker, planned to retire at year-end, in an unexpected shake-up that follows years of bickering between two of its top executives.
The co-head of the institutional securities division, Colm Kelleher, will become the sole president of the unit come January and will report to Morgan Stanley's chairman and chief executive, James Gorman.
Mr. Taubman is widely respected as one of the industry's most prominent mergers bankers, having forged a reputation as a top adviser to the media and telecom industries with a gold-plated client list that includes the likes of Comcast and Time Warner.
And he was an invaluable part of Morgan Stanley's response to the financial crisis, helping to broker an emergency lifeline from the Mitsubishi UFJ Financial Group of Japan that kept the firm afloat.
“Paul is an outstanding banker and business leader who has made exceptional contributions both to Morgan Stanley and to our investment banking franchise during his highly distinguished 30-year career here,†Mr. Gorman said in a statement.
Mr. Taubman became co-president of the securities unit along with Mr. Kelleher, formerly Morgan Stanley's chief financial officer, in January of 2010. Since their appointments, however, the men clashed repeatedly over their shared leadership of Morgan Stanley's most prominent business.
The two have different backgrounds and styles: Mr. Taubman a reserved investment banker, Mr. Kelleher an outspoken former accountant with a taste for Cuban cigars.
So rancorous was the squabbling that Mr. Kelleher was moved to London, with the two rarely speaking to each other. Such infighting has also come at a tough time for Morgan Stanley, as the firm seeks to revamp its securities unit to deal with more difficult markets and more stringent capital requirements that have tamped down on profitab ility.
Morgan Stanley also announced that it has named Mark Eichorn and Franck Petitgas as the global co-heads of investment banking, reporting to Mr. Kelleher. Jeff Holzschuh was named the chairman of institutional securities to focus on maintaining key client relationships.
