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Journalism of Courage
Stephen S. Crawford, one of Morgan Stanley’s two co-presidents and a protege of departed chief executive Philip J. Purcell, resigned on Monday, less than two weeks after he signed an employment agreement that would pay him $32 million if he left by early August.
In the latest in a series of executive shuffles that have rocked Morgan Stanley this year, the bank named Zoe Cruz, the other co-president, acting president. The temporary designation of her new title may indicate that she too could be on her way out, as many analysts have speculated.
Crawford, who was promoted to his current post in March, was a key supporter of Purcell in the months leading to his June 13 decision to retire. Purcell had waged an unusually public fight with eight former Morgan Stanley executives who asked the board to replace him.
The board’s decision to bring back John J. Mack as chairman and CEO was expected to unleash far-reaching changes in the top ranks at the investment bank. Mack was himself forced out of Morgan Stanley by Purcell in 2001.
On June 30, the first day of Mack’s return, Crawford and Cruz, who are seen as Purcell loyalists, both resigned from Morgan Stanley’s board but stayed on as co-presidents. Crawford also signed new employment contract with the bank that would pay him $16 million a year for two years if he decided to stay or the full $32 million if he resigned or was fired without cause by August 3. Cruz reportedly did not sign a similar contract at the time.
The bank gave few details of why Crawford was leaving other than to say he was pursuing ‘‘other interests.’’ It also didn’t discuss Cruz’s long term future at the bank.
‘‘The board would like to thank Steve for his leadership as co-president over the past several months,’’ Miles Marsh, Morgan Stanley’s lead director, said. ‘‘He has been singularly focused on what is best for the firm. We wish Steve well with his future career.’’ — NYT
