Morgan Stanley executive resigns
NEW YORK -- Morgan Stanley said co-president Stephen Crawford, who hitched his career to former chief executive Philip Purcell, will leave the world's biggest securities firm after securing a $32 million exit package.
Zoe Cruz, whom Purcell appointed co-president with Crawford in a March 28 management shuffle, was given a new title of acting president, the New York-based firm said in a statement yesterday. The changes show how fast John Mack, 60, is reshaping management since taking over from Purcell, 61, as chairman and CEO on June 30.
Mack has reached out to some of the more than 55 managers, bankers and traders who left Morgan Stanley after Purcell's reorganization, seeking to bring them back to the firm. Morgan Stanley signaled last week that Crawford, 41, was on his way out when it disclosed that he stood to receive $32 million if he resigned before Aug. 4.
''Mack clearly felt he wasn't the right guy for the job," said Tim Cook, president of Kailas Capital LLC, a money manager in Stamford, Conn. ''Given his pay package that the board arranged, he had a large incentive to leave."
Crawford, a 19-year veteran of Morgan Stanley, and Cruz, 50, stepped down as directors the day Mack was appointed. They joined the board in April, as Purcell, 61, battled with investors and former executives who were campaigning for his removal.
Shares of Morgan Stanley rose 45 cents to $53.57 on the New York Stock Exchange. They've gained 6 percent since June 23, when Mack became the frontrunner to replace Purcell.
No executive rose faster under Purcell than Crawford. In 1998, the year after Purcell led Dean Witter, Discover & Co.'s purchase of Morgan Stanley, Crawford was named a managing director, the first of at least six promotions in the past seven years.
''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 in the statement. ''He has been singularly focused on what is best for the firm."
Cruz was offered a pay guarantee similar to Crawford's and declined, a company spokesman said last week. Crawford and Cruz didn't return calls seeking comment yesterday.
