Management shake up at Morgan Stanley as Gregory Fleming departs

There has been a management reshuffle at Morgan Stanley, with co-President Gregory Fleming stepping down yesterday following another deputy's promotion ended his bid to become Chief Executive. Morgan Stanley's CEO James Gorman named Colm Kelleher as the company's sole President, as well as reiterating his intention of remaining in his role of CEO for at least five more years. These moves end speculation over how Gorman would manage his senior team over the next few years and shifts focus to a new crop of executives who will be in a position to be the company's next leader.

A shuffle at the top of Morgan Stanley has led to the departure of Gregory J. Fleming, an executive who was once seen as a leading candidate to run the Wall Street firm.

Mr. Fleming’s departure was announced on Wednesday. He decided to leave after the firm’s chief executive, James P. Gorman, elevated another top Morgan Stanley executive, Colm Kelleher, to the No. 2 position at the company, according to people briefed on the moves.

The change is the biggest shake-up in the top executive ranks at Morgan Stanley during Mr. Gorman’s six-year tenure.

The moves are the latest in a flurry of leadership changes that Mr. Gorman has made in recent months, aimed at improving the firm’s profitability.