Phil Purcell

O'Neal join illustrious ranks of ousted CEOs

Wed, 31 Oct 2007 07:59:56 -0400

On Wall Street, life can change in a blink. One minute Stanley O'Neal is on top of the industry. A few quarters later, he's been dusted. But he is hardly alone. Financial News Online has put together a list of other notable CEOs who have been pushed out for one reason or another. The list includes John Gutfreund, of Salomon Bros., who ruled the bond universe only to be undone by scandals that wracked the firm. Jon Corzine also made the list. He left after some bitter losses associated with the Russian debt crisis of 1999. More recently, there was Phil Purcell; recall the pre-John Mack drama. And Peter Wuffli, of UBS. My guess is that O'Neal will land on his feet.

For more:
- here's the list

Morgan Stanley hungry for more risk?

Mon, 23 Jul 2007 20:01:36 -0400

Last quarter, Morgan Stanley's average trading VAR rose about 30 percent from a year earlier to $81 million. This is not out of whack compared with other firms' VARs. But it does indicate that Morgan Stanley is more than willing to go the route that Goldman Sachs has so finely blazed. One sign is Morgan Stanley's desire to get back into the private equity game. It is said to be in all-out hiring mode for private equity professionals, according to Financial Week, and it is about to start a fund-raising effort for a new fund. Alan Jones, the former head of the financial sponsors group, and Stephen Trevor, who came from Goldman Sachs, are building out the new unit, which will employ about 40 professionals. Recall that Morgan Stanley exited the business back in 2004, when Phil Purcell was running the show. Its glory days were about twenty years ago, when it was mentioned in the same breath as Kohlberg Kravis Roberts.

For more:
- here's the article from Financial Week

Morgan Stanley's 2005 rebels

Thu, 26 Apr 2007 20:01:34 -0400

Remember the heady days of Phil Purcell's final stand at Morgan Stanley. A group of big-name executives, infuriated that Purcell would not step down, quit in protest, charging that the then-CEO had ruined the firm. Well, what has become of the rebels? It's fair to say that there is life after Morgan Stanley. Most famously, Vikram Pandit, John Havens and Guru Ramakrishnan quickly formed hedge fund Old Lane Capital and promptly sold it to Citigroup for more than $600 million and lucrative jobs. Joseph Perella also formed his own boutique, where a number of Morgan Stanley pirates now work. Stephen Crawford was a co-founder of Centerview Partners. Vikram Gandhi is now head of global financial institutions at Credit Suisse. Jon Anda, former co-head of capital markets is now president of Environmental Defense's environmental markets network.

For more:
- here's the Financial News Online article

Morgan Stanley still paying for Purcell

Tue, 28 Feb 2006 19:01:39 -0500

Phil Purcell is gone, but his expenses remain. A recent proxy shows that Morgan plans to pay almost $8 million (as part of a larger exit package) in secretarial services, annual salaries and contributions to charity until he dies. The total estimated cost: $3.15 million in salary, $2.9 million in charitable contributions, and $1.9 million for secretaries. That said, the firm argues that getting Purcell out was the deal of a lifetime, judged against the value created by Morgan's rising stock price.

> Here's a New York Post article.

Cruz thrives at Morgan Stanley, despite odds

Thu, 09 Feb 2006 19:01:36 -0500

Morgan Stanley CEO John Mack appointed the firm's vice chairman of investment banking, Robert Scully, as the co-president of the Wall Street firm. He will serve alongside Zoe Cruz, who has survived the transition from Phil Purcell to Mack in fine fashion. She is one of Wall Street's brightest female stars and can now be called a survivor of some pretty gritty internal wars. Many did not think she would last. Obviously, Mack sees in her something very valuable.

> Here's an article from TheStreet.com.

Mack reconfiguring Morgan Stanley board

Wed, 21 Dec 2005 19:01:39 -0500

The latest sign that John Mack has consolidated his power base at Morgan Stanley: Directors Edward Brennan, John Madigan, and Miles Marsh have all stepped down. All three--along with the recently departed Michael Miles--were allies of Phil Purcell, whom Mack replaced. Critics held them up as a symbol of Purcell's overly compliant board. The only holdovers remaining from the Purcell era are Laura D'Andrea Tyson, Klaus Zumwinkel, C. Robert Kidder, and Sir Howard J. Davies.

> Here's the New York Times article.

Update: John Mack's attempt to revitalize Morgan Stanley

Thu, 06 Oct 2005 20:01:35 -0400

So how is John Mack faring at Morgan Stanley? The early accounts were fairly positive. He was certainly saying all the right things, especially to the beleaguered retail brokerage staff. It's fair to say that his job will only get harder. One challenge early on is Zoe Cruz, who was a polarizing figure toward the end of the Phil Purcell reign. Apparently, Mack has been unsuccessful in bringing back key executives because Cruz still exists at the firm. Mack seems committed to her, and seems very comfortable with her as president. Many expect a co-president to be appointed at some point.

> Here's the Newsweek article.

Another Purcell ally leaves Morgan Stanley

Tue, 13 Sep 2005 20:01:39 -0400

You could see this coming. Phil Purcell's critics decried the poor history of the firm's asset management business, which was beset by high outflows, periods of weak performance and regulatory snafus, according to The New York Times. Mitchell Merin, who ran the important unit, has stepped down, leaving CEO John Mack to start a high profile search for a replacement. Merin was considered an ally of Purcell.

> Here's The New York Times article.
> Here's the New York Post's take.

Morgan Stanley board poised for reorganization?

Tue, 06 Sep 2005 20:01:39 -0400

Major changes could be coming to the controversial Morgan Stanley board. The resignation of Michael Miles, who had strong ties to ex-CEO Phil Purcell, is a strong indication that a new board is in the making. According to The New York Times, Edward Brennan, the former chief of Sears and a Purcell supporter, will not stand for re-election next year because he will have exceeded the board's age limit. CEO John Mack has already welcomed three new directors.

> Here's the New York Times article.

The future of Phil Purcell

Sun, 21 Aug 2005 20:01:39 -0400

This is how The New York Times describes the end of Phil Purcell's Morgan Stanley career: "In the annals of Wall Street putsches, Mr. Purcell's humiliating fate is unprecedented. A sitting chief executive at a large public company was forced from his job in three explosive months without shareholders receiving any premium in return." So what can he do next? He says he wants to enjoy the good life. Then again, he is still defending his tenure to reporters. We may yet hear from him again.

> Here's the New York Times article.