About a year ago, Morgan Stanley arguably became the envy of the business world when it named a successor to game-changing CEO James Gorman but also managed to persuade the two runners-up for the job to stay on.
There was no magic formula or big secret — but a $20 million one-time equity award for each of the three executives, including then-incoming CEO Ted Pick, probably had a bit to do with it.
Still, the transition was well-regarded enough that Disney brought Gorman onto its board to lead the search for a successor to two-time CEO Bob Iger — and later named Gorman board chair.
But Morgan Stanley can’t keep everyone, it appears.
Jacques Chappuis, whom the bank named co-head of its investment management unit last November, has left to lead PGIM, Prudential’s global asset management business, effective May 1, the insurance giant said Friday.
His departure leaves Ben Huneke as the sole top executive in investment management at Morgan Stanley.
At PGIM, Chappuis will succeed David Hunt, who is retiring but will continue as chair until July 31 in the interest of a smooth transition.
Hunt has served as PGIM’s CEO since 2011, and in that time, Prudential’s asset management business grew from $619 billion to $1.4 trillion, the company said.
“We are at an inflection point both as an industry and for us as a business,” Andrew Sullivan, Prudential’s head of international businesses and global investment management, told the Financial Times. “This was a very difficult search. We needed someone who had deep experience across asset classes.”
Chappuis will report to Sullivan.
Prudential wants PGIM to account for 24% of the wider company’s earnings over the next seven years – double the proportion it counts now, Sullivan said.
PGIM ranks as the world’s 15th-largest asset manager, according to the Financial Times, but the company said it aims to boost its presence in private assets, which carry higher fees.
“As the industry is consolidating and the big are getting bigger, we want to be sure we are on that path,” Sullivan said.
In a press release Friday, PGIM credited Chappuis’ crucial role in integrating Eaton Vance into Morgan Stanley.
“Jacques is well known for his deep commitment to clients, his leadership in acquisitions, and breadth of expertise across public and private market solutions,” Sullivan said. “Jacques’ expertise will allow us to identify opportunities to accelerate our continued growth through new markets, innovative products, and comprehensive solutions across a wide range of asset classes.”
Chappuis began his banking career in 2002 as a managing director at Citi’s alternative investments unit, according to his LinkedIn profile. He moved to Morgan Stanley in 2006 but left in 2013 to become Carlyle’s head of investment solutions. He returned to Morgan Stanley three years later.
Morgan Stanley announced Chappuis’ departure to staff late last month, the Financial Times reported.
