One of the longest-lasting Wall Street CEOs is set to retire in the next 12 months.

Morgan Stanley’s James Gorman plans to step down as CEO and assume the role of executive chairman.

“It is the board’s and my expectation that it will occur at some point in the next 12 months,” Gorman said Friday at the firm’s annual meeting.

“That is the current expectation in the absence of a major change in the external environment.”

Gorman says the board has identified three potential candidates to succeed him.

Morgan Stanley shares kneejerked lower on the headline but bounced back...

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