(Adds details about other management changes, company
By Jed Horowitz
NEW YORK, April 8 Six weeks after being named to
lead Morgan Stanley's brokerage force of more than 16,000
financial advisers, managing director Shelley O'Connor has
streamlined the sales organization and replaced some key
In a memo to the firm's wealth management division
employees, O'Connor said a tour of the branches at the world's
biggest brokerage convinced her that local managers need more
power, resources and the ability to work more efficiently.
She also is reducing expenses by shrinking the company's
three geographic divisions in the United States to two and
trimming the regions that report to the division heads to eight
Bill McMahon and Rick Skae remain as Morgan Stanley's two
division heads, running the western and eastern divisions,
Douglas Kentfield, who had run the western division since
the three-division structure was formed in July 2012, is leaving
"to pursue other opportunities," according to the memo that was
sent to Reuters. Kentfield was one of the few senior brokerage
executives at Morgan Stanley who previously worked at Smith
Barney, which Morgan Stanley began absorbing in 2009. It
completed the purchase of Smith Barney last year.
The four regional managers who are losing their positions -
Jeff Adams, John Campbell, Kevin Forman and Matthew Maloney -
"will explore new leadership roles" within the wealth management
"We wish all of them much success," O'Connor wrote in the
The changes are effective at the end of May.
O'Connor and the executives who are losing their positions
were not available to comment, a spokeswoman said.
Morgan Stanley has made a bigger bet on selling financial
services and products to wealthy individuals than any major
competitor. Since buying Smith Barney from Citigroup Inc,
retail brokerage has dominated its bottom line in some quarters.
The division contributed 47 percent of the investment bank's
total revenue in last year's fourth quarter.
As part of the integration, dozens of overlapping branches
were eliminated along with branch management positions. In her
memo, O'Connor said her spending priorities will be on support
for brokers who are banding into teams and on naming more
assistant "complex" managers to coordinate sales and supervision
of branches located near each other.
Greg Fleming, head of wealth management, named O'Connor to
run sales for the division as part of a broad reorganization he
announced in late February. Previously, O'Connor
had run the firm's private banking group, which is charged with
selling more loans and credit products to the brokerage unit's
O'Connor also has expanded the responsibilities of some
other executives and named a few to new positions.
Mandell Crawley, who heads business development to help
advisers retain clients and recruit new ones, takes on
additional duties running Morgan Stanley's training program and
its rewards programs for successful advisers, according to the
Barry Goldstein will become chief operating officer of the
wealth division, responsible for all business management
activities and for developing recruiting and compensation
programs for the firm's 16,456 brokers.
Lisa Golia continues as chief administrative officer with
responsibility for branch services and client communications,
but also will work more actively with technology on development
of brokers' workstations and platforms.
Fleming last year said he was adding $500 million to Morgan
Stanley's technology budget to answer brokers' concerns about
poor integration of the Smith Barney and Morgan Stanley systems
and better serve clients.
"We will continue to invest in technology to drive service
efficiencies in the branch," O'Connor wrote in the memo.
Morgan Stanley is the second major U.S. brokerage firm in a
month to shake up its sales structure. Merrill Lynch in March
replaced or transferred more than a dozen of its branch and
(Editing by Jan Paschal and Matthew Lewis)