Morgan Stanley announced on Tuesday that Vikram S Pandit, chief operating officer of the company's institutional securities group, and John P Havens, head of institutional equity division have decided to leave the company with immeidate effect, 'to pursue other endeavors'.
However, a New York Times report said that the two resigned after two other executives were appointed co-presidents bypassing them.
Morgan Stanley is a global financial services firm and a market leader in securities, investment management and credit services. With more than 600 offices in 28 countries, Morgan Stanley connects people, ideas and capital to help clients achieve their financial aspirations.
The NYT said that the two executives come from the blue-chip institutional business, which is responsible for trading and investment banking and generates 60% of Morgan's profits.
Philip J Purcell, chief executive of Morgan Stanley, who secured his position at the top of Morgan Stanley by ousting Pandit and Havens in a bitter power struggle, now himself faces revolt.
In a significant development a group of shareholders and former members of senior management of Morgan Stanley has expressed concerns about the underperformance of Morgan Stanley in recent times and demanded Purcell's ouster over the poor show.
"While Wall Street is no stranger to palace intrigue, the infighting at one of the biggest investment houses in the world is remarkable for an industry that puts a premium on discretion and loyalty. Eight former Morgan Stanley executives have now spoken out to urge the board that Mr. Purcell be replaced immediately as chief executive," the NYT report said.
