Eight former executives of Morgan Stanley appealed to the investment bank's board for a second time on Thursday to oust chief executive Philip Purcell, arguing that the firm has lost its way under his leadership.
The letter signed by the former executives, including former chairman Parker Gilbert and former chief executive Robert Scott, was also published as a full-page ad in the Wall Street Journal.
The group argued that Morgan Stanley's stock -- of which they collectively own 11 million shares -- "has dramatically underperformed" and "return on equity has been eroded." In addition, they said, Morgan Stanley has done poorly in retail securities and in asset management.
"It is a failing report card," the letter said.
The former executives also complained about the management shake-up Purcell has initiated, calling the loss of several key executives "an outrage."
"We view the board's actions, including its apparent support of this `reorganization,' as a failure of corporate governance, a failure to fulfill its fiduciary duties and a failure to act in the best interests of the shareholders of Morgan Stanley," the letter said.
The former executives had urged the board to remove Purcell in a letter on March 3.
The latest letter was made public a day after Morgan Stanley said its global head of institutional equity trading resigned, joining a number of other high-ranking executives who have walked out.
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