Mr Purcell said his decision to quit was in the company's best interests
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Embattled Morgan Stanley chief executive Philip Purcell is to step down after months of pressure from dissident shareholders.
Mr Purcell, 61, said he was quitting "in the light of the continuing personal attacks on me".
Pressure has been mounting on Mr Purcell to resign after
a management shake-up in March saw several top executives leave the
investment bank.
Mr Purcell said he would step down as soon as a successor had been named.
His announcement came as the US bank warned its
second-quarter profits would fail to meet Wall Street forecasts because
of weakened market conditions.
'Negative attention'
Shares in Morgan Stanley rose on news of Mr Purcell's
decision to retire, closing up 2% at $50.88 on the New York Stock
Exchange.
Mr Purcell said he would leave no later than the firm's next annual general meeting, in March 2006.
In a letter to shareholders, he wrote: "It has become
clear to me, in light of the continuing personal attacks on me, and the
unprecedented level of negative attention our firm - and each of you -
has had to endure, that this is the best thing I can do."
In April, eight former Morgan Stanley executives claimed there was an atmosphere of "intimidation and fear" at the company.
The self-styled "group of eight", which had campaigned
for Mr Purcell's removal, published an advertisement in The Wall Street
Journal calling for a forum to be set up for dissatisfied staff to make
complaints.
On Friday, nine members of staff at Morgan Stanley's
leading equities division quit the company to join rival bank Wachovia
Corp.
Mr Purcell had previously acknowledged that morale was a growing concern at the division.
Mr Purcell has led Morgan Stanley since its merger with Dean Witter, Discover & Co in 1997.
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It has become clear to me, in light of the continuing personal attacks on me, that this is the best thing I can do
