C Citigroup Inc

James Rosenthal, Morgan Stanley's chief operating officer, is retiring, according to a memo reviewed by The Wall Street Journal.

Mr. Rosenthal will stay on as a senior adviser, according to the memo, whose contents were confirmed by a firm spokesman. He joined the firm in 2008 and was its strategy chief in 2011, when he was named COO. In that role, he has helped manage the day-to-day operations of the firm under Chief Executive James Gorman.

Mr. Rosenthal helped execute Morgan Stanley's shift from some core investment-banking activities and toward wealth management, which is less volatile. Morgan Stanley bought Citigroup Inc.'s SmithBarney advisory unit and now about half of its revenues come from helping individuals manage their money.

Morgan Stanley has seen more turnover in the C-suite than many of its Wall Street rivals. In recent years, three high-ranking executives viewed as potential successors to Mr. Gorman have left the firm: Chief Financial Officer Ruth Porat, wealth-management head Greg Fleming, and a top merger banker, Paul Taubman.

Mr. Rosenthal "has made an extraordinary contribution to our strategic realignment over the past several years, including overseeing the successful integration of Morgan Stanley Smith Barney," Mr. Gorman wrote in the memo.

The executive has also held senior roles in two banking units that Morgan Stanley owns, through which it takes deposits and makes loans -- core banking activities enabled by its conversion during the financial crisis to a regulated bank holding company.

Mr. Rosenthal was also a past chairman of Sifma, the financial-services industry's trade group, and has been active in technology and cybersecurity efforts across the industry. A Harvard Law graduate, he worked at Lehman Brothers and McKinsey & Co., the consulting firm where Mr. Gorman also got his start.

Morgan Stanley will set a transition plan in the coming weeks, according to the memo.

Write to Liz Hoffman at liz.hoffman@wsj.com

(END) Dow Jones Newswires

October 28, 2016 16:25 ET (20:25 GMT)

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