Morgan Stanley has called an “abrupt” board meeting for Saturday to discuss concerns about Chief Executive Philip Purcell’s recent actions regarding staff changes, CNBC reported Friday, quoting an unnamed source.
A Morgan Stanley representative declined to comment, saying the investment bank does not comment on rumors.
CNBC said outside directors have been meeting with employees this week to discuss recent management changes at the bank.
Morgan Stanley shares closed 4.32 percent higher, at $52.62, on the New York Stock Exchange.
The news comes on the heels of a meeting between three former Morgan Stanley executives pushing for the resignation of Purcell and members of the firm’s board, people with knowledge of the meeting told Reuters Friday.
The New York Times reported on Friday that the dissident executives at the April 22 meeting proposed dividing Morgan Stanley into two companies. One would cater to institutional clients, such as pensions and mutual funds, with the other focused on individual investors.
The company had declined to comment on that meeting.
Fox-Pitt, Kelton analysts, in a research note, said the Saturday board meeting could be for several possible reasons: the company has found a merger partner, the board agrees with a recent proposal to split the bank in two, the board has decided Purcell should step down -- or at least drop the Chairman’s role, or the board is meeting and will come out with a statement of its continued support for Purcell.
Those attending the April 22 meeting were former Morgan Stanley president Robert Scott, ex-Chairman Parker Gilbert and former senior executive Lewis Bernard, the sources said.
The trio represented the group of eight executives holding a combined 11 million shares, or a stake of about 1 percent. They blame Purcell’s management for years of laggard financial and stock performance.
Morgan Stanley directors attending were Robert Kidder and Michael Miles, chairman of the board’s governance committee.
