Morgan Stanley Chairman and CEO James Gorman may face some intense questioning Tuesday at the firm's annual meeting in Purchase, NY. The shares are down more than 19 percent since Gorman took the helm in January, 2010. And the stakes are high.
Hedge fund exec Dan Loeb took a stake in the company at the beginning of this year on the assumption that the CEO could pull off a turnaround, particularly in the firm's fixed income performance. Gorman swore he'd do it.
But the company's first quarter performance was a letdown. Morgan Stanley's fixed income trading revenue fell 42 percent from the previous year. That compares to much smaller declines at competitors. Morgan Stanley also had the biggest drop in equity revenue of the top five capital markets firms in the U.S.