Let the poaching recommence! As long as Morgan Stanley’s retail broker boss James Gorman doesn’t actively solicit Merrill brokers, they’re free to hire.
A New York State judge has served Morgan Stanley what seems these days like a rare victory in its hiring efforts. New York State Supreme Court Justice Emily Jane Goodman has lifted a temporary restraining order that restricted the contact that brokerage chief James Gorman, recently hired from Merrill Lynch, could have with Merrill Brokers. Morgan had been on something of a hiring spree from Merrill soon after Gorman’s arrival, and Merrill sued, alleging that Gorman was violating the terms of his employment contract by soliciting brokers from Merrill. They subsequently won a temporary injunction. Now the judge has ruled that Merrill’s injunction was too restrictive, and there wasn’t enough evidence supporting the allegation that Gorman actually solicited brokers.
"…(S)olicitation does require initiation of contact, and the affidavits in evidence say Gorman did not initiate contact," Judge Goodman said.The decision is a boon for Morgan Stanley, whose brokerage group has lagged the broader industry for years. Morgan Stanley Chief Executive John Mack hired Gorman in August to turn around the unit.
Gorman started working at Morgan Stanley in February. Since then, he has been joined by several former Merrill Lynch employees, including Andrew Saperstein, named chief operating officer of national sales in Morgan Stanley’s wealth management unit, and Jerry Miller and Richard Skae, who are now regional branch managers at Morgan Stanley….
NY judge lifts order on Morgan Stanley executive – Reuters
Tags: Merrill Lynch, Morgan Stanley
