Ted Pick, a longtime insider at Morgan Stanley, will replace James Gorman as CEO on January 1st. Gorman will transition to the role of executive chairman. Two other executives, Andy Saperstein and Dan Simkowitz, have also been given new titles and responsibilities. The appointment of Pick was praised by Gorman and the board. Morgan Stanley's third-quarter profits dropped, leading to disappointment among investors. Despite the announcement of a new CEO, the firm's stock remained flat.