Starting January 1, Morgan Stanley will be led by Ted Pick, who will replace long-time CEO James Gorman.

The bank announced Wednesday that Gorman will become executive chairman.

Pick served as co-president of Morgan Stanley for two years, the company said. At the banking giant, he also oversees investment banking, equities, fixed income, capital markets, and research. In addition, he co-heads the firm’s strategy department. In 1990, Pick joined Morgan Stanley.

In May, Gorman announced he would step down as the company’s CEO within the next year, ending his tenure as one of the longest-serving chief executives in US banking. In January 2010, he was appointed CEO of Morgan Stanley.

As part of Morgan Stanley’s transition to the next era of leadership, he would assume the role of executive chairman for “a period of time.”

“The Board’s selection of Ted Pick is outstanding. “I have worked side-by-side with Ted since the financial crisis and have witnessed first-hand his values, intellect, passion, and commitment to our people and clients,” Gorman said.