John J. Mack | |
|---|---|
| Born | (1944-11-17)November 17, 1944 (age 81) Mooresville, North Carolina, United States |
| Alma mater | Duke University |
| Occupation | Banker |
| Years active | 1967-present |
| Known for | Chairman,Morgan Stanley (Jun 30, 2005 - Jan 1, 2012) CEO,Credit Suisse (2001 - 2004) CEO,Morgan Stanley (Jun 30, 2005 - Jan 1, 2010) Senior Advisor,KKR (2012-present) |
| Political party | Independent |
| Spouse | Christy Mack |
| Children | 3 |
John J. Mack (born November 17, 1944) is a senior advisor to theinvestment firmKohlberg Kravis Roberts and the former CEO and chairman of the board atMorgan Stanley, theNew York–basedinvestment bank andbrokerage firm.[1][2]
Mack was born inMooresville, North Carolina, the son of Alice (née Azouri) and Charles Mack. Mack's father's original family name was Makhoul; he came to the United States fromLebanon when he was 12 years old, following Mack's grandfather, who had arrived atEllis Island in 1909.[3]
The family settled inNorth Carolina. Mack's father ran a wholesale grocery, clothing, and general merchandise store called John Mack & Son inMooresville, North Carolina.[4] The business occupied The John Mack Building from 1937 to the 1990s.[5] Mack is the youngest of six sons. The family was Catholic.[6]
In 1968, Mack graduated fromDuke University, where he attended on afootball scholarship and majored in history. Mack's first job in finance was as a clerk at a small brokerage house during his junior year at Duke, after a cracked vertebra made it impossible for him to continue on his football scholarship.[6]
Mack worked at several firms around Wall Street before starting his career at Morgan Stanley in 1972 as a salesman, and has since worked for the company for nearly thirty years. Rising steadily to positions of increasing responsibility, Mack eventually headed the firm's Worldwide Taxable Fixed Income Division from 1985 to 1992.[7] In 1987, he became a member of the board of directors. In March 1992, he assumed responsibility for Morgan Stanley's day-to-day operations as chairman of the operating committee. He was named president of Morgan Stanley in June 1993. Mack served as president, chief operating officer and a director of Morgan Stanley Dean Witter & Co. from May 1997 when the firm was created by the merger of Morgan Stanley and Dean Witter, two of the world's leading financial services companies.[8]
In 2001, Mack left Morgan Stanley after a power struggle withPhil Purcell; Purcell became CEO of Morgan Stanley after the 1997 merger of Morgan Stanley andDean Witter, of which Purcell was already CEO.
Six months later, in June 2001, Mack was hired as CEO ofCredit Suisse, then known asCredit Suisse First Boston (CSFB).[9] Mack's time at Credit Suisse was marked by much restructuring and by compliances issues created byFrank Quattrone's Technology Group.[10]
On June 30, 2005, Mack returned to Morgan Stanley as chief executive officer and chairman of the board, replacing Purcell.[11][12] Mack was noted for stabilizing the firm and reenergizing its culture and client franchise,[13] despite an economic downturn.[14]
Mack announced his retirement aschief executive officer on September 10, 2009, which was effective January 1, 2010.[15] In 2011, Mack retired from Morgan Stanley[16] after more than 30 years as an investment banker.[17] Former co-presidentJames P. Gorman succeeded him as CEO.
In 2012, Mack joinedKohlberg Kravis Roberts as a senior advisor.[18][19]
In 2013 Mack joinedRosneft, the Russian, state-owned, oil company that has BP as an investor of approximately 20%. In 2014 he announced his departure,[20] shortly after the CEOIgor Sechin had sanctions imposed upon him by the US. Different reasons were given for his departure; Mack said his contract had only been for a year, while Rosneft spokespeople said he had decided to leave for personal reasons.
In 2006, Mack was accused by formerSEC investigatorGary J. Aguirre ofinsider trading.[21][22] On October 5, 2006, the SEC recommended no action be taken against Mack. In late November 2006, Mack and Pequot were notified that the investigation had been closed and no action would be taken against them.
While CEO of Morgan Stanley in 2006, Mack earned a total compensation of $41,399,010, which included a base salary of $800,000, stocks granted of $36,179,923, and options granted of $4,019,934.[23]
In 2008, he earned a total compensation of $1,235,097, which included a base salary of $800,000 and other compensation of $435,097. He did not receive any cash, stock, or options.[24]
In 2014, Mack defended the high fees paid to CEOs,[25] saying onBloomberg Television that the discussion of compensation was healthy, but that CEOs earn the rates.[26]
Mack guided the firm through the2008 financial crisis,[27] building its capital position and overseeing the firm's conversion to a bank holding company. To stabilize the firm, he forged strategic alliances with China Investment Corporation and Mitsubishi UFJ Group and entered into a joint venture with Smith Barney, forming at the time the world's largest wealth management firm. During the crisis, Mack was advised by U.S. Treasury SecretaryHank Paulson and the head of the Federal Reserve BankBen Bernanke to sell Morgan Stanley. He has stated that during negotiations he was under considerable pressure from the president of the New York Federal Reserve,Tim Geithner, to sell or merge Morgan Stanley to one of his competitors such asJP Morgan.[28] Mack saw this as being contrary to the interests of Morgan Stanley shareholders and employees, similar to the demise ofBear Stearns in a forced sale to JP Morgan for $2 per share, (the deal was later revised to $10 a share), and insisted on finding other sources of financing instead.[29]
Mack has donated to various entities through the Christy and John Mack Foundation, formerly known as C.J. Mack Foundation:
Mack has sat on the board of trustees ofNewYork–Presbyterian Hospital since 1992.[36] He was chairman of the board for 5 years and was integral to the funding and construction of NYPMorgan Stanley Children's Hospital, the only stand-alone children's hospital in New York City.
Mack earned the nickname "Mack the Knife" for his cost-cutting prowess while managing the fixed income division at Morgan Stanley, and he lived up to his billing at CSFB, where he cut 10,000 jobs and returned the bank to profitability.[37]
Mack was portrayed in theHBO filmToo Big to Fail byTony Shalhoub and in theBBC filmThe Last Days of Lehman Brothers byHenry Goodman. His career is also covered in detail in a 2007 book by Patricia Beard,Blue Blood and Mutiny: The Fight for the Soul of Morgan Stanley. The 2010 documentaryPlunder: The Crime of Our Time byDanny Schechter opens with a demonstration outside his home by people who lost their houses in theGreat Recession.[38]
Mack's personal memoire and career retrospective, "Up Close and All in: Life Lessons from a Wall Street Warrior," was published by Simon & Schuster in October 2022.[39]
Mack is married to Christy Mack (née King). They have three children. His son Stephen has publicly come out as gay.[41]
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| Preceded by | CEO ofMorgan Stanley 2005-2009 | Succeeded by |
| Preceded by | CEO ofCredit Suisse First Boston 2001–2004 | Succeeded by |