As was widely expected, Morgan Stanley’s board of directors has elected to bring John Mack back to the firm as its new chief executive officer and chairman of the board.

Effective immediately, Mack replaces Phil Purcell, who served as chairman and CEO since 1997. Mack is returning to a firm at which he spent nearly 30 years, most recently as president, chief operating officer and a director. He left Morgan to become CEO of Credit Suisse First Boston and co-CEO of Credit Suisse Group. He joined Pequot Capital Management as chairman earlier this year.

“I am proud to return home to the world’s premier financial services company and to the most talented team on Wall Street,” says Mack. “Morgan Stanley remains the gold standard for client service, product excellence, teamwork and integrity in our industry. I look forward to working shoulder-to-shoulder with my colleagues old and new, across all of the firm’s businesses. I am eager to hear and execute their ideas on how we can bring out the best in Morgan Stanley and continue delivering innovation for our clients, growth for our shareholders, and opportunity for our employees.”

Mack adds that he sees four key priorities for the firm. “First, we need to ensure that we have the right people in place and that everyone is working together as a united team toward common goals. Second, we must ensure that we have the right strategy to enhance profitability in the face of intense global competition. Third, we need to focus relentlessly on our clients, delivering them the outstanding service and innovative solutions they expect from Morgan Stanley. And finally, we must assure productive working relationships with regulatory and public officials and other key constituencies of the firm.”

Mack is a graduate of Duke University, where he is a member of the board of trustees. He also serves as chairman of the board of trustees of New York-Presbyterian Hospital, the University Hospital of both Columbia and Cornell, as a Trustee of the Doris Duke Charitable Foundation, and as a Director of Cousins Properties Inc.

“The board has agreed unanimously that John Mack is uniquely qualified to become Morgan Stanley’s new chairman and chief executive officer. He has the singular combination of experience, strategic insight and leadership ability needed to bring together the people of Morgan Stanley and improve profitability across the firm,” says lead director of the firm’s board Miles Marsh.

“Throughout his career, John Mack has forged cohesive teams that deliver substantial results for shareholders,” he adds. “John has nearly thirty years at Morgan Stanley working with its people and culture. He knows the business. He knows what we must do to meet the challenges transforming the global financial services industry. He also brings to Morgan Stanley close relationships with clients worldwide as well as the trust and respect of employees, investors, and industry leaders.”

“The board conducted an intense and thorough search process and evaluated a number of outstanding candidates. Ultimately, we determined that John’s substantial record of achievement in the financial services industry, his ability to attract and retain world-class people, and his strong ties to Morgan Stanley made him the very best candidate to lead the firm forward,” says Chairman of the board’s compensation, management development and succession committee Charles Knight.