Morgan Stanley, the sixth-largest U.S. bank by assets, named former Financial Accounting Standards Board Chairman Robert Herz to its board of directors, bringing it to 14 members.
Herz, who led FASB from 2002 to 2010, will join the board on July 2 and serve on the audit committee, New York-based Morgan Stanley said today in a statement. He has served on the board of Fannie Mae since June 2011.
Herz, 59, was head of FASB through the aftermath of the financial crisis and the turmoil that followed the collapse of Enron Corp. and WorldCom Inc., which focused public and investor attention on accounting scandals. Morgan Stanley Chief Executive Officer James Gorman earlier this month praised the strength of his firm’s audit and risk board committees after JPMorgan Chase & Co. faced criticism about the makeup of its board following disclosure of a $2 billion trading loss.
“Herz is a recognized authority on financial reporting, and we look forward to the insights he will bring that complement our board,” Laura D. Tyson, chairwoman of the board’s nominating and governance committee, said in the statement.
Herz presided over FASB as it pushed for accounting rules that would force banks to mark assets to market value and require companies to count stock options as a business expense. He previously served as a partner at PricewaterhouseCoopers LLP from 1985 to 2002.
Morgan Stanley also announced in a filing today changes to its board committees that will take effect on July 2. James Owens, the former CEO of Caterpillar Inc., will be chairman of the nominating and governance committee and a member of the risk committee. Tyson is also joining the risk committee, bringing that group to five directors.
O. Griffith Sexton, a Columbia Business School professor, is becoming a member of the operations and technology committee, while Klaus Kleinfeld, the Alcoa Inc. CEO who joined the board this year, was added to the nominating and governance committee.