Thomas R. Butler, president of Novus Services Inc., the credit card unit of Morgan Stanley, Dean Witter & Co., has said he will leave at yearend.
Employees were notified in an internal memo last week.
According to analysts, Morgan Stanley chairman Philip J. Purcell is dissatisfied with the lack of new-product developments beyond the flagship Discover brand.
Mr. Purcell has also been pushing to expand the card business internationally, but there has been little apparent progress, industry sources noted.
Comprised primarily of Discover, the Morgan Stanley Dean Witter portfolio ranks fifth in the credit card business, at $34 billion of managed loans, according to the newsletter The Nilson Report.
Mr. Butler, 56, launched the Discover program 12 years ago for its original owner Sears, Roebuck and Co. Subsequent product introductions like Bravo and Prime Option, a joint venture with NationsBank, were discontinued this year.
Morgan Stanley spokeswoman Beth Metzler said Mr. Butler will assist in the transition to his successor, who is likely to be named by Labor Day.