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Morgan Stanley CEO's annual pay rises by over 20%

Published 01/22/2021, 04:39 PM
Updated 01/22/2021, 07:10 PM
© Reuters. FILE PHOTO: James P. Gorman, chairman & CEO of Morgan Stanley, testifies before a House Financial Services Committee hearing on Capitol Hill in Washington
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By Matt Scuffham

NEW YORK (Reuters) - Morgan Stanley (NYSE:MS) Chief Executive James Gorman's annual pay rose by $6 million, or 22%, last year, according to a regulatory filing released on Friday.

Gorman will receive $33 million for his work in 2020, compared with $27 million the year before, the bank said. Gorman's pay had fallen by 7% in 2019.

Morgan Stanley directors based the decision on the firm's record financial performance in 2020 and Gorman's progress in implementing the bank's long-term strategy, it said.

Under Gorman, Morgan Stanley produced net income of $11 billion, compared with $9 billion a year ago and a return on tangible common equity of 15.2% compared with 13.4% a year ago.

He also engineered two large back-to-back acquisitions, those of Eaton Vance (NYSE:EV) and E*Trade, to bolster its investment management and broking arms.

Gorman's compensation is comprised of four parts: a base salary of $1.5 million; a cash bonus of $7.875 million; a deferred equity award of $7.875 million; and a performance-vested equity award of $15.75 million.

The board again required that 75% of Gorman's incentive compensation be deferred over three years subject to a claw-back, and for all of that compensation to be paid in the form of equity in the company.

© Reuters. FILE PHOTO: James P. Gorman, chairman & CEO of Morgan Stanley, testifies before a House Financial Services Committee hearing on Capitol Hill in Washington

Rival JPMorgan Chase & Co (NYSE:JPM)'s Chief Executive Officer Jamie Dimon will not get a raise in his annual pay and will receive $31.5 million for his work in 2020, that bank said on Thursday.

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