Morgan Stanley CEO Gorman gets $4.9 million stock award: filing

Thu Jan 23, 2014 7:17pm EST
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By Lauren Tara LaCapra

NEW YORK (Reuters) - Morgan Stanley (MS.N: Quote) Chief Executive James Gorman received a $4.9 million stock bonus for his performance in 2013, up 86 percent from the year before, according to a regulatory filing, as the company's income jumped.

The bonus of 155,207.47 shares is just one part of Gorman's pay package. He also received a $1.5 million base salary, as well as long-term incentive rewards, an immediate cash bonus and a deferred cash bonus which have not yet been disclosed by the Wall Street bank.

A year ago, Gorman received options worth about $2.625 million at the time for his 2012 performance.

A spokesman declined on Thursday to provide more information about Gorman's full 2013 pay package, which will be detailed in Morgan Stanley's annual proxy filing later this year.

Stock awards for Gorman and several other senior executives were disclosed in Form 4 filings with the U.S. Securities and Exchange Commission.

Gorman faced a 7 percent cut to his overall compensation package in 2012 even as his base salary jumped.

The board noted in a March proxy filing that Morgan Stanley's financial performance had been "subpar" in 2012. The key measure of that performance - return-on-equity - was 5.2 percent in 2012, adjusted for one-time accounting charges, and did not rise in 2013. That is roughly half of Gorman's stated target of at least 10 percent.

In setting his compensation, the board also considers metrics beyond return-on-equity, such as profit margins in wealth management, progress in reducing risk-weighted assets in bond trading, market share in investment banking and the company's stock performance. It also considers more nuanced factors, like Gorman's work in "promoting cultural cohesion and engagement among employees," according to the proxy.   Continued...

Morgan Stanley CEO James Gorman participates in a conversation-style interview with Economic Club of Washington in Washington September 18, 2013. REUTERS/Yuri Gripas