Morgan Stanley CEO's pay falls 7 percent in 2015 to $21 million: spokesman

Fri Jan 22, 2016 6:15pm EST
 
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By Olivia Oran

(Reuters) - Morgan Stanley Chief Executive James Gorman's overall pay fell 7 percent in 2015 as the Wall Street bank saw its shares drop and profitability fail to meet targets.

Gorman will receive $21 million in total compensation, down from $22.5 million in the prior year, according to a bank spokesman.

Gorman received a $4.6 million stock bonus for his performance in 2015 as part of that pay, up 5 percent from the year before, according to a regulatory filing.

The 183,678 shares is in addition to the CEO's $1.5 million salary, cash, deferred cash and long-term incentives.

The regulatory filing does not provide greater detail on Gorman's total compensation for 2015.

Gorman, who became Morgan Stanley's chief executive in 2010, has been focused on growing the firm's wealth management unit which is considered a more stable source of revenue than trading.

Firmwide net income in 2015 grew 77 percent to $6.1 billion from $3.5 billion the year before, although 2014 figures were hurt by charges linked to a legal settlement and expenses tied to deferred compensation.

Morgan Stanley has work to do in order to accomplish its profitability targets, as its return on equity of 8.5 percent for 2015 missed Gorman's target of 10 percent.   Continued...

 
James Gorman speaks during the Institute of International Finance Annual Meeting in Washington October 10, 2014. REUTERS/Joshua Roberts