(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.
Its fixed-income division is also undergoing a restructuring, as the bank said it would slash 25 percent of the jobs in the unit to adapt to a protracted slump in bond trading..
The bank this week also announced a plan to cut $1 billion in expenses by 2017, leaning on technology and increased outsourcing.
Morgan Stanley shares declined 18 percent last year, making it the worst performer of the big Wall Street banks.
Gorman’s pay puts him below Goldman Sachs Group Inc CEO Lloyd Blankfein, who is set to take home $23 million in compensation for 2015, and JPMorgan Chase & Co CEO Jamie Dimon, who will be paid $27 million.
Morgan Stanley also disclosed stock awards for several top executives. Colm Kelleher, who was recently made president of the firm, received $3.1 million worth of shares and Chief Financial Officer Jonathan Pruzan received a $1.4 million award.
(This version of the story corrects paragraph 7 to refer to “net income” instead of “net revenues”)
Reporting by Olivia Oran; editing by Meredith Mazzilli, G Crosse