Morgan Stanley CEO’s annual pay rises by over 20% after bank’s success




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.



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, 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 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.


Rival JPMorgan Chase & Co’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.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor





Source link

Leave a Reply

Your email address will not be published. Required fields are marked *