NEW YORK (Reuters) – Morgan Stanley Chief Government James Gorman’s annual pay rose by $6 million, or 22%, final 12 months, in line with a regulatory submitting launched on Friday.
Gorman will obtain $33 million for his work in 2020, in contrast with $27 million the 12 months earlier than, the bank stated. Gorman’s pay had fallen by 7% in 2019.
Morgan Stanley administrators primarily based the choice on the agency’s file monetary efficiency in 2020 and Gorman’s progress in implementing the bank’s long-term technique, it stated.
Underneath Gorman, Morgan Stanley produced internet revenue of $11 billion, in contrast with $9 billion a 12 months in the past and a return on tangible frequent fairness of 15.2% in contrast with 13.4% a 12 months in the past.
He additionally engineered two massive back-to-back acquisitions, these of Eaton Vance and E*Commerce, to bolster its funding administration and broking arms.
Gorman’s compensation is comprised of 4 components: a base wage of $1.5 million; a cash bonus of $7.875 million; a deferred fairness award of $7.875 million; and a performance-vested fairness award of $15.75 million.
The board once more required that 75% of Gorman’s incentive compensation be deferred over three years topic to a claw-back, and for all of that compensation to be paid within the type of fairness within the firm.
Rival JPMorgan Chase & Co’s Chief Government Officer Jamie Dimon won’t get a elevate in his annual pay and can obtain $31.5 million for his work in 2020, that bank stated on Thursday.
Reporting by Matt Scuffham; Enhancing by Leslie Adler and Daniel Wallis