© Reuters. FILE PHOTO: The company brand of monetary agency Morgan Stanley is pictured on the corporate’s world headquarters in New York, U.S. April 17, 2017. REUTERS/Shannon Stapleton/File Picture
By Tatiana Bautzer
NEW YORK (Reuters) -Morgan Stanley Govt Chairman James Gorman’s compensation in his final yr as CEO rose 17% to $37 million for 2023 from $31.5 million in 2022, the financial institution stated in a submitting on Friday.
That’s the highest pay for a significant U.S. financial institution chief disclosed up to now this yr. JPMorgan Chase (NYSE:) CEO Jamie Dimon was awarded $36 million for 2023, and compensation particulars from rival banks will emerge within the coming weeks.
Gorman turned govt chairman on Jan. 1, handing over to new CEO Ted Choose.
Three quarters of Gorman’s efficiency bonus is paid in fairness and deferred over three years.
The financial institution’s board famous his “outstanding performance, including his exemplary execution of CEO succession and the transition of leadership” and his decision of authorized and regulatory issues in its determination to spice up Gorman’s pay.
Gorman spent 14 years on the helm and is credited with remodeling the financial institution right into a wealth administration powerhouse. He additionally orchestrated a succession plan through which Choose took the reins similtaneously retaining the 2 different CEO candidates, executives Andy Saperstein and Dan Simkowitz, a rarity on Wall Road.
The compensation committee additionally cited the overall shareholder return of 14% in 2023 and firm’s valuation since Gorman turned CEO. Throughout his tenure, Morgan Stanley inventory has greater than tripled and its market capitalization elevated from $40 billion to $153 billion.
“Over his 14-year tenure as CEO and during 2023, Mr. Gorman reshaped the firm into a stronger and more balanced institution positioned for long-term growth,” the board stated within the submitting. “As a result, the firm’s business model performed as intended in a challenging market and macro environment in 2023.”
