By Lauren Tara LaCapra
NEW YORK Jan 23 Morgan Stanley Chief
Executive James Gorman received a $4.9 million stock bonus for
his performance in 2013, up 86 percent from the year before,
according to a regulatory filing, as the company's income
The bonus of 155,207.47 shares is just one part of Gorman's
pay package. He also received a $1.5 million base salary, as
well as long-term incentive rewards, an immediate cash bonus and
a deferred cash bonus which have not yet been disclosed by the
Wall Street bank.
A year ago, Gorman received options worth about $2.625
million at the time for his 2012 performance.
A spokesman declined on Thursday to provide more information
about Gorman's full 2013 pay package, which will be detailed in
Morgan Stanley's annual proxy filing later this year.
Stock awards for Gorman and several other senior executives
were disclosed in Form 4 filings with the U.S. Securities and
Gorman faced a 7 percent cut to his overall compensation
package in 2012 even as his base salary jumped.
The board noted in a March proxy filing that Morgan
Stanley's financial performance had been "subpar" in 2012. The
key measure of that performance - return-on-equity - was 5.2
percent in 2012, adjusted for one-time accounting charges, and
did not rise in 2013. That is roughly half of Gorman's stated
target of at least 10 percent.
In setting his compensation, the board also considers
metrics beyond return-on-equity, such as profit margins in
wealth management, progress in reducing risk-weighted assets in
bond trading, market share in investment banking and the
company's stock performance. It also considers more nuanced
factors, like Gorman's work in "promoting cultural cohesion and
engagement among employees," according to the proxy.
In 2013, net income for the bank rose to $3.03 billion from
$68 million the year before, but the bank still has work to do
in reaching its goals. The 2012 figures were
hurt by a charge linked to a legal settlement.
Morgan Stanley was one of the best performing bank stocks in
2013, rising 64 percent, compared with 39 percent for its chief
rival Goldman Sachs Group Inc and 30 percent for the
Standard & Poor's 500 Index. The stock is up 0.4 percent so far
Morgan Stanley shares fell 2.5 percent to $31.48 on
Gorman became CEO in January 2010, and added the chairman
role in 2012. Since taking the CEO job, his total annual
compensation has dropped from $15.2 million in 2010 to $12.98
million in 2011 to $9.75 million last year.
In 2012, he did not receive a cash bonus and the largest
portion of his compensation came from long-term stock awards
that were to be paid out through 2015.
Morgan Stanley also detailed stock awards on Thursday for a
group of senior executives. Colm Kelleher, who heads
institutional securities, received $4.2 million worth of shares.
Gregory Fleming, who heads the wealth and asset management
units, received $4 million in stock. Chief Financial Officer
Ruth Porat received a $3.2 million award.