| NEW YORK, March 28
NEW YORK, March 28 James Gorman, Morgan
Stanley's chief executive and chairman, was awarded total
compensation of $12 mln for 2013, double what he got the
previous year, the bank said in its proxy filing on Friday.
Gorman's compensation for 2013 could rise to $18 million
under a long-term incentive plan, if he meets certain
performance targets in the future, the filing said.
But Gorman, whose performance was cited by Morgan Stanley's
board of director as "exceeding expectations," could have reaped
total compensation of $20 million or more if the board had
determined that the bank had "substantially exceeded
The board's compensation committee based Gorman's pay on its
finding that "Morgan Stanley's performance was strong, with room
for continued progress, and Mr. Gorman's individual performance
as exceeding expectations," the bank said in its filing.
Of Gorman's total compensation package, only his $1.5
million base salary and $316,000 cash bonus were awarded
Morgan Stanley was one of the best-performing financial
stocks last year, up 64 percent, as investors saw signs of
progress in the bank's years-long turn around plan engineered at
the height of the financial crisis.
Although still less profitable than rivals, Morgan Stanley
finished its acquisition of the Smith Barney business from
Citigroup Inc, whittled down more of a big book of
problematic fixed-income trades, and laid out plans to hit a
return-on-equity of 10 percent in the near term.
In describing its rationale for Gorman's pay, the board
cited those factors, as well as cost-cutting, a narrowing of
Morgan Stanley's credit-default swap spreads -- indicating the
bond market views the bank as less risky -- and the start of a
stock repurchasing program for the first time since the
This week, Morgan Stanley said it would build on that
program after the Federal Reserve approved its plan to buy back
$1 billion worth of more stock and raise its dividend.
The bank still has work to do.
Its return-on-equity last year was less than half of
Gorman's target, and rivals including Goldman Sachs Group Inc
and JPMorgan Chase & Co are more profitable and
further along in plans to return excess capital to shareholders.
Goldman's board awarded its CEO, Lloyd Blankfein, an
estimated $23 million compensation package, while JPMorgan Chase
CEO Jamie Dimon received $20 million.
Under Gorman's pay package, he will also receive $10.2
million worth of deferred compensation, half in cash and half in
stock, and up to $6 million worth of long-term incentive
compensation that he can receive if Morgan Stanley hits the 10
percent return target and shareholder returns above the S&P
(Reporting by Lauren Tara LaCapra; Editing by Leslie Adler)