NEW YORK (Reuters) - Investment bank Morgan Stanley MS.N awarded Chief Executive James Gorman stock options and restricted stock units potentially worth $7.4 million, the company said in securities filings on Friday detailing the share portion of top executives' 2010 compensation.
Morgan Stanley, which in recent years paid out a greater percentage of revenue in compensation than peers like Goldman Sachs Group Inc GS.N, posted stronger-than-expected revenue for the fourth quarter earlier this week, and shares rallied despite profits missing expectations.
The company awarded Gorman 129,809 restricted stock units and 424,731 stock options. The restricted units were worth about $3.9 million at Friday’s closing price of $30.01, while Morgan Stanley said in the filing the stock options had an estimated value of $3.5 million.
In 2010, Gorman received awards valued at $8.1 million.
Chief Financial Officer Ruth Porat received options and units with an estimated value of $5.2 million, the company said.
Others receiving substantial awards included Colm Kelleher, the company’s co-president of institutional securities, who received options and units worth $5.6 million. Asset management and new wealth management chief Greg Fleming received awards worth $4 million and Ken deRegt, recently announced head of the company’s fixed income division, received awards worth $3.4 million.
The furor over executive compensation, particularly for investment bankers, has died down in the United States compared with the public and political protests of recent years.
But the pay of Wall Street’s top officials is still closely watched as a sign of their companies’ health and willingness to be aggressive in rewarding talent.
Investment bank compensation also is a key engine of the New York economy, so much so that the city’s comptroller tracks it as an important indicator of tax revenue and spending.
Reporting by Ben Berkowitz; Additional reporting by Helen Kearney; editing by Carol Bishopric
Our Standards: The Thomson Reuters Trust Principles.