NEW YORK (US) – According to a regulatory filing, the annual pay of Morgan Stanley CEO James Gorman went up by $6 million, or 22%, in 2020.
He will get $33 million for his work last year compared with $27 million the year before that, said the financial institution. His pay had dipped by 7% in 2019.
Directors of the bank based the decisions on its record financial performance last year and the CEO’s progress in implementing the bank’s long-term strategy.
Under Gorman, the bank clocked a net income of $11 billion, compared with $9 billion a year ago as well as a return on tangible common equity of 15.2%. It was 13.4% a year ago.
He also orchestrated two large back-to-back acquisitions, those of Eaton Vance and E*Trade, in a bid to boost its investment management and broking arms.
The CEO’s compensation comprises four parts: a base salary of $1.5 million; a cash bonus of $7.875 million; a deferred equity award of $7.875 million; and a performance-vested equity award of $15.75 million.
The board also mandated that 75% of his incentive compensation be deferred over three years subject to a claw-back.
