News Update

Morgan Stanley reduces CEO Gorman’s remuneration by 10%, to $31.5 million

• ByStartupStory     |    January 21, 2023

James Gorman, the chief executive officer of Morgan Stanley, had his salary reduced by 10% to $31.5 million for 2022, a year in which the company’s profits plummeted and its stock price dropped. 

The plan includes a $7.5 million cash incentive in addition to a $1.5 million salary, the company stated in a filing on Friday. The great majority is in the form of equity-linked awards worth $22.5 million that are paid out in shares.

Gorman’s “excellent individual performance, including his leadership of the firm’s strategy, fundamental values and culture, and the firm’s solid financial performance,” the bank claimed, were taken into account. The firm’s performance in 2022, however, “was not as robust as the prior year, when the firm achieved record financial performance, due to a tough economic and market climate.

The pay package comes after a keen industry-wide focus on compensation and other costs, which coincided with a decline in dealmaking and worries about the probable impact of a recession on Wall Street revenue. At Morgan Stanley, this resulted in a round of 1,600 layoffs from December among the company’s approximately 82,400 employees worldwide.

JPMorgan Chase & Co. announced on Thursday that it would maintain Jamie Dimon’s salary at $34.5 million for the year 2022. 

Following the company’s most lucrative year ever, Gorman, 64, received a 6% pay raise for 2021. He surpassed Dimon as the highest-paid CEO of a significant US bank a year earlier. 

Morgan Stanley’s profit fell by more than a quarter in 2022, and the stock fell by almost 13%.

 

 

Follow Startup Story