Bloomberg/Bloomberg via Getty Images
Morgan Stanley (NYSE:MS) on Friday said its board had set James Gorman’s total compensation as chairman and top boss for 2023 at $37M, about 6% below 2022.
Gorman stepped down as CEO of Morgan Stanley (MS) at the end of last year and became executive chairman effective January 1. Former co-president Ted Pick was named as Gorman’s successor.
Morgan Stanley (MS) said, as in prior years, its board’s compensation, management development and succession committee determined a target pay range for the CEO, which was established at $40M or more for 2023.
“The Compensation Committee based its decision of (Gorman’s) 2023 compensation on its assessment of (Gorman’s) outstanding performance, including his exemplary execution of CEO succession and the transition of leadership and the resolution of many outstanding legal and regulatory matters,” the lender said in a regulatory filing.
According to the bank, under Gorman’s leadership in 2023, the firm achieved total shareholder return of 14% and netted net revenues of $54.1B and net income of $9.1B.
“Over his 14-year tenure as CEO and during 2023, (Gorman) reshaped the Firm into a stronger and more balanced institution positioned for long-term growth. As a result, the Firm’s business model performed as intended in a challenging market and macro environment in 2023,” Morgan Stanley (MS) added.
The lender earlier this week reported Q4 2023 profit that missed estimates due to the impact of some special items. JPMorgan and KBW issued downgrades in the wake of the results, with both brokerages seeing few near-term catalysts to move the stock higher.