Morgan Stanley (MS: Quote) in a regulatory filing on Thursday said CEO James Gorman in 2011 received a pay package that was lower by about 15 percent compared to a year ago, due mainly to a sharp cut in stock awards.
As per the filing, Gorman in 2011 got a compensation of $13 million, comprising $5.9 million in stock awards, $3.5 million in options, and a bonus of $2.7 million. Base salary in 2011 meanwhile was unchanged at $800,000, compared to a year earlier.
In the prior year, Gorman received $15.2 million in compensation, including stock awards of $10.2 million and a bonus of $3.9 million.
Morgan Stanley said that the compensation for Gorman with regard to stock and options awards will be deferred to a future period and for which it provided a separate report. The report indicates Gorman received a pay of $10.5 million in 2011, down 25 percent from last year, denoting that the company did not fully meet certain financial priorities.
Morgan Stanley also noted that compensation for remaining members of the Operating Committee was also down significantly from 2010 levels. Its Chief Financial Officer Ruth Porat received $11.4 million in 2011, compared to $11.7 million last year.
The reduction in compensation for Gorman comes amid tough times for the banking industry, held by strict federal regulations and volatile markets. Citing economic reasons, Morgan Stanley last December cut 580 jobs in New York City, joining other big banks that had revealed similar plans.
Meanwhile, most top executives from other major banks have received higher compensation packages. JPMorgan Chase & Co CEO James Dimon received $23 million in 2011, up 11 percent from 2010. Brian Moynihan of Bank of America Corp. (BAC) received $8 million, over four times the package in the prior year. Citigroup Inc. (C) head Vikram Pandit received $14.9 million, up from the token one dollar in 2010. Goldman Sachs Group Inc. (GS) hasn't yet disclosed payments made to its top executive as yet.
Additionally, Morgan Stanley said it will nominate Klaus Kleinfeld of Alcoa Inc. (AA) to its board in place of James Hance.
MS is trading at $18.38, down $0.31 or 1.66%, on a volume of 11.3 million shares on the NYSE. In the past year, stock has ranged between $11.58 and $28.24.
 | | To receive FREE breaking news email alerts for Morgan Stanley and others in your portfolio |
|
by RTT Staff Writer
For comments and feedback: editorial@rttnews.com
Business News