By Justin Baer
Morgan Stanley paid its top executive $22.5 million for his work
in running the Wall Street firm in 2014, a 25% raise from a year
earlier.
James Gorman, chairman and chief executive, received an annual
salary of $1.5 million, a cash and stock bonus of $14.5 million and
longer-term incentive pay valued at up to $6.5 million, Morgan
Stanley said Wednesday in a regulatory filing.
The pay package capped Mr. Gorman's most successful--and
lucrative--year in his five as CEO. The 56-year-old executive's
turnaround plan gained steam, lifting profits and the firm's stock
price.
Mr. Gorman had received $18 million for his 2013 performance and
$9.75 million after the firm posted a 2012 loss.
The latest increase has helped narrow the pay gap with his
counterpart at Morgan Stanley's longtime rival, Goldman Sachs Group
Inc. Goldman's chairman and chief executive, Lloyd Blankfein,
received about $24 million in salary and bonus, though any
long-term incentive awards he received won't be disclosed until
Goldman unveils its annual proxy statement.
James Dimon, J.P. Morgan Chase & Co.'s chairman and CEO,
received $20 million.
Goldman paid Mr. Blankfein $23 million in salary and bonus for
his 2013 performance, and granted him long-term awards that could
bring in an additional $6 million if he hits certain targets over
the next several years.
Morgan Stanley also announced in its filing the nomination of a
new director, Perry M. Traquina. Mr. Traquina, 58, was chairman,
CEO and managing partner of Wellington Management, an asset
management firm.
Morgan Stanley's other top executives also received pay
increases this past year.
Ruth Porat, who resigned as finance chief last month to take the
same role at Google Inc. , received $13 million, including salary,
bonus and long-term incentive pay.
Greg Fleming, who runs Morgan Stanley's wealth and
asset-management businesses, and Colm Kelleher, who heads
investment banking and trading, each earned a total pay package of
$16 million.
Morgan Stanley's board members wrote in the filing that in
setting the CEO's pay the board considered "Mr. Gorman's continued
outstanding leadership of the company, including his efforts in
articulating and executing a companywide strategy to enhance
profitability, share price and market capitalization; maintaining
sound risk management and controls; and promoting cultural cohesion
and engagement among employees."
Morgan Stanley's board recommended that investors vote against a
trio of proposals by their fellow shareholders: One urged Morgan
Stanley to disclose its lobbying expenses annually, while another
ordered a change in the way the firm counts proxy votes. The third
called for preventing executives from speeding up the vesting
period for stock awards should they leave the firm for a government
post.
Write to Justin Baer at justin.baer@wsj.com
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