Morgan Stanley’s Gorman Gets $5.1 Million in 2011 Stock Awards
Morgan Stanley Chairman and Chief Executive Officer James Gorman received $5.1 million of deferred stock awards for his performance in 2011, 31 percent less than the stock-based awards he received for 2010.
Gorman, 53, will get 277,768 restricted shares, valued at $5.1 million at today’s closing price of $18.39, according to a filing to the U.S. Securities and Exchange Commission. Gorman and his operating committee won’t take immediate cash bonuses, a person briefed on the plan said earlier this week.
Morgan Stanley is reducing pay for senior investment bankers and traders by an average of 20 percent to 30 percent, people with knowledge of the decision said this week. The New York-based firm is also capping immediate cash bonuses at $125,000 as it defers a greater share of awards, a person briefed on the plan said.
Last year, Gorman received 129,809 shares for his 2010 performance, valued at $3.9 million at the time, and $3.5 million worth of stock options. He was not awarded options for 2011.
Morgan Stanley (MS)’s shares fell 44 percent in 2011, the biggest annual decline since 2008. The firm yesterday rose 5.4 percent after reporting a narrower fourth-quarter loss than analysts estimated, and has gained 22 percent this year.
Profit fell 13 percent last year to $4.11 billion as the firm had a 4 percent return on equity, below Gorman’s goal of “mid-teens.” While Morgan Stanley posted the only trading revenue increase among the major U.S. banks, excluding accounting gains, the firm had per-share losses in two of the past three quarters as it took charges to eliminate swap contracts purchased from MBIA Inc. and to convert Mitsubishi UFJ Financial Group Inc.’s preferred stake to common shares.
To contact the reporter on this story: Michael J. Moore in New York at mmoore55@bloomberg.net
To contact the editor responsible for this story: David Scheer at dscheer@bloomberg.net
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