Morgan Stanley Chief Executive Officer James Gorman’s compensation for 2011 totaled $10.5 million, a 25 percent cut from 2010 as the firm’s shares fell by almost half.
Gorman, 53, got $5.04 million in restricted shares, and $1.94 million in shares tied to company performance, according to a proxy filing today from the New York-based investment bank. He also received a deferred cash bonus of $2.72 million that can be clawed back, in addition to his $800,000 salary. He didn’t receive an immediate cash bonus.
The package trailed the $23 million that JPMorgan Chase & Co. awarded CEO Jamie Dimon, 56, and the $15 million that Citigroup Inc. granted CEO Vikram Pandit, 55. Morgan Stanley, owner of the world’s largest brokerage, fell 44 percent last year in New York trading as the firm posted a 4 percent return on equity, below Gorman’s goal of “mid-teens.”
Morgan Stanley cut 2011 pay for senior investment bankers and traders by an average of 20 percent to 30 percent and capped immediate cash bonuses at $125,000, according to people briefed on the plans. Total compensation for each member of the firm’s operating committee fell at least 20 percent, and all members won’t receive an immediate cash bonus, one of the people said.
Profit fell 13 percent last year to $4.11 billion. 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.
Shares have risen 24 percent so far this year as analysts estimated trading revenue will rebound from the second half of last year and equity markets climbed.