Morgan Stanley Cuts Gorman's Pay 6.7% to $21 Million for 2015

The Davos World Economic Forum 2015

James Gorman, chief executive officer of Morgan Stanley.

Photographer: Simon Dawson/Bloomberg
  • Package includes $4.64 million of stock, $1.5 million salary
  • Bank's stock slumped 18% last year, lagging behind rivals

Morgan Stanley cut Chief Executive Officer James Gorman’s compensation by 6.7 percent after the firm missed financial targets and the stock lagged behind competitors.

Gorman, 57, got $21 million for his performance in 2015, Mark Lake, a company spokesman, said Friday. That includes $4.64 million of stock and $1.5 million in salary. The New York-based firm will report other details about the CEO’s pay later this year.

Morgan Stanley shares slumped 18 percent last year, the worst performance among the six biggest U.S. banks, as the firm struggled to improve returns at its fixed-income trading division. The company this month unveiled a $1 billion cost-cutting initiative and new leadership of a scaled-back bond-trading unit. Last year’s share decline was the second-worst performance under Gorman, who became CEO in 2010.

Gorman, who’s also chairman, received a $22.5 million compensation package for 2014, 25 percent higher than the previous year.

Goldman Sachs Group Inc. awarded Chairman and CEO Lloyd C. Blankfein $23 million in salary and cash and stock bonuses for 2015, down 4.2 percent from a year earlier, based on a company filing Friday. Profit at New York-based Goldman Sachs slumped and shares lagged behind peers during 2015.

JPMorgan Chase & Co. boosted Chairman and CEO Jamie Dimon’s pay 35 percent, tying most of the package to future performance. The bank awarded Dimon $27 million for 2015, up from $20 million a year earlier, according to a regulatory filing Thursday. The package includes $20.5 million in performance share units, a new pay element tied to future targets. Dimon also got a $5 million cash bonus and a $1.5 million salary.

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