Morgan Stanley CEO gets $7.4M in stock, options

[January 22, 2011]  NEW YORK (AP) -- Morgan Stanley CEO John Gorman has received stock grants and options worth about $7.4 million as part of his 2010 pay package.

In a regulatory filing Friday, the company disclosed that Gorman is getting 129,809 restricted shares. Based on the bank's Friday closing price of $30.01, the stock is worth $3.9 million. He also receives stock options worth $3.5 million, according to the filing.

The value of Gorman's total pay package for the year, which would include cash and perks, wasn't disclosed.

Chairman John Mack received 66,912 restricted shares, worth a little over $2 million at current prices, the New York-based investment bank disclosed in a separate filing.

On Thursday, the bank reported that its earnings in the last three months of 2010 rose 60 percent on strong investment banking results. The stronger results marked a turnaround for the bank, which struggled to find its footing after the financial crisis.

The investment bank paid $16 billion in bonuses and other compensation to its employees in 2010, up from $14 billion a year earlier. The bank restructured how it compensates employees and can take back employees' pay if they don't meet certain standards.

Morgan Stanley also reduced the amount of cash bonuses it pays and increased the amount of deferred compensation.

[Associated Press]

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