The bonus of 155,207.47 shares is just one part of Gorman's pay
package. He also received a $1.5 million base salary, as well as
long-term incentive rewards, an immediate cash bonus and a deferred
cash bonus which have not yet been disclosed by the Wall Street
A year ago, Gorman received options worth about $2.625 million at
the time for his 2012 performance.
A spokesman declined on Thursday to provide more information about
Gorman's full 2013 pay package, which will be detailed in Morgan
Stanley's annual proxy filing later this year.
Stock awards for Gorman and several other senior executives were
disclosed in Form 4 filings with the U.S. Securities and Exchange
Gorman faced a 7 percent cut to his overall compensation package in
2012 even as his base salary jumped.
The board noted in a March proxy filing that Morgan Stanley's
financial performance had been "subpar" in 2012. The key measure of
that performance — return-on-equity — was 5.2 percent in 2012,
adjusted for one-time accounting charges, and did not rise in 2013.
That is roughly half of Gorman's stated target of at least 10
In setting his compensation, the board also considers metrics beyond
return-on-equity, such as profit margins in wealth management,
progress in reducing risk-weighted assets in bond trading, market
share in investment banking and the company's stock performance. It
also considers more nuanced factors, like Gorman's work in
"promoting cultural cohesion and engagement among employees,"
according to the proxy.
In 2013, net income for the bank rose to $3.03 billion from $68
million the year before, but the bank still has work to do in
reaching its goals. The 2012 figures were hurt by a charge linked to
a legal settlement.
[to top of second column]
Morgan Stanley was one of the best performing bank stocks in 2013,
rising 64 percent, compared with 39 percent for its chief rival
Goldman Sachs Group Inc <GS.N> and 30 percent for the Standard &
Poor's 500 Index. The stock is up 0.4 percent so far this year.
Morgan Stanley shares fell 2.5 percent to $31.48 on Thursday.
Gorman became CEO in January 2010, and added the chairman role in
2012. Since taking the CEO job, his total annual compensation has
dropped from $15.2 million in 2010 to $12.98 million in 2011 to
$9.75 million last year.
In 2012, he did not receive a cash bonus and the largest portion of
his compensation came from long-term stock awards that were to be
paid out through 2015.
Morgan Stanley also detailed stock awards on Thursday for a group of
senior executives. Colm Kelleher, who heads institutional
securities, received $4.2 million worth of shares. Gregory Fleming,
who heads the wealth and asset management units, received $4 million
in stock. Chief Financial Officer Ruth Porat received a $3.2 million
(Reporting by Lauren Tara LaCapra;
editing by Chris Reese and Richard Chang)
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