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Morgan Stanley CEO James
Gorman's 2016 pay up 7 pct to $22.5 million
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 [January 21, 2017]
By Olivia Oran
(Reuters) - Morgan Stanley <MS.N> Chief
Executive James Gorman's overall pay rose 7 percent in 2016 as the Wall
Street bank's stock soared and it edged closer to hitting a key
profitability target.
Gorman will receive $22.5 million in total compensation, up from $21
million in 2015, spokesman Mark Lake said in an email.
Gorman received a $5 million stock bonus for his performance in 2016, an
8 percent increase from 2015, according to a filing with the U.S.
Securities and Exchange Commission.
The 117,293 shares were in addition to $1.5 million in salary, cash,
deferred cash and long-term incentives.
The filing did not provide greater detail on Gorman's total 2016
compensation.
Gorman, who became CEO in 2010, has been focused on building Morgan
Stanley's wealth management business, a more stable revenue source than
trading.
Morgan Stanley posted an 8 percent return on equity in 2016, moving
closer to the 9 to 11 percent range which Gorman aims to achieve by the
end of 2017.
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Morgan Stanley Chairman and Chief Executive James Gorman speaks
during the Institute of International Finance Annual Meeting in
Washington October 10, 2014. REUTERS/Joshua Roberts
Morgan Stanley shares soared 33 percent in 2016, the biggest gainer among the
largest U.S. banks' stocks. Gains were particularly strong after the Nov. 8 U.S.
election, as investors bet that the Trump administration would usher in an era
of less regulation and more economic growth.
Net income in 2016 fell 2 percent to $6 billion, weighed down by a challenging
start to the year, when the bank cut 25 percent of jobs in its fixed income
trading division after a prolonged slump in the business.
The fixed income unit rebounded after the first quarter, exceeding Gorman's
target of $1 billion in revenue per quarter.
Gorman's pay was below that of JPMorgan Chase & Co <JPM.N> CEO Jamie Dimon's $28
million, up 3.7 percent in 2016.
(Reporting by Olivia Oran in New York; Editing by Alan Crosby and Richard Chang)
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