© Reuters. FILE PHOTO: The company brand of economic agency Morgan Stanley is pictured on the corporate’s world headquarters in New York, U.S. April 17, 2017. REUTERS/Shannon Stapleton/File Picture
By Tatiana Bautzer
NEW YORK (Reuters) -Morgan Stanley government chairman and former CEO James Gorman’s compensation rose 17% to $37 million for 2023, the financial institution mentioned in a submitting on Friday.
Gorman was paid $31.5 million in 2022. He turned government chairman on Jan. 1 when Ted Choose took over because the financial institution’s new CEO.
Three quarters of of Gorman’s efficiency bonus is paid in fairness and deferred over three years.
The financial institution’s board famous his “excellent efficiency, together with his exemplary execution of CEO succession and the transition of management” and his decision of authorized and regulatory issues in its determination to spice up Gorman’s pay.
Gorman spent 14 years on the helm and is credited with remodeling the financial institution right into a wealth administration powerhouse. He additionally orchestrated a succession plan wherein Ted Choose took the reins similtaneously retaining the 2 different CEO candidates, executives Andy Saperstein and Dan Simkowitz, a rarity on Wall Road.
The compensation committee additionally cited the full shareholder return of 14% in 2023 and firm’s valuation since Gorman turned CEO. Throughout his tenure, Morgan Stanley inventory has greater than tripled and its market capitalization elevated from $40 billion to $153 billion.
“Over his 14-year tenure as CEO and through 2023, Mr. Gorman reshaped the agency right into a stronger and extra balanced establishment positioned for long-term progress,” the board mentioned within the submitting. “In consequence, the agency’s enterprise mannequin carried out as meant in a difficult market and macro setting in 2023.”