Morgan Stanley Chairman James Gorman's compensation jumps 17% to $37 million in 2023
James Gorman, saw a 17 percent rise in his compensation for the year 2023, reaching $37 million compared to $31.5 million in 2022, as per a filing by the bank on January 19, Reuters reported. Gorman's earnings mark the highest compensation disclosed for a major United States bank chief this year. Jamie Dimon, CEO of JPMorgan Chase, received $36 million for the year 2023.
Details about compensation from other rival banks are expected to be revealed in the upcoming weeks. Also Read | Morgan Stanley Agrees to Pay $249 Million to Settle Block-Trading Probes Effective from January 1, Gorman assumed the role of Executive Chairman, passing the torch of the CEO position to Ted Pick. Three-quarters of Gorman's performance bonus is distributed in equity and deferred over three years.
Morgan Stanley's board justified the increase in Gorman's pay by acknowledging his "outstanding performance," particularly in executing the CEO succession and leadership transition. The resolution of legal and regulatory matters also contributed to the decision. Also Read | Morgan Stanley's straight-talking new CEO Ted Pick taking charge Gorman, who led the bank for 14 years, is credited with transforming Morgan Stanley into a robust wealth management institution.
His succession plan, a rare move on Wall Street, involved Ted Pick taking over as CEO while retaining the two other CEO candidates, Andy Saperstein and Dan Simkowitz. The compensation committee pointed to the total shareholder return of 14 percent in 2023 and the company's valuation growth during Gorman's tenure as CEO. Morgan Stanley's stock tripled, and its market capitalisation surged from $40 billion to $153 billion.
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