Thursday, September 28, 2023

Morgan Stanley pays James Gorman $ 33million for ‘record year’

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Morgan Stanley chief executive James Gorman will receive $ 33 million in total compensation for 2020, a 22% increase from $ 27 million in 2019.

In a regulation deposit, the US investment bank said 2020 “has been a banner year for Morgan Stanley in many ways, both in terms of financial performance and in terms of advancing the company’s long-term strategic goals.” , noting record revenues and profit before tax, as well as two major transactions.

Morgan Stanley shares rose 34% last year as market volatility boosted trading results and falling interest rates fueling investment banking activity. The shares of its closest rival, Goldman Sachs, rose 14%.

Mr. Gorman’s total compensation will include a base cash salary of $ 1.5 million, a cash bonus of $ 7.9 million and stock-related awards totaling $ 23.6 million, which will be acquired over three years and are subject to recoveries.

The package exceeds the $ 31.5 million awarded to Jamie Dimon, managing director of JPMorgan Chase, for 2020. JPMorgan shares declined slightly for the year, and Mr. Dimon’s salary remained unchanged from 2019. The two banks are the only major Wall Street companies to announce chief executive compensation so far.

The fourth quarter in particular was a blockbuster for Morgan Stanley, whose net profits jumped 51% to $ 3.4 billion. Trading revenues increased 32 percent and investment banking fees increased 46 percent. Mr. Gorman said on a call to analysts this week that “our business is at an inflection point and the next decade will be characterized by growth.”

In early 2020, Mr. Gorman announced a $ 13 billion acquisition of ETrade, launching Morgan Stanley into the low-cost brokerage space and adding more than 5 million new clients, many of whom are millennials. It was the largest transaction concluded by a world bank since the financial crisis.

It was followed in October by news that the bank buy Eaton Vance investment manager for $ 7 billion, making Morgan Stanley one of the world’s largest asset managers, nearly doubling its assets under management to $ 1.2 billion.


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