By Dow Jones Business News,
January 23, 2014, 05:56:00 PM EDT
By Justin Baer
Morgan Stanley increased Chairman and Chief Executive James Gorman's stock bonus by 88%, rewarding its top
executive for making progress on the Wall Street firm's turnaround.
Mr. Gorman received 155,207 shares, valued at $4.9 million at Thursday's close, as part of his annual bonus,
according to a filing Thursday.
The stock awards are only a slice of Mr. Gorman's total pay. The rest of his year-end bonus will be in cash, a
portion of which will be paid out over several years. Mr. Gorman, 55, is also eligible to receive additional shares
through the firm's long-term incentive plan for senior executives.
Morgan Stanley paid Mr. Gorman a salary of $1.5 million for 2013, compared to an $800,000 salary a year earlier.
Coming off a 2012 loss, Morgan Stanley cut Mr. Gorman's compensation package to $9.75 million in salary, bonus and
long-term incentives. For his year-end bonus, he got $2.6 million in deferred cash, as well as stock options also valued
at the time at $2.6 million. The firm also paid Mr. Gorman $3.75 million in long-term incentive awards. He received no
immediate cash bonus last year.
The haul marked a second-straight drop for the chief executive, who received $10.5 million for his 2011 performance
and $14 million in 2010.
The firm bounced back in 2013, as Mr. Gorman's turnaround plan began to take root. Morgan Stanley posted profits in
all four quarters and revenue jumped 20%. It bought out Citigroup Inc.'s remaining stake in the two banks' wealth-
management joint venture, and won regulatory approval to repurchase its own stock for the first time since the financial
Morgan Stanley's shares climbed 64% during the year.
The firm's return on equity, a key measure of the firm's profitability, stood at about 5% in 2013--less than half
the 11% posted by rival Goldman Sachs Group Inc. But in announcing Morgan Stanley's full-year results last week, Mr.
Gorman laid out his plan for hitting double-digit returns.
Mr. Gorman, who succeeded John Mack as chief executive in 2010, has trained Morgan Stanley's focus on wealth
management and away from the more complex, riskier corners of Wall Street that had helped bring the firm to the brink of
collapse during the crisis.
Write to Justin Baer at firstname.lastname@example.org
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