Morgan Stanley CEO Gets Pay Hike; Top Among Major Banks? - Analyst Blog

Morgan StanleyMS , in an annual proxy document filed with the Securities and Exchange Commission ("SEC"), announced a hike in the Chairman and Chief Executive Officer (CEO) James Gorman's remuneration for 2014. Gorman received $16.0 million as compensation package, marking an increase of over 33% from 2013.

The CEO's base salary remained unchanged at $1.5 million. Cash bonus rose substantially to $4.7 million on a year-over-year basis. However, deferred equity and cash-based award declined 3.8% year over year to $9.8 million.

Moreover, Gorman remains entitled to receive an additional $6.5 million based on his fulfilment of certain specified goals over the next three years. This long-term incentive amount chartered $6 million last year.

Pursuant to the SEC rules, compensation awarded for performance in the prior years and forward-looking performance-based compensation are also considered while calculating the total remuneration. According to this computation, Gorman received $23.3 million in 2014, up from $14.4 million paid in the preceding year.

The pay hike comes on the heels of Morgan Stanley's better performance driven by strong business results, strategic execution and shareholder returns. The company's board termed the CEO's performance as "exceeding expectations with room for continued progress".

Other senior executives including the Chief Financial Officer and Chief Operating Officer also received increased pay for their performances in 2014. Morgan Stanley recorded 71% year-over-year growth in earnings from continuing operations for 2014, resulting in increased pay packages and making the company the top paying Wall Street bank among peers for 2014.

Among other banking giants, Bank of America Corp.'s BAC Chairman as well as CEO Brian Moynihan received $13 million as total compensation for 2014, which reflected a year-over-year decline of over 7%. Also, Citigroup Inc. C CEO Michael Corbat received an approximate 10% pay cut in his total compensation package for 2014. Further, JPMorgan Chase &Co.'s JPM Chief Executive Jamie Dimon earned $20 million in 2014, unchanged from 2013.

Currently, Morgan Stanley carries a Zacks Rank #3 (Hold).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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