Morgan Stanley raises CEO James Gorman’s pay to $33 million

The raise makes Gorman the highest-paid CEO among Wall Street’s big banks.



Morgan Stanley raised CEO James Gorman’s pay package to $33 million after the company’s most profitable year despite the pandemic gloom.

Gone are the bewildering days of the Coronavirus Pandemic when executives’ salaries and bonuses felt the shocking tinge of the ensuing economic downtown. Now, a number of American companies, including Morgan Stanley and JPMorgan Chase, acknowledge that stressed-out executives cannot reinstate the business to its pre-Pandemic glory days for partial pay.

Morgan Stanley CEO James Gorman’s pay in 2020 was $33 million for steering the Wall Street firm without axing jobs despite the upheaval caused by the coronavirus pandemic. Gorman’s salary is a phenomenal 22% raise for a year in which the investment bank generated record revenue, announced two megabillion dollar acquisitions, and successfully avoided one of the worst pandemic-led recession.

James Gorman gets 22% salary raise in 2020

Here’s how much James Gorman made in total compensation during fiscal year 2020, according to a securities filing on Friday. James Gorman’s salary ($33 million) is comprised of four parts: a base salary of $1.5 million; a deferred equity award of $7.875 million; a cash bonus of $7.845 million; and a performance-vested equity award of $15.75 million.

Two-thirds of Gorman’s stock award is tied to how well he steers through the pandemic-recession over the next few years.

Morgan Stanley CEO James Gorman salary raise pay package

James P. Morgan, Chairman of the Board and CEO. (Image: Morgan Stanley)

The Morgan Stanley executive was paid $27 million for his work in 2019.

Morgan Stanley’s directors based Gorman’s pay raise on the investment firm’s record financial performance in 2020 and Gorman’s progress in implementing the bank’s long-term strategy, it said.

Bank’s profit crushes pandemic gloom

Under his leadership, Morgan Stanley produced full-year net revenue of $48.2 billion, compared with $41.4 billion a year ago. It largely benefited from the market’s swift recovery from the ongoing coronavirus crisis.

“The firm produced a very strong quarter and record full-year results, with excellent performance across all three businesses and geographies,” CEO James Gorman said in a statement, adding that the bank’s long-term strategy with the acquisitions of E*Trade and Eaton Vance “serve us well.

Unlike other American banks, Morgan Stanley was an active name in M&A activity throughout the year. Gorman negotiated two back-to-back deals to acquire E*Trade Financial Corp. and Eaton Vance Corp., strengthening the firm’s presence in retail stock trading and investment management, respectively.

Morgan Stanley CEO James Gorman salary raise pay package

Morgan Stanley Times Square 1585 Broadway Headquarters (Image: Morgan Stanley)

Early in 2020, the bank announced it would buy E*Trade for $13 billion, launching Morgan Stanley into the low-cost brokerage space and adding 5 million new customers. This was the largest acquisition deal made by a bank since the financial crisis.

In October, Gorman announced a $7 billion acquisition of Eaton Vance, making Morgan Stanley one of the world’s biggest asset managers, almost doubling its assets under management to an astounding $1.2 trillion.

Shares of Morgan Stanley rose by 34% in 2020 and are up another 8% so far in 2021, outpacing the S&P 500 Index on both counts.

James Gorman’s salary in 2020 was $1.5 million more than that of rival JPMorgan Chase CEO James Dimon, who has been the highest-paid bank executive for past several years.

 

Subscribe to the nation’s fastest-growing CEO magazine to get the latest business news delivered to your inbox. 

Anna Domanska
Anna Domanska is an Industry Leaders Magazine author possessing wide-range of knowledge for Business News. She is an avid reader and writer of Business and CEO Magazines and a rigorous follower of Business Leaders.

Recent Posts

United to recall furloughed employees as travel recovers

United to recall furloughed employees as travel recovers

The fading of the pandemic and the rollout of vaccines has brought in some good cheer for the floundering air travel industry. More countries have opened up for business and are al
11 hours ago
UK’s Sanne agrees to consider Cinven bid

UK’s Sanne agrees to consider Cinven bid

Sanne, a UK fund administration business that provides alternative asset and corporate services, has agreed to hold talks with private equity firm Cinven over a potential £1.4bn t
22 hours ago
Global stocks rise as investors ignore inflations indicators

Global stocks rise as investors ignore inflations indicators

Global stocks rose to an all-time high, with investor showing confidence in a strong economic recovery from coronavirus and the vaccine effect, but the market is still a bit cautio
22 hours ago
UK watchdog whacks Amazon with probe for unfair data collection practices

UK watchdog whacks Amazon with probe for unfair data collection practices

The Competition and Markets Authority will focus on whether Amazon, Inc. favors merchants that use its delivery services.
4 days ago
Altice buys 12 percent stake in BT worth £2 billion

Altice buys 12 percent stake in BT worth £2 billion

Altice said it did not intend to make a bid for the British Telecoms company, though the takeover code also does not allow it to make an unsolicited buyout offer for six months wit
4 days ago
G7 countries agree on broad principles of minimum corporate tax deal

G7 countries agree on broad principles of minimum corporate tax deal

The world’s richest nations (G7) reached a landmark accord setting a global minimum corporate tax rate for multinationals. Would it be effective in tackling tax evasion and avoid
4 days ago