Morgan Stanley lowers CEO Gorman’s 2022 compensation to $31.5 million

(Reuters) – Morgan Stanley Chief Executive Officer James Gorman’s total compensation for 2022 slipped 10% to $31.5 million, the bank said on Friday.

Gorman’s total compensation will include an annual base salary of $1.5 million, a cash bonus of $7.5 million, a deferred equity award of $4.5 million and a performance-based equity award of $18 million, according to a regulatory filing.

Morgan Stanley directors based the pay decision on “a challenging economic and market environment” with the performance of the firm “not as strong as the prior year”.

The company had reported net income of $11 billion for 2022, lower than the previous year’s $15 billion. Its stock lost 13.4% last year.

Wall Street’s biggest banks, which saw profits dwindle in 2022, have cut jobs and stockpiled more rainy-day funds in preparation for a possible recession.

On Thursday, JPMorgan Chase & Co Chief Executive Officer Jamie Dimon’s total compensation was unchanged at $34.5 million, with the board deciding not to grant him any special awards for 2022 or in the future.

Since taking over a decade ago, 64-year-old CEO Gorman has transformed Morgan Stanley from a Wall Street firm focused on its money-losing trading business into a more balanced bank.

He was the driving force behind Morgan Stanley’s decision to acquire brokerage firm and investment adviser Smith Barney, which helped make wealth management the cornerstone of his plan to stabilize revenue.

(Reporting by Mehnaz Yasmin in Bengaluru; Editing by Devika Syamnath)