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Monday, 9 April 2012 00:00 - - {{hitsCtrl.values.hits}}
Reuters: Morgan Stanley Chief Executive James Gorman took home compensation totaling $13 million in 2011, down 14.5 percent from 2010, in contrast to the increases enjoyed by other big Wall Street CEOs.
Gorman, 53, received a bonus of $2.7 million, stock and options awards of $9.4 million and a salary of $800,000, Morgan Stanley said in a proxy filing on Thursday with the U.S. Securities and Exchange Commission.
In 2010, Gorman received $15.2 million in compensation, including a bonus of $3.9 million, stock awards of $10.2 million and a base salary of $800,000.
Gorman’s compensation figures represent the amounts he received including previous years’ restricted stock and options awards that vested in 2011.
Morgan Stanley reports a separate figure for the amount the CEO received including stock and options awards that will vest in future years.
Using that figure, Gorman received $10.5 million in compensation for 2011, down 25 per cent from 2010.
During 2011, Morgan Stanley’s stock fell 44 per cent, closing the year at $15.13, and its book value declined 0.2 per cent, to $31.42.
Since then, financial shares have risen and Morgan Stanley’s stock is 16 per cent higher year-to-date. Its stock closed at $18.69 on Wednesday, which represents 59 per cent of the company’s stated book value at year-end.
Morgan Stanley’s chief rival, Goldman Sachs Group Inc, has yet to file a proxy statement disclosing the pay of its CEO, Lloyd Blankfein, in 2011. But other big bank CEOs received higher pay last year, even as their companies’ share prices tumbled and compensation declined sharply for traders, bankers and other support staff on Wall Street.
James Dimon, head of JPMorgan Chase & Co, received $23.1 million in 2011, an 11 per cent increase from 2010, according to disclosures the bank made on Wednesday. Shares of JPMorgan, the largest US bank, fell 22 per cent last year. Bank of America Corp CEO Brian Moynihan received $8.1 million, more than four times as much as he received in 2010. Bank of America’s shares fell 58 per cent last year. At Citigroup Inc, CEO Vikram Pandit received $14.9 million, up from a nominal one dollar in 2010, according to the SEC formula. Citi’s shares fell 44 per cent last year.
Each of those banks cut staff last year in their trading and investment banking operations. Compensation consultants estimate that pay declined about 20 per cent, on average, for most Wall Street employees last year.
Morgan Stanley also said on Thursday that it would nominate Klaus Kleinfeld, the 54-year-old CEO of Alcoa Inc, to its board of directors, replacing James H. Hance.
Hance, a former Bank of America Corp chief financial officer, recently joined the board of Carlyle Group, a private equity firm that is planning an initial public offering. He sat on Morgan Stanley’s audit, risk and operations and technology committees. He informed the board that he does not intend to seek re-election at the annual meeting next month.
A Morgan Stanley spokesman did not provide further details about Hance’s departure.
