Morgan Stanley cuts CEO Gorman’s pay in 2022

Morgan Stanley reduce CEO James Gorman’s compensation by 10% to $31.5 million for 2022, a 12 months through which revenue tumbled and the shares sank.

The bundle contains $1.5 million in wage and a $7.5 million money bonus, the agency mentioned in a submitting Friday. The overwhelming majority is within the type of $22.5 million in equity-linked awards, which pay out in shares.

The financial institution thought of Gorman’s “excellent particular person efficiency, together with his management of the agency’s technique, core values and tradition, and the agency’s strong monetary efficiency,” it mentioned. However, “in a difficult financial and market setting, agency efficiency for 2022 was not as robust because the prior 12 months through which the agency achieved report monetary efficiency.”

The pay bundle follows an intense, industrywide deal with compensation and different bills amid a droop in dealmaking and concern concerning the impression a possible recession would have on Wall Avenue income. At Morgan Stanley, that translated right into a spherical of 1,600 cuts from December in a worldwide workforce of about 82,400. 

On Thursday, JPMorgan Chase mentioned it was keeping pay for its chief, Jamie Dimon, at $34.5 million for his work in 2022.

Gorman, 64, received a 6% increase in pay for 2021 after the New York-based firm posted its most worthwhile 12 months ever. A 12 months earlier, he vaulted previous Dimon because the best-paid CEO of a significant U.S. financial institution. 

In 2022, Morgan Stanley’s revenue slid by greater than 1 / 4 and the shares misplaced greater than 13%.