Morgan Stanley paid its CEO, James Gorman, $ 35 million for his work in 2021, more than $ 2 million from a year earlier and more than Wall Street rival Jamie Damon.
Gorman’s pay package is the latest example of Wall Street groups rewarding top bankers with salary increases after a year of huge profits for the industry. In last week’s quarterly profit, Morgan Stanley reported record pre-tax revenues and gains for 2021.
For the year, Gorman earned a base salary of $ 1.5 million, a cash bonus of $ 8.375 million, $ 5.025 million in deferred capital and a performance bonus based on a performance of $ 20.1 million.
“The Compensation Committee bases its decision on its assessment of Mr Gorman’s outstanding individual performance and record financial performance, including meeting or exceeding its biennial targets announced in January 2021 and meeting the next phase of transformational growth. and shareholder value, “the bank said in regulatory documents on Friday.
Gorman owns just under 1.2 million shares of Morgan Stanley as of November, according to the latest regulatory bid, which costs about $ 117 million based on the bank’s share price at Friday’s close.
Under Gorman, CEO since 2010, Morgan Stanley has expanded into businesses such as asset and wealth management, backed by major acquisitions, including ETrade and Eaton Vance, in an effort to diversify from its legacy investment banking and trading divisions. with stocks and bonds.
JPMorgan Chase announced on Thursday that it has raised the salary of Dimon, the bank’s chief executive since 2005, by $ 3 million to $ 34.5 million in 2021. This is the most he has earned since 2008. but it is still not enough to regain the title in the first place paid CEO of a large bank, which Gorman took for 2020.
In fourth-quarter earnings, five of Wall Street’s leading banks – JPMorgan, Citigroup, Goldman Sachs, Morgan Stanley and Bank of America – revealed that they distributed $ 142 billion in total wages and benefits in 2021, up nearly 15 percent. from the previous year.