Monday, January 25, 2016
Morgan Stanley CEO James Gorman took a big pay cut for 2015
Morgan Stanley CEO James Gorman took a big pay cut in 2015.
Gorman will receive $21 million in total compensation — down $1.5 million or 6.7% from 2014, according to a Morgan Stanley spokesperson.
The chief executive received a base salary of $1.5 million and a stock unit award of $4.6 million, up from $4.4 million for 2014,according to an SEC filing.
In 2014, Gorman's compensation, excluding long-term incentive pay, was $16 million, up a third from the year before. Including long-term incentive compensation, the total was $22.5 million.
Goldman Sachs CEO Lloyd Blankfein will receive $23 million for 2015, while JPMorgan CEO Jamie Dimon will receive $27 million.
Morgan Stanley on Tuesday reported fourth-quarter earnings that beat expectations. The disastrous fixed income, currencies, and commodities division, however, missed expectations and was down year-on-year.
The firm began cutting 25% of its fixed income headcount late last year. Last week it announced bonuses, which were reportedly very disappointing in the fixed income division but better in equity sales and trading.
Earlier this month, Greg Fleming, the president of the Morgan Stanley's prized wealth-management business, left the firm. That cleared the path for executive Colm Kelleher, who took over as sole president of the firm.
In a strategic update following the release of fourth-quarter earnings, Gorman also announced the firm would begin outsourcing employees in high-cost centers like New York to "low-cost centers" in a new cost-saving plan dubbed "Project Streamline."