By Tatiana Bautzer
NEW YORK (Reuters) -Morgan Stanley Executive Chairman James Gorman's compensation in his last year as CEO rose 17% to $37 million for 2023 from $31.5 million in 2022, the bank said in a filing on Friday.
That is the highest pay for a major U.S. bank chief disclosed so far this year. JPMorgan Chase (NYSE:JPM) CEO Jamie Dimon was awarded $36 million for 2023, and compensation details from rival banks will emerge in the coming weeks.
Gorman became executive chairman on Jan. 1, handing over to new CEO Ted Pick.
Three quarters of Gorman's performance bonus is paid in equity and deferred over three years.
The bank's board noted his "outstanding performance, including his exemplary execution of CEO succession and the transition of leadership" and his resolution of legal and regulatory matters in its decision to boost Gorman's pay.
Gorman spent 14 years at the helm and is credited with transforming the bank into a wealth management powerhouse. He also orchestrated a succession plan in which Pick took the reins at the same time as retaining the two other CEO candidates, executives Andy Saperstein and Dan Simkowitz, a rarity on Wall Street.
The compensation committee also cited the total shareholder return of 14% in 2023 and company's valuation since Gorman became CEO. During his tenure, Morgan Stanley stock has more than tripled and its market capitalization increased from $40 billion to $153 billion.
"Over his 14-year tenure as CEO and during 2023, Mr. Gorman reshaped the firm into a stronger and more balanced institution positioned for long-term growth," the board said in the filing. "As a result, the firm's business model performed as intended in a challenging market and macro environment in 2023."