New York, January 19, 2024, The Europe Today: Morgan Stanley’s Executive Chairman, James Gorman, reported a 17% increase in compensation for 2023, marking a notable rise from $31.5 million in the previous year to $37 million. This announcement, disclosed in a filing on Friday, positions Gorman with the highest pay among major U.S. bank chiefs revealed thus far in 2024. JPMorgan Chase CEO Jamie Dimon’s 2023 compensation stands at $36 million, setting the stage for further insights into rival banks’ compensation details in the coming weeks.
Gorman transitioned to the role of Executive Chairman on January 1, passing the CEO baton to Ted Pick. The compensation committee justified the increased pay by highlighting Gorman’s exceptional performance, particularly his adept execution of CEO succession and leadership transition, along with his successful resolution of legal and regulatory matters.
A noteworthy aspect of Gorman’s compensation is that three-quarters of his performance bonus is paid in equity, deferred over a three-year period. The bank’s board emphasized Gorman’s pivotal role in reshaping Morgan Stanley into a robust and well-balanced institution, primed for sustained growth. Gorman’s 14-year tenure as CEO witnessed Morgan Stanley’s stock more than tripling and its market capitalization soaring from $40 billion to $153 billion.
The board recognized the firm’s impressive total shareholder return of 14% in 2023 and the enhanced company valuation under Gorman’s leadership. The filing concludes that Gorman’s strategic decisions and leadership have positioned Morgan Stanley favorably, enabling the business model to perform as intended, even in the face of challenging market and macroeconomic conditions in 2023.