Morgan Stanley paid James Gorman $37mn in 2023 for his final 12 months as chief executive of the Wall Street bank. Morgan Stanley Gorman pay check raise saw an increase from the prior year despite the bank’s lower profits.

James Gorman compensation

James Gorman’s compensation is the highest pay for a major U.S. bank chief disclosed so far this year. JPMorgan Chase 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 of Morgan Stanley on January 1, handing over to new CEO Ted Pick.

Three quarters of Gorman’s performance bonus is paid in equity and deferred over three years.

Morgan Stanley’s board members 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.

Morgan Stanley under Gorman’s leadership

James Gorman’s leadership of 14 years 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.

Morgan Stanley’s growth

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.”

Morgan Stanley’s compensation committee said it had based the pay decision in part on Gorman’s “exemplary execution of CEO succession” and praised his leadership of the bank, Morgan Stanley.

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