Morgan Stanley cut CEO James Gorman’s compensation by 10% to $31.5 million for 2022, a year in which earnings fell and shares plunged.
The package includes $1.5 million in salary and a $7.5 million cash bonus, the firm said in a filing Friday. The vast majority is in the form of $22.5 million in stock-linked prizes, which are paid out in shares.
The pay package follows an intense industry-wide focus on compensation and other expenses amid a slump in trading and concerns about the impact a potential recession will have on Wall Street earnings. At Morgan Stanley, that translated into a round of 1,600 cuts since December in a global workforce of about 82,400.
On Thursday, JPMorgan Chase said it was keeping payment for his boss, Jamie Dimon, at $34.5 million for his work in 2022.
Gormann, 64, He received a 6% increase in wages for 2021 after the New York-based company posted the most profitable year in its history. A year earlier, he vaulted he surpassed Dimon as the highest-paid CEO of a major US bank.
In 2022, Morgan Stanley’s earnings fell by more than a quarter and the stock lost more than 13%.
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