(27 January 2010 – USA) The chief executive office of Morgan Stanley, James Gorman, was awarded deferred stock grants for his performance last year with a current value of US$8.6 million (A$9.5 million), despite a lacklustre profit.The chief, who is not taking a cash bonus this year, will receive 194,590 restricted shares and if future company goals are achieved Mr Gorman is in the market to land a further 97,295 ‘at risk performance shares’.
The original shares were valued at US$5.7 million on closing Friday, however the value of the ‘performance based shares’ will depend upon specific, predetermined performance goals over a three year period.
If Mr Gorman doesn’t meet the minimum performance goals, the units could be worthless, but if he turns in a stellar performance, the number of units could be doubled, for a total current value of about US$5.4 million.
Morgan Stanley confirmed that Mr Gorman’s salary for 2009 was US$800,000, according to The Wall Street Journal.
The bank said last month that compensation and benefits expenses rose 31 percent in 2009, or to 62 percent of the bank’s revenue.