US$8.6 million pay pack for chief
(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.
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.
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