Morgan Stanley Chief Executive James Gorman will get a higher base salary in 2013, while his overall pay package declined 7 percent last year, according to a regulatory filing on Thursday.
Gorman, who runs the sixth-largest U.S. bank, will receive a base salary of $1.5 million in 2013, up from $800,000 the previous year.
Morgan Stanley said the pay bump was granted after a consultation with an independent adviser, for the purpose of bringing Gorman's base salary "in line" with other bank CEOs. The five CEOs running larger U.S. banks had base salaries in a range of $950,000 to $2.8 million.
Morgan Stanley also approved a performance-based award package that makes Gorman eligible to earn $3.75 million over the next three years, if certain targets are met. In 2009, Gorman got nothing from that package because Morgan Stanley missed its targets for return-on-equity and relative total shareholder returns over the period.
Combined with his bonus and salary, Gorman was granted a total of $9.75 million in compensation, down 7 percent from the $10.5 million he was awarded the previous year. Morgan Stanley made the disclosures in an 8-K filing with the U.S. Securities and Exchange Commission.
C. Robert Kidder, Morgan Stanley's independent lead director said: "2012 was a transition year for Morgan Stanley, and management, along with much of the organization, saw reduced compensation. The Board is confident of the strategic decisions taken by senior management and our decision to grant these forward-looking (long-term incentive program) awards reflects that confidence."
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