Mark Lennihan/Associated PressJames P. Gorman, chairman and chief executive of Morgan Stanley, nearly doubled his compensation last year when compared with 2012. A hefty long-term incentive award helped nearly double the compensation for Morgan Stanley’s chairman and chief executive, James P. Gorman, to $18 million for 2013.
Mr. Gorman was given a $6 million long-term equity award, which he will receive if the firm meets certain performance benchmarks over the next three years, according to a filing with the Securities and Exchange Commission on Friday. Mr. Gorman also received $12 million in base salary and bonus awards in 2013.
In 2012, he earned $9.75 million, a 7 percent drop from 2011.
Morgan Stanley has been trying to move away from its riskier trading business to focus on the relatively more stable wealth management unit, and Mr. Gorman’s pay raise is a clear indication that the firm’s board likes the progress that it has seen. The company’s stock price rose 64 percent in 2013.
The bank’s wealth management unit posted net revenue of $3.7 billion in the fourth quarter, up from $3.5 billion in the fourth quarter of the previous year. Its pretax margin rose to 19 percent, from 17 percent, in the same period.
Net revenue in the bank’s fixed income and commodities unit, meanwhile, fell 15 percent. Morgan Stanley has also been tightening its belt in its institutional securities business, which houses its trading and mortgage operations.
As per the S.E.C. guidelines, the firm reports its compensation based on how much executives actually received in any given year. Using those guidelines, Mr. Gorman’s pay rose to $14.4 million, up from $10.6 million in 2012.
