Boston, MA 01/24/2014 (wallstreetpr) – Morgan Stanley (NYSE:MS) has announced around 155,200 shares in stock reward to its Chief Executive Officer James Gorman. The newly disclosed stock compensation reflects $4.9 million and signifies a jump of 86 percent over the previous year’s reward. This comes as the bank celebrates income jump in 2013 in addition to being among the best performing stocks in the year.
Away from the stock reward, the CEO also received $1.5 million base salary and long-term incentives including immediate and deferred cash bonus. The bank has however not revealed the exact figures of the bonuses. In 2012, Gorman received reward options amounting to $2.6 million for his performance. This occurred even after the CEO faced nearly 7 percent cut in his overall compensation package in 2012.
Determining Compensation
Rewards for Morgan Stanley (NYSE:MS) CEO are determined through various channels including return on equity, profit margins, stock performance, risk management levels among several other factors. A good score in these platforms leads to fatter reward for the CEO and the execs working with him.
In fiscal 2013, MS realized income of $3.03 billion, up from $68 million in 2012. Note that the 2012 figures were impacted by settlement charges. That being said, the bank still has a long way to go in meeting its goals.
Stock performance
As mentioned earlier, Morgan Stanley (NYSE:MS) closed 2013 as one of the best performing bank stocks. The stock gained 64 percent value ahead of rival Goldman Sachs Group Inc (NYSE:GS) which rose 39 percent. MS also exceeded S&P 500 which gained 30 percent over the 12 months trading duration.
So far in 2014 Morgan Stanley (NYSE:MS) stock is up 0.4 percent.
In order to meet its turnaround goal, Morgan Stanley (NYSE:MS) needs to look into avenues to curb operating expenses, revenue expansion and consolidation. The bank’s recently released performance data suggests that it still has good times ahead and that the stock will continue to soar as the company makes good of its opportunities.
