Morgan Stanley CEO Gets Substantial Pay Cut

The bank is cutting jobs and delaying bonuses to lower costs


Morgan Stanley2 300x199 Morgan Stanley CEO Gets Substantial Pay CutThe head of Morgan Stanley (NYSE:MS) will take a pay cut due to the bank’s continued lackluster performance.

Sources told Bloomberg that the bank has cut CEO and Chairman James Gorman’s compensation package for last year by 30%.

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Gorman received a total of $6 million, including $800,000 in salary, $2.6 million in deferred bonuses and $2.6 million in stock options last year. In 2011, he was awarded compensation of $8.56 million, though incentives boosted his pay that year to a total of $10.5 million.

Morgan Stanley’s reported $26.11 billion in revenue for 2012, down 19% from the prior year. It posted adjusted earnings from continuing operations of $3 billion. Earlier this month, the bank said it would defer some employee bonuses to save money.

The bank will also layoff 1,700 workers this month in a bid to trim costs by an annual $1.6 billion.

JPMorgan Chase (NYSE:JPM) CEO James Dimon also saw his 2012 compensation slashed after the bank suffered $6.2 billion in losses resulting from rogue derivatives trades made by a trader in its London office last year.

Shares of Morgan Stanley rose fractionally in Friday morning trading.

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