by Christopher Freeburn | January 25, 2013 11:14 am
The 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%.
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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