CEO Compensation — Morgan Stanley (MS)
Things are looking up at Morgan Stanley (MS) when it comes to CEO compensation. Glass, Lewis & Co., a major proxy advisory firm, gave the investment bank a “D” grade for its executive pay practices in 2013, better than the “F” it got last year.
The reason for the improved grade? Apparently, CEO James Gorman received a smaller pay package than some of Morgan Stanley’s peers. However, despite the favorable comparison with its peers, Glass, Lewis felt that Morgan Stanley wasn’t doing enough to align pay with performance and therefore recommend that shareholders vote no on the “say on pay” initiative when the annual general meeting convenes May 13.
While Gorman’s CEO compensation might appear fair relative to some of its peers, the fact remains that the executive received a 100% raise in 2013, far better than the average MS employee. Furthermore, Gorman finished the year with $25.7 million in deferred compensation, almost 100 times higher than the average 55-to-64-year-old’s retirement package. But hey, it’s just money, right?