NEW YORK, Jan 22 (Reuters) - Morgan Stanley Chief Executive James Gorman could get a stock bonus for 2009 valued at $8.1 million if he meets performance requirements, the company said in a regulatory filing on Friday.
Morgan Stanley said it paid a total of $14.4 billion in compensation to all of its employees for 2009, despite reporting an loss on Wednesday. Wall Street has been criticized for returning to outsized bonuses so soon after U.S. taxpayers had to rescue the banking industry.
John Mack, who stepped down as CEO on Jan. 1, received no year-end bonus for 2009. He retained his title of chairman.
Morgan Stanley is following an industry trend of paying bonuses in equity that must be held for a number of years. Regulators have been pushing Wall Street to come up with compensation plans that tie pay to long-term performance to reduce excessive risk.
Gorman's bonus is broken into three parts.
His base stock bonus is deferred shares valued at $5.4 million. He will receive additional shares valued $2.7 million if the bank meets certain performance targets. A third part of the bonus, which has not yet been announced, will be tied to a clawback provision.
The stock is valued as of $27.80, Morgan Stanley's close on Friday.
Gorman received no cash bonus, while members of the Morgan Stanley's operating committee received about 75 percent of their year-end pay in shares that must be held, according to the filing.
(Reporting by Steve Eder, editing by Leslie Gevirtz) Keywords: MORGANSTANLEY/ (Reuters email: steve.eder@reuters.com; +1 646 223 6069) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Morgan Stanley said it paid a total of $14.4 billion in compensation to all of its employees for 2009, despite reporting an loss on Wednesday. Wall Street has been criticized for returning to outsized bonuses so soon after U.S. taxpayers had to rescue the banking industry.
John Mack, who stepped down as CEO on Jan. 1, received no year-end bonus for 2009. He retained his title of chairman.
Morgan Stanley is following an industry trend of paying bonuses in equity that must be held for a number of years. Regulators have been pushing Wall Street to come up with compensation plans that tie pay to long-term performance to reduce excessive risk.
Gorman's bonus is broken into three parts.
His base stock bonus is deferred shares valued at $5.4 million. He will receive additional shares valued $2.7 million if the bank meets certain performance targets. A third part of the bonus, which has not yet been announced, will be tied to a clawback provision.
The stock is valued as of $27.80, Morgan Stanley's close on Friday.
Gorman received no cash bonus, while members of the Morgan Stanley's operating committee received about 75 percent of their year-end pay in shares that must be held, according to the filing.
(Reporting by Steve Eder, editing by Leslie Gevirtz) Keywords: MORGANSTANLEY/ (Reuters email: steve.eder@reuters.com; +1 646 223 6069) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.