Summary
Morgan Stanley announced the resumption of its common stock repurchase plan, with the Board of Directors authorizing up to $10 billion in repurchases commencing in the first quarter of 2021. This move signals confidence in the company's financial health and commitment to returning capital to shareholders. The repurchases will be executed based on market conditions and the company's financial performance, offering flexibility in their implementation. Additionally, the Compensation, Management Development and Succession Committee amended the company's long-term incentive program (LTIP) for key executives. The primary change involves replacing the 'return on equity' performance goal with a 'return on tangible common shareholder's equity' goal for future awards. This adjustment is intended to more directly align executive compensation with the company's strategic objectives and enhance shareholder value.
Key Highlights
- 1Morgan Stanley's Board of Directors authorized a new common stock repurchase program of up to $10 billion.
- 2The share repurchase plan is set to commence in the first quarter of 2021.
- 3Repurchases will be conducted opportunistically, considering market conditions and the company's financial performance.
- 4The company's long-term incentive program (LTIP) for executives has been amended.
- 5The performance metric for LTIP awards has been updated from 'return on equity' to 'return on tangible common shareholder's equity'.
- 6This change aims to better align executive incentives with strategic goals and shareholder interests.
- 7The press release regarding the stock repurchase plan was issued on December 18, 2020.