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MORGAN STANLEY 8-K Report, Executive Changes (Jan 19, 2024)

Reports
Leadership Changes·Other Events
Filing Date
Filed January 19, 2024
Period End
January 17, 2024
In the record · 2016–202610-K1110-Q328-K118

MS filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 118 current reports (8-K) between 2016 and 2026.

  1. Deal closed8-K · Jul ’19Jul ’19
  2. Leadership change8-K · May ’21May ’21
  3. Leadership change8-K · Jun ’25Jun ’25

01—Abstract

Summary

Summary of the 8-K filed January 19, 2024. Cited figures are marked; the original filing is the authoritative source.

Morgan Stanley filed an 8-K report on January 19, 2024, detailing the 2023 compensation for its former CEO and now Executive Chairman, James P.

Gorman. The Compensation Committee determined Mr. Gorman's 2023 compensation at $37 milliona, acknowledging his outstanding performance, particularly in executing CEO succession, transitioning leadership, and resolving legal/regulatory matters. This compensation reflects a target range set at the beginning of the year, with a strong performance outcome.

A significant portion of his bonus is deferred and equity-based, aligning his interests with shareholders over a three-year period. The report also highlights Morgan Stanley's strong 2023 performance under Mr. Gorman's leadership, including a 14% total shareholder return, $54.1 billionb in net revenues, and $9.1 billion in net income.

The shift towards Wealth and Investment Management contributing over 60% of pre-tax profit underscores a more balanced business model. Furthermore, the firm announced an increase in the base salary for the new CEO, Ted Pick, to $1.5 millionc, aligning it with Mr. Gorman's former CEO base salary.

02—Key points

Key Highlights

  1. James P. Gorman's 2023 total compensation set at $37 million, reflecting strong performance and leadership transition.
  2. Significant portion (75%) of Mr. Gorman's bonus is deferred over three years and is equity-based, with 60% performance-vested.
  3. Morgan Stanley reported a 14% total shareholder return for 2023 and $9.1 billion in net income ($5.18 per diluted share).
  4. Wealth and Investment Management businesses now contribute over 60% of the Firm's pre-tax profit, indicating a more balanced revenue mix.
  5. Firm maintained a solid Common Equity Tier 1 Capital Ratio of 15.2% as of December 31, 2023.
  6. New CEO Ted Pick's annual base salary increased to $1.5 million, effective January 1, 2024.

03—Questions

Frequently Asked Questions

  1. What was James P. Gorman's total compensation for 2023?

    James P. Gorman's total compensation for 2023 was set at $37 million. This was determined by the Compensation Committee based on his performance, including the successful CEO succession and transition, and resolution of legal and regulatory matters.

  2. How is Mr. Gorman's compensation structured?

    A significant portion of Mr. Gorman's compensation is structured to align with shareholder interests. 75% of his bonus is deferred over three years and subject to cancellation. Furthermore, 100% of his deferred bonus is delivered in the form of equity awards, and 60% of his bonus is performance-vested equity.

  3. What were the key financial highlights for Morgan Stanley in 2023?

    In 2023, Morgan Stanley achieved a total shareholder return of 14%, reported net revenues of $54.1 billion, and net income of $9.1 billion ($5.18 per diluted share). The Wealth and Investment Management businesses became the primary profit drivers, contributing over 60% of pre-tax profit.

  4. Has the new CEO's salary been announced?

    Yes, the Compensation Committee approved a new annual base salary of $1.5 million for Ted Pick, the new CEO effective January 1, 2024. This salary is intended to align with the base salary Mr. Gorman previously received as CEO.

04—Continue

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