Industry News

MSSB boss pulled down $10M in 2010

Fleming's comp package included $1.4M in cash, and nearly $4M in deferred cash; took over at brokerage in January

Morgan Stanley’s James Gorman received a $14 million compensation package for his first year as chief executive officer, less than the $15 million he was awarded for 2009, as the firm missed profit goals.

Gorman, 52, got a $1.55 million cash bonus, his first since at least 2007, according to a proxy filing yesterday by the New York-based firm. He also received a deferred cash bonus of $2.33 million that can be clawed back, in addition to his salary, stock, option awards and other compensation. About $1.94 million of Gorman’s $5.82 million in stock compensation is tied to company performance measures.

The package trailed the $23.6 million that JPMorgan Chase & Co. awarded CEO Jamie Dimon, 55, and the $19.1 million that Goldman Sachs Group Inc. granted CEO Lloyd Blankfein, 56. Morgan Stanley, owner of the world’s largest brokerage, fell 8.1 percent last year, lagging the share performance of those two rivals. The firm posted a $4.7 billion annual profit, the most since 2006.

“We were mindful of the environment and the fact that we did not meet all of our financial performance priorities for the year,” Gorman wrote in a letter to shareholders yesterday. “That is why my own compensation as CEO was down from last year.”

Meanwhile, the head of brokerage Morgan Stanley Smith Barney raked in an eight-digit compensation package for the year. Greg Fleming, 48, who joined the firm last year as head of asset management and now also oversees the retail-brokerage unit, got a $10 million package. That included a $1.4 million cash bonus, $4 million in stock and options, $3.9 million in deferred cash and at-risk stock, and a $671,918 salary.

Fleming previously served as president and chief operating officer at Morgan Stanley rival Merrill Lynch & Co.. He was tabbed in January to replace Charles Johnston as president of MSSB.

Less stock, more cash
Gorman received a lower stock award and less deferred cash than last year, and was awarded a cash bonus and $3.5 million in options after receiving neither last year.

Gorman, who was co-president of the firm before taking the top job, declined a bonus for 2008, when Morgan Stanley converted to a bank holding company and accepted a $10 billion government bailout. The company repaid the taxpayer funds in June 2009.

Chairman John Mack was not listed among the bank’s named executive officers. He received restricted shares valued at $2 million, according to a filing in January. Mack declined a bonus for 2007, 2008 and 2009, his final years as CEO.

Ruth Porat, 53, the firm’s chief financial officer, received $11.5 million in total compensation for 2010. The package included a $1.48 million cash bonus, $5.2 million in stock and options, $4.07 million in deferred cash and at-risk stock, and $756,100 in salary and other benefits.

Walid Chammah, 57, chairman of Morgan Stanley International, received $10.6 million in total compensation for last year. The package included a $1.74 million cash bonus, $2.61 million in stock awards, $4.34 million in deferred cash and at-risk stock, and $1.95 million in salary and other benefits.

Thomas Nides, 50, who left the firm after being confirmed in December as U.S. deputy secretary of state for management and resources, received total compensation of $9.1 million for 2010.

–Bloomberg News