Morgan Stanley CEO Takes the Top Spot as the World's Highest Earner
James Gorman Secures Top Position with a Staggering $37 Million Salary
Morgan Stanley's former CEO, James Gorman, has claimed the pinnacle among the world's highest-earning executives with a substantial salary of $37 million earned last year. The banking giant recently announced an impressive 17% increase in Gorman's salary for 2023, up from $31.5 million in 2022.
“This figure represents the highest-ever salary paid to a bank CEO in the United States.”
It is an unprecedented feat for a U.S. banking executive and surpasses the anticipated $36 million salary expected for JPMorgan CEO, Jamie Dimon, in 2023. As of January, Gorman assumed the position of Chairman of the Board while handing over the CEO mantle to Ted Pick.
Performance-Based Compensation Plan
Gorman's performance bonuses were paid three-quarters in equity and the remaining amount was deferred for three years. The compensation committee at Morgan Stanley stated that the increase in Gorman's salary was linked to the 14% total shareholder return performance in 2023 and the company's valuation growth during his tenure as CEO.
During Gorman's tenure, Morgan Stanley's stock value surged more than triple, skyrocketing from $40 billion to $153 billion. As highlighted in the company's statement, Gorman's 14-year CEO tenure ushered the firm into a stronger and more balanced structure for long-term growth. Despite challenging market conditions, the company exhibited the targeted performance in its business model in 2023.
Gorman has undeniably emerged as one of the world's highest-earning bankers, leaving an indelible mark on the industry.