Bloomberg News: Morgan Stanley’s Gorman Set to Lose $2.9 Million in Pay
By Michael J. Moore
Gorman, 54, probably will forfeit so-called performance- based stock units awarded in 2009 that required the New York- based firm earn a 12 percent average return on equity (MS) and have shareholder gains ranking in the top half of a 10-company group during his first three years as CEO. He could have earned shares worth almost $6 million if he exceeded those goals.
The macroeconomic environment has probably been worse than the bank anticipated when it set the goals, said Joseph Sorrentino, a managing director at Steven Hall & Partners, a compensation-consulting firm in New York. Still, given the public scrutiny surrounding Wall Street pay, the company must stick to targets, he said.
“If you’re talking about senior executives, modifying those goals after the fact in today’s environment is just not possible,” Sorrentino said.