Morgan Stanley Shareholders Approve CEO Pay After Bonus Cut
“Morgan Stanley shareholders backed the bank’s executive-compensation package after the board cut Chief Executive Officer James Gorman’s pay by 7 percent and deferred bonuses for top managers,” reports Business Week (May 14, Moore). Gorman’s compensation decreased to $9.75 million for last year and was 40 percent below target based on the firm’s performance. According to the publication, “ISS Proxy Services USA on April 30 said Gorman’s pay cut was aligned with performance and advised voting for the proposal.” In a non-binding resolution, investors voted about 86 percent in favor of the policy versus nearly 95 percent a year ago. Additionally, they elected the bank’s 14 board members, including new director and former Thomson Reuters Corp. CEO Thomas Glocer.