NEW YORK: Morgan Stanley Executive James Gorman is receiving $27 million in total compensation in 2019, nearly seven per cent less than what he got the year before, the company said in a filing on Friday, following a reduction of bonuses staff-wide.

The board, which decides the top executives’ pay, called the 61-year-old’s performance in the year “outstanding” and acknowledged “the firm’s strong financial performance.” The bank’s reported profit jumped 46pc to $2.09 billion in 2019 compared to 2018.

That kind of out-performance would typically result in the board giving the CEO a big raise. However, a source familiar with the board’s thinking said members also considered the bank’s recent disclosure that it would cut staff and discretionary compensation as it aimed to further reduce expenses.

In the bank’s fourth quarter earnings it said it was lowering 2019 bonuses staff-wide in an effort to offset a 7pc increase in other compensation expenses.

Published in Dawn, January 19th, 2020