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Morgan Stanley CEO could get $8.1 million stock bonus
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Morgan Stanley CEO could get $8.1 million stock bonus
NEW YORK (Reuters) - Morgan Stanley Chief Executive James Gorman could get a stock bonus for 2009 valued at $8.1 million if he meets performance requirements, the company said in a regulatory filing on Friday.

Morgan Stanley said it paid a total of $14.4 billion in compensation to all of its employees for 2009, despite reporting a loss on Wednesday. Wall Street has been criticized for returning to outsized bonuses so soon after U.S. taxpayers had to rescue the banking industry.

John Mack, who stepped down as CEO on January 1, received no year-end bonus for 2009. He retained his title of chairman.

Morgan Stanley is following an industry trend of paying bonuses in equity that must be held for a number of years. Regulators have been pushing Wall Street to come up with compensation plans that tie pay to long-term performance to reduce excessive risk.

Gorman's bonus is broken into three parts.

His base stock bonus is deferred shares valued at $5.4 million. He will receive additional shares valued $2.7 million if the bank meets certain performance targets. A third part of the bonus, which has not yet been announced, will be tied to a clawback provision.

The stock is valued at $27.80, Morgan Stanley's closing price on Friday.

Gorman received no cash bonus, while members of Morgan Stanley's operating committee received about 75 percent of their year-end pay in shares that must be held, according to the filing. Gorman also received no bonus for 2008.

Other Morgan Stanley executives are also expected to receive substantial stock bonuses for 2009. The bonuses have the same breakdown as Gorman's bonus, but could include an additional cash component.

Walid Chammah, chairman of Morgan Stanley International, could receive a stock bonus of $6.26 million and Ruth Porat, who was recently named chief financial officer, could receive $5.26 million, the filing said.

Colm Kelleher, co-president of Morgan Stanley Institutional Securities and former chief financial officer, could receive $5.12 million.

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