Morgan Stanley shares close lower on Friday, CEO Gorman’s total compensation rises 20% in 2017

April 9, 2018 11:05 am

According to a filing released by Morgan Stanley on Friday, the total compensation for the group’s Chief Executive Officer James Gorman increased 20% to $27 million in 2017, as the bank’s net revenue grew 10% and pre-tax profit margin went up 18% during the same period.

Morgan Stanley shares closed lower for the second time in the past six trading sessions on Friday. It has also been the steepest daily loss since March 23rd. The stock went down 3.32% ($1.82) to $53.04, with the intraday high and the intraday low being at $54.52 and $52.49 respectively.

In the week ended on April 8th the shares of the financial holding company lost 1.70% of their market value compared to a week ago, which marked the third drop out of four weeks.

In comparison, Jamie Dimon, CEO of JP Morgan Chase, received as much as $29.5 million in overall pay in 2017, while Michael Corbat, CEO of Citigroup, was paid a total of $23 million.

James Gorman’s total pay encompasses a base salary of $1.5 million, $5.6 million in cash bonuses awarded in early 2018, $7.2 million in deferred cash and equity awards as well as $12.8 million in the form of a long-term performance-based incentive plan.

According to Reuters, the ratio between the total compensation for Morgan Stanley’s CEO and the median annual total pay for all other employees of the bank was reported at 192 to 1. Last year the median compensation for Morgan Stanley’s employees was $127 863.

According to CNN Money, the 26 analysts, offering 12-month forecasts regarding Morgan Stanley’s stock price, have a median target of $60.50, with a high estimate of $72.00 and a low estimate of $40.00. The median estimate is a 14.06% surge compared to the closing price of $53.04 on April 6th.

The same media also reported that 16 out of 29 surveyed investment analysts had rated Morgan Stanley’s stock as “Buy”, while 9 – as “Hold”. On the other hand, 1 analyst had recommended selling the stock.

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