NEW YORK (REUTERS) - Morgan Stanley chief executive James Gorman will get a higher base salary in 2013, while his overall pay package declined 7 per cent last year, according to a regulatory filing on Thursday.
Mr Gorman, who runs the sixth-largest United States (US) bank, will receive a base salary of US$1.5 million ($1.85 million) in 2013, up from US$800,000 the previous year.
Morgan Stanley said the pay bump was granted after a consultation with an independent adviser, for the purpose of bringing Mr Gorman's base salary "in line" with other bank chief executives.
The five chief executives running larger US banks had base salaries in a range of US$950,000 to US$2.8 million.
Morgan Stanley also approved a performance-based award package that makes Mr Gorman eligible to earn US$3.75 million over the next three years, if certain targets are met. In 2009, Gorman got nothing from that package because Morgan Stanley missed its targets for return-on-equity and relative total shareholder returns over the period.
Combined with his bonus and salary, Mr Gorman was granted a total of $9.75 million in compensation, down 7 per cent from the US$10.5 million he was awarded the previous year. Morgan Stanley made the disclosures in an 8-K filing with the US Securities and Exchange Commission.
Mr C Robert Kidder, Morgan Stanley's independent lead director said: "2012 was a transition year for Morgan Stanley, and management, along with much of the organisation, saw reduced compensation. The board is confident of the strategic decisions taken by senior management and our decision to grant these forward-looking (long-term incentive programme) awards reflects that confidence".