Morgan Stanley CEO Takes Pay Cut, Firm To Spend $500m on Technology

James Gorman Pic

Morgan Stanley gave Chairman and Chief Executive Officer James Gorman a compensation package for 2012 that’s 30% less than his 2011 award, excluding a new incentive package, a person familiar with the decision said.

Bloomberg reports that Gorman, 54, will get stock options valued at $2.6m, according to a filing Thursday with the U.S. Securities and Exchange Commission. He also will receive a $2.6m deferred cash bonus in addition to his $800,000 salary, said the person, who asked not to be identified because Gorman’s total pay hasn’t been announced. That totals $6m, down from $8.56m on a comparable basis for 2011.

The news organisation also reports that Morgan Stanley will spend $500m to improve computer systems after flaws in a previous upgrade frustrated the staff.

Investments in technology will be made over the next 18 months, according to a memo from Greg Fleming, 49, head of its brokerage unit, that was dated yesterday and obtained by Bloomberg News. Brokers complained about glitches and more cumbersome processes last year after New York-based Morgan Stanley switched to a single system for its Smith Barney joint venture with Citigroup Inc.

'For us to be the best wealth-management firm for our advisers and clients, we must have the best platform', Fleming wrote. 'We will not stop until we have achieved this'.

Morgan Stanley CEO Pay Said to Decline 30% Excluding New Award

Morgan Stanley to Spend $500 Million on Technology

Bank Workers CharityBank Workers Charity - Supporting bank workers

Register for Financial Markets News Alerts