Morgan Stanley chief executive officer James Gorman received lower compensation for 2012 after profits declined but the bank showed progress in reshaping its businesses.
Mr. Gorman received $6-million (U.S.) in total compensation for 2012, including $800,000 in salary, $2.6-million in deferred cash and $2.6-million in stock options, a person familiar with the matter said on Thursday. He did not receive a cash bonus.
Mr. Gorman made $8.56-million for 2011, when counting salary, deferred cash and restricted stock grants.
Morgan Stanley's board also plans to award Mr. Gorman an undetermined amount of long-term incentive pay for 2012, the source said. But he will still make less than the $10.5-million total he made in 2011, when counting $1.9-million in long-term incentive pay, the source said.
The bank on Thursday disclosed stock option awards for top executives in filings with the U.S. Securities and Exchange Commission. The rest of the executives' pay will be disclosed later in the company's annual proxy filing.
For all of 2012, Morgan Stanley reported a loss for shareholders from continuing operations of $50-million, down from a $2.1-billion profit in 2011, when including accounting charges related to changes in the value of the bank's debt. Excluding those charges, the bank made $3.1-billion in 2012, up from a loss of $136-million in 2011.
Morgan Stanley's fourth-quarter earnings on Friday beat analysts' estimate by a wide margin, and Mr. Gorman proclaimed the bank had turned itself around and can meet its profitability goals.