Morgan Stanley awards CEO Ted Pick a $34 million compensation package in 2024.
Morgan Stanley CEO Ted Pick's inaugural year as the head of the financial giant saw him receive a total compensation package of $34 million, according to reports[1]. This figure, representing his entire pay package starting from January 2024, encompasses base salary, bonus, and equity components, typical for executives at this level in major financial firms.
The exact breakdown of these elements for 2024 was not explicitly detailed in the sources[1][2][3][4]. However, it is known that Pick's base salary increased to $1.5 million, up from $1 million, while 60% of his bonus was delivered in performance-vested equity[1]. The remaining components, such as the cash bonus and equity components, have not been disclosed.
Pick's compensation package was not the only aspect of his tenure kept under wraps. The details of his 2024 compensation package were not provided in the January 2024 announcement, and the committee overseeing executive pay at Morgan Stanley did not disclose the specifics of the package[1][2].
In the same year, Morgan Stanley's financial performance was impressive. The company's net revenue saw a 14% year-over-year boost, reaching $61.8 billion[1]. The pretax profit surged by 49% year-over-year to $17.6 billion, and the return on tangible common equity stood at 18.8%, further demonstrating the company's strong financial health[1].
The common equity tier 1 capital ratio for the year was 15.9%, and the market cap of the company surpassed $200 billion during the year[1]. The company also raised its quarterly dividend to 92.5 cents per share in 2024[1].
Comparatively, other CEOs in the industry fared similarly. Wells Fargo CEO Charlie Scharf received $31.2 million, while Morgan Stanley's previous CEO, James Gorman, earned more than $37 million[1]. Goldman Sachs CEO David Solomon and JPMorgan Chase CEO Jamie Dimon each received $39 million, and Bank of America CEO Brian Moynihan received $35 million in 2024[1].
Despite the lack of detailed information, the committee cited Pick's "successful completion of the leadership transition" from the Gorman years as a key factor in his remuneration[1]. As of the end of this month, Citi is expected to reveal its 2024 compensation for CEO Jane Fraser[1].
[1] Various sources, including Morgan Stanley's annual report, SEC filings, and financial news outlets.
Financing the impressive growth of Morgan Stanley in 2024, CEO Ted Pick's investing decisions and business acumen likely contributed significantly to the company's financial performance, as his compensation package reflected his status as a top executive in the financial industry.
Despite earning a respectable $34 million in total compensation, the exact breakdown of Pick's base salary, bonus, and equity components remains undisclosed, making it challenging to assess the relationship between his performance and financial reward.
