Morgan Stanley (MS) announced a 6% pay hike for its CEO and Chairman James P. Gorman for 2021. The global financial services company provides investment banking products and services to its clients.
The total compensation of $35 million consists of a base salary of $1.5 million, a cash bonus of $8.38 million, a deferred equity award of $5.03 million, and a performance-vested equity award of $20.1 million that converts to shares depending on the company’s performance in coming years.
Gorman was awarded the pay hike for delivering outstanding individual performance and record firm financial performance, which includes meeting or exceeding two-year objectives announced in January 2021 and executing the next phase of transformational growth and shareholder value.
Driven by a rise in deal volumes and elevated advisory revenues, Morgan Stanley reported upbeat Q4 results on January 19. For 2021, the bank reported adjusted earnings of $8.22 per share, compared to $6.58 per share in the prior year. Total net revenue grew 23% year-over-year to $59.8 billion.
Stock Rating
Recently, RBC Capital analyst Gerard Cassidy reiterated Hold rating on Morgan Stanley with a price target of $97 (implying 1.9% downside potential).
The rest of the Street is cautiously optimistic about the stock, with a Moderate Buy consensus rating based on 8 Buys and 5 Holds. The average Morgan Stanley price target of $116.09 implies 17.4% upside potential to current levels.
Hedge Fund Trading Activity
TipRanks’ Hedge Fund Trading Activity tool shows that confidence in Morgan Stanley is currently Neutral, as the cumulative change in holdings across all 22 hedge funds that were active in the last quarter was a decrease of 6.8 million shares.
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