Morgan Stanley gives new CEO Ted Pick, 2 executives $20 million bonuses By Reuters

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<span>© Reuters. FILE PHOTO: A screen displays the trading information for Morgan Stanley on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., January 19, 2022. REUTERS/Brendan McDermid/File Photo</span><br />
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<p>By Tatiana Bautzer and Manya Saini</p>
<p>(Reuters) -Morgan Stanley gave its incoming CEO Ted Pick and the two other executives considered for the top job one-time bonuses of $20 million each, the bank said in a filing on Friday.</p>
<p>The performance-linked stock awards for Pick, Co-President Andy Saperstein and incoming Co-President Dan Simkowitz were based on fair value calculations of the bank&#8217;s current stock price. The bonuses vest in 2027.</p>
<p>Earlier this week, Pick won the race to succeed long-time CEO James Gorman on Jan. 1. He promised to stick to the blue-chip Wall Street firm&#8217;s strategy as it navigates a deal-making slump and uncertain economic outlook.</p>
<p>Pick, 54, leads Morgan Stanley&#8217;s institutional securities unit, which houses its powerhouse investment banking and trading operations. The three-decade Morgan Stanley veteran started his career at the bank and came up the ranks to run trading, equity capital markets and fixed income.</p>
<p>Saperstein, 56, will oversee wealth and investment management on Jan. 1. Simkowitz, 57, will assume institutional securities from Pick after previously leading investment management.</p>
<p>It is unusual for Wall Street CEO candidates to stay on if they are not selected, and the bonuses offered at Morgan Stanley break from that tradition.</p>
<p>Pick described Saperstein and Simkowitz as &#8220;terrific friends,&#8221; in an interview with Reuters, while outgoing CEO Gorman praised the three executives.</p>
<p>&#8220;CEO changes don&#8217;t occur in a vacuum, and there is the chance for other management changes and/or turnover,&#8221; Wells Fargo Mike Mayo wrote in a note this week.</p>
<p>Gorman will become executive chairman and may stay up to a year to help with Pick&#8217;s transition.</p>
<p>Gorman was named CEO in January 2010 at the same time as his counterpart Brian Moynihan at Bank of America. Both executives, along with JPMorgan Chase (NYSE:) Jamie Dimon, have led their respective firms through the wreckage of the financial crisis. Since becoming CEO in 2010, Gorman has transformed Morgan Stanley, creating a wealth management behemoth and making transformative acquisitions of broker E*Trade and asset manager <span itemscope="" itemtype="http://schema.org/Corporation"><span itemprop="name"> Eaton </span></span> (NYSE:) Vance.</p>
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