Morgan Stanley (MS) has granted Chief Executive Officer Ted Pick a compensation package totaling $34 million for 2024, marking his inaugural year at the helm. This decision underscores the firm’s confidence in his leadership and its strong financial performance.
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Since Pick took over as CEO on January 1, 2024, Morgan Stanley’s stock has surged 68%, reflecting investor optimism under his leadership. Adding to the momentum, the bank reported strong Q4 earnings results on January 16, with both revenue and profit exceeding Wall Street estimates. Further, Morgan Stanley reported a 47% jump in annual profits, reaching $13.4 billion in 2024.
Looking back on the year, Pick called FY24 one of the “strongest years in the firm’s history.”
Pick’s Majority Bonus Is Tied to Long-Term Performance
The bank’s regulatory filing reveals that Pick’s $34 million compensation package includes a $1 million base salary, with the remainder tied to performance-based incentives. Notably, 75% of his bonus will be deferred over three years and remains subject to cancellation. Also, his entire deferred bonus will be granted in the form of equity awards, aligning his earnings with shareholder interests.
Morgan Stanley justified the pay package by citing Pick’s “outstanding performance,” the successful leadership transition, and the firm’s exceptional financial results. The compensation committee emphasized that these factors played a crucial role in determining his 2024 earnings.
Wall Street’s Top Bosses See Pay Raises
Morgan Stanley’s decision aligns with a broader trend among major U.S. banks, which have been rewarding their top executives with hefty pay packages. Bank of America (BAC) recently announced a raise for CEO Brian Moynihan, bringing his total compensation to $35 million for 2024. Meanwhile, JPMorgan (JPM) boosted CEO Jamie Dimon’s pay to $39 million, matching Goldman Sachs (GS) CEO David Solomon’s compensation.
These compensation hikes reflect the financial sector’s strong performance and the value placed on leadership stability.
Is MS a Good Stock to Buy?
Overall, Wall Street has a Moderate Buy consensus rating on MS stock, based on five Buys and 10 Holds. The average MS price target of $143.50 implies almost 5% upside from current levels.
