Morgan Stanley’s soon-to-be chief govt Ted Decide and his two prime lieutenants have been granted restricted inventory items that would internet them tens of thousands and thousands of {dollars} every in reference to their new roles.
Morgan Stanley stated the items, introduced in an SEC submitting on Friday afternoon, have been awarded in equal quantities to the three executives: Decide, Andy Saperstein and Dan Simkowitz. Every package deal was price $20mn on the time of the grant, however the last worth will likely be decided by the efficiency of Morgan Stanley’s inventory worth over the following three years. The one-time grants is not going to totally vest till 2027.
Earlier this week, Morgan Stanley announced that Decide will take over because the agency’s chief govt subsequent yr, changing James Gorman, who had held the highest job on the financial institution for practically 14 years. Gorman will then turn into govt chair.
Gorman’s announcement on the Morgan Stanley annual assembly earlier this yr that he would retire kicked off a uncommon public run-off for one of the crucial coveted jobs on Wall Road. Saperstein and Simkowitz have been additionally within the working for the highest job however have been as an alternative given different senior roles.
It’s normal pay observe for a newly named CEO of a Wall Road agency to get a big inventory grant as they step into the function. It’s much less typical, nonetheless, to see related awards to different executives. In 2021, for example, David Solomon, who turned CEO of Goldman Sachs in 2018, bought a $30mn inventory grant. Goldman’s second-highest rating govt, John Waldron, acquired $20mn on the similar time.
That very same yr, JPMorgan Chase granted its chief govt Jamie Dimon a “particular award” of 1.5mn share choices that have been on the time projected to be price $49.5mn after 10 years. On Friday, JPMorgan announced that Dimon would money in as many as 1mn shares within the subsequent yr, which on the financial institution’s present inventory worth can be price $140mn.
Gorman, Morgan Stanley’s outgoing chief govt, has sought at hand over the agency to its subsequent technology of executives with out the back-stabbing that govt transitions usually entail. Earlier than this week’s announcement, Gorman had praised all three executives and expressed hopes that all of them would stick with the agency, regardless of who was named as his successor.
This story has been amended to make clear that the executives have been granted restricted inventory items moderately than choices