Morgan Stanley has awarded performance-related bonuses totaling $20 million to its new CEO and co-presidents, a move that comes amid a downturn in dealmaking and economic uncertainty. The bonuses are linked to the bank’s share price and become unconditional in 2027.
Ted Pick, the new CEO, and Andy Saperstein and Dan Simkowitz, the future co-presidents, are the recipients of these bonuses. Pick, a Morgan Stanley veteran with three decades of experience in trading, equity capital markets and fixed income, will replace longtime CEO James Gorman.
Gorman, who will transition to the role of executive chairman to support Pick in his new role, is credited with transforming Morgan Stanley into an asset management giant. Under his leadership, the company made important acquisitions such as E*Trade and Eaton (NYSE:) Vance.
Effective January 1, Saperstein will manage assets and investments, while Simkowitz will lead equity capital markets and fixed income. This comes as part of a wider reshuffle at the bank’s top leadership as it navigates the challenging economic environment.
Pick’s commitment to maintaining Morgan Stanley’s blue chip strategy is expected to guide his leadership as he steps into his new role. His tenure will be closely watched by stakeholders as he takes over from Gorman, who left a significant legacy at the bank.
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