FORTUNE - Morgan Stanley CEO James Gorman is now a $6 million man. On Wall Street, that size check ain't considered bionic.
According to people familiar with the firm's plans, Morgan Stanley's board decided to cut Gorman's total compensation for 2012 by 30% from the year before. It was the second year in a row Gorman received a pay cut. He made $14 million in 2010. Overall, compensation at Morgan Stanley fell 4% to an average pay of nearly $274,000 per employee.
On top of a base salary of $800,000, Morgan Stanley (MS) will pay Gorman a $2.6 million differed cash bonus. He will also get a stock award of $2.6 million for the year. Like Gorman, none of Morgan Stanley's top executives will receive immediate cash bonuses.
Morgan Stanley, like other financial firms, reveals options grants in regulatory filings, but does not officially disclose the full compensation of its top executives for the prior year until it files its proxy statement, which usually happens in April. A spokesperson for Morgan Stanley declined to comment.
Nonetheless, the pay figures for a number of Wall Street's top executives have started to leak out. Gorman's pay is the lowest so far. Goldman Sachs (GS) CEO Lloyd Blankfein is expected to have made $21 million for 2012, a 75% pay increase from the year before. James Dimon, the CEO of JPMorgan Chase (JPM), had his pay cut 50% to $11.5 million after the board said he was partly to blame for the firm's $6 billion trading loss in credit derivatives for the year.
The pay cut comes as another blow for Gorman, who has been working to put Morgan Stanley on more sound footing after the firm was nearly wiped out by the financial crisis. Gorman has greatly expanded the firm's asset management operations with the acquisition of Citigroup's Salomon Smith Barney brokerage division. But the acquisition has yet to pay dividends. Morgan Stanley's return on equity, a key measure of a bank's profitability, remains much lower than rivals. And activist shareholder Dan Loeb, who recently took a stake in Morgan Stanley, said he believes compensation is still too high at the firm.
Nonetheless, Morgan Stanley recently showed signs that the firm was turning the corner. In the last three months of 2012, the firm earned $900 million, after one-time charges and other adjustments. That was up from a loss of $400 million in the same period a year before. Investors cheered the better-than-expected earnings, pushing the stock up more than 5% on the day of the earnings announcement.
Pay is down at Goldman Sachs, but Blankfein still gets $5 million in cash for 2011.
FORTUNE - It's still good to be the king on Wall Street, just less so.
On Friday, Goldman Sachs (GS) said it paid its top five executives 35% less than it did a year ago. The company cut CEO Lloyd Blankfein's pay to $12 million for 2011 from $18 million a year ago.
That knocks Blankfein considerably MOREStephen Gandel, senior editor - Apr 13, 2012 10:02 AM ET
JPMorgan's Jamie Dimon says 2011 was a good year, but that "contrived" banking regulations are slowing the U.S.'s economic recovery.
FORTUNE -- Jamie Dimon is still Wall Street's top dog.
JPMorgan Chase (JPM) disclosed on Wednesday afternoon that it paid its CEO $23 million in 2011. That was the same as last year, but it handily made Dimon, for the second year in a row, the best paid CEO in banking in MOREStephen Gandel, senior editor - Apr 4, 2012 6:30 PM ET
Who says there isn't money to be made in traditional banking?
FORTUNE -- Wells Fargo (WFC) said in a filing on Thursday that it paid its CEO John Stumpf nearly $17.9 million in 2011. That was up $800,000 from the year before, and it was more than Citigroup (C) paid its CEO Vikram Pandit, who got $14.9 million in 2011. The other banks have yet to officially announce their executive compensation. MOREStephen Gandel, senior editor - Mar 15, 2012 5:09 PM ET
Four more years! Four more years!
That's what Citigroup's (C) board was inexplicably chanting this week as it signed up for another term under Vikram Pandit, the CEO whose signal accomplishments include repaying a giant government bailout and executing a reverse stock split that rescued Citi from penny stock purgatory.
That's not much of a record, but Citi is grateful anyway. It signed Pandit to a deal that will hand him more than $20 MOREColin Barr - May 19, 2011 10:19 AM ET
Let's say you're a giant bank with an extra 400 grand lying around. What to do with it?
You could pay six workers the median family income in your home state of New York, perhaps. Or you could pick up the moving expenses for your CEO, who made $20.8 million last year and $58 million over the past three – not counting the $2 million he just cleared on the sale MOREColin Barr - Apr 8, 2011 12:10 PM ET
Give Transocean this: It never runs out of ways to make itself look shabby.
The Swiss-based oil driller tried to clean up a major public relations mess, announcing Tuesday that its five top execs will give back a fraction of the bonuses they undeservingly received for last year. Transocean (RIG) put the fool in April Fool's Day last week by awarding the five $898,282 in bonuses in recognition of the "best year in safety MOREColin Barr - Apr 6, 2011 5:49 AM ET
Goldman Sachs didn't have its best year, but CEO Lloyd Blankfein still managed to walk away with $18.6 million.
Blankfein and each of his top four lieutenants made that sum last year, Goldman (GS) said in its annual proxy statement filed Friday afternoon. Each man received $600,000 in salary, a $5.4 million cash bonus and $12.6 million in restricted stock that can't be sold immediately.
That compares with $9.6 million in salary MOREColin Barr - Apr 1, 2011 5:14 PM ET
NYSE chief Duncan Niederauer and his top aides could soon be crying all the way to the bank.
Niederauer (right) will walk away with $34 million in change-of-control payments should the Nasdaq (NDAQ) and the Intercontinental Exchange (ICE) succeed in wresting Niederauer's NYSE Group (NYX) from the arms of its chosen suitor, Germany's Deutsche Boerse.
His top five lieutenants will make $61 million if they depart under a Nasdaq takeover – including MOREColin Barr - Apr 1, 2011 11:00 AM ET
Tuesday's $10 billion merger will mean big bucks for some top stock exchange executives – even ones who don't join the new company.
Frankfurt's Deutsche Boerse said Tuesday it will take over the NYSE's parent, NYSE Euronext (NYX), creating the biggest global stock and derivatives trading platform. The deal also stands to make some top NYSE execs rich as they cash in on provisions in their employment contracts that pay out MOREColin Barr - Feb 15, 2011 11:58 AM ET
|McDonald's gives Charles Ramsey free food for a year|
|4 federal agencies to shut Friday|
|Obamacare premiums in California lower than predicted|
|Mailbox comes to the iPad|
|Chrysler jabs Tesla over loan repayment|