Title: Morgan Stanley Executives Receive Lucrative Stock Units as CEO Transition Nears
Subtitle: Ted Pick and Top Lieutenants at Morgan Stanley Awarded Potentially Lucrative Stock Units
Date: [Current Date]
Morgan Stanley, one of the leading investment banks, revealed that its soon-to-be CEO, Ted Pick, along with his two top lieutenants, Andy Saperstein and Dan Simkowitz, were granted restricted stock units (RSUs) in connection with their upcoming roles. These RSUs have the potential to yield tens of millions of dollars for each executive.
The announcement was made in an SEC filing on Friday afternoon, stating that each executive received an equal amount of the RSUs, with a package initially valued at $20 million. However, the final worth of these RSUs will depend on the performance of Morgan Stanley’s stock price over the next three years. The grants are set to fully vest by 2027.
Earlier this week, Morgan Stanley disclosed that Ted Pick would assume the position of chief executive officer in the coming year, taking over from James Gorman, who had held the position for nearly 14 years. Gorman, upon stepping down, will transition into the role of executive chair.
The race to succeed Gorman as CEO triggered a notable public competition among high-level executives at Morgan Stanley. Saperstein and Simkowitz were among the contenders for the top job but were ultimately offered alternative senior positions within the firm.
It is customary for newly appointed Wall Street CEOs to receive substantial stock grants as they assume their positions. However, it is less common to see similar awards granted to other executives. In 2021, David Solomon, who became the CEO of Goldman Sachs in 2018, received a $30 million stock grant, while the second-highest-ranking executive at Goldman Sachs, John Waldron, was granted $20 million.
Similarly, JPMorgan Chase awarded its CEO Jamie Dimon a “special award” of 1.5 million share options, projected at the time to be valued at $49.5 million after a decade. Recently, JPMorgan announced that Dimon intends to sell up to 1 million shares in the following year, which would be worth around $140 million based on the current stock price.
James Gorman, the outgoing CEO of Morgan Stanley, has taken steps to ensure a smooth transition of leadership within the firm. Prior to this week’s announcement, Gorman expressed his admiration for all three executives and his desire for them to remain with the company, regardless of his successor.
Please note that an amendment to the story has been made to clarify that the awarded grants were restricted stock units, not stock options.
Overall, the generous stock grants to Morgan Stanley’s top executives highlight the competitive nature of Wall Street’s leadership landscape and the significance of attracting and retaining top talent in the financial industry.