Unlock the Editor’s Digest for free
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
Morgan Stanley’s former chief executive James Gorman will receive $400,000 a year and access to a company car and driver in a new role as an adviser to the Wall Street bank.
Gorman, 66, quit as chief executive at the end of 2023 after leading Morgan Stanley since 2010. He will also step down as chair of Morgan Stanley’s board of directors at the end of this year.
In a filing on Thursday, Morgan Stanley said Gorman would become a “non-employee advisor” starting in January through to the end of 2026.
Gorman, who was paid $37mn for his last year running Morgan Stanley, will earn an annual fee of $400,000 for a scheduled two-year period. He will also have access to a car and driver, continue to receive his current health benefits and be provided with an office and administrative support.
The bank said Gorman would work “with respect to matters in which the company desires to benefit from the experience, expertise and relationships he developed over his 14-year chief executive officer tenure to enhance Morgan Stanley’s business and impact globally”.
The practice of an outgoing CEO receiving perks is not uncommon on Wall Street.
Former Goldman Sachs boss Lloyd Blankfein was made senior chair and had access to a company car and security driver for 12 months after stepping down in 2018. Blankfein however, did not receive any salary or bonus following his departure as CEO and chair, according to regulatory filings.
Morgan Stanley also confirmed that its new chief executive, Ted Pick, would take over as chair of the bank’s board of directors when Gorman leaves the role at the end of this year. Gorman will become chair emeritus.
“I am confident that with Ted’s tremendous leadership Morgan Stanley will continue its strong trajectory to even greater heights and new successes in the years ahead,” Gorman said in a statement.
Starting from next year, Gorman will also start as chair of Disney’s board and is playing a crucial role in deciding on the successor to current chief executive Bob Iger.
Read the full article here