Jamie Dimon’s not the only top dog on Wall Street chewing on a smaller bonus bone.
Morgan Stanley Chief Executive James Gorman is also staring at a 30 percent pay cut for his work last year compared to 2011.
Although that stings, it’s not as bad as the 50 percent hit JPMorgan Chase’s Dimon took in the wake of the bank’s embarrassing $6.2 billion “London Whale” trading flub.
Gorman’s pay package is about $6 million, including $2.6 million in deferred cash, an equal mount in deferred stock awards and an $ 800,000 salary, according to regulatory filings. That’s down from 2011, when he received the same base salary but $2.7 million in deferred cash and $5 million in stock options.
While Dimon’s $11.5 million pay package still tops Gorman’s, it’s roughly half the $23.1 million he took home for 2011.
Dimon’s play was slashed despite the bank’s record profit in the latest quarter. JPMorgan’s profit of $5.7 billion in the fourth quarter soared 53 percent from the year-earlier period.
Like Dimon, Gorman is looking at a lighter wallet even as his bank is ringing up better results.
His strategy of pinning the bank’s success to its wealth management division over its historically more volatile trading operations is starting to pay off. In the latest quarter, Morgan Stanley swung to a profit of $507 million, or 25 cents a share, compared with a loss a year earlier.
To be sure, Gorman’s total compensation for 2012 — including performance incentives — could end up higher, if he meets certain return and share price hurdles.
For 2011, such performance awards totaled nearly $2 million in stock tied to specific performance targets. He stands to receive between $2 million and $4 million in such incentive awards this year.
A Morgan Stanley spokesman declined to comment.
The bank is currently reducing its headcount in an effort to cut some $1.6 billion in costs.