He Gets $20M Bonus to Be CEO. So Do the Men He Beat

Ted Pick will lead Morgan Stanley, and two runners-up receive big consolation prizes
By John Johnson,  Newser Staff
Posted Oct 30, 2023 6:05 PM CDT
He Gets $20M Bonus to Be CEO. So Do the Men He Beat
This undated image provided Morgan Stanley shows bank veteran Ted Pick, who will succeed Morgan Stanley's longtime CEO James Gorman effective Jan. 1.   (Larry Lettera/Morgan Stanley via AP Photo)

Congratulations, Ted Pick. Not only have you been picked by Morgan Stanley to be the next CEO, you're getting a $20 million bonus. As it turns out, so are the two men Pick beat out for the job, reports Insider. Morgan Stanley announced last week that Pick will be promoted from his role as leader of the bank's Institutional Securities Group to replace outgoing CEO James Gorman in January. In a subsequent filing, Morgan Stanley said it would dole out the big bonus not only to Pick but to Dan Simkowitz and Andy Saperstein, the other contenders for the job.

Both are getting promotions along with the fat bonuses. As Reuters notes, it's not uncommon for execs in their position to leave if they are not selected for the top job, and the bonuses are a way to prevent that from happening. They vest in 2027. In its filing, Morgan Stanley said the grants are "in the best interests of the Company and its shareholders" and will help ensure "that each executive continues their outstanding leadership in their new roles." (More Morgan Stanley stories.)

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