Morgan Stanley shareholders should vote against its proposal for executive pay at the bank’s annual meeting on May 23, according to a recommendation by influential proxy adviser Glass Lewis.
Former CEO James Gorman, who is now executive chairman, was awarded $37 million by the company’s board, while his successor Ted Pick and two other CEO candidates were given $20 million one-time awards.
“The company paid significantly more than its peers, but performed worse,” Glass Lewis wrote in a report, citing its compensation models. “The misalignment between pay and performance alignment is indicative of a costly CEO transition.”
Morgan Stanley declined to comment.
Last week, Bank of America (BAC.N), opens new tab and Goldman Sachs (GS.N), opens new tab shareholders rejected proposals to divide the CEO and chairman roles at both banks, despite recommendations by proxy advisers to separate the positions. BofA CEO Brian Moynihan and Goldman CEO David Solomon both hold the dual titles.
Glass Lewis had also called for an advisory vote against Goldman’s executive pay, saying shareholders “should be wary of the continued disconnect between pay and performance.”
Shareholders voted to approve Goldman’s compensation plan.