Morgan Stanley Awards $20 Million Bonuses to Incoming CEO Ted Pick and Rival Candidates Saperstein, Simkowitz

Bonuses, comprising 60% performance stock units and 40% restricted stock units that vest in 2027, aim to retain key leadership and are pegged to the company's future financial goals amid incoming CEO transition; Pick, Saperstein, and Simkowitz will all assume new roles in Morgan Stanley in 2024.

Morgan Stanley has awarded $20 million bonuses to incoming CEO Ted Pick and rival candidates Andy Saperstein and Dan Simkowitz. The equity-based awards are designed to reinforce accountability for the company's future financial goals, vesting in performance stock units and restricted stock units in 2027.
The awards were granted in acknowledgment of the Board’s assessment of the importance of each executive's continued leadership in their new roles at the company. Pick will be succeeding CEO James Gorman, who is retiring after 17 years at the company.
Saperstein, who served as co-president and co-head of corporate strategy, will become head of wealth and investment management in 2024. While Simkowitz, who was head of investment management and co-head of corporate strategy, was named the company's co-president and head of institutional securities.
The bonuses come with stringent performance requirements. Each award consists of 60% performance stock units over a period of 2024 to 2026 and 40% restricted stock units that vest in 2027.
Pick's appointment as CEO forms part of a unique Wall Street event in which his rivals for the position, Saperstein and Simkowitz, did not leave the bank but instead were promoted. This move has been seen as a strategy by Morgan Stanley to retain key leadership during the transition.