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Former Morgan Stanley CEO James Gorman will receive $400,000 a year and access to a company car and driver in a new position as an adviser to the Wall Street bank.
Gorman, 66, stepped down as CEO at the end of 2023 after leading Morgan Stanley since 2010. He will also step down as chairman of Morgan Stanley’s board of directors at the end of this year.
In a filing Thursday, Morgan Stanley said Gorman would become a “non-employee advisor” from January through the end of 2026.
Gorman, who was paid $37 million during his final year at the helm of Morgan Stanley will earn him an annual fee of $400,000 over a scheduled two-year period. You will also have access to a car and driver, continue to receive your current health benefits, and have an office and administrative support.
The bank said Gorman would work “on matters where the company wants to benefit from the experience, knowledge and relationships he developed during his 14 years as CEO to enhance Morgan Stanley’s business and its global impact.”
The practice of an outgoing CEO receiving benefits is not uncommon on Wall Street.
Former Goldman Sachs boss Lloyd Blankfein was named senior president and had access to a company vehicle and a security driver for 12 months after resigning in 2018. However, Blankfein did not receive any salary or bonus following his departure as CEO and president, according to the regulator. filings.
Morgan Stanley also confirmed that its new CEO, Ted Pick, will take over as chairman of the bank’s board when Gorman steps down later this year. Gorman will become president 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 to come,” Gorman said in a statement.
Starting next year, Gorman will also begin as chairman of Disney’s board of directors and is playing a crucial role in deciding who will succeed current CEO Bob Iger.