New York, February 13, 2026, 15:33 (EST)
Morgan Stanley bumped CEO Edward “Ted” Pick’s total pay to $45 million for 2025, up from the $34 million he got for 2024, according to a Wednesday filing. About 75% of that package is deferred across three years, tied to hitting performance targets. (Investing.com)
The award arrives just as major U.S. banks are pushing CEO compensation into what industry consultants now call the $40 million club—a trend fueled by a strong year and boards tracking each other. “Now they’re all in the $40 million range,” said Shaun Bisman, partner at Compensation Advisory Partners. Bisman noted those same four CEOs’ 2024 pay packages landed between $31 million and $39 million. “Boards may be feeling pressure to offer competitive pay packages,” he said. (American Banker)
The compensation committee at Morgan Stanley pointed to “exceptional results” and Pick’s “consistent execution” of the strategy to “raise, manage and allocate capital” as reasons for his pay package. The bank logged record net revenue for 2025 at $70.6 billion, jumping roughly 14%. Net income landed around $16.9 billion, with record earnings per share at $10.21. Total shareholder return, including dividends and share gains, came in at 45%. As for Pick’s bonus, the committee said 75% will be deferred over three years and could be canceled; that chunk is tied up in performance-vested equity awards, meaning the stock only vests if targets are actually hit. The proxy statement with specifics is coming ahead of the 2026 annual meeting, expected in April.
Pick’s $45 million award ranks among the highest on Wall Street, just above JPMorgan’s $43 million for Jamie Dimon and just below Goldman Sachs’ $47 million for CEO David Solomon. Citigroup, meanwhile, bumped CEO Jane Fraser’s pay to $42 million, citing record revenues and regulatory strides as the big banks brace for what many expect to be a robust year in dealmaking. (Reuters)
The bulk of Pick’s compensation isn’t paid out right away. Instead, deferred awards lock a hefty portion to future years, with payouts contingent on hitting performance goals and where the share price lands.
The filing doesn’t specify how much of Pick’s $45 million compensation came from base salary or incentives, though much of it is tied up in stock and deferred awards. (Entrepreneur)
Pick’s pay tops the $37 million Morgan Stanley handed to James Gorman in 2023, his last year as CEO. (Banking Dive)
Still, heftier payouts can spark backlash. When returns dip, those investor say-on-pay votes can quickly become a rebuke. And big banks? They’ve faced criticism before when executive pay outpaces what shareholders actually get back.
Morgan Stanley’s next hurdle: the spring slate of shareholder meetings. Banks will begin filing annual-meeting documents in the coming weeks, so expect to see additional CEO pay proposals on the table.
