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Morgan Stanley (NYSE:MS) has announced the 2024 compensation for its Chief Executive Officer, Edward Pick, who also became Chairman of the Board as of January 1, 2025. The Compensation Committee, in consultation with the Board of Directors, has set Mr. Pick’s total compensation at $34 million, based on the firm’s record financial performance and successful leadership transition. The announcement comes as Morgan Stanley, currently valued at $220.7 billion, maintains its position as a prominent player in the Capital Markets industry.
Under Mr. Pick’s leadership in 2024, Morgan Stanley saw net revenues reach a record $61.8 billion, a 14% increase from the previous year, with net income applicable to the firm at approximately $13.4 billion, and earnings per share of $7.95. Pre-tax profit was reported at $17.6 billion, marking an approximately 49% increase year-over-year. The firm also achieved a return on tangible common equity (ROTCE) of 18.8% and an efficiency ratio of 71%. According to InvestingPro analysis, the company’s strong performance is reflected in its impressive 68.7% total return over the past year, with the stock trading near its 52-week high of $142.03.
The firm’s standardized Common Equity Tier 1 Capital Ratio stood at 15.9% at the end of 2024, after accruing $5.6 billion of Common Equity Tier 1 Capital during the year. Additionally, the quarterly dividend was increased to $0.925, with total dividends paid in 2024 amounting to $5.7 billion. Morgan Stanley’s market cap surpassed $200 billion, with a total shareholder return of 40%. The company has maintained dividend payments for 33 consecutive years and raised its dividend for 11 straight years, demonstrating strong commitment to shareholder returns. For deeper insights into Morgan Stanley’s financial health and valuation metrics, including exclusive Fair Value analysis and comprehensive research reports, visit InvestingPro.
Seventy-five percent of Mr. Pick’s bonus is deferred over three years and subject to cancellation, with all of his deferred bonus awarded in equity, aligning his interests with those of shareholders. Sixty percent of his bonus is delivered in performance-vested equity. Further details on the firm’s incentive compensation programs and governance will be available in the proxy statement for the 2025 annual meeting of stockholders, expected to be filed with the Securities and Exchange Commission in April 2025. The company currently trades at a P/E ratio of 17.1x, which appears reasonable given its strong financial performance and market position. Based on InvestingPro’s Fair Value analysis, the stock is currently trading at Fair Value.
The information on the firm’s financial metrics includes non-GAAP financial measures, with reconciliations to U.S. GAAP figures provided in Morgan Stanley’s Current Report on Form 8-K dated January 16, 2025. This news is based on a press release statement from Morgan Stanley.
In other recent news, Morgan Stanley is planning to expand its X Holdings Corp. debt offering due to robust investor demand, as reported by Bloomberg. This decision follows the bank’s successful marketing of a $3 billion portion of the debt. In other developments, the Federal Reserve has decided to end climate stress tests for major US banks, including Morgan Stanley, relieving them from submitting data for the Climate Scenario Analysis Exercise this year.
Analysts have recently adjusted their outlooks on Morgan Stanley’s stock. RBC Capital Markets raised the price target from $122 to $142, citing the bank’s stronger-than-expected net interest income and noninterest income in the fourth quarter. Keefe, Bruyette & Woods also increased their price target for Morgan Stanley to $145 from $138, following the bank’s strong quarterly performance. Daniel Fannon from Jefferies raised the price target to $151 from $144, highlighting the robust performance of Morgan Stanley’s Institutional Securities Group and stable-to-growing deposit levels in wealth management.
These recent developments reflect the evolving dynamics in the financial sector and the strategic moves made by Morgan Stanley in response to investor demand and market conditions.
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