Proxy shareholder advisor Glass Lewis has urged Morgan Stanley (NYSE:MS) shareholders to vote against an executive pay proposal at the next annual general meeting on 23 May.
The AGM will be the first in 14 years without James Gorman as chief executive, who handed the reins over to Ted Pick and moved to the chairman role in January.
Gorman earned $37 million in 2023 under the currenct executive pay scheme, but Glass Lewis said Morgan Stanley “paid significantly more than its peers, but performed worse”.
"The misalignment between pay and performance alignment is indicative of a costly CEO transition," it added.
Glass Lewis is facing an uphill battle- the previous year's proposal received approximately 96% approval, indicating robust shareholder support.
Earlier this month, Glass Lewis recommended that AstraZeneca shareholders vote against chief executive Pascal Soriot’s £18.7 million ($23,5 million) pay package.
Soriot’s pay was approved, albeit with nearly 40% of shareholders voting against it.