Morgan Stanley's Board has authorized a $45 million total compensation package for Chief Executive Officer Ted Pick for 2025, representing a notable increase from the $34 million he received in 2024. The decision was made by the firm's Compensation, Management Development and Succession Committee, which pointed to Pick's "outstanding performance" during his second year as CEO and his first year serving as Chairman of the Board.
The committee's action follows a year in which Morgan Stanley delivered several record financial measures. The firm reported net revenues of $70.6 billion for 2025, marking an increase of approximately 14% compared with the prior year. Net income for the year was about $16.9 billion, and earnings per share reached a record $10.21.
On a pre-tax basis, the company posted profit of $22.0 billion, an increase of roughly 25% year over year. Morgan Stanley also reported a full-year return on tangible common equity, or ROTCE, of 21.6% and an efficiency ratio of 68% for 2025.
Capital and shareholder metrics were highlighted alongside operational results. The firm's standardized Common Equity Tier 1 Capital Ratio stood at 15.0% as of December 31, 2025, following the addition of $8.1 billion of Common Equity Tier 1 Capital. With more than 300 basis points of excess capital, Morgan Stanley raised its quarterly dividend by $0.075 for the fourth consecutive year to $1.00 per share. Total dividends paid in 2025 amounted to $6.1 billion.
Morgan Stanley's market capitalization reached $282 billion during the period covered, and the company preserved a premium valuation relative to its peers. The firm delivered total shareholder returns of 45% for the year.
As structured, the $45 million CEO package carries significant deferral and performance alignment. Seventy-five percent of Pick's bonus will be deferred over three years and is subject to cancellation. Furthermore, the company will deliver 100% of the deferred bonus as performance-vested equity awards, aligning the deferred portion of his compensation with shareholder outcomes.
The Board's compensation decision, and the detailed metrics the company reported, are presented as coordinated elements: the firm recorded record financial results and the executive pay package incorporates multi-year deferral and performance vesting to link incentives to long-term results.
Summary
Morgan Stanley's Compensation, Management Development and Succession Committee raised CEO Ted Pick's total pay to $45 million for 2025 after the company posted record revenues, earnings, and shareholder returns. A substantial portion of the bonus is deferred and will vest as performance-based equity over three years.