The Rise of Bank CEO Compensation: Morgan Stanley Pays Ted Pick $45 Million in 2025
Morgan Stanley made headlines recently when it disclosed that CEO Ted Pick received a staggering $45 million in compensation for the year 2025. This hefty paycheck solidified Pick’s position as one of the highest-paid chief executives among the top U.S.-based global systemically important banks.
CEO Pay Comparison
Among the six largest U.S. banks, Pick’s $45 million salary places him second only to Goldman Sachs’ David Solomon, who took home $47 million in 2025. However, Pick’s pay package represented a significant 32.4% raise from the $34 million he earned in the previous year, marking the most substantial year-over-year increase among his peers.
Industry Trends
The trend of offering bank CEOs $40 million or more in annual compensation seems to be gaining traction. Several major banks, including Wells Fargo and Capital One, have recently announced similar compensation packages for their chief executives. This shift towards higher pay levels reflects the competitive nature of the banking industry and the pressure on boards to provide attractive remuneration packages.
Performance and Rewards
Morgan Stanley justified Pick’s generous compensation by highlighting his outstanding performance in 2025. The bank reported record revenue of $70.6 billion, a 14% increase from the previous year, as well as a pretax profit of $22 billion, up 25% year over year. Pick’s leadership was credited with driving the firm’s success in executing its capital management strategy effectively.
Moreover, Pick’s compensation structure includes a significant portion of deferred bonus pay, with 75% of the bonus spread out over three years. This aligns with the bank’s emphasis on performance-based rewards, with the deferred portion tied to equity awards contingent on achieving specific targets.
Market Dynamics
The market’s response to CEO compensation levels is evident in Pick’s $45 million payday, which surpasses the $40 million benchmark set by several industry peers. The competitive landscape has forced boards to reevaluate their executive pay practices, leading to a generational shift towards higher compensation levels for top banking executives.
Overall, Morgan Stanley’s decision to reward Pick with a substantial raise reflects the bank’s confidence in his leadership and the positive impact he has had on the firm’s financial performance.
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