ISS OKs Two Banks' Exec Pay

Proxy firm endorses compensation packages at JPMorgan, Morgan Stanley.

JPMorgan Chase & Co. and Morgan Stanley’s executive compensation packages received endorsements from ISS Proxy Services USA, the firm whose negative recommendation helped sink a similar plan at Citigroup Inc.

JPMorgan and Morgan Stanley displayed “reasonable alignment” between shareholder returns and pay for Jamie Dimon and James Gorman, the firms’ respective chief executive officers, ISS analysts wrote in separate reports dated April 27. Glass Lewis & Co., another shareholder advisory firm, also endorsed the pay plans for the New York-based banks, which will hold their meetings on May 15.

‘Inability’ to Monitor

Dimon, 56, was awarded $23 million in salary and bonuses for his 2011 performance, the same as he received for 2010, JPMorgan said in a regulatory filing this month. Gorman, 53, had his package cut 25 percent to $10.5 million, Morgan Stanley said in a filing.

Easing Concerns

JPMorgan’s stock dropped 22 percent last year and Morgan Stanley fell 44 percent, compared with 18 percent for the Standard & Poor’s 500 Financials Index.

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