Morgan Stanley’s board of directors reduced CEO James Gorman’s total compensation in 2019 to $27 million, according to news reports.

That’s about 7% lower than the $29 million Gorman received in 2018, Reuters writes, citing regulatory filings.

Gorman’s 2019 earnings included a base salary of $1.5 million, a $6.375 million cash bonus, a deferred equity award of $6.375 million and a further $12.75 million in equity linked to Morgan Stanley’s performance, according to the newswire.

He must take 75% of his incentive compensation as deferred over three years, and it’s also subject to a clawback, Reuters writes.

Morgan Stanley said that it factored in the firm’s strong financial performance as well as Gorman’s long-term strategy when determining his compensation, according to the Wall Street Journal.

James Gorman (Getty)

Morgan Stanley’s wealth management business posted a record $4.6 billion in revenue in the fourth quarter of 2019, up from $4.1 billion in the fourth quarter of 2018. The unit’s assets under management reached $2.7 trillion by the end of 2019, up 17% year over year, while advisor ranks shrank from 15,694 at the end of the fourth quarter of 2018 to 15,468 at the end of 2019.