Daniel A. Simkowitz
MORGAN STANLEYAbout Daniel A. Simkowitz
Co-President of Morgan Stanley since January 2024, currently leading the Institutional Securities segment; he joined Morgan Stanley in 1990 and previously led Investment Management and Global Capital Markets . Age 59 as of February 21, 2025 . Under his leadership in 2024, Institutional Securities delivered net revenues of $28.1B and pre-tax profit of $8.7B; revenues increased 22% year-over-year with non-interest expenses up only 5%, and global wallet share rose 100 bps to 15% . Prior achievements include integrating Eaton Vance and driving growth in Alternatives and Customized Solutions during his tenure as Head of Investment Management .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Morgan Stanley | Co-President; Head of Institutional Securities | 2024–present | Net revenues $28.1B, pre-tax profit $8.7B; +22% revenue YoY; wallet share to 15% |
| Morgan Stanley | Head of Investment Management; Co-Head of Corporate Strategy | 2015–2023; 2021–2023 | Successful Eaton Vance integration; diversified asset mix; 2022 net revenues $5.4B, pre-tax income $807M |
| Morgan Stanley | Co-Head of Global Capital Markets | 2013–2015 | Senior leadership in capital markets |
| Morgan Stanley | Chairman of Global Capital Markets | 2009–2013 | Oversaw global capital markets franchise |
| Morgan Stanley | Managing Director, Global Capital Markets | 2000–2009 | Senior origination and execution roles |
External Roles
No external public company board roles are disclosed in Morgan Stanley’s executive officer biographies for Simkowitz; filings list internal roles only .
Fixed Compensation
Multi-year pay decisions (SEC-reported program elements for the performance year; awards granted after year-end):
| Metric | 2022 Performance Year (granted Jan 2023) | 2023 Performance Year (granted Jan 2024) | 2024 Performance Year (granted Jan 2025) |
|---|---|---|---|
| Base Salary ($) | $1,000,000 | $1,000,000 | $1,000,000 |
| Cash Bonus ($) | $6,737,500 | $7,437,500 | $9,887,500 |
| Deferred Equity (RSUs) – Grant Date Fair Value ($) | $6,012,500 | $6,812,500 | $7,012,500 |
| Performance-Vested Equity (PSUs) – Grant Date Fair Value ($) | $4,250,000 | $4,750,000 | $9,100,000 |
| One-Time Staking Award ($) | — | $20,000,000 | — |
Performance Compensation
Key design features of Simkowitz’s PSUs and 2023 one-time Staking Award PSUs:
| Award | Metric | Weighting | Target/Calibration | Payout Range | Performance Period | Conversion/Vesting |
|---|---|---|---|---|---|---|
| 2023 PSUs | Absolute ROTCE; Relative ROTCE (replacing relative TSR beginning with 2023 awards) | Equal emphasis across objectives | Target level used for grant date valuation; payout depends on 3-year performance | 0–1.5x of target units | 2023–2025 | At end of period (settlement after performance certification) |
| 2024 PSUs | ROTCE-based objectives per PSU program | Program emphasizes core financial measures | Target level used for grant date valuation | Up to 1.5x of target units | 2024–2026 | After 3-year performance period |
| 2025 PSUs | Core financial measures over 3 years | Programmatic (three-year, long-term focus) | Target level for grant sizing | Not explicitly stated for 2025 in filings reviewed | 2025–2027 | After 3-year performance period |
| 2023 Staking Award PSUs (60% of Award) | Equal weighting of absolute and relative ROTCE | 60% PSUs; 40% RSUs | Target level; designed to align leadership continuity | 0–1.5x of target units | 2024–2026 | Convert to shares in 2027 |
Equity Ownership & Alignment
- Beneficial ownership (as of Feb 28, 2023): 137,829 shares of common stock; 218,415 underlying stock units; total 356,244; each NEO held less than 1% of shares outstanding; none of the common stock beneficially owned by directors and current executive officers was pledged .
- Executive Equity Ownership Commitment: Co-Presidents must achieve ownership equal to 6x base salary within five years; must retain 75% of Equity Award Shares until ownership requirement is met; prohibition on hedging/pledging; each Operating Committee member is in compliance; none currently have Rule 10b5-1 plans .
| Category | As of Feb 28, 2023 |
|---|---|
| Common Stock Owned (#) | 137,829 |
| Underlying Stock Units (#) | 218,415 |
| Total Beneficial Ownership (#) | 356,244 |
| Ownership as % of Shares Outstanding | <1% |
| Shares Pledged | None |
Key Equity Awards Detail — Counts and Key Dates
| Award | Grant Date | Units (#) | VWAP on Grant ($) | Vest/Convert Timing |
|---|---|---|---|---|
| 2022 RSUs | Jan 18, 2023 | 61,992 | $96.9873 | Jan 27, 2026 |
| 2023 RSUs | Jan 17, 2024 | 80,808 | $84.3039 | Jan 27, 2027 |
| 2024 RSUs | Jan 17, 2025 | 51,256 | $136.8115 | Jan 27, 2028 |
| 2023 Staking Award RSUs | Oct 25, 2023 | 111,938 | $71.4679 | Jan 25, 2027 |
| 2023 PSUs (target) | Jan 18, 2023 | 43,820 | $96.9873 | After 2023–2025 performance period |
| 2024 PSUs (target) | Jan 17, 2024 | 56,342 | $84.3039 | After 2024–2026 performance period |
| 2025 PSUs (target) | Jan 17, 2025 | 66,514 | $136.8115 | After 2025–2027 performance period |
| 2023 Staking Award PSUs (target) | Oct 25, 2023 | 167,906 | $71.4679 | Convert in 2027 following 2024–2026 performance |
Employment Terms
- Severance and treatment of awards (as of the dates below, values per-share assumptions noted):
- Cash severance (involuntary only): $200,000 (consistent across 2022–2024) .
- Unvested PSUs (and related dividend equivalents/interest) valuation:
- $12,293,444 at $85.02 (Dec 31, 2022) .
- $9,888,724 at $93.25 (Dec 31, 2023) .
- $19,546,552 at $125.72 (Dec 31, 2024) .
- RSUs: NEOs are retirement-eligible; RSUs therefore considered vested for proxy purposes (payable on scheduled dates, subject to cancellation/clawback), except Staking Award RSUs (not retirement-eligible) .
| Scenario | Dec 31, 2022 | Dec 31, 2023 | Dec 31, 2024 |
|---|---|---|---|
| Cash Severance (Involuntary) ($) | $200,000 | $200,000 | $200,000 |
| Unvested PSUs Value ($) | $12,293,444 (assumed $85.02/share) | $9,888,724 (assumed $93.25/share) | $19,546,552 (assumed $125.72/share) |
- Change-in-control treatment: Double-trigger within 18 months—payment conditioned on (i) termination by firm without cancellation event, (ii) resignation due to materially adverse job alteration, or (iii) relocation >75 miles; RSUs payable upon change-in-control termination; government service termination requires proof and repayment agreement .
- Clawbacks and cancellation: RSUs/PSUs subject to clawback for restatements, risk management violations, excess shares on restatement, and significant responsibility for material adverse outcomes; subject to cancellation for competitive activity, conduct constituting cause, improper solicitation, and disclosure of proprietary information .
Performance & Track Record
- 2024 Institutional Securities delivered net revenues of $28.1B, pre-tax profit of $8.7B; Investment Banking, Equity, and Fixed Income revenues increased 35%, 22%, and 10% respectively; global wallet share increased to 15% (+100 bps); also expanded collaboration with MUFG in FX trading and Japanese research/equity businesses .
- As Head of Investment Management (prior role), executed integration of Eaton Vance and advanced growth in Alternatives and Customized Solutions; 2022 net revenues $5.4B and pre-tax income $807M amid challenging markets .
Governance, Policies, and Shareholder Feedback
- No hedging or pledging: Company policy prohibits pledging, short selling, hedging, or trading derivatives in Morgan Stanley securities; see Ownership and Compensation sections .
- Say-on-Pay results: Approximately 96% support at May 2023 meeting; 75% support at 2024 meeting; firm increased shareholder engagement and noted no one-time awards for 2024 compensation following feedback on 2023 Staking Awards .
- Related party transactions: 8-K states Simkowitz had no related person transactions requiring disclosure under Item 404(a) at time of executive appointments; staking awards granted October 25, 2023 to support leadership transition (60% PSUs, 40% RSUs) with 2024–2026 performance and 2027 conversion/vesting .
Compensation Structure Notes
- Program elements and features: Fixed base salary; variable annual incentive split between cash and deferred equity (RSUs/PSUs), with higher deferral at higher incentive levels; PSUs tie realized value to 3-year performance against core financial measures; robust clawbacks; equity ownership and retention requirements; no 10b5-1 plans for executive officers currently .
Investment Implications
- Alignment and retention: Heavy mix of deferred PSUs linked to ROTCE over 2023–2027 and large RSU tranches vesting Jan 2026–2028, plus 2027 conversion/vesting of Staking Awards, create strong retention incentives and alignment with long-term performance; monitor 3-year ROTCE outcomes for payout sensitivity up to 1.5x .
- Selling pressure windows: RSU vest dates—Jan 27, 2026/2027/2028 and Jan 25, 2027 for Staking RSUs—are potential supply events; note firm prohibitions on hedging/pledging and current absence of 10b5-1 plans, which can reduce pre-programmed selling but increase discretion timing .
- Downside protection risk: Double-trigger CIC and modest cash severance ($200k) limit windfall risk; clawbacks covering restatements and risk violations add discipline; equity ownership commitment (6x salary) promotes skin-in-the-game .
- Performance momentum: 2024 Institutional Securities outperformance and wallet share gains are supportive for PSU realizations; continued execution on MUFG collaboration and risk controls is constructive; however, the 2024 say-on-pay result (75%) signals investor scrutiny of one-time awards, implying limited appetite for future special grants .