Form 4: Morgan Stanley Officer Vests Performance Shares

Morgan Stanley's Chief Legal and Administrative Officer, Eric F. Grossman, acquired shares from a performance stock unit award and sold a portion for tax obligations.

Summary

• Eric F. Grossman, Chief Legal/Admin Officer of Morgan Stanley, acquired 22,715 shares of common stock on March 12, 2026, at a price of $0.
• These shares were earned from a performance stock unit (PSU) award granted on January 18, 2023, based on the company's achievement of pre-established relative return on tangible common equity performance criteria.
• Concurrently, 11,597 shares were disposed of at $160.89 per share to satisfy tax obligations related to the PSU award conversion.
• Following these transactions, Grossman beneficially owns 186,079.952 shares of Morgan Stanley common stock.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a moderately positive signal, indicating that Morgan Stanley met its performance targets for the PSU award, which is a good sign for operational execution and management alignment.

Positives

• Vesting of 22,715 shares indicates the company met pre-established performance criteria, specifically relative return on tangible common equity.
• The PSU award aligns management's interests with shareholder value creation.

Negatives

• Disposition of 11,597 shares for tax withholding reduces the officer's direct shareholding, though this is a standard practice.

Future Outlook

No specific forward-looking statements or guidance provided in this Form 4.

Industry Context

StockSavvy.ai notes that performance-based equity awards and subsequent tax-related dispositions are standard practices in executive compensation across the financial services industry, aligning executive incentives with long-term company performance and shareholder interests.

Comparison to Industry Standards

• This type of performance-based vesting, tied to metrics like Return on Tangible Common Equity, is a common practice among large financial institutions such as JPMorgan Chase, Goldman Sachs, and Bank of America, ensuring executive compensation is directly linked to financial performance and shareholder returns.
• The tax withholding to cover obligations upon vesting is also a standard industry procedure.

Stakeholder Impact

• Shareholders: The vesting of performance-based shares aligns executive incentives with shareholder value creation, as the award was contingent on achieving specific performance criteria. The sale of shares for tax purposes is a routine event and does not typically indicate a change in management's long-term commitment.

Key Dates

Keywords

Morgan Stanley, MS, Insider Transaction, Form 4, Performance Stock Unit, PSU, Executive Compensation, Share Vesting, Eric F. Grossman, Chief Legal Officer