Gorman was awarded $16 million for his work last year, up from $12 million in 2013. He is eligible to receive another $6.5 million over the next three years if he meets certain performance targets, up from the $6 million in long-term incentive awards the board outlined for Gorman the prior year.

Using another calculation set by the U.S. Securities and Exchange Commission which includes restricted awards from prior years and perks, Gorman received $23.3 million in 2014, up from $14.4 million the prior year.

The board sets executive compensation with the guidance of an external compensation advisory firm. It bases Gorman's pay on how well Morgan Stanley achieved objectives from shareholder returns to cost cutting.

The board decided Gorman had exceeded expectations, but not "substantially" so. Even if he had simply met expectations, his compensation would have risen by $3 million compared with what the board was prepared to pay in 2013 for middling performance, according to the two proxies.

Colm Kelleher, one of two top business executives under Gorman who oversees trading and investment banking, received a special $2 million bonus last year. The award reflects "his continued contributions and commitment to the company," according to the proxy, as well as the global nature of his role, which involves extensive travel to interact with regulators and clients globally.

It was the first time such a bonus was awarded, and no other senior executive received a similar award, including Gregory Fleming, who has an equivalent role overseeing wealth and asset management.

Kelleher also received a baseline compensation last year of $11.2 million and a long-term incentive package of $4.8 million, as did Fleming.

Kelleher was previously based in London, and still maintains a home there as well as in New York. He received $317,127 in perks last year, including $205,887 in housing costs and $75,611 for tax preparation services related to his expatriate status.

Fleming has not accepted perks from Morgan Stanley since joining the company in 2010.

Separately in the proxy, Morgan Stanley also nominated former Wellington Management CEO Perry Traquina as a new director to its board. The bank said two directors, Howard Davies and Robert Kidder, will not be standing for re-election. Davies is leaving to become chairman of Royal Bank of Scotland Group PLC.

(Reporting by Lauren Tara LaCapra; Editing by Bernard Orr)

By Lauren Tara LaCapra