v3.25.4
Deferred Compensation Plans and Carried Interest Compensation
12 Months Ended
Dec. 31, 2025
Compensation Related Costs [Abstract]  
Deferred Compensation Plans and Carried Interest Compensation Deferred Compensation Plans and Carried Interest Compensation
Stock-Based Compensation Plans
Certain current and former employees of the Firm, including financial advisors in the Wealth Management segment, participate in the Firm’s stock-based compensation plans. These plans include RSUs, PSUs and an ESPP.
Stock-Based Compensation Expense
$ in millions202520242023
RSUs$1,690 $1,464 $1,607 
PSUs225 148 91 
ESPP11 10 11 
Total$1,926 $1,622 $1,709 
Retirement-eligible awards1
$267 $202 $178 
1.Total expense includes stock-based compensation anticipated to be awarded in January of the following year that does not contain a future service requirement.
Tax Benefit Related to Stock-Based Compensation Expense
$ in millions202520242023
Tax benefit1
$413 $343 $382 
1.Excludes income tax consequences related to employee share-based award conversions.
Unrecognized Compensation Cost Related to Stock-Based Awards Granted
$ in millions
At
December 31,
20251
To be recognized in:
2026$583 
2027248 
Thereafter45 
Total$876 
1.Amounts do not include forfeitures or 2025 performance year compensation awarded in January 2026 which will begin to be amortized in 2026.
In connection with awards under its stock-based compensation plans, the Firm is authorized to issue shares of common stock held in treasury or newly issued shares.
The Firm generally uses treasury shares, if available, to deliver shares to employees or employee stock trusts and has an ongoing repurchase authorization that includes repurchases in connection with awards under its stock-based compensation plans.
Common Shares Available for Future Awards under Stock-Based Compensation Plans
in millionsAt
December 31,
2025
Shares136 
See Note 17 for additional information on the Firm’s Share Repurchase Program.
Restricted Stock Units
RSUs are subject to vesting over time, generally one to seven years from the date of award, contingent upon continued employment and subject to restrictions on sale, transfer or assignment until conversion to common stock. All or a portion of an award may be forfeited if employment is terminated before the end of the relevant vesting period or canceled after the relevant vesting period in certain situations. Recipients of RSUs may have voting rights, at the Firm’s discretion, and generally receive dividend equivalents if the awards vest.
Vested and Unvested RSU Activity
 2025
Number of RSUs
Weighted Average
Award Date
Fair Value
shares in millions, $ per share
Unvested2
Vested
Unvested
Vested
Beginning balance
27 27 $88.64 $92.41 
Awarded14 3 135.72 136.10 
Conversions to common stock (21) 95.05 
Forfeited(1) 102.79 94.84 
Vested
(16)16 91.43 91.43 
Ending balance1
24 25 $112.60 $94.25 
Weighted average award date fair value
RSUs awarded in 2024$85.46 
RSUs awarded in 2023$93.55 
1.At December 31, 2025, the weighted average remaining term until delivery for the outstanding RSUs was approximately 1.1 years.
2.Unvested RSUs represent awards where recipients have yet to satisfy either the explicit vesting terms or retirement-eligible requirements.
Fair Value of RSU Activity1
$ in millions202520242023
Conversions to common stock
$2,774 $2,065 $2,019 
Vested2,500 1,723 2,260 
1. Fair value of converted stock is based on the share price at conversion. Fair value of vested stock is based on the share price at the date of vesting.
Performance-Based Stock Units
PSUs vest and convert to shares of common stock only if the Firm satisfies, over a three-year performance period, performance goals that are determined on the award date. The number of PSUs that may vest ranges from 0% to 150% of the target award, based on the Firm’s level of achievement of the specified performance goals. One-half of a PSU award is earned based on the Firm’s average return on tangible common equity (“MS Average ROTCE”) over the performance period. The other half of a PSU award is earned based on the MS Average ROTCE relative to the Return on
Tangible Common Equity of each member of the defined comparison group (“MS Relative ROTCE”). PSUs have vesting, conversion and cancellation provisions that are generally similar to those of RSUs. Dividend equivalents that accrue on these awards are paid in cash when the awards convert. At December 31, 2025, approximately 2.5 million PSUs at target were outstanding.
Fair Value of PSU Awards
202520242023
Weighted average price on award date
$136.31 $83.86 $85.76 
Deferred Cash-Based Compensation Plans
DCP generally provide a return to the plan participants based upon the performance of each participant’s referenced investments.
Deferred Cash-Based Compensation Expense
$ in millions202520242023
Deferred cash-based awards$950 $770 $693 
Return on referenced investments764 672 668 
Total$1,714 $1,442 $1,361 
Retirement-eligible awards1
$401 $287 $259 
1.Total expense includes deferred cash-based compensation anticipated to be awarded in January of the following year that does not contain a future service requirement.
Carried Interest Compensation
The Firm generally recognizes compensation expense for any portion of carried interest (both realized and unrealized) that is allocated to employees.
Carried Interest Compensation Expense
$ in millions202520242023
Expense$235 $114 $44