NEW YORK (Bloomberg) - James Gorman, who became Morgan Stanley's CEO at the start of this year, was awarded deferred stock grants valued at about $8.6 million for his performance last year, when the shares rose 85 percent even as profit lagged peers.

Mr. Gorman, 51, will get 194,590 restricted shares, valued at $5.7 million at Thursday's closing price of $29.34, plus the right to at least 97,295 more shares if certain company goals are met that would be granted in 2013, according to two filings on Friday with the US Securities and Exchange Commission. Gorman has already said he would not take a cash bonus for 2009.

Morgan Stanley, the second-biggest US securities firm after Goldman Sachs Group Inc. before both converted to banks in 2008, said last month that compensation and benefits expenses rose 31 percent to $14.4 billion in 2009, or 62 percent of revenue. The company said members of the operating committee will receive about 75 percent of their year-end pay in deferred compensation, to link bonuses with long-term performance.

Chairman John Mack, 65, who also held the CEO title in 2009, said last month that he declined a bonus for a third straight year. Mr. Mack got a salary of $800,000 and Mr. Gorman's salary was raised to $800,000 during the year.

Walid Chammah, co-president with Mr. Gorman before giving up that role at the start of this year, was awarded 128,335 restricted shares valued at $3.8 million, plus 96,861 "at-risk performance stock units" valued at $2.8 million at Thursday's closing price, for a total of $6.6 million. Cash bonuses were not disclosed in Friday's filings.

Mr. Chammah, who remains at the firm as chairman of Morgan Stanley International in London, had his base salary lifted to $800,000 on May 1 from about $323,000 in 2008.

Morgan Stanley did not award any bonuses to Mack and to co-presidents Mr. Gorman and Mr. Chammah in 2008, when the financial crisis caused the company to lose $2.3 billion in the fourth quarter and the stock slid 70 percent.

While Morgan Stanley's trading revenue lagged larger rival Goldman Sachs this year, Gorman helped engineer a joint venture with Citigroup Inc.'s Smith Barney that created the largest brokerage force.

Goldman Sachs said last month that it would pay its top 30 executives in stock that they cannot sell for five years.

Colm Kelleher, who served as Morgan Stanley's chief financial officer from 2007 through last year, received 80,520 of the performance units valued at $2.4 million plus 103,824 restricted shares valued at $3.1 million, for a total of $5.4 million.

Mr. Kelleher was named co-president of institutional securities with Paul Taubman at the start of this year.

Mr. Kelleher's base salary was raised to $750,000 on May 1 from about $323,000 in 2008.