(Bloomberg) -- Morgan Stanley boosted Chief Executive Officer James Gorman’s compensation by 7.4 percent to $29 million for 2018.

Gorman, 60, got a $13.75 million incentive tied to achieving future targets, and $6.875 million in both cash and restricted shares, according to a regulatory filing Friday. The package, which includes his $1.5 million salary, surpasses the $27 million he was paid for 2017 as the most he’s received since taking the helm.

Morgan Stanley this week posted its highest-ever annual profit, even as fourth-quarter performance disappointed investors. The bank was helped by U.S. corporate tax cuts, a jump in deal fees and a bigger rise in trading revenue than many rivals. Gorman said Thursday he’s looking for acquisitions to build his firm’s asset-management unit, its smallest division.

The incentive award converts to shares if the firm hits goals for return on equity and total shareholder return. Morgan Stanley must achieve an 11 percent ROE over the three-year period for Gorman to get the full piece tied to that metric, and can get up to 50 percent more shares if the firm achieves a 12.5 percent ROE.

JPMorgan Chase & Co. awarded Chief Executive Officer Jamie Dimon $31 million in total compensation for his work in 2018, a 5.1 percent bump after his bank also posted record profit.

To contact the reporter on this story: Sonali Basak in New York at sbasak7@bloomberg.net

To contact the editors responsible for this story: Michael J. Moore at mmoore55@bloomberg.net, Pierre Paulden

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