Tags: Morgan Stanley | Chief Executive | John Mack | forgoing | year end | bonus

Morgan Stanley's Mack Skips His Bonus Again

Friday, 18 Dec 2009 12:17 PM

Morgan Stanley Chief Executive John Mack is forgoing a year-end bonus for the third straight year, he said in a memo obtained by Reuters.

Mack is the second bank chief executive not to receive a bonus — Kenneth Lewis, CEO of Bank of America Corp, is not receiving a salary or bonus for 2009. Both Mack and Lewis plan to retire at year-end.

Mack last received a bonus in 2006, when he was given restricted shares that at the time were worth about $36.2 million.

Wall Street bonuses are broadly expected to rise about 40 percent in 2009, according to recruiting firm Options Group, as trading revenues approach record levels.

Rising bonuses have drawn criticism from politicians and others, who complain that Wall Street's losses seem to be socialized while its profits are privatized.

Mack seemed to acknowledge that criticism in his memo: "Given this unprecedented environment and the extraordinary financial support governments provided to our industry ... I recommended to the Compensation Committee of the Board last week that I receive no year-end bonus," the memo said.

CNBC reported that Morgan Stanley's board had wanted to give him a bonus.

Mack's announcement that he is forgoing a bonus comes after Goldman Sachs Group Inc said it planned to pay top managers their bonuses in stock rather than cash.

© 2017 Thomson/Reuters. All rights reserved.

 
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Morgan Stanley Chief Executive John Mack is forgoing a year-end bonus for the third straight year, he said in a memo obtained by Reuters. Mack is the second bank chief executive not to receive a bonus Kenneth Lewis, CEO of Bank of America Corp, is not receiving a salary...
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Friday, 18 Dec 2009 12:17 PM
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