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Nothing Can Stop The (Morgan Stanley) Claw!

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Save for turning in a non-trainwreck performance. Sayeth John Mack:

In 2008 and beyond, for all bonus-eligible employees, we are making part of the year-end bonus deferral a cash award subject to a clawback provision that could be triggered if the individual engages in conduct detrimental to the Firm. The clawback could be triggered if an individual, for example, caused the need for a restatement of results, a significant financial loss or other reputational harm to the Firm or one of its businesses. So, year-end compensation this year will generally consist of three components for eligible employees: a regular cash component, an equity component with the standard three-year vesting requirements, and a deferred cash component that also vests over a three-year period, during which time it will have the clawback provision. During this three-year deferment period, employees will have the choice of a variety of investment options earning competitive returns for the deferred cash. The Firm will not be granting any stock options as part of year-end compensation in 2008.

Morgan Stanley Bonus Program Changed [Dealbook]


Bonus Watch '13: Morgan Stanley CEOs

The bad news: James Gorman's pay fell 30 percent this year. The good news: he's now in a position to show employees how to take these setbacks like a man, rather than grumbling like someone who puts their compensation in a one-year context to define their overall level of happiness.