Morgan Stanley CEO Still Getting Used To The Idea Of An Annual Meeting That Doesn't Involve Shareholders Handing Him His Ass On A Platter

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Not being told what a shitty job management is doing somehow feels off.

Morgan Stanley’s annual investor meeting lasted 20 minutes, and no one asked any questions. The gathering was notable only for its lack of excitement, and for the absence of one particular shareholder who always made the event more lively. James P. Gorman, the firm’s chief executive, paid respects to Harry Korba, an investor that Morgan Stanley executives had come to know for his colorful questions and photographic memory of the firm’s financial statements...

At Bank of America‘s shareholder meeting last week, a woman complained to its chief executive, Brian T. Moynihan, about the lack of handicapped parking at her local bank branch, and the fact that “you got a bonus and the stock price is terrible.” The quiet, brief gathering at Morgan Stanley’s offices in Purchase, N.Y., was in sharp contrast to other bank meetings taking place this month. On Tuesday, Morgan Stanley shareholders easily approved the company’s board of directors, its executive compensation plan and its auditor.

For Morgan Stanley, a Quiet Meeting of Shareholders [Dealbook]

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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.

Layoffs Watch '12? Morgan Stanley?

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Back in January, Morgan Stanley CEO James Gorman sent a simple messages to his employees, who had been grumbling about their pay: STFU or GTFO. "You're naive, read the newspaper, No.1," Gorman told Bloomberg he would say to any members of his staff that wanted to give him lip about their compensation to his face. "No. 2, if you put your compensation in a one-year context to define your over all level of happiness, you have a problem which is much bigger than this job. And No. 3, if you're really unhappy, just leave." Today, in an interview with the FT, Gorman reiterated his stance and added that in addition to reducing compensation for current employees, the bank will likely be drastically cutting pay for future analysts. If anyone has a problem with that, consider applying for a gig at Bank of Mythical Pre-Crisis Era Bonuses. Alternatively, Gorman is happy to discuss a compensation plan in which you'll be awarded shares of his foot in your ass, which vest immediately. In the latest sign of the pressure Wall Street is under to cut costs and address high pay levels, James Gorman, chief executive, said that staff and remuneration would have to be sacrificed as banks cope with lower profits. “There’s way too much capacity and compensation is way too high,” Mr Gorman said in an interview with the Financial Times. “As a shareholder I’m sort of sympathetic to the shareholder view that the industry is still overpaid.” Morgan Stanley itself is already axing 4,000 jobs, 7 per cent of its workforce, by the end of this year. In the new year, Mr Gorman said, the bank will consider its next round of cost-cutting, including lower pay and bonuses. News of further pay cuts, including potentially for new entrants at the investment bank, comes just weeks after Goldman Sachs confirmed it was overhauling its well-known entry-level programme for analysts. Goldman was said to have tired of the number of analysts in the programme who left the bank for hedge funds. Mr Gorman said that Morgan Stanley will probably keep its own analyst programme, but pay could be reduced significantly. Morgan Stanley Chief Warns On Wall Street Pay [FT] Earlier: James Gorman To Employees: STFU Or GTFO