Morgan Stanley Executives’ Stock Bonuses Fall Below $1 Million - 19 Dec 2008

Morgan Stanley Executives’ Stock Bonuses Fall Below $1 Million

By Christine Harper

Dec. 19 (Bloomberg) -- Morgan Stanley, which isn’t paying
bonuses to Chief Executive Officer John Mack and his two top
deputies, today awarded restricted stock bonuses worth less than
$1 million to four other executives.

Chief Financial Officer Colm Kelleher was granted 41,997
shares, according to a regulatory filing today, worth about
$648,850 at the closing price of $15.45. Kelleher, whose award
was the biggest among executives, last year got $11.7 million in
total compensation, including $4.43 million in restricted stock.

Morgan Stanley, which posted its lowest annual net income
since 1995, cut bonuses an average 50 percent for most employees
and said it wasn’t paying year-end awards to Mack and Co-
Presidents Walid Chammah and James Gorman. The company’s board
also today approved a change to Morgan Stanley’s pay system,
which will let management recoup payments if employees later
turn out to have damaged or discredited the firm.

While the stock awards are typically disclosed in December,
Morgan Stanley normally discloses any cash bonuses in a proxy
filing in February. In 2007, Kelleher received a salary of about
$340,000 and a cash bonus of $3.98 million, according to the
previous proxy filing.

Gary Lynch, Morgan Stanley’s chief legal officer, was
awarded 31,548 shares for 2008 worth about $487,400. Last year,
he got $11.9 million in total pay, including $5.27 million in
restricted stock, a $4.1 million cash bonus and a $300,000
salary.

Thomas Nides, chief administrative officer, was granted
21,210 shares, or about $327,700 at today’s share price. Last
year, he got $6.18 million, including $2.6

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