Proxy firm Glass Lewis minces no words when it criticizes Morgan Stanley for its compensation practices. In a proxy paper issued in advance of the investment bank's annual meeting set for April 4, Glass Lewis gives Morgan Stanley an F grade for executive compensation based on the proxy firm's proprietary pay-for-performance model. This is the second year in a row Glass Lewis flunks Morgan Stanley.
Focusing particularly on the generous pay packages to former CEO Philip Purcell and "short-lived" co-president Stephen Crawford, the proxy stated that MS "paid more compensation to its top officers than the median compensation for 46 similarly sized companies... more than the market cap segmented sector group of very large financial companies; and more than an industry group of 53 capital market companies." And for all that money, says Glass Lewis, Morgan Stanley "performed worse than its peers." The proxy firm did say it was "encouraged" by changes to the employment agreement with current CEO John Mack.
Focusing particularly on the generous pay packages to former CEO Philip Purcell and "short-lived" co-president Stephen Crawford, the proxy stated that MS "paid more compensation to its top officers than the median compensation for 46 similarly sized companies... more than the market cap segmented sector group of very large financial companies; and more than an industry group of 53 capital market companies." And for all that money, says Glass Lewis, Morgan Stanley "performed worse than its peers." The proxy firm did say it was "encouraged" by changes to the employment agreement with current CEO John Mack.
