Shareholders of Morgan Stanley turned their backs on CEO John Mack‘s call to reject a plan that would require investors to vote on all severance packages that were more than triple an executive’s annual salary and bonus. In a 432 million to 347 million vote, the shareholders passed the motion, prompted by the $44 million payout to former CEO Phillip Purcell, who was forced out last year because of disappointing performance, The Independent reports.
Mack opposed the proposal, claiming it would be impractical and expensive, and make it more difficult to attract top talent. Shareholders also voted a measure that would change investor approval of any deals from 75% to a simple majority. The votes, says the Independent, are not binding on the company’s directors, who said they would consider them.