Morgan CEO Drops Pay Deal
John J. Mack, the new chairman and chief executive of Morgan Stanley, told employees he would no longer accept guaranteed minimum pay of $25 million a year, and instead would tie his compensation to the investment bank’s performance.
Mack announced his decision after signing a five-year contract earlier this week that linked his compensation to that received by CEOs of four big Wall Street rivals.
“I don’t want anyone to think that I am entitled to something that others are not,” Mack said in a letter. “That is why I have decided
Mack, named CEO on June 30, is trying to restore morale and improve performance after his predecessor, Philip J. Purcell, announced his retirement under pressure from shareholders amid a wave of defections of senior bankers.
On Thursday, Morgan Stanley said it had awarded Purcell a severance package worth more than $113 million.
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
