Top Firm To Subject More Compensation To Clawbacks

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Bloomberg reports that Morgan Stanley will subject more executive compensation to 'clawbacks' that could force them to return bonuses if their conduct is unethical or causes a restatement.

The firm said in its annual proxy statement that all long-term incentive compensation for named executive officers will be covered by the new rules. A clawback could be caused by an act or omission that triggers a restatement, or if the person violates risk policies and standards, regardless of whether the impact on results is favorable or unfavorable, the firm said.

The news organisation also says that Morgan Stanley CEO James Gorman’s compensation for 2011 totalled $10.5m, a 25% cut from 2010.

Gorman, 53, got $5.04m in restricted shares, and $1.94m in shares tied to company performance, according to a proxy filing Thursday. He also received a deferred cash bonus of $2.72m that can be clawed back, in addition to his $800,000 salary. Gorman didn’t receive an immediate cash bonus.

Finally, The Financial Times reports that, according to its sources, Gorman has been in discussions with Moody’s in an attempt to maintain its credit ratings and stave off a downgrade that could diminish the firm’s ability to buy the rest of Morgan Stanley

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