Morgan Stanley's boss, John Mack, receives $42 million compensation

www.chinaview.cn 2008-02-17 08:43:39

BEIJING, Feb. 17 -- Morgan Stanley's Chief Executive John Mack received compensation valued about 41.7 million U.S. dollars last year - when the investment bank's profit plunged 57 percent, the company said.

Mack, one of the highest paid bankers on Wall Street, did not receive a bonus in 2007 because of the company's losses due to the subprime crisis. Morgan Stanley lost 3.59 billion dollars during the fourth quarter because of risky bets on mortgage-backed securities. None of the executive committee members at Bear Stearns Cos, the fifth-biggest securities firm, are taking bonuses after a 1.9-billion dollars writedown during the fourth quarter. Meanwhile, Merrill Lynch & Co CEO Stan O'Neal was ousted from his job and didn't receive any 2007 bonus.

However, Mack did receive a 800,000 dollars salary, stock awards valued at 40.2 million million dollars, and 399,153 dollars of other compensation, according to a filing with the Securities and Exchange Commission on Friday. Among the perks was 355,000 dollars spent using the corporate jet.

Morgan Stanley reported in December that full-year profit fell to US$3.21 billion from US$7.47 billion a year earlier. The company has nearly completed its first quarter of 2008, and more write-offs from the subprime crisis are expected.

(Source: Shanghai Daily/Agencies)

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