Morgan Stanley CEO Pay Package Is $1.5M

Morgan Stanley CEO John Mack Receives Compensation Valued at $1.5 Million for Fiscal 2007 NEW YORK (AP) -- Morgan Stanley on Friday said Chief Executive John Mack received compensation valued at about $1.5 million in fiscal 2007, a year when the investment bank's profit plunged 57 percent. Mack did not receive a bonus in 2007 because of the company's losses due to the subprime crisis. Morgan Stanley lost $3.59 billion 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 write-down 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 an $800,000 salary and $399,153 of other compensation, according to a filing with the Securities and Exchange Commission on Friday. Among the perks was $355,000 spent on his personal use of the corporate jet. Morgan Stanley also credited Mack with $335,805 in above-market returns on his nonqualified deferred compensation plans. While the filing listed $40.2 million in stock awards for Mack in December 2006, or within the company's fiscal 2007 year, the proxy noted those awards applied to fiscal 2006. The AP's total pay calculations include executives' salary, bonus, incentives, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year. The calculations don't include changes in the present value of pension benefits, and they sometimes differ from the totals companies list in the summary compensation table of proxy statements filed with the Securities and Exchange Commission. Morgan Stanley reported in December that full-year profit fell to $3.21 billion from $7.47 billion a year earlier. The company is about two weeks from completing its first quarter of 2008, and more write-offs from the subprime crisis is expected. Morgan Stanley, which has lost 20 percent of its market value this year, dropped 30 cents to $42.32 in composite trading on the New York Stock Exchange at 4 p.m.