Morgan Stanley Outlines Pay Increases
Several thousand executives at Morgan Stanley will be getting a big boost in their salaries this year, according to a regulatory filing and a source familiar with the matter. The raises come as the firm is taking steps to return $10 billion in government rescue funds.
Under a new plan approved by the compensation committee of the company's board, most top executives will more than double their base pay, according to a Securities and Exchange Commission filing.
The annual salary for Chief Financial Officer Colm Kelleher, Chief Legal Officer Gary G. Lynch and Chief Administrative Officer Thomas R. Nides is to be $750,000. Co-presidents Walid A. Chammah and James P. Gorman's base pay rises to $800,000. All of these positions came with a salary of about $300,000 last year. The base salary for the chief executive, John Mack, will remain unchanged at $800,000, the company said.
The filing only discloses new salaries for the top five executives, but the raises apply to those holding titles of vice president and above, according to a source familiar with the matter, who spoke on condition of anonymity. For example, managing directors, whose base salaries averaged $200,000, will now get between $300,000 to $400,000, the source said.
The raises are not meant to increase total annual pay, but reflect the company's efforts to "move away from a compensation program focused largely on annual incentive awards toward one that is balanced between fixed, short-term and long-term compensation," the filing said.
-- Tomoeh Murakami Tse
GM Canada, Union Agree on Wage Cuts
The Canadian Auto Workers union has agreed to another cost-cutting deal with General Motors Canada in the automaker's bid to qualify for government loans to stave off liquidation, the head of the union said. Details of the agreement were not immediately available, but union leader Ken Lewenza said it delivers reductions of $13 to $14 in the average per-hour wage of GM's Canadian workers on top of a previously negotiated $6 cut. He said the deal allows GM Canada to meet cost benchmarks set by the Canadian and U.S. governments.
Workers will have to ratify the deal, and Lewenza said the voting process will begin tomorrow.
-- Associated Press
Regulators Close Two Illinois Banks
Regulators shut down two more banks, boosting the number of failures of federally insured banks this year to 36. The latest banks seized were Strategic Capital Bank and Citizens National Bank, both in Illinois.
The Illinois Department of Financial and Professional Regulation's banking division took over Strategic Capital Bank, based in Champaign, Ill., while the Office of the Comptroller of the Currency took control of Citizens National Bank, based in Macomb, Ill. The FDIC was appointed receiver of both banks. The closures are expected to cost the federal deposit insurance fund $279 million, the FDIC said.
-- Associated Press