Morgan Stanley Expands Reasons to Claw Back Executive Pay
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Morgan Stanley, the investment bank that added clawback rules to compensation packages in 2008, expanded the types of pay that managers can be forced to return and the list of misconduct that might trigger a penalty.
All long-term incentive pay for top executives named in the annual compensation table will be covered by the new rules, the New York-based firm said today in a proxy statement. Some lower-level employees also are subject to the policy. A clawback could be caused by an act or omission that triggers a restatement, or when the person violates risk policies and standards, even if the impact on results is favorable, Morgan Stanley said.