Morgan Stanley Chief Executive John Mack told employees on Monday he would not get a bonus for a second straight year and announced compensation changes designed to more closely link pay with the bank's long-term performance.
Three weeks after Goldman Sachs and UBS executives announced plans to forgo bonuses, Mack in a memo said he and co-Presidents Walid Chammah and James Gorman will not receive bonuses this year. Mack also did not receive a bonus for last year, which was wrecked by nearly $10 billion of fourth-quarter trading losses.
"Our entire bonus pool will be down dramatically this year, reflecting the difficult market conditions, stock price performance and our full-year revenues in this challenging environment," Mack said in the memo.
Later Monday, CNBC reported that Merrill Lynch EO John Thain also asked that he not receive a 2008 bonus. A Wall Street Journal report had said he was seeking as much as $10 million for helping the giant brokerage avoid an even bigger crisis by selling to Bank of America
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