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posted: 4/2/2010 12:01 AM

Ex-Morgan Stanley CEO Mack received $939K in 2009

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NEW YORK -- Former Morgan Stanley CEO John Mack's compensation fell 24 percent to $939,241 in 2009 as the bank repaid federal bailout money and returned to profitability after the financial crisis, an Associated Press analysis of regulatory filings shows.

Mack, who stepped down as CEO at the end of last year but remains chairman, received no cash or stock bonus for the third straight year, Morgan Stanley said Thursday in a preliminary filing with the Securities and Exchange Commission.

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Mack's 2009 pay included $800,000 in salary and $139,241 in other compensation, including personal travel on company-owned aircraft. Mack later agreed to reimburse the bank for such travel. His 2008 compensation was $1.2 million.

Mack's successor as CEO, James Gorman, received a compensation package valued at $6.49 million for 2009, when he served as the bank's co-president. His pay included $734,247 in salary and a restricted cash bonus worth $5.7 million. The cash bonus vests over three years and can be clawed back in the case of wrongdoing by Gorman.

Several banks have begun paying deferred bonuses and adopting clawback provisions following a wave of public criticism over outsized Wall Street pay at banks that helped cause the financial crisis and later had to be bailed out by U.S. taxpayers.

At Morgan rival Goldman Sachs, for example, the 30 high-ranking executives got no cash bonuses last year, instead receiving stock that cannot be sold for at least five years.

Still, overall pay at Morgan Stanley and several Wall Street firms increased in 2009. Morgan reported its 2009 compensation expenses, including salaries and bonuses, rose 30 percent to $14.4 billion from $11.1 billion in 2008.

The Associated Press calculations of total pay 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 that companies list in the summary compensation table of proxy statements filed with the SEC.

Morgan Stanley's business rebounded slightly in 2009, led by strong gains in its investment banking division. The bank earned $1.34 billion in net income for the year, compared to a $246 million loss in 2008 -- the year several banks lost billions on bad mortgage loans and had to be bailed out by the government.

Morgan Stanley repaid its $10 billion bailout last year.

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