Chief Executive of Morgan Stanley, John Mack, received around $1.6 million in salary and other compensation for the last financial year, even though profits more than halved.
In 2007, overall profits at Morgan Stanley plummeted by 57%, which led Mack to announce that he would forfeit his annual bonus.
Having announced that profits had dropped from $7.47 billion in 2006 to $3.21 billion for this financial year, Mack followed other top bosses at banks hit by sub-prime losses by acknowledging his underachievement.
Bear Stearns bosses all forewent their bonuses after the bank posted a $1.9 billion writedown during the fourth quarter of 2007 and other chief executives, such as Merrill Lynch’s Stan O’Neal, even stepped down.
As Morgan Stanley’s market value dropped by 20%, Mack received an $800,000 salary and a further $399,153 in compensation as well as more equity in stock awards.
He accrued $355,000 in cash for his use of Morgan Stanley’s corporate jet alone.
The bank is close to finishing its first fiscal quarter of 2008 and further losses and writedowns are expected by analysts.
However stocks may be buoyed by the news that the China Investment Corp has invested $5 billion in Morgan Stanley.