Morgan Stanley raises chairman's base salary to USD 2 mn | world | Hindustan Times
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Morgan Stanley raises chairman's base salary to USD 2 mn

world Updated: May 30, 2010 14:09 IST

Banking major Morgan Stanley has hiked the base salary of its executive chairman, John J Mack, by over two-fold to USD 2 million, even as exorbitant pay practices on Wall Street kicked up public outrage.

In 2009, Mack was paid a base salary of USD 800,000.

"Mack's new base salary of USD 2,000,000, which will come into effect from June 1, 2010, was approved by the Compensation, Management Development and Succession Committee after consultation with its independent compensation consultant," the entity said in a filing to the US Securities and Exchange Commission on Friday.

The company said that the increased salary was in line with Mack's new role and responsibilities as its executive chairman.

Mack was succeeded as Morgan Stanley's CEO by James Gorman on January 1.

The filing noted that Mack's base salary had not been increased since he rejoined the company in 2005 as chairman and CEO.

"... he has not received any year-end compensation for 2007, 2008 and 2009," it added.

In the wake of the financial crisis, there was widespread criticism against the huge pay packets doled out to Wall Street executives. This forced the US to curb rewards based on excessive risk-taking.

Last year, Goldman Sachs chief Lloyd Blankfein was paid a compensation of a little over USD 9 million while JPMorgan Chase CEO Jamie Dimon was awarded a pay packet of nearly USD 17 million.