When John Mack returned to become CEO at Morgan Stanley during the summer, many thought that it would be a labour of love. It probably is, but Mack's getting well paid for his toil too.
The firm confirmed earlier this week that Mack will receive an $11.5m bonus this year. And he only started five months ago. Morgan Stanley's management committee chairman, Miles Marsh, said that the bonus was determined by Mack's strong leadership since he returned to the firm. Marsh said in a statement that 'during the past five months, he (Mack) has moved rapidly to reinvigorate the franchise and its people; make key strategic decisions; and outline a clear plan to accelerate growth and further improve the firm's financial performance'.
To be fair to Mack, he was originally offered a guaranteed minimum bonus of $25m when he came back, but he insisted that he be judged on performance. He also wanted to be paid a pro-rated bonus. 65% of the bonus will, in fact, be paid in restricted stock.
Finally, Morgan Stanley has moved quickly to replace Dhiren Shah, the firm's head of its investment banking global technology group, who quit for Greenhill & Co last month. The firm has promoted Paul Chamberlain and Michael Grimes, both long-time Morgan Stanley executives, to become co-heads of the unit.