February 11, 2010

Shareholder Suit re ‘Staggering’ Pay Says Morgan Stanley Is Run for Employees’ Benefit

by Martha Neil
The ABA Journal

Two pension funds have filed suit against the world's biggest brokerage, seeking billions in restitution and contending that Morgan Stanley paid out "staggering" compensation and bonuses to its employees in 2006, 2007 and 2009 without regard to the interests of its shareholders.

“The payments are staggering not only in absolute and percentage terms, but also when one considers the losses suffered by Morgan Stanley’s shareholders between 2006 and 2009,” says the complaint filed today in Manhattan Supreme Court by Grant & Eisenhofer.

Read the complete story (Some news sites require registration)