MSSB responds to Danny Sarch post on complex managers' comp

Danny Sarch is entitled to pursue his blatant commercial self-interest through his regular attacks on Morgan Stanley Smith Barney, but he is not entitled to make false statements. In addition to inaccurate calculations regarding cash deferrals, his claim that &#8220;nobody ever suggested&#8221; branch manager bonuses &#8220;would be in anything other than cash&#8221; is untrue. <a href=http://www.investmentnews.com/article/20110125/BLOG01/110129981> (Read Mr. Sarch's Jan. 21 posting.)</a>
JAN 28, 2011
By  Mark Bruno
Danny Sarch is entitled to pursue his blatant commercial self-interest through his regular attacks on Morgan Stanley Smith Barney, but he is not entitled to make false statements. In addition to inaccurate calculations regarding cash deferrals, his claim that “nobody ever suggested” branch manager bonuses “would be in anything other than cash” is untrue. (Read Mr. Sarch’s Jan. 21 posting.) In fact, the Branch Manager Compensation Guide addresses this point unambiguously: “A portion of the year-end award will be payable partly in cash and, at the discretion of the Compensation Committee of the Morgan Stanley Board of Directors, partially in the form of long-term incentive compensation such as a restricted stock award.” The handbook further states that these bonuses “…will be consistent with the terms and conditions of the relevant long-term incentive compensation program at the time of the award and will be subject to certain restrictions and cancellation provisions…” While the exact percentages vary and the total compensation construct is never final until approved by the Board, a portion of branch manager compensation has been deferred at both legacy firms for a number of years. James Wiggins Director of Corporate Communications Morgan Stanley Smith Barney

Latest News

Maryland bars advisor over charging excessive fees to clients
Maryland bars advisor over charging excessive fees to clients

Blue Anchor Capital Management and Pickett also purchased “highly aggressive and volatile” securities, according to the order.

Wave of SEC appointments signals regulatory shift with implications for financial advisors
Wave of SEC appointments signals regulatory shift with implications for financial advisors

Reshuffle provides strong indication of where the regulator's priorities now lie.

US insurers want to take a larger slice of the retirement market through the RIA channel
US insurers want to take a larger slice of the retirement market through the RIA channel

Goldman Sachs Asset Management report reveals sharpened focus on annuities.

Why DA Davidson's wealth vice chairman still follows his dad's investment advice
Why DA Davidson's wealth vice chairman still follows his dad's investment advice

Ahead of Father's Day, InvestmentNews speaks with Andrew Crowell.

401(k) participants seek advice, but few turn to financial advisors
401(k) participants seek advice, but few turn to financial advisors

Cerulli research finds nearly two-thirds of active retirement plan participants are unadvised, opening a potential engagement opportunity.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today’s choppy market waters, says Myles Lambert, Brighthouse Financial.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave