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 “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