Morgan Stanley’s decision to award $20 million special bonuses to its runners-up for chief executive officer points to a governance risk, raising questions about their commitment to the company, according to Wells Fargo & Co. analyst Mike Mayo.
The Wall Street bank named Ted Pick its next CEO last week, saying his top competitors for the post, Andy Saperstein and Dan Simkowitz, would stay on, too. The plan includes share-based awards initially valued at $20 million apiece for all three executives, roughly equal to a year of their historic pay.
Mayo said that means the succession plan is “more reliant on comp than realized,” showing the bank is “paying top execs to stay, which to us at least raises a question about whether they are staying more due to comp than culture.”
The firm’s longtime CEO, James Gorman, had publicly vowed to defy a norm on Wall Street, in which big firms elevate a new boss only to set off a cascade of personnel changes as the incoming leader’s rivals depart. Bucking that trend, Morgan Stanley said last week that Saperstein and Simkowitz will remain at the company as co-presidents.
Each award consists of 60% performance-stock units, with a performance period of 2024 to 2026, that convert to shares in 2027. The remaining 40% is comprised of restricted-stock units that vest and become shares in January 2027. The performance-stock units pay out in full only if the company reaches certain financial targets.
"QuantumRisk, by design, recognizes that these so-called “impossible” events actually happen, and it accounts for them in a way that advisors can see and plan for," Dr. Ron Piccinini told InvestmentNews.
Advisors who invest time and energy on vital projects for their practice could still be missing growth opportunities – unless they get serious about client-facing activities.
The policy research institution calculates thousands in tax cuts for Washington, Wyoming, and Massachusetts residents on average, with milder reductions for those dwelling in wealth hotspots.
Yieldstreet real estate funds turned out to be far riskier than some clients believed them to be, according to CNBC.
The race to 100 transactions ended a month early this year, with April standing out as the most active month on record for RIA dealmaking.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
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.
