HopeTracker| Morgan Stanley chairman John Mack agrees that investment bankers are overpaid but compensation won’t decrease much for fear of losing best performers.
Mack, who retired as CEO of the world’s biggest brokerage in December, cited a 28-year-old Morgan Stanley trader whose unit had earned $300 million to $400 million for the firm. After Morgan Stanley offered $11 million in compensation, the trader jumped to a hedge fund that paid him $25 million, Mack said.
Morgan Stanley allocated 62 percent of its 2009 revenue to pay employees, the highest ratio in more than a decade. The compensation and benefits expense rose 31 percent to $14.4 billion as revenue climbed 28 percent, the New York-based company said Jan. 20. via Bloomberg News