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| John Mack |
US investment bank Morgan Stanley has given Chief Executive Officer John Mack the biggest ever bonus for the head of a Wall Street firm, awarding him $40 million as the company is set for the best profit in its history that began in 1935 with the split of JP Morgan's retail and commercial channels.
Mack, 62, was given shares valued at $36.2 million as of last Tuesday and about $4 million in options to buy Morgan Stanley shares, the company said yesterday in a filing with the US Securities and Exchange Commission. The firm also granted more than $57 million in bonuses for seven other top executives.
The bonanza for Mack, 44 percent above what Morgan Stanley awarded him in 2005, compares with the $38.3 million in total compensation given to Henry M. Paulson, current US Treasury Secretary, in 2005 when he was CEO of Goldman Sachs.
Shares of Morgan Stanley have risen 40 percent this year, compared with the 16 percent advance by the Dow Jones Industrial Average. The stock closed on Thursday at $79.60, giving the company a market value of $84.2 billion.
Lebanese-American Mack had quit Morgan Stanley in 2001 when he was president following friction with then CEO Philip Purcell. He returned in June 2005 following a civil war in the firm in the first months of that year with former senior staff and dissident shareholders leading a public campaign for Purcell's ouster.
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