The Wall Street Journal reported today that securities firms have a claw
back clause that allows them to call back bonuses from people whose
screw ups turn out to cost the company big bucks. ok. But Morgan
Stanley's contract includes "reputational harm": which sounds like it
would include people who tell tales out of school:
Grounds for invoking the provision include "the need for a restatement
of results, a significant financial loss or other reputational harm to
the Firm or one of its businesses," the memo said. Morgan Stanley's rule
applies to 2008 bonuses and cash payouts vesting over a three-year
period. The roughly 7,000 employees covered by the policy range from top
brass to midlevel workers.
Patterson, Scott. 2008. "Securities Firms Claw Back at Failed Bets."
Wall Street Journal (10 December).
http://online.wsj.com/article/SB122887461425193661.html?mod=todays_us_money_and_investing
--
Michael Perelman
Economics Department
California State University
Chico, CA
95929
530 898 5321
fax 530 898 5901
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