is reputational harm or reputational risk not a sort of standard thing in
these contracts, though?

On Wed, Dec 10, 2008 at 10:39 PM, michael perelman <
[EMAIL PROTECTED]> wrote:

> 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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