With $11 billion in writedowns already on the books and a history of making risky trades and building debt, Morgan Stanley CEO and chairman John Mack is facing scrutiny from some shareholders, the New York Times reports. He has substantial support, but at least one activist group is pushing for him to relinquish his chairman’s role.
Morgan shares have fallen almost 50% from their 52-week high, and dissatisfaction with Mack is growing. One of the struggling investment bank's largest shareholders, CtW Investment Group, is calling on investors to withhold votes for Mack as chairman. "Everything we have seen suggests that this board is excessively protective of its CEO," said the executive director.