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Morgan Stanley Boss Faces Shareholder Pressure

Posted Mar 11, 08 9:25 AM CDT in Business 

(Newser) – 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.

Source New York Times

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Traffic passes the Morgan Stanley building on Wednesday, Dec. 19, 2007 in New York. (AP Photo/Mark Lennihan)   (Associated Press)
John Mack, CEO of Morgan Stanley, attends the Committee of 100 Conference in this April 20, 2007 file photo in New York. (AP Photo/Mark Lennihan, file)   (Associated Press)
The entrance to the Morgan Stanley building is shown on Wednesday, Dec. 19, 2007 in New York. (AP Photo/Mark Lennihan)   (Associated Press)
John J. Mack is seen during a press conference in Zurich, Switzerland in this Feb. 12, 2004 file photo. (AP Photo/Keystone, Eddy Risch)   (Associated Press)
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Morgan Stanley Commercial (2007)   (TownsendServer (YouTube))
Conference Gala Dinner: John J. Mack speaks.   (committee100 (YouTube))

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Citigroup • Merrill Lynch • Bank of America • Morgan Stanley • Wachovia • Washington Mutual • John Mack


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