Morgan Stanley urges keeping Mack as chairman

Mar.22, 2008 in Market Outlook

Morgan Stanley advises shareholders to keep Mack

By Kate Gibson & Michael Kitchen, MarketWatch

Last Update: 1:15 PM ET Mar 22, 2008

NEW YORK (MarketWatch) — Morgan Stanley’s board of directors is urging
shareholders to reject a proposal that would force out Chief Executive John Mack
from his role as chairman of the large brokerage firm.

In a letter sent to shareholders Friday, Morgan Stanley (MS) defended the actions
of Mack in confronting the subprime crisis that has played havoc with the
financial sector

“In 2007, Morgan Stanley achieved the second highest revenues in our history,
even with the significant mortgage-related write-downs the Firm took in the
fourth quarter,” said the letter, which was filed with the Securities and
Exchange Commission.

For similar reasons, the board urged shareholders not to vote out directors
Howard Davies and Robert Kidder, both of whom were among the directors who signed
the letter.

The endorsement came in response to a letter earlier this month from CtW
Investment Group, an organization representing several unions, calling on
shareholders to withhold their votes from Mack, Davies and Kidder because of
moves made ahead of the subprime trouble.

Did you like this? If so, please bookmark it,