It is a good thing that Wall Street veteran John Mack is fabulously rich from all the investment banks he has run over the years. He's not getting a raise this year.
Morgan Stanley (MS) will keep his salary flat at $800,000 for the next year. Mack's chief deputies will get modest increases to their base pay. But all will have to hope for the day that Wall Street's good fortunes return.
The new base-pay packages will give co-presidents James Gorman and Walid A. Chammah $800,000 each. The firm's chief legal, financial and administrative officers will each get $750,000.
It is a smart move. Mack clearly doesn't need the money. Under the comp rules for the TARP he may not get much of a bonus either, in fact he may get none at all. He had no bonus in 2008 or 2007, reportedly.
In the meantime, MS plans to pay back its TARP funds and get itself out from under the draconian pay caps. Then Mack can go back to making $20 million a year and the people just under him can return to the days when a $10 million-a-year comp package was not unusual.
Douglas A. McIntyre is an editor at 24/7 Wall St.