Management Turnover as Change Agent

Tuesday, April 8, 2008

Update - Morgan Stanley's CEO Appears to Win Board Re-election Despite Pension Fund Resistance

According to a story by Francesco Guerrera of the Financial Times,
John Mack, Morgan Stanley’s chairman and chief executive, looks set to defeat opposition from a number of pension funds and win a comfortable re-election to the investment bank’s board at Tuesday’s shareholder meeting.
As I discussed in an earlier blog, Mack has been under increasing pressure from a number of pension funds to give up his dual role as CEO and Chairman. The pressure came as a direct consequence of the financial risks the company was exposed to under Mack's reign as regards to the sub-prime mortgage business. Morgan was recently forced to incur large recent write-offs as a result of the risks.

Should Mack win the vote, as it now appears likely, his position will be strengthened.

Another take:

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