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Morgan Stanley Details Cruz, Purcell Pay Packages

Co-president Cruz gets $20 million for 2005.

Amid more than 100

Morgan Stanley


filings late Tuesday and Wednesday, the closely watched investment bank filed its 2005 proxy statement, which shed official light on the company's much-discussed management bonuses of last year.

The shufflings and reshufflings at the firm left Wall Street curious about which executives would turn out on top. Well, even by Wall Street standards, Morgan Stanley looks generous.

One of the most closely watched executives at the firm, Zoe Cruz, played the salary game well in 2005. Cruz declined to renegotiate her contract midyear when co-president Steve Crawford decided to leave the firm. Crawford received $32 million in cash, to be paid out over two years. At the time, Cruz was reportedly offered a similar amount of money for staying on.

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Although she remained with Morgan Stanley, Cruz reportedly declined to renegotiate the contract. The gesture was viewed as an olive branch to the company after Cruz backed former president Philip Purcell. Now, her move looks like a smart one.

Cruz's salary surpassed that of Crawford's $16 million payout in 2005. As one of the few female executive on Wall Street, Cruz took in more than $20 million in cash and stock compensation in 2005, with $7.2 million coming in cash. Her cash bonus, which was slightly below her cash bonuses in 2004 and 2003, was supplemented by stock awards of more than $13.5 million. The market value of Cruz's stock options at Morgan Stanley now tops $62.8 million, the largest amount of any other executive at the firm.

The executive picked to fill Purcell's slot, John Mack, also received a generous payment of over $38 million in 2005, most of which came in the form of restricted stock awards.

As reported last July, former CEO Philip Purcell's package, which was outlined in detail in the filing, showed him to be the top earner at the firm in 2005. His total package reached almost $52 million, and included an annual payment that Morgan Stanley will give him for the rest of his life.

Purcell's cash-bonus component, the figure that always means the most on Wall Street, rounded out $44 million, and half was paid to Purcell this January . The other half is to be paid next January. Also in the agreement, Morgan Stanley will donate $250,000 per year for life to Purcell's charities of choice, an aggregate amount of $2.9 million. Purcell will also receive $250,000 per year for life in lieu of benefits, the filing said. The aggregate amount of this award is $3.1 million.

Meanwhile, Purcell made sure his administrative assistant at the firm was taken care of after his departure. The assistant received compensation of $79,644 for five months of work for Purcell following his departure, from July to November last year. An assistant will continue to be employed by the firm for Purcell's use. The assistant will receive an annual salary of $115,000 and an annual pay increase of 3.5%. Purcell will be able to maintain his administrative support at Morgan Stanley for the rest of his life.