The Advisors' Blog

This blog features wisdom from respected compensation consultants and lawyers

February 9, 2012

Goldman and Morgan Stanley Negotiate Withdrawal of Clawback Proposal

Broc Romanek, CompensationStandards.com

As noted on Mark Poerio’s “ExecutiveLoyalty.org“, the WSJ ran this article noting that Goldman Sachs and Morgan Stanley have altered their clawback policies for employees due to negotiating the withdrawal of shareholder proposals related to their policies. The proponent was the Comptroller of the City of New York. The WSJ reports that the main clawback changes involve the following:

– permit recovery of compensation for failure to appropriately supervise or manage an employee;
– cover actions or omissions; and
– remove the term “material” regarding losses as a trigger for recovery.