Morgan Stanley Speeds Payouts for Ex-CFO -- 2nd Update

By Justin Baer 

Morgan Stanley delivered a parting gift to its former finance chief, allowing millions of dollars in Ruth Porat's deferred cash and stock bonuses to vest as part of her move to the same role at Google Inc.

The Wall Street firm said Friday in a regulatory filing that its board approved a plan to treat Ms. Porat as retirement-eligible, assuring the payout of past year-end awards that are delivered over time. Those bonuses, Morgan Stanley said, are still subject to cancellations and clawback provisions.

Morgan Stanley had previously awarded Ms. Porat about $27 million in deferred cash, stock and long-term incentive pay over the past three years.

The move means that Ms. Porat won't forfeit past bonuses, a dilemma executives often face when they defect to a competitor.

Thursday was Ms. Porat's last day at the firm. Her career at Morgan Stanley spanned 28 years.

Morgan Stanley also said in the filing that Ms. Porat's successor, former financial-services banker Jonathan Pruzan, would receive a base salary of $1 million in his new role.

Write to Justin Baer at [e-mail]

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