Morgan Stanley 2014 Annual Report Download - page 71

Committee approved the acceleration of vesting for certain outstanding deferred cash-based incentive
compensation awards. The deferred cash-based incentive compensation awards subject to accelerated vesting will
be distributed on their regularly scheduled future distribution dates and will continue to be subject to cancellation
and clawback provisions. With its business strategy in place and greater financial stability, the Company is in a
position to change the level of deferrals, making the Company’s practice more consistent with deferral levels at
the Company’s global competitors. The increase in compensation and benefits expense for the Company and
each of its business segments as a result of these actions was as follows:
Institutional
Securities
Wealth
Management
Investment
Management Total
(dollars in millions)
Pro forma 2014 compensation and benefits expense(1) ...... $6,882 $8,737 $1,068 $16,687
Fourth quarter actions:
Change in 2014 level of deferrals(2) ................. 610 66 80 756
Acceleration of prior-year cash-based deferred
awards(3) .................................... 294 22 65 381
Fourth quarter actions total ............................ $ 904 $ 88 $ 145 $ 1,137
Actual 2014 compensation and benefits expense ........... $7,786 $8,825 $1,213 $17,824
(1) Pro forma 2014 represents compensation and benefits expense at pre-adjustment accrual levels (i.e., at an approximate average baseline
74% deferral rate and with no acceleration of cash-based award vesting that was utilized for the first three quarters of 2014).
(2) Amounts reflect reduction in deferral level from an approximate average baseline of 74% to an approximate average baseline of 50%.
(3) Amounts represent acceleration of vesting for certain cash-based awards.
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