Human Capital & Careers

Morgan Stanley CFO Eyes Big Payday

David Sidwell's lucrative severance and pay arrangements, however, are just a sideshow to the gargantuan pay package earmarked for former chairman ...
Stephen TaubJuly 8, 2005

Morgan Stanley announced that if chief financial officer David H. Sidwell remains with the company through October 15, he will receive $10.5 million as his annual base salary, annual bonus, and long-term incentive compensation.

However, if before that date he is fired without cause or resigns for “good reason,” he will receive two times his 2005 compensation in cash — $21 million — which would cover both his 2005 and 2006 employment. In addition, all of his equity awards would continue to vest, and he would receive medical coverage for 12 months after his termination date at the employee rate.

Sidwell’s lucrative severance and pay arrangements, however, are just a sideshow to the gargantuan pay package earmarked for former chairman and chief executive officer Philip J. Purcell.

According to a regulatory filing, Purcell will receive about $44 million as part of his exit package; part of this sum is determined by the change in Morgan Stanley’s earnings from 2004 to 2005. He will also receive $250,000 per year for life, retiree medical benefits, and administrative support.

In an unusual provision, the company also will provide a contribution of $250,000 per year in Purcell’s name, for the remainder of his life, to charitable institutions of his choice.

Meanwhile, co-president Stephen Crawford will receive $32 million if he leaves the company before August 3. Unlike Sidwell, the CFO, Crawford will receive that payout if he and Morgan Stanley part ways for any reason.