ISS advises rejecting Morgan Stanley's proposal to expand equity incentives due to excessive share grants

From Yahoo Finance: 2025-04-30 11:12:00

Institutional Shareholder Services advises investors to reject Morgan Stanley’s proposal to expand its equity incentive plan. ISS points out that the investment bank has granted too many shares in the past three years, with incomplete disclosures. Despite this, ISS recommends voting for executive pay at Morgan Stanley.

ISS has opposed management proposals in the U.S., including retention bonuses at Goldman Sachs and compensation plans at BlackRock. Goldman shareholders approved pay packages, while BlackRock’s executive compensation will be voted on May 15. ISS and Glass Lewis face allegations of undue influence and lack of transparency.

A Congressional subcommittee held a hearing on the influence of proxy advisers, with accusations that companies like ISS and Glass Lewis “routinely dictate” shareholder votes. Lazard requested a review of ISS’s report advising against the bank’s executive compensation plan. Wall Street faces increasing scrutiny over executive pay practices.

Read more: Morgan Stanley investors should reject proposal to expand equity incentives, ISS says