One of Wall Street's most powerful CEOs is rejecting his year-end bonus for the third time in a row, according to an internal memo obtained by ABC News.
Morgan Stanley received 10 billion in funds from the government's Troubled Asset Relief Program last year.
Gorman will succeed Mack as CEO in January.
But Mack is the first CEO of a major bank to refuse a bonus outright.
"We appreciate any commitment by industry leaders to far-reaching reform of our banking rules and the design of compensation.Former Wells Fargo CEO, john Stumpf already forfeited 41 million in stock awards last year before abruptly retiring under pressure.Instead, the board said it acted to "reinforce accountability of the company's leadership.".Wells Fargo's board said its independent investigation into the scandal is "ongoing" and is expected to be completed before the bank's annual shareholder meeting next month.The board took further punitive action by chopping in half stock awards that these leaders were due to be paid.In October, Obama administration pay czar Kenneth Feinberg slashed annual salaries for the top 25 executives at seven companies deemed to have received "exceptional assistance" from the government: AIG, Bank of America, Chrysler, Chrysler Financial, Citigroup, General Motors and gmac.Wells Fargo has been caught up in scandal since September when the bank admitted to creating as many as 2 million fake accounts and was hit with allegations of mistreating workers.The pay cuts, however, will not take effect at Citigroup and Bank of America because both banks have since announced plans thin value bet poker to pay back the billions they received from tarp.Outgoing Morgan Stanley CEO John Mack asked the bank's board to withhold his bonus, citing "the extraordinary financial support governments provided to our industry he wrote in the memo sent today to all.
He also refused his bonus in 2007, when most bankers did poker a fish not, and again in 2008, when he earned an 800,000 salary.
Wells Fargo's settlement with regulators last September quickly turned into one of the biggest banking scandals in recent years.
Morgan Stanley Co-President James.
The bank repaid the government in June.
Last month, Wells Fargo fired four senior employees who either work or used to work in the community banking division at the heart of the scandal.And we've got ten percent unemployment.The news sparked hearings in Congress, numerous lawsuits and several state and federal investigations.Cfra Research analyst Cathy Siefert wrote in a report that Wells Fargo's new punitive actions are "necessary.".As the financial crisis churned through the banking system and the country in 2008, Mack's peers at Citigroup, Bank of America, JPMorgan and Goldman also rejected their bonuses.He will remain chairman of the bank's board.Fellow Wall Street titan, goldman Sachs said earlier this month that its top 30 managers would forgo cash bonuses and instead be awarded stock that can't be sold for five years.Related: Big banks rack.4 billion in ATM, overdraft fees.Wells Fargo Chairman Stephen Sanger said in a statement that the compensation actions are part of the board's efforts online gambling no minimum deposit "to promote accountability and ensure Wells Fargo puts customer interests first." "I fully support the Board's actions and believe they are critical to Wells Fargo's commitment.
The cuts resulted in an average of 90 percent reduction from 2008 compensation levels.
obama told CBS's "60 Minutes" that bankers didn't understand why people are angry at banks.