Investor Presentaiton
MORGAN STANLEY BANK ASIA LIMITED
UNAUDITED SUPPLEMENTARY FINANCIAL INFORMATION
Year ended 31 December 2020
H. PILLAR 3 DISCLOSURE (CONTINUED)
Table REMA: Remuneration policy (continued)
Remuneration process (continued)
The overall discretionary bonus pool is established in consultation with the CMDS Committee. Risk-
Adjusted Return on Equity is the primary quantitative metric reviewed with the CMDS Committee to
determine the size of the bonus pool. Employee eligibility for bonus compensation is discretionary and
bonus decisions are subject to a multi-dimensional process, which considers financial and non-financial
individual, business unit and Morgan Stanley Group's performance measures.
Non-financial performance criteria that may be taken into account in deciding whether to award, and the
amount of any bonus compensation, include (but are not limited to):
•
•
Individual conduct, including but not limited to, adherence to the Morgan Stanley Group's Code of
Conduct and policies and the Morgan Stanley Group's cultural values;
Contribution to the performance and profitability of both the business unit and the Morgan Stanley
Group and the strategic objectives of the Morgan Stanley Group, business unit and the team and the
associated value attributed to the role;
Commercial impact, including business/functional knowledge and judgment, client relationships,
innovation and execution;
• Leadership skills, including teamwork, communication and management;
•
Professional skills, including recruiting, diversity and inclusion; and
●
Adherence to compliance and risk policies, including ethics, control and risk management.
Senior management of the Morgan Stanley Group and the CMDS Committee oversee the Morgan Stanley
Group's controls regarding the year-end compensation process to help eliminate incentives for excessive
risk-taking, including:
•
•
•
•
Sizing the incentive compensation pool to more fully consider risk-adjusted returns, compliance with
risk limits and the market and competitive environment;
Allocating the incentive compensation pool among businesses after consideration of the business'
returns on certain financial and return on capital metrics;
Delivering a substantial portion of compensation in multi-year deferrals subject to
malus/cancellation;
Directing compensation managers to consider malus/cancellation events and an employee's risk
management activities and outcomes in making compensation decisions; and
Undertaking a rigorous review process by risk control functions to identify potential
malus/cancellation situations.
In addition, on an annual basis, business heads and Operating Committee members representing the
Morgan Stanley Group's revenue-generating divisions will prepare a Pay and Performance Analysis
report that is presented to the CMDS Committee. This report sets the stage for the CMDS Committee to
understand the outcomes of pay from the prior year relative to the market, and the linkage of prior year
pay and performance. In turn, this enables the CMDS Committee to consider where the starting baseline
of pay either trails or leads the market and whether such a position is warranted or should be rectified in
light of current year known performance. Compensation outcomes are symmetric with risk outcomes at
the Morgan Stanley Group level.
The Company's remuneration policy provides the Company ability to adjust commission payments,
discretionary bonus, and cancel unvested deferrals where the employee's conduct fall below the
Company's standard and expectation.
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