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 structure (continued)
Deliver Pay for Sustainable Performance (continued)
In addition, for employees in the most senior roles, a significant portion of compensation is delivered in
the form of long-term incentive awards, which closely tie such employees' compensation to the Morgan
Stanley Group's long-term performance.
Investment Representatives ("IRs") are also eligible to receive commissions, which are formulaically
calculated based on predetermined production goals and also payable in cash or partially in cash and
partially in deferred compensation awards.
Align Employees' Compensation with Shareholders' Interests
The Morgan Stanley Group links a significant portion of employees' incentive compensation to
performance and delivers annual deferred compensation awards which helps motivate employees to
achieve the Morgan Stanley Group's financial and strategic goals.
Compensation decisions for employees in risk control functions (including risk management, financial
control, compliance, legal and internal audit functions) are determined by senior management of these
divisions, wholly independent of the performance of the business units, and not by the management of
the business units.
Attract and Retain Top Talent
The Morgan Stanley Group competes for talent globally with other banks and financial institutions. The
Morgan Stanley Group continually monitors competitive pay levels and structures its incentive awards
to attract and retain the most qualified employees.
Mitigate Excessive Risk-Taking
The Compensation, Management Development and Succession Committee (the "CMDS Committee”) of
the Morgan Stanley Group is advised by the Morgan Stanley Group's CRO and the CMDS Committee's
independent compensation consultant to help ensure that the structure and design of compensation
arrangements disincentivise unnecessary or excessive risk-taking that threatens the Morgan Stanley
Group's interests or give rise to risks that could have a material adverse effect on the Morgan Stanley
Group.
Remuneration process
In the first quarter of each year, senior management of the Morgan Stanley Group proposes and works
with the members of the Morgan Stanley Group's Operating Committee (including the CRO of the
Morgan Stanley Group) and the Board of Directors of the Morgan Stanley Group to establish financial
and non-financial performance priorities that are aligned with the Morgan Stanley Group's business
strategy and to incorporate risk-adjusted measures and objectives.
The CRO of the Morgan Stanley Group evaluates the Morgan Stanley Group's current compensation
programs on annual basis and has determined that such programs do not encourage excessive risk-taking
behavior, due in part to (i) the balance of fixed compensation and variable compensation; (ii) the balance
between short-term and long-term incentives; (iii) mandatory deferrals into both equity-based and cash-
based incentives programs; (iv) the governance procedures followed in making compensation decisions;
and (v) the risk-mitigating features of the deferred incentive compensation awards, such as cancellation
and clawback provisions. Details of the deferred compensation plans are set out in note 31 to the financial
statements.
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