Morgan Stanley (NYSE:MS) Shareholders Say No to Independent Chairman

At the annual shareholder meeting of Morgan Stanley (NYSE:MS), shareholders rejected the proposal that the chairman of the company must be an independent director who hadn’t ever worked as an executive officer there.

The board of directors at Morgan Stanley had all opposed the idea, which had originated and was submitted by the Laborers National Pension Fund.

Interestingly, all the proposals from the management of the company were approved of, while all the shareholder proposals were voted down in the meeting.

In a proxy, the Morgan Stanley board of directors said the reason they opposed it was because shareholders would be better served by “maintaining the flexibility to have any individual serve as chairman of the board.”

Along with voting for the election of board members, which all were re-elected, the other major issue was whether or not to approve 3 million more shares for use for compensation of the workers at Morgan Stanley.

The push from government regulators is for the giant financial institutions to offer compensation in the form of stock rather than pay.

Although this is highly irrelevant, it’s for the purpose of people not raising a big stink over pay, which most easily understand, than stock, which the majority of the population don’t, as far as it being used in the compensatory way I’m talking about.

At last year’s annual meeting, shareholders approved of 25 million shares, and Morgan Stanley leaders say that 2011 will demand more shares for compensation than this year.