Proxy Adviser's Standoff with Wall Street Intensifies

Institutional Shareholder Services opposes Morgan Stanley's proposal to expand its equity incentive compensation plan. ISS claims the bank has overly generous disclosures and has recently been critical of executive pay at Goldman Sachs and BlackRock. ISS faces accusations of undue influence in shareholder voting.

Institutional Shareholder Services (ISS) is urging investors to reject Morgan Stanley's proposal to expand its equity incentive compensation plan, marking another pushback by the proxy adviser against Wall Street.

The proposal involves adding 50 million shares to the plan and extending it for three years, a move Morgan Stanley argues will align employee and shareholder interests. However, ISS points out the bank has already distributed too many shares in recent years and criticized some incomplete disclosures.

This decision is part of a broader trend this proxy season, as ISS opposes several management proposals across the U.S., including retention bonuses at Goldman Sachs and executive compensation plans at BlackRock. ISS has recommended approval of Morgan Stanley's executive pay, however, despite other oppositions.

(With inputs from agencies.)