As matters continue to deteriorate at Saxon Mortgage it is clear that Saxon should hire more people. Instead, parent company Morgan Stanley decided to raise pay for executives. Executives want to be on par with others of their kind.
The base salary of Morgan Stanley Co-Presidents James Gorman and Walid Chammah will increase by one-third to $800,000 a year, according to a securities filing. Chief Financial Officer Colm Kelleher, Chief Legal Officer Gary Lynch and Chief Administrative Officer Thomas Nides will get a base salary of $750,000 each.
Morgan Stanley still needs to solve problems at Saxon. The move shows Morgan Stanley and other Wall Street firms acknowledge compensation was part of the problem that led to the financial crisis. Now is the time to solve problems at Saxon.