Talk about going off script.
Morgan Stanley Chief Executive James Gorman raised some eyebrows during a routine conference this week when he threatened to “personally escort” [out] anyone found leaking any details of the firm’s compensation levels to the media, The Post has learned.
Gorman, who has been pushing hard to keep the lid on bonuses and has railed against the superstar mentality on Wall Street, unexpectedly read the riot act to about 500 managing directors during the usually staid year-end conference call, according to sources familiar with the call.
Gorman’s chat with the top executives of the storied white-shoe investment bank comes as the firm is expected to cut bonuses by as much as 30 percent this year and have “difficult discussions” with officials over pay, as first reported by The Post.
The chief executive underscored that, although he wants to retain top talent at the firm, he also has a responsibility to shareholders of the investment bank that celebrated its 75th anniversary back in September after hanging on life support two years ago during the heart of the financial crisis.
The CEO, who, sources added, took up boxing when he assumed the chief executive post from John Mack earlier this year, told executives that Morgan Stanley has a lot to be proud of this year as it goes toe-to-toe with rivals like Goldman Sachs.
Gorman has described managing the expectations of many of Morgan Stanley’s top investment bank brass as “threading the needle.”
Morgan Stanley shares are down 13.6 percent in 2010, and closed yesterday down marginally at $26.01.
However, Gorman says that he believes the firm still has tremendous upside potential given the firm’s partnerships in Asia, including with Chinese Investment Corp., and the consummation of its joint-venture partnership with Mitsubishi UFJ.
The Morgan Stanley boss also spent time on the call highlighting the bank’s successes, including leading General Motors’ initial public offering, and told execs to “come back charging in 2011.” mark.decambre@nypost.com