Morgan Stanley CEO Gorman’s total 2019 pay falls 7% to $27 million


FILE PHOTO: James P. Gorman, chairman & CEO of Morgan Stanley, testifies before a House Financial Services Committeeon Capitol Hill in Washington, U.S., April 10, 2019. REUTERS/Aaron P. Bernstein/File Photo

NEW YORK (Reuters) – Morgan Stanley (MS.N) Chief Executive James Gorman is receiving $27 million in total compensation in 2019, nearly 7% less than what he got the year before, the company said in a filing on Friday, following a reduction of bonuses staff-wide.

The board, which decides the top executives’ pay, called the 61-year-old’s performance in the year “outstanding” and acknowledged “the firm’s strong financial performance.” The bank’s reported profit jumped 46% to $2.09 billion in 2019 compared to 2018.

That kind of out-performance would typically result in the board giving the CEO a big raise. However, a source familiar with the board’s thinking said members also considered the bank’s recent disclosure that it would cut staff and discretionary compensation as it aimed to further reduce expenses.

In the bank’s fourth quarter earnings on Thursday it said it was lowering 2019 bonuses staff-wide in an effort to offset a 7% increase in other compensation expenses.

Morgan Stanley also disclosed it paid $172 million in severance packages to terminated employees, many of whom worked at the investment bank and trading business. The bank said in December that it would cut about 1,500 employees, or roughly 2% of its global workforce.(reut.rs/2qAtgES)

Gorman’s compensation is comprised of four parts: a base salary of $1.5 million; a cash bonus of $6.375 million; a deferred equity award of $6.375 million; and a performance-vested equity award of $12.75 million.

The board again required that 75% of Gorman’s incentive compensation be deferred over three years subject to a claw-back, and for all of that compensation to be paid in the form of equity in the company.

Reporting by Elizabeth Dilts Marshall and Supantha Mukherjee in Bangalore; Editing by Leslie Adler and Sonya Hepinstall



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Boeing’s ousted CEO departs with $62 million, even without severance pay


(Reuters) – Boeing Co’s (BA.N) ousted chief executive officer, Dennis Muilenburg, is leaving the company with $62 million in compensation and pension benefits but will receive no severance pay in the wake of the 737 MAX crisis.

FILE PHOTO: Boeing Chief Executive Dennis Muilenburg testifies before a Senate Commerce, Science and Transportation Committee hearing on “aviation safety” and the grounded 737 MAX after two deadly 737 MAX crashes killed 346 people, on Capitol Hill in Washington, U.S., October 29, 2019. REUTERS/Sarah Silbiger

Muilenburg was fired from the job in December as Boeing failed to contain the fallout from a pair of fatal crashes that halted output of the company’s bestselling 737 MAX jetliner and tarnished its reputation with airlines and regulators.

The compensation figures were disclosed in a regulatory filing late on Friday during a difficult week for Boeing when it also released hundreds of internal messages — two major issues hanging over the company before new CEO David Calhoun starts on Monday.

The messages contained harshly critical comments about the development of the 737 MAX, including one that said the plane was “designed by clowns who in turn are supervised by monkeys.”

The 737 MAX has been grounded since March following the second of two crashes that together killed 346 people within a span of five months.

“It is incredibly heart wrenching to see the man at the heart of our loss walk away with a reward,” said Zipporah Kuria, whose 55-year-old father from Kenya died in the second crash.

Lawmakers also blasted Boeing.

“346 people died. And yet, Dennis Muilenburg pressured regulators and put profits ahead of the safety of passengers, pilots, and flight attendants. He’ll walk away with an additional $62.2 million. This is corruption, plain and simple,” U.S. Senator Elizabeth Warren said on Twitter.

U.S. Representative Peter DeFazio, who chairs the House Transportation Committee, said minutes of a June 2013 meeting showed that Boeing sought to avoid expensive training and simulator requirements by misleading regulators about a anti-stall system called MCAS that was later tied to the two crashes that killed 346 people.

The MAX has been grounded since the second crash in March.

Speculation that Muilenburg would be fired had been circulating in the industry for months, intensifying in October when the board stripped him of his chairman’s title – although he had also twice won expressions of confidence from Calhoun, Boeing’s board chairman.

A turnaround veteran and former General Electric Co (GE.N) executive who has led several companies in crisis, Calhoun will receive a base salary at an annual rate of $1.4 million and is eligible for $26.5 million in long-term incentive compensation, Boeing said in a filing.

Boeing said in November Muilenburg had volunteered to give up his 2019 bonus and stock awards. For 2018, his bonus and equity awards amounted to some $20 million, according to filings.

In addition to the $62 million in compensation and pension benefits, Muilenburg holds stock options that vested in 2013, Boeing said. They would be worth $18.5 million at the closing price on Friday.

“Upon his departure, Dennis received the benefits to which he was contractually entitled and he did not receive any severance pay or a 2019 annual bonus,” Boeing said in a statement.

Reporting by David Shepardson in Washington and Tracy Rucinski in Chicago; Additional reporting by Ankit Ajmera in Bengaluru, Peter Henderson in San Francisco and Eric M. Johnson in Seattle; Editing by Matthew Lewis, Sonya Hepinstall and Sandra Maler



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Japanese billionaire Maezawa in $9 million ‘social experiment’ giveaway


TOKYO (Reuters) – Japanese fashion tycoon Yusaku Maezawa is giving away $9 million to his Twitter followers in what he says is a “social experiment” to see if the payment boosts their happiness.

FILE PHOTO: Japanese billionaire Yusaku Maezawa, founder and chief executive of online fashion retailer Zozo, who has been chosen as the first private passenger by SpaceX, poses for photos as he attends a news conference at the Foreign Correspondents’ Club of Japan in Tokyo, Japan, October 9, 2018. REUTERS/Toru Hanai/File Photo

Maezawa will give 1 million yen ($9,000) to 1,000 followers selected at random from those who retweeted a Jan. 1 post, with the impact of the money to be tracked through regular surveys.

“It’s a serious social experiment,” said Maezawa on YouTube, adding he hopes to attract interest from academics and economists.

Maezawa, who is to be the first private passenger to fly around the moon with Elon Musk’s SpaceX, is known for his high spending on art and sports cars but also has a predilection for musing on ideas like a world without money.

He tied the giveaway to the idea of basic income, or the theory of providing a periodic no-strings-attached payment to all citizens, that has gained traction in some political circles and is backed by Democratic U.S. presidential candidate Andrew Yang.

“Basic means a regular minimum amount offering a sense of security, what Maezawa is offering is totally different,” said Toshihiro Nagahama, senior economist at Dai-ichi Life Research Institute.

Maezawa said that given that he “has the money and free time” to make the payments, he felt the need to try and inspire greater debate over the merits of the theory in Japan.

The idea of a universal basic income has gained support over fears technology such as artificial intelligence will wipe out large numbers of jobs but that concern is for now less pronounced in Japan with its tight labor market, said Nagahama.

Its the second, larger, giveaway by the entrepreneur, who in November secured a $900 million payday through the sale of his online fashion business Zozo Inc (3092.T) to SoftBank Group Corp (9984.T).

Maezawa, who recently grabbed headlines after his split from actress girlfriend Ayame Goriki, has gathered almost 7 million followers on Twitter with his mix of displays of conspicuous consumption and folksy pronouncements on the meaning of life.

YouTube is the latest online outlet for the businessman, with videos including a tour of his private jet, a visit to the barber to dye his hair and updating his bank book after November’s windfall.

The debate over basic income comes as income inequality continues to grow in the United States, where in recent years some of its wealthiest entrepreneurs, from Microsoft (MSFT.O) co-founder Bill Gates to investor Warren Buffet, have pledged to give away most of their wealth.

Editing by Jacqueline Wong



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Israel worried over tourism growth after reaching record 4.55 million in 2019 By Reuters



By Steven Scheer

JERUSALEM (Reuters) – Israel received a record number of tourist visits in 2019 but growth could be slowed this year due to cuts in spending on advertising to promote the country as a destination, the tourism ministry said on Monday.

The announcement came at a time of heightened concern over security in the Middle East after the United States killed a top Iranian general. However, a tourism ministry official said the ministry was no more concerned about the potential impact of geopolitics on tourism than usual.

Israel recorded a 10.6% rise in tourism last year to 4.55 million visits, bringing in 22 billion shekels ($6.3 billion) in revenue.

That came despite two major escalations between Israel and Palestinian militants who control Gaza. Some 1,300 rockets were fired into Israel in 2019, the most since the last major war fought with Hamas in Gaza in 2014.

“We are within reach of achieving 5 million tourists, but we are concerned that the momentum we have achieved in focused marketing that has proven itself will not continue with the same intensity because of significant budget cuts,” Tourism Ministry Director-General Amir Halevi said.

Israel’s budget deficit is expected to have exceeded 3.5% of gross domestic product in 2019, above a target of 2.9%.

The Israeli economy has so far weathered two inconclusive elections and a year of successive caretaker governments. The political stalemate means it will be well into 2020 before a new annual budget is passed, triggering months of cutbacks. The third election in less than a year will be held on March 2.

“Tourism growth has been driven by increased marketing budgets in recent years, and we hope that, despite the budget cut in 2020, we will be able to maintain the tremendous achievements we have reached,” Tourism Minister Yariv Levin said in a statement.

The United States remained the top country for incoming tourism in 2019, with a 7% rise to nearly 890,000 entries, followed by France, Russia, Germany, Britain and Italy. Tourism from China jumped 49% to 156,000.

($1 = 3.4755 shekels)

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Tuna sells for $1.8 million in first Tokyo auction of 2020, second highest ever By Reuters



TOKYO (Reuters) – A bluefin tuna sold for 193.2 million yen ($1.8 million) in the first auction of the new year at Tokyo’s Toyosu fish market, the second highest price on record, NHK broadcaster reported.

The tuna was caught off northern Aomori Prefecture and weighed 276 kilograms (608 lbs), according to NHK, which translates into a price of about 700,000 yen per kilogram.

The successful bidder was Kiyoshi Kimura, the head of the company that runs sushi restaurant chain “Sushizanmai,” NHK said.

Last year Kimura paid a record 333.6 million yen for a tuna at the auction, exceeding his previous record price in 2013.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Justin Sun Explains the Rationale Behind His $1 Million Greta Thunberg Donation By Cointelegraph


Justin Sun Explains the Rationale Behind His $1 Million Greta Thunberg Donation

On Dec. 18 Cointelegraph reported that Tron (TRX) founder Justin Sun publicly pledged to donate $1 million to Swedish activist Great Thunberg to raise global awareness of the climate crisis.

Following the COP25 UN Climate Conference in Madrid, Sun tweeted:

Continue Reading on Coin Telegraph

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Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



U.S. Fed buys $825 million of mortgage bonds, sells none By Reuters



NEW YORK, Dec 26 (Reuters) – The Federal Reserve bought $825 million of agency mortgage-backed securities in the week

from Dec. 19 to Dec. 24, compared with $1.806 billion purchased the previous week, the New York Federal Reserve Bank said on Thursday.

In a move to help the housing market begun in October 2011, the U.S. central bank has been using funds from principal payments

on the agency debt and agency mortgage-backed securities, or MBS, it holds to reinvest in agency MBS.

The New York Fed said on its website the Fed sold no mortgage securities guaranteed by Fannie Mae (OB:),

Freddie Mac (OB:) or the Government National Mortgage Association, or Ginnie Mae,

in the latest week. It sold $200 million the prior week.

((New York Treasury Desk +1-646-223-6300))

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Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Sign-ups for 2020 Obamacare insurance on HealthCare.gov fall to 8.3 million: CMS By Reuters


© Reuters. FILE PHOTO: A man looks over the Affordable Care Act signup page on the HealthCare.gov website in New York in this photo illustration

(Reuters) – Enrollments for 2020 insurance plans, under the Affordable Care Act (ACA), on the HealthCare.gov website fell by about 200,000 from last year to 8.3 million, the U.S. government said on Friday, citing preliminary data.

The data, as of Dec. 17, includes consumers who were granted an extension because they were unable to complete the enrollment process on Dec. 15, the initial deadline for open enrollment.

These numbers are preliminary and do not represent final 2020 Exchange Open Enrollment figures, the Centers for Medicare & Medicaid Services (CMS) said.

On Monday, the CMS extended the deadline for enrollment via the website by three days to Dec. 18 after people faced technical issues during the final hours of the enrollment deadline.

Over half a million consumers signed up on Sunday, the initial deadline for open enrollment, according to the CMS.

Last year, 8.5 million people signed up for 2019 health plans, about 4% lower than the preceding year.

“Through the first six weeks of open enrollment, the comparable daily average number of plan selections was running 2.5% behind last year’s pace,” Evercore ISI analyst Michael Newshel said in a note earlier this week.

The CMS runs enrollment for insurance plans created by the ACA, often referred to as Obamacare, through the online marketplace HealthCare.gov for 38 states. Thirteen states, including District of Columbia, have separate state-based exchanges for enrollment with their own deadlines.

The Healthcare.gov platform accounts for 73% of national enrollment, while state-based exchanges represent 24%, according to Newshel.

“Similar to prior years, many of these states are seeing better growth than the federal platform,” Newshel said on Monday, citing reports from 8 of the 13 state-based exchanges.

The ACA, often considered the signature domestic achievement of former President Barack Obama, faced fierce opposition from the Trump administration that sought to overturn it in Congress and via courts.

In October, the government said monthly premiums for an average 2020 Obamacare health insurance plan will fall by about 4% from this year.

CMS plans to release an updated snapshot during the second week of January with the final enrollment data. 

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



France’s AMF watchdog fines Bloomberg €5 million over Vinci hoax


FILE PHOTO: A man stands in front of a screen showing broadcasts of Bloomberg Channel at Hong Kong’s financial Central district May 15,2013. REUTERS/Tyrone Siu

PARIS (Reuters) – France’s markets watchdog AMF said on Monday it had fined U.S. news agency Bloomberg News 5 million euros ($5.5 million) for publishing a hoax press release relating to construction group Vinci (SGEF.PA) in November 2016.

AMF said in a statement Bloomberg should have known the information in the press release was false.

Bloomberg News, which competes with Thomson Reuters (TRI.TO), said it intended to lodge an appeal.

“We regret that the AMF did not find and punish the perpetrator of the hoax, and chose instead to penalize a media outlet that was doing its very best to report on what appeared to be newsworthy information,” a spokesman for Bloomberg News said.

On Nov. 22, 2016, Vinci shares lost as much as 18% following the hoax statement that said the group would revise its 2015 and 2016 accounts and fire its chief financial officer.

The AMF said it had taken action against Bloomberg because it had published the hoax statement without verifying it.

Vinci shares recovered after the company denied the report and said the statement was a hoax.

After the hoax statement, Vinci filed a legal complaint to the AMF.

Reporting by Dominique Vidalon, Matthieu Protard and Mathieu Rosemain; editing by David Evans



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Electrolux to incur $70 million charge for U.S. overhaul


FILE PHOTO: Interiors of Electrolux R&D facility are pictured at their plant in Pordenone, Italy, March 27, 2019. REUTERS/ Giulio Piovaccari/File Photo

(Reuters) – Swedish appliance maker Electrolux AB (ELUXb.ST) on Sunday said its North American business will incur costs of about $70 million in fourth quarter as part of costs incurred to move into a new facility in South Carolina.

Electrolux is investing about $250 million in new product platforms at a facility in Anderson, South Carolina, and the plant will replace manufacturing in St Cloud, Minnesota, and manufacturing at another facility in Anderson, it said.

The company also expects a negative impact to its operating income due to accounting adjustments from previous quarters and a reduction in inventory by a U.S. customer.

The new investment program and streamlining measures is on track to generate about 3.5 billion crowns ($363.59 million) of annual cost savings, with full effect from 2024, the Swedish company said.

The capacity issues in Anderson are expected to be gradually resolved during the first half of 2020, it added.

Reporting by Shubham Kalia in Bengaluru, editing by Louise Heavens



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