Executive greed

Corporate executive greed has not abated. The latest example.

Philip J. Purcell's golden parachute has a platinum lining.

The board of Morgan Stanley has awarded Mr. Purcell, who retired as chairman and chief executive after a bitter struggle for control of the firm, an exit package worth an estimated $113.7 million. . .

Mr. Purcell leaves with a long list of parting gifts, including a departure bonus worth $42.7 million based on the company's performance through the second quarter of this year. The one-time cash payment, which was not in his original employment contract, is based on a formula that adjusts the bonus up or down depending on the difference between Morgan Stanley's fiscal 2005 and 2004 pretax profit. So far, Morgan Stanley's pretax profit is down about 6 percent this year and the value of the bonus reflects that amount.

He will also receive $34.7 million of restricted stock and an estimated $20.1 million in stock options, based on yesterday's closing share price of $53.34, which he collected during his years at the firm. And he is to receive retirement benefits with a lump-sum value around $11 million.

Unbelieveable. He gets a bonus to which he is not contractually entitled that gives him $42.7 million for overseeing a reduction in pretax profit over the past 6 months. Oh, and he gets another $70 million on top of that for good measure. I give that a big Bronx cheer.