No clawbacks for Michael Grimes at Morgan Stanley

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Massachusetts recently fined Morgan Stanley $5 million for violating securities laws governing banks and IPOs.

The state alleged that the bank played an improper role in the deal, including coaching the company's financial officers about how to communicate with analysts. While the banker was not named in the complaint, the media later identified him as Michael Grimes, perhaps the biggest investment banking star at the firm and the man who landed the Facebook deal for Morgan Stanley.

Though the deal was riddled with controversy and regulatory issues, the bank will not clawback any compensation from Grimes, reports Fortune. The bank might be within in rights, given its tougher clawback policies that allow it to take back compensation "from any employee who had committed conduct detrimental to the company or caused harm to the firm's reputation."

There's no doubt the decision not to target Grimes' compensation is a reflection of his in-house stature. He's apparently still golden, despite the Facebook fisaco. There would appear to be a degree of subjectivity as what triggers a clawback action at the bank.

Morgan Stanley is seeking a clawback of about $5 billion from William Bryan Jennings, the once highly regarded bond executive who resigned in the wake of a nasty personal dispute with a cab driver that resulted in criminal charges. Those charges have been dropped. No one at the bank seems to be rallying to his defense, as he contests the clawbacks in court.

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Mass. charges Morgan Stanley over Facebook