Morgan Stanley · NYSE:MS

Morgan Stanley — Shareholder Meeting (March 2007)

10 slides from Morgan Stanley's shareholder meeting presentation, Mar 16, 2007

  1. Slide 1: New Equity Compensation Plan Overview

    New Equity Compensation Plan Overview -------------------------------------------------------------------------------- o The Morgan Stanley Board of Directors is recommending approval of the 2007 Equity Incentive Compensation Plan, including authorization to grant 100MM shares, to replace its primar

  2. Slide 2: Proposed Equity Plan Features Key Terms

    New Equity Compensation Plan Proposed Equity Plan Features Key Terms -------------------------------------------------------------------------------- Eligibility: Employees and consultants Expiration: Five years Administration: Board's Compensation, Management Development and Succession Committee Sh

  3. Slide 3: Importance of Equity Plan

    New Equity Compensation Plan Importance of Equity Plan Implications if Equity Plan is not Approved -------------------------------------------------------------------------------- o Without shareholder approval of a new employee equity plan, Morgan Stanley would be unable to use equity as part of it

  4. Slide 4: Equity as a Part of Annual Compensation

    New Equity Compensation Plan Equity as a Part of Annual Compensation Equity Delivered in Lieu of Cash -------------------------------------------------------------------------------- o Morgan Stanley, like its direct competitors Goldman Sachs, Merrill Lynch, Lehman Brothers, Credit Suisse and Bear S

  5. Slide 5: Dilution: Shares Outstanding and Book Value Per Share

    New Equity Compensation Plan Dilution Shares Outstanding and Book Value Per Share -------------------------------------------------------------------------------- Date Shares Outstanding o Potential dilution from the new equity plan would be 9.5% (basedon 100MM - ----------------------------- shares

  6. Slide 6: Equity Plan Overhang and Burn Rate

    New Equity Compensation Plan Equity Plan Overhang and Burn Rate Shares Granted/Reserved and Annual Usage -------------------------------------------------------------- o Morgan Stanley's overhang (outstanding employee equity grants and equity reserved for future grants divided by shares outstanding)

  7. Slide 7: Appendix A - Financial Performance

    - ------------------------------------------------------------------------------- Appendix A - Financial Performance - ------------------------------------------------------------------------------- 7

  8. Slide 8: Relative Performance - Fiscal Year-ended 2006

    New Equity Compensation Plan Relative Performance(1)- Fiscal Year-ended 2006 Looking at the full U.S. peer group: o In terms of year-over-year revenue growth, Morgan Stanley was tied for second with Merrill Lynch, behind only Goldman Sachs o Morgan Stanley ranked 4 out of 8 in terms of EPS from cont

  9. Slide 9: Historical Performance and Current Landscape

    New Equity Compensation Plan Historical Performance and Current Landscape -------------------------------------------------------------- Relative Performance(1) -------------------------------------------------------------- Stock Performance (indexed)(%) ---------------------------------------------

  10. Slide 10: Historical Performance and Current Landscape

    New Equity Compensation Plan + Since the heginning of Fiseal 2006, Morgan Stanley stock is up 34.6%, behind only Goldman Sachs,and Bear Stearns, againstkey competitors Morgan Stanley storical Performance and Current Landscape Relative Performance) ‘Stock Performance (indexed (%) a a este nes — man i

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