Morgan Stanley chief takes just 800K for 2007

Give Morgan Stanley (NYSE: MS) CEO John Mack credit for honesty and character in the wake of a tough year for the company. Mr. Mack received a salary of just $800,000 for fiscal 2007 (WSJ subscription required), and no bonus -- at his own request. Since setting a high over more than $75 in April, shares of the investment bank have declined to $42, their lowest level since 2005, on large subprime write-downs.

Mr. Mack is to be commended for his character, but investors shouldn't lose sight of the real issue: paying $800,000 for an executive whose company lost more than $25 billion in market value in one year is hardly a bargain.

But it's good news compared to the CFO who took home an $11.7 million package for a year that was an abysmal failure. Politically, Mr. Mack's decision is a good one. It will assuage disgruntled investors and should keep him from joining the cadre of executives hauled before Congress to explain their huge pay packages that came right after huge write-downs.

Hopefully more executives will follow his lead. Even if it's largely a symbolic gesture, taking responsibility is nice to see, and has been tragically rare at the subprime-decimated investment banks.