Financial services major Morgan Stanley has said it will set up a committee to supervise the company's risk management.
The move indicates that Morgan Stanley would keep a watch on its risk-taking ability a year after the global financial meltdown.
In a regulatory filing to the Securities and Exchange Commission on Monday, the company said it would set up a standing risk committee.
The entity said it changed its bylaws to provide separate positions of a chairman and a chief executive officer.
Earlier in September, the company said co-president James P Gorman would become the CEO of the company from January 1, 2010, while the current chairman and CEO John J Mack would continue to serve as the chairman.
In a separate report, The Wall Street Journal citing people familiar with the matter said Morgan Stanley may overhaul the way it pays its top executives, deferring more of their compensation over time and benchmarking their pay against rival firms.
As per the plan, Morgan Stanley's senior executives may receive about one quarter of their 2009 pay in cash, with the rest coming as deferred stock.
According to the publication, Morgan Stanley's compensation committee has met several times in recent weeks to discuss how it will pay top executives.
The daily said one idea being considered is that most of the top 30 Morgan executives would submit 65 per cent or more of their pay to 'clawbacks' or the possibility of returning money in the event of future losses.
In addition, about 20 per cent of total compensation would come in shares awarded based on Morgan Stanley's stock price compared with those of its peers.
That portion also would be based on the firm's return on equity versus preset benchmarks over a three-year period, it added.
The report noted that Morgan Stanley could make final decisions on these compensation plans as soon as next month.
