Morgan Stanley's CEO compensation falls 25 percent

NEW YORK (Reuters) - The total compensation of John Mack, Morgan Stanley's (MS.N) CEO, slipped 25 percent to $1.2 million in 2008 after he declined a bonus, according to shareholder materials filed with regulators on Friday.

The compensation of Colm Kelleher, chief financial officer, was $7.44 million.

Mack, along with other chief executives at banks that received government funds, told Congress in February that he would not receive a bonus award for 2008. Mack received no bonus in 2007 either.

At other banks including Bank of America Corp (BAC.N), senior executive officers including CFOs followed their CEOs in declining bonuses, but Morgan Stanley's Kelleher received a bonus of $3.97 million for 2008, of which $2.9 million was a cash award, according to the materials filed with the Securities and Exchange Commission.

Kelleher's total compensation, including his salary, a bonus, stock, options and perks, was down by about 64 percent on 2007, however.

Shareholders will consider various proposals at the company's annual meeting on April 29 in Purchase, New York, including a shareholder proposal for an independent director to serve as chairman of the board.

(Reporting by Elinor Comlay, editing by Matthew Lewis)