Morgan Stanley is fighting a shareholder proposal to cap its annual compensation package for chief executive Philip Purcell at no more than 100 times the pay of its non-managerial staff.

Under the proposal, which will be put to a vote at the US bank's annual general meeting on March 15, Purcell would be able to receive a maximum annual package, including salary, bonus, stock options and restricted stock, of 100 times the average compensation paid to Morgan Stanley's US-based blue-collar workers and support staff.