A leading institutional shareholder in Morgan Stanley has complained about the lack of transparency in the way the US bank determines executive pay. It has requested a meeting with the board to find out how it reaches its decisions.

Rich Ferlauto, head of pension and benefits policy for the American Federation of State, County and Municipal Employees, told Financial News that it was unclear how the four-man compensation committee, chaired by Charles Knight, and the rest of the board arrived at decisions on pay.