Morgan Stanley has suffered a setback in its fight to withhold deferred compensation from financial advisors who leave the wirehouse before the conclusion of the compensation plan’s vesting period.
The Second Circuit Court of Appeals on Wednesday rejected Morgan Stanley’s bid to toss a judge’s ruling that the wirehouse’s deferred-compensation plan is a retirement plan within the scope of the Employee Retirement Income Security Act of 1974 and that funds in such plans are therefore not forfeitable.
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