$6.4m question for star banker Perella

THE return of John Mack as chairman and chief executive of Morgan Stanley poses a multi-million-dollar dilemma for star investment banker Joseph Perella.

Perella resigned from Morgan Stanley in April despite being promoted to vice chairman by deposed chief Philip Purcell. Mack, 60, has made little secret of the fact that he wants to bring Perella, 63, back into the fold.

Perella told the Securities and Exchange Commission last week that he might sell about a third of his Morgan Stanley stake. The 443,000 shares he could sell would net him $23.6m (£13.2m). The following day, Mack approached him to come back.

Perella also has to look at the $6.4m settlement he reached when he quit Morgan Stanley. The payout was made to stop him joining up with the 'group of eight' former executives of the investment bank who triggered the coup against Purcell.

Morgan Stanley investors want him to return the money if he comes back. One reportedly said: 'These were shareholders' funds. It would be a gesture of decency to return them.'

A spokesman for Perella said $6.4m was not a significant sum on Wall Street but declined to say whether or not he had sold any of the shares in the SEC filing.

Not that Perella is under financial pressure. Yesterday, he turned up as an adviser to credit-card giant MBNA in its $35bn sale to Bank of America.