Employers have virtually no discretion over granting additional funded benefits in areas such as health care and retirement, and they are usually hemmed in regarding salary or target bonuses, based on internal compensation equity, he says.
He said president Obama was not talking of a full-scale break-up of the banks but wanted to "separate retail deposit-taking from large-scale proprietary trading, large internal hedge funds and large internal private equity funds and I agree with him".
For investors such as pension funds, buying a stake in a listed entity may appeal if their internal rules stop them investing directly in private-equity or hedge funds.
Mr Morris argues that private-equity managers have charged excessive fees and overstated returns by using misleading measures of their internal rate of return.