PURCHASE, N.Y.—Morgan Stanley shareholders might not be happy with the stock price, but they appear to be confident that John Mack is the right person to be manning the ship.

At the bank's annual shareholder meeting here this morning, the supporters of Mack's leadership widely outnumbered the dissenters. And even the dissidents were mostly complimentary and cordial.

After Morgan Stanley suffered a huge trading loss and $11 billion in write-downs last year, Mack made the largely symbolic gesture of refusing a bonus for 2007. In front of about 100 shareholders this morning, the Morgan Stanley chief executive called the write-downs "an embarrassing loss" and claimed full responsibility for them.

The gesture seems to have worked. A shareholder proposal to adopt a so-called say on pay, which would give shareholders a vote on executive-compensation packages, failed to garner enough support to pass. Nearly 37 percent of the shareholders voted in favor of the resolution, which was proposed by the American Federation of State, County, and Municipal Employees union and rejected by management.

John Keenan, the union's representative at the meeting, was pleased with the outcome. "Anytime nearly four out of 10 shareholders vote for change, it sends a strong message to the board," he said.

A proposal for Morgan Stanley to adopt human rights policies on investments impacting Sudan was dropped after an Amnesty International representative said it had such a "productive dialogue" with the bank's management.

And even CtW Investment Group, a union-backed pension fund that had publicly criticized Mack's leadership and called for shareholders to withhold votes on two board members as well as Mack's chairman position, seemed practically enamored of him this morning.

Bill Patterson, CtW's president, commended the firm for its openness, its outreach, and for engaging in a "superb dialogue" in recent weeks. Still, he explained to shareholders that the board needs an independent chairman to keep better checks and balances on management. "The board needs the capacity to be able to stand up to you," he told Mack.

But few shareholders agree. Mack received a full 94.5 percent of the votes represented at the meeting for his reelection as chairman. In fact, all of the board members received more than 90 percent of the votes cast.

During a question-and-answer session, a handful of shareholders stepped forward to raise issues or question certain decisions made in the past year. Mack underscored the firm's focus on liquidity right now, choosing to forgo share buybacks or taking on risks in investment opportunities such as distressed securities.

With regard to the subprime crisis, Mack said that he believes we are in the "final innings," but he concedes that today's market environment is tougher than he's seen in his 40 years in the business. Morgan Stanley believes it will continue for the near term, so its focus on liquidity will remain a priority.

One shareholder, who identified himself only as a resident of Purchase, called Mack out for firing former co-president Zoe Cruz late last year instead of stepping down himself. She oversaw the trading desk that was responsible for the losses last year.

"Either you both should be here, or you both should be gone," this shareholder said.

Mack explained that the board had made the decision to let some executives go and wanted him to remain.

Perhaps the board has good reason: His ability to quiet even the mere rumblings of a shareholder uprising was certainly impressive.

Plenty of investors seem content to overlook the fact that Morgan Stanley's shares are right around the same level they were at when Mack returned to the helm three years ago, as Portfolio.com's Dan Colarusso noted recently.

Only one vocal shareholder raised the issue of the stock price during this morning's meeting, but even he barely paused before continuing to shower Mack with praise for a job well done.

In turbulent times, it seems most investors would rather just see a calm stoicism than a high share price.