Morgan Stanley to Trim Bonuses: Report
NEW YORK (
) --
Morgan Stanley
(MS) - Get Report
has told executives to budget about 10% to 25% less for bonuses this year, the
Wall Street Journal
reports, citing a person familiar with the matter.
The expected bonus cuts come as the securities firm tries to reign in pay while dealing with volatile market conditions, the newspaper notes.
Dozens of managing directors who oversee groups of employees at Morgan Stanley have been informed of the estimates, which are preliminary and subject to change in the coming weeks, the person told the
Journal
.
Bonus Watch: 2011 Pay Hikes and Cuts >>
The cuts would affect traders, back-office staff and other major employee groups. Top executives also may be pressed to take less, according to the
Journal
.
Bonus reductions might be smaller than expected if revenue surges in the last few weeks of December, the
Journal
notes.
"All indications are that pay will be down. Gorman has been pretty articulate about that," one Morgan Stanley official said, the
Journal
reports. Gorman is the firm's CEO.
-- Written by Joseph Woelfel
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