Updated from 12:42 a.m. EST

NEW YORK (

TheStreet

) --

Morgan Stanley

(MS) - Get Report

may overhaul the way it pays its top executives, deferring more of their compensation over time and benchmarking their pay against rival firms, the

Wall Street Journal

reports, citing people familiar with the matter.

Morgan Stanley might not go as far as

Goldman Sachs

(GS) - Get Report

, which said its top executives would receive only stock for 2009 bonuses, the newspaper notes.

The

Journal

says under the pay plan Morgan Stanley executives may receive about one quarter of their 2009 pay in cash, with the rest coming as deferred stock.

Morgan Stanley's compensation committee has met several times in recent weeks to discuss how it will pay top executives. One idea being considered is that most of the top 30 Morgan executives would submit 65% or more of their pay to "clawbacks," or the possibility of returning money in the event of future losses.

In addition, about 20% of total compensation would come in shares awarded based on Morgan Stanley's stock price compared with the share prices of the investment bank's peers. That portion also would be based on Morgan Stanley's return on equity vs. preset benchmarks over a three-year period, said a person familiar with the matter, the

Journal

reports.

Morgan Stanley could make final decisions on these compensation plans as soon as next month, according to the

Journal

.

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-- Written by Joseph Woelfel in New York.

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