NEW YORK (

TheStreet

) --

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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Joseph Woelfel

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