Morgan Stanley wants to pay out a smaller portion of wealth management revenue to the retail brokers who generate it, the final and perhaps most difficult front in Chief Executive James Gorman's drive to reduce staff costs across the bank.
Reuters reports that for now, executives are considering changes at the margins: cutting pay for brokers who generate the least revenue for Morgan Stanley Wealth Management, and slashing the money it sets aside to lure experienced new hires. Executives have been hashing out possibilities for the 2015 broker pay plan in recent weeks, but have not made any final decisions.
'There are some functions you don't need to continue to put money into as the revenue line grows, as we become bigger, as we are more selective on recruiting and we have less attrition', Greg Fleming, president of Morgan Stanley Wealth Management, said in an interview last month.
To access the complete Reuters article hit the link below