Morgan Stanley defers more bonus payouts (for some)

Money On Hook

Morgan Stanley, the world's largest brokerage firm, fired the first shot in Wall Street's pay formula wars by telling brokers more of their pay will be deferred in 2015 than in the past.

Reuters reports that the firm's 16,000-plus brokers, who this week were mailed their 2014 bonus totals but have not yet been told of the 2015 formula, will have from 1.5% to 15.5% of their cash and stock bonuses deferred, said a source familiar with the plan.

'In most cases, it's a very modest increase in deferrals, but without it there would be a great deal of distortion at certain revenue and length-of-service levels that the bonuses are tied to', the source told the news agency.

Figuring out the exact change may not be easy. Broker pay manuals often run more than 50 pages and change annually based on firms' goals, such as raising the number of accounts with at least $500,000 in them.

To access the complete Reuters article hit the link below:

Morgan Stanley to defer more bonus pay for brokers in 2015

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