Morgan Stanley bonus news

A Billion Dollars

Top firm to give more cash upfront.

Morgan Stanley is giving employees a greater portion of their bonuses up front as the bank seeks to structure pay in line with peers and lower expenses in future years.

Bloomberg News reports that the compensation committee of Morgan Stanley’s board agreed to defer future bonus pools at an average rate of 50%, down from about 80% last year, the company said last week in a regulatory filing.

The New York-based firm also will take a fourth-quarter charge of as much as $1.2bn to cover the cost of accelerating vesting of deferred pay awarded in previous years, according to the filing.

The moves mark a reversal from Morgan Stanley’s efforts to defer more pay since the 2008 financial crisis to tie bankers to the firm and reduce immediate costs, peaking when it deferred 100% of 2012 bonuses for many senior bankers. The early vesting of previous awards will allow more flexibility in managing future costs, Chief Executive Officer James Gorman said in a memo to employees obtained by Bloomberg News.

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Morgan Stanley to Award More Bonuses Up Front

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