Top firm to give more cash upfront.
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.
To access the complete Bloomberg News article hit the link below: